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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">_______________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date of Report (Date of Earliest Event Reported):&nbsp;&nbsp;January
17, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 30%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-decoration: none; text-align: center; border-bottom: Black 1pt solid">Nevada</TD>
    <TD STYLE="width: 4%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-decoration: none; text-align: center; width: 29%">333-144596</TD>
    <TD STYLE="width: 2%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-decoration: none; text-align: center; width: 35%">32-0309317</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">(State&nbsp;or&nbsp;other&nbsp;jurisdiction&nbsp;of</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">(Commission&nbsp;File&nbsp;Number)</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">(I.R.S.&nbsp;Employer&nbsp;Identification&nbsp;No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">incorporation)</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD></TR>
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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; text-decoration: none; text-align: center; border-bottom: Black 1pt solid">1311&nbsp;Herr&nbsp;Lane,&nbsp;Louisville,&nbsp;KY&nbsp;40222</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">(Address&nbsp;of&nbsp;principal&nbsp;executive&nbsp;offices)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: none; text-align: center; width: 100%; border-bottom: Black 1pt solid">502.326.8100</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">(Registrant&rsquo;s telephone number, including area code)</TD></TR>
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<TD  STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center; border-bottom: Black 1pt solid">c/o Gottbetter &amp; Partners, LLP, 488 Madison Avenue, 12<SUP>th</SUP> Floor, new York NY 10022


</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center">(Former address and former fiscal year, if changed since last report)&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&#9;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&#9;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&#9;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&#9;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Cautionary Note Regarding Forward-Looking Statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Current Report contains
forward-looking statements as that term is defined under the federal securities laws. These statements relate to anticipated future
events, future results of operations or future financial performance. These forward-looking statements include, but are not limited
to, statements relating to the adequacy of our capital to finance our planned operations, market acceptance of our services and
product offerings, our ability to attract and retain key personnel, and our ability to protect our intellectual property. In some
cases, you can identify forward-looking statements by terminology such as &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;will,&rdquo;
&ldquo;should,&rdquo; &ldquo;intends,&rdquo; &ldquo;expects,&rdquo; &ldquo;plans,&rdquo; &ldquo;goals,&rdquo; &ldquo;projects,&rdquo;
&ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; &ldquo;predicts,&rdquo; &ldquo;potential,&rdquo; or
&ldquo;continue&rdquo; or the negative of these terms or other comparable terminology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">These forward-looking statements
are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may
cause our (or our industry&rsquo;s) actual results, levels of activity or performance to be materially different from any future
results, levels of activity or performance expressed or implied by these forward-looking statements. The &ldquo;Risk Factors&rdquo;
section of this current report sets forth detailed risks, uncertainties and cautionary statements regarding our business and these
forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We cannot guarantee future
results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak
only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking
statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States,
we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events
or circumstances or to reflect the occurrence of unanticipated events.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 10pt">Explanatory Note</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On October 14, 2011, we
changed our corporate name from Medical Design Studios, Inc. to Dynastar Holdings, Inc. (&ldquo;Dynastar Holdings&rdquo;).<FONT STYLE="color: black">
Effective November 2, 2011, our trading symbol was changed from &ldquo;MEDD.OB&rdquo; to &ldquo;DYNA.OB&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 17, 2012, our
wholly owned Delaware subsidiary, Dynastar Acquisition Corp. (&ldquo;Acquisition Corp.&rdquo;), merged (the &ldquo;Merger&rdquo;)
with and into Dynastar Ventures, Inc., a Delaware corporation (&ldquo;Dynastar&rdquo;). In connection with the Merger, each share
of Dynastar common stock, on a fully diluted basis, was converted into the right to receive, one (1) share of our common stock.
Dynastar was the surviving corporation of that Merger. As a result of the Merger, Dynastar Holdings acquired the business of Dynastar
and will continue the existing business operations of Dynastar, as its wholly owned subsidiary.<FONT STYLE="color: black"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Unless the context indicates
otherwise, the terms &ldquo;Dynastar Holdings,&rdquo; &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;us&rdquo; and &ldquo;our&rdquo;
herein refer to Dynastar Holdings, Inc. and its subsidiaries (including Dynastar Ventures, Inc.), after giving effect to the Merger.
References to &ldquo;Pubco&rdquo; refer to the public company prior to giving effect to the Merger. References to &ldquo;Dynastar&rdquo;
refer to Dynastar Ventures, Inc., a Delaware corporation, both before and after giving effect to the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Current Report contains
summaries of the material terms of various agreements executed in connection with the transactions described herein. The summaries
of these agreements are subject to, and are qualified in their entirety by, reference to these agreements, all of which are incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Current Report is
being filed in connection with a series of transactions consummated by the Company and certain related events and actions taken
by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center">Table of Contents</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2">Cautionary Note Regarding Forward-Looking Statements</TD>
    <TD STYLE="text-align: right">i</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2">Explanatory Note</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-Serif; text-align: right">i</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="width: 13%; text-decoration: none">&nbsp;</TD>
    <TD STYLE="width: 83%; text-decoration: none">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD>Item 1.01.</TD>
    <TD>Entry into a Material Definitive Agreement</TD>
    <TD STYLE="text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD>Item 2.01.</TD>
    <TD>Completion of Acquisition or Disposition of Assets</TD>
    <TD STYLE="text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="line-height: 115%; text-decoration: none">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">The Merger and Related Transactions</TD>
    <TD STYLE="line-height: 115%; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Description of Business&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Risk Factors</TD>
    <TD STYLE="line-height: 115%; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operation</P>


</TD>
    <TD STYLE="line-height: 115%; text-align: right">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Securities Ownership of Certain Beneficial Owners and Management</P>


</TD>
    <TD STYLE="line-height: 115%; text-align: right">32</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Directors and Executive Officers</P>


</TD>
    <TD STYLE="line-height: 115%; text-align: right">34</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Executive Compensation&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">36</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Market Price of and Dividends on Common Equity and Related Stockholder Matters</P>


</TD>
    <TD STYLE="line-height: 115%; text-align: right">37</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Certain Relationships and Related Transactions&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">40</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Description of Capital Stock&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">41</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt"></P>


Indemnification of Officers and Directors</TD>
    <TD STYLE="line-height: 115%; text-align: right">46</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt"></TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt"></P>


Recent Sales of Unregistered Securities</TD>
    <TD STYLE="line-height: 115%; text-align: right">46</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Financial Statements and Supplemental Data&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;48</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Index to Exhibits</TD>
    <TD STYLE="line-height: 115%; text-align: right">48</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2" STYLE="line-height: 115%; padding-left: 11pt">Description of Exhibits</TD>
    <TD STYLE="line-height: 115%; text-align: right">48</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="line-height: 115%; text-decoration: none">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD>Item 3.02.</TD>
    <TD>Unregistered Sales of Equity Securities.</TD>
    <TD STYLE="text-align: right">48</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD>Item 5.01.</TD>
    <TD>Changes in Control of the Registrant.</TD>
    <TD STYLE="text-align: right">48</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192); text-align: left">
    <TD STYLE="text-align: left">Item 5.02.</TD>
    <TD STYLE="text-align: left">Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">48</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; text-align: left">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192); text-align: left">
    <TD STYLE="text-align: left">Item 5.03.&nbsp;</TD>
    <TD STYLE="text-align: left">Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year</P>


</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD>Item 5.06.</TD>
    <TD>Change in Shell Company Status.</TD>
    <TD STYLE="text-align: right">49</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD>Item 9.01.</TD>
    <TD>Financial Statements and Exhibits.</TD>
    <TD STYLE="text-align: right">49</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(192,255,192)">
    <TD COLSPAN="2">Financial Statements</TD>
    <TD STYLE="text-align: right">&nbsp;F-1</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 10pt">Item 1.01.&#9;Entry into a Material Definitive Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 17, 2012, Pubco
entered into an Agreement and Plan of Merger and Reorganization with Acquisition Corp. and Dynastar which we refer to in this Current
Report as the &ldquo;Merger Agreement&rdquo;, and completed the Merger. For a description of the Merger and the material agreements
entered into in connection with the Merger, please see the disclosures set forth in Item 2.01 to this Current Report, which disclosures
are incorporated into this item by reference.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 10pt">Item 2.01.&#9;Completion of Acquisition or Disposition
of Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">THE MERGER AND RELATED TRANSACTIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>The Merger</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 17, 2012, which
we refer to as the &ldquo;Closing Date&rdquo;, Pubco, Dynastar, and Acquisition Corp. entered into the Merger Agreement and completed
the Merger. As a result of the Merger, we acquired the business of Dynastar and will continue the existing business operations
of Dynastar as our wholly owned subsidiary. A copy of the Merger Agreement is attached as Exhibit 2.1 to this Current Report and
is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On October 6, 2011, Dynastar
purchased an aggregate of 271,400,076 (6,742,859 pre-split) shares of Pubco&rsquo;s restricted common stock from the previous owner
for a cash consideration of $100,000. The 271,400,076 shares purchased by Dynastar represented approximately 94.4% of Pubco&rsquo;s
issued and outstanding common stock as of the purchase date. Dynastar surrendered those shares to Pubco for cancellation concurrent
with the closing of the Merger. Prior to the Merger, no material relationship existed between Acquisition Corp. and Dynastar.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, on the Closing Date, Acquisition Corp., a wholly owned subsidiary of Dynastar Holdings, merged with and into Dynastar,
with Dynastar remaining as the surviving entity. <FONT STYLE="color: black">As a result of the Merger, each share of Dynastar common
stock outstanding was cancelled and converted into the right to receive one (1) share of our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Prior to the closing of
the Merger, holders of the Series A Convertible Preferred Stock of Dynastar (the &ldquo;Dynastar Preferred Stock&rdquo;) agreed
(i) that their shares of Dynastar Preferred Stock would automatically convert into shares of Dynastar common stock immediately
prior to, and conditional upon, the closing of the Merger at the anti-dilution adjusted conversion price of $0.20 per share, rather
than at the original conversion price of $0.33 per share, and (ii) to waive certain rights they may have had under the terms of
the Dynastar Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Prior to the closing of
the Merger, holders of the Dynastar 10% Secured Convertible Promissory Notes (the &ldquo;Bridge Notes&rdquo;) agreed (i) that their
Bridge Notes would automatically convert into shares of our common stock upon the closing of the Merger at the anti-dilution adjusted
conversion price of $0.20 per share, rather than at the original conversion price of $0.40 per share, (ii) that the Dynastar Warrants
(defined below) would automatically convert upon the closing of the Merger into our warrants (on terms discussed below) and (iii)
to waive certain rights they may have had under the terms of the Dynastar Warrants</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.25in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of the closing of the
Merger, there were no outstanding or authorized options, warrants, rights, agreements or commitments to which Dynastar is a party
or which are binding upon Dynastar providing for the issuance or redemption of any of its capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Merger Agreement contains
customary representations, warranties and covenants of Dynastar Holdings, Dynastar, and, as applicable, Acquisition Corp., for
like transactions. Breaches of representations and warranties are secured by indemnification provisions. The Merger Agreement provides
for a post-closing adjustment in an aggregate amount of up to 500,000 additional shares of our common stock issuable pro rata to
Dynastar&rsquo;s pre-Merger stockholders for any breach of the Merger Agreement by us that is discovered during the two-year period
following the closing of the Merger.&nbsp;&nbsp;The Merger Agreement also provides that 5% of the shares of our common stock that
Dynastar&rsquo;s pre-Merger stockholders receive in the Merger in exchange for their shares of Dynastar are to be held in escrow
for any breach of the Merger Agreement by Dynastar that is discovered during the two years following the Merger pursuant to the
terms of an Escrow Agreement dated as of January 17, 2012, among the Company, John S. Henderson IV, as indemnification representative,
and Gottbetter &amp; Partners, LLP, as Escrow Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">For
financial reporting purposes, the Merger represents a capital transaction of Dynastar or a &ldquo;reverse merger&rdquo; rather
than a business combination, because the sellers of Dynastar controlled the combined company immediately following the completion
of the Merger. As such, Dynastar is deemed to be the accounting acquirer in the transaction and, consequently, the transaction
is being treated as a recapitalization of Dynastar.&nbsp;&nbsp;Accordingly, the assets and liabilities and the historical operations
that will be reflected in Dynastar Holdings&rsquo; ongoing financial statements will be those of Dynastar and will be recorded
at the historical cost basis of Dynastar. Dynastar Holdings&rsquo; assets, liabilities and results of operations will be consolidated
with the assets, liabilities and results of operations of Dynastar after consummation of the Merger. The historical financial statements
of Pubco before the Merger will be replaced with the historical financial statements of Dynastar before the Merger in all future
filings with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;). The Merger is intended to be treated as, and t</FONT>he
parties have agreed to take all actions necessary to ensure that the Merger is treated as, <FONT STYLE="color: black">a tax-free
exchange under Section 368(a) of the Internal Revenue Code of 1986, as amended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Following the closing of
the Merger, our board of directors consists of three (3) members. In connection with the foregoing, on the Closing Date, Kenneth
Spiegeland, the sole director of Pubco before the Merger, appointed John S. Henderson IV and Jerry Tyler to fill vacancies on the
board of directors. Also on the Closing Date, Mr. Spiegeland, the then-sole officer of Pubco, resigned and new executive officers
designated by Dynastar were appointed. The officers and directors of the Company as of the Closing Date are identified in this
Current Report under the heading &ldquo;Directors and Executive Officers.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a result of the Merger,
Pubco acquired the business of and will<I> </I>continue the existing business operations of Dynastar, its wholly-owned subsidiary,
as a publicly-traded company. We will continue to comply with the information and reporting requirements of the federal securities
laws applicable to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Prior to the Merger, Pubco&rsquo;s
Board and shareholders owning a majority of its outstanding common stock adopted the 2011 Equity Incentive Plan (the &ldquo;2011
Plan&rdquo;), which became effective on September 20, 2011. The 2011 Plan provides for the issuance of up to 5,000,000 shares of
our common stock as incentive awards to be granted to executive officers, key employees, consultants and directors of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Concurrently with the closing
of the Merger and in contemplation of the Merger, we completed an initial closing of a private offering (the &ldquo;Offering&rdquo;)
of 125,000 units of our securities, at a price of $0.20 per unit. Each unit consists of one share of our common stock and a warrant
to purchase one-half share of our common stock. The warrants are exercisable for a period of five years at a purchase price of
$0.80 per whole share of our common stock.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Offering is being conducted
on a &ldquo;best efforts&rdquo; basis with respect to a maximum of 10,000,000 units.&nbsp;&nbsp;In addition, in the event the maximum
number of units is sold, the placement agent and the Company have the option to offer an additional 2,500,000 units.&nbsp;&nbsp;The
initial closing of the Offering and the closing of the Merger were not conditioned upon each other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On the Closing Date, an
investor in the Offering purchased 125,000 units for total cash consideration of $25,000.&nbsp;&nbsp;The Offering for the remaining
9,875,000 units will continue after the closing of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We paid the placement agent
in the offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from investors in the offering. In addition,
the placement agent received five-year warrants to purchase a number of shares of our common stock equal to five (5%) of the units
sold to investors in the offering. As a result of the foregoing arrangement, at the initial closing of the offering, the placement
agent was paid commissions of $2,500 and was issued broker warrants to purchase 6,250 shares of our common stock at an exercise
price of $0.20 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The forms of the investor
warrant and broker warrant issued in the offering are attached as Exhibits 4.1 and 4.3, respectively, to this Current Report and
are incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Investor Relations Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On December 20, 2011, Dynastar
entered into a consulting agreement with Undiscovered Equities, Inc. (&ldquo;UEI&rdquo;) pursuant to which UEI will provide certain
public relations and financial communications services to Dynastar and us. Our Board has agreed to assume the obligations to UEI
under this agreement. In exchange for UEI&rsquo;s services to us, we will pay UEI a cash fee of up to $350,000 payable as follows:
$200,000 upon our raising a minimum of $500,000 in the Offering; an additional $100,000 upon our raising a minimum of $1,000,000
in the Offering; and an additional $50,000 upon our raising a minimum of $1,500,000 in the Offering. Additionally, subject to our
raising a minimum of $1,500,000 in the Offering, we will<FONT STYLE="letter-spacing: -0.15pt"> issue to UEI, 1,000,000 restricted
shares of our common stock (subject to adjustment in the event of any stock split or similar event). </FONT>This agreement with
UEI will terminate on December 31, 2012 unless terminated earlier in accordance with its provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Bridge Financing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In October 2010, Dynastar
completed a bridge financing (the &ldquo;Bridge Note Offering&rdquo;) involving the sale of its Bridge Notes. The purchasers of
the Bridge Notes also received, for each $0.80 principal amount of the Bridge Notes purchased, a warrant (the &ldquo;Dynastar Warrants&rdquo;)
to purchase one share of common stock of Dynastar, exercisable for a period of five (5) years, at an exercise price of $0.80 per
share. As of the completion of the Bridge Note Offering, Dynastar had sold Bridge Notes in the aggregate principal amount of $1,144,985,
and had issued to the purchasers of the Bridge Notes Dynastar Warrants to purchase an aggregate of 1,431,231 shares of Dynastar
common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon the closing of the
Merger and following consent of the Bridge Note holders, the entire principal amount of the Bridge Notes was converted into 5,724,925
shares of our common stock and $51,756 in accrued and unpaid interest on the Bridge Notes was converted into 258,781 shares of
our common stock, each at a conversion price of $0.20 per share. Additionally, the Dynastar Warrants were exchanged for our five-year
warrants exercisable for 2,864,463 shares of our common stock, at an exercise price of $0.80 per whole share. Prior to the consummation
of the Merger, holders of the Dynastar Warrants agreed to waive any and all anti-dilution rights they might have had under the
terms of the Dynastar Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Merger, the Offering
and the bridge financing and the related transactions are collectively referred to in this Current Report as the &ldquo;Transactions.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Registration Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with the
Merger and the Offering, we have agreed to file a registration statement registering for resale (i) the shares of our common stock
issued in the Offering (including the shares of our common stock underlying the Investor Warrants, but not those underlying any
Agent Warrants), (ii) the shares of our common stock issued upon conversion of the Bridge Notes and underlying the Bridge Warrants
and (iii) the shares of our common stock issued in the Merger to the holders, prior to the Merger, of the Dynastar Series A Preferred
Stock, consistent with the terms and conditions of the registration rights agreement we have entered into with the holders of the
registrable shares listed above. We have agreed to file the registration statement no later than seventy-five (75) calendar days
following the closing of the Merger (the &ldquo;Filing Deadline&rdquo;) and use our best efforts to ensure that such registration
statement is declared effective within one hundred fifty (150) calendar days of filing with the SEC (the &ldquo;Effectiveness Deadline&rdquo;).
Notwithstanding the foregoing, should our Board deem it advisable and in the best interests of us to delay the filing, we may seek
the consent of the holders of registrable securities to such delay and the waiver of monetary penalties described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If we are late in filing
the registration statement or if the registration statement is not declared effective within one hundred fifty (150) days of filing
with the SEC, monetary penalties payable by us to each holder of registrable securities will commence to accrue and cumulate at
a rate equal to one percent (1.00%) of the purchase price per share paid by such holder for the registrable securities for each
full period of 30 days that (i) we are late in filing the registration statement or (ii) the registration statement is late in
being declared effective by the SEC (which shall be pro rated for any period less than 30 days); provided, however, that in no
event shall the aggregate of any such penalties exceed ten percent (10%) of the purchase price per share paid by such holder for
the registrable securities. Notwithstanding the foregoing, no payments shall be owed with respect to any period during which all
of the holder&rsquo;s registrable securities may be sold by such holder under Rule 144 or pursuant to another exemption from registration.
Moreover, no such payments shall be due and payable with respect to any registrable securities we are unable to register due to
limits imposed by the SEC&rsquo;s interpretation of Rule 415 under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have agreed to maintain
the effectiveness of the registration statement through the earlier of second anniversary of the date the registration statement
is declared effective by the SEC or until Rule 144 of the Securities Act is available to the holders to allow them to sell all
of their registrable securities thereunder. The holders of any registrable securities removed from the registration statement as
a result of any Rule 415 or other comments from the SEC shall have &ldquo;piggyback&rdquo; registration rights for the shares of
common stock or common stock underlying such warrants with respect to any registration statement filed by us following the effectiveness
of the registration statement which would permit the inclusion of these shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We will pay all expenses
in connection with any registration obligation provided in the registration rights agreement, including, without limitation, all
registration, filing, stock exchange fees, printing expenses, all fees and expenses of complying with applicable securities laws,
and the fees and disbursements of our counsel and of our independent accountants.&nbsp;&nbsp;Each investor will be responsible
for its own underwriting discounts and commissions, transfer taxes and the expenses of any attorney or other advisor such investor
decides to employ.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The form of the registration
rights agreement is attached as Exhibit 10.4 to this Current Report and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Lock-up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with the
Merger, each of the officers, directors, key employees and certain holders of 10% or more of our common stock after giving effect
to the Transactions agreed to &ldquo;lock-up&rdquo; and not sell or otherwise transfer or hypothecate any of their shares of our
common stock for a term of eighteen (18) months from the Closing Date of the Merger except in certain limited circumstances.&nbsp;&nbsp;We
also agreed not to register under the Securities Act the resale of the shares of our common stock received by those officers, directors,
key employees and 10% holders in the Merger for a period of two years following the closing of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Current Ownership</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Immediately after giving
effect to the Transactions, including the units sold in the initial closing of the Offering, the conversion of the Bridge Notes
and the exchange of the Dynastar Warrants, the issuance of shares of our common stock to the former Dynastar stockholders in the
Merger, the cancellation of shares owned by Dynastar, and the broker warrants issued to the placement agent in connection with
the Offering, there were issued and outstanding securities of the Company on the closing of the Transactions as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(i)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">the stockholders of Dynastar surrendered all of the issued and outstanding shares
of Dynastar&rsquo;s capital stock, assuming the conversion of Dynastar&rsquo;s outstanding Dynastar Preferred Stock at the as
adjusted conversion price of $0.20 per share, and received, in exchange for such shares, an aggregate of 15,872,000 shares of
our common stock (the &ldquo;Merger Shares&rdquo;);&nbsp;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(ii)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">the pre-merger closing stockholders of Pubco other than Dynastar retained 16,103,541
shares of our common stock;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(iii)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">Dynastar surrendered to Pubco for cancellation 271,400,076 shares of our common stock
pursuant to a share cancellation agreement dated effective as of January 17, 2012;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(iv)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">one investor purchasing Units in the Offering will receive 125,000 shares of our common
stock and investor warrants to purchase up to 62,500 shares of our common stock;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(v)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">the Bridge Notes were converted, as to their outstanding principal amount, into an
aggregate of 5,724,925 shares of our common stock and as to their accrued interest amount, into an aggregate of 258,781 shares
of our common stock;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(vi)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">the Dynastar Warrants were exchanged into our warrants to purchase an aggregate of
2,862,463 shares of our common stock;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(vii)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">Robert R. Mohr, Chief Financial Officer of Dynastar and designated Chief Financial
Officer of Pubco, exchanged an option exercisable for 450,000 Dynastar shares of common stock for an option under the 2011 Plan
exercisable for 450,000 shares of our common stock and received an additional option under the 2011 Plan exercisable for 500,000
shares of our common stock; and John S. Henderson IV, Chief Executive Officer of Dynastar and designated Chief Executive Officer
of Pubco received an option exercisable for 1,000,000 shares of our common stock under the 2011 Plan;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(viii)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">the placement agent received agent warrants to purchase up to 6,250 shares of our
common stock; and&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(ix)&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt">Acquisition Corp. merged with and into Dynastar, with Dynastar remaining as the
surviving entity.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Accounting Treatment; Change of Control</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Merger is being accounted
for as a &ldquo;reverse merger,&rdquo; and Dynastar is deemed to be the acquirer in the reverse merger for accounting purposes.
Consequently, the assets and liabilities and the historical operations of the Company that will be reflected in the financial statements
prior to the Merger will be those of Dynastar, and the consolidated financial statements of the Company after completion of the
Merger will include the assets and liabilities of Dynastar, historical operations of Dynastar and operations of Dynastar from the
Closing Date of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Except as described in
the previous paragraphs, no arrangements or understandings exist among present or former controlling stockholders with respect
to the election of members of the Company&rsquo;s board of directors and, to our knowledge, no other arrangements exist that might
result in a change of control of the Company. Further, as a result of the issuance of the shares of common stock pursuant to the
Merger, a change in control of the Company occurred as of the date of consummation of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>DESCRIPTION OF BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Through our wholly owned
subsidiary Dynastar, we are a direct selling company focused on selling electricity in deregulated energy markets with headquarters
located in Louisville, Kentucky.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We operate through an organization
of independent energy consultants to sell electricity to consumer and commercial clients on behalf of our deregulated retail energy
provider partners. These energy providers are licensed energy resellers in the deregulated retail energy markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We plan to leverage our
independent energy consultant organization to grow to meet the demands of the rapidly deregulated retail energy markets by offering
alternative pricing opportunities to consumer and commercial purchasers of electricity and gas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Solutions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are a focused energy
marketing company. Our focus is on building a selling and marketing organization of independent energy consultants. We are not
in the business of purchasing or actually selling electricity or gas. That responsibility is left to our deregulated retail energy
provider partners. We provide a service to both the deregulated energy providers and to the consumers. To the deregulated retail
energy provider partners, we bring energy customers at an affordable commission cost, helping the deregulated energy providers
avoid the costs of having to invest in the fixed costs of hiring and managing their own direct sales forces. To consumers, as a
result of deregulation, we intend to bring cost savings and alternative pricing programs that are not available through the incumbent
local regulated utility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a sales and marketing
company, our principal tools consist of (i) our independent energy consultant organization, (ii) our web-based selling and pricing
tools, (iii) our advertising and promotion programs and (iv) our relationships with our deregulated retail energy provider partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Independent Energy
Consultant Organization</I>. At December 31, 2011, our independent energy consultant organization consisted of 292 active
consultants. Our consultant organization has declined over the last 11 months, due to a deliberate change in our  energy
consultant compensation plan that offered more incentives to energy consultants to grow their business organization and
customer base. As a result of this shift in compensation, a number of the existing independent energy consultants left the
organization, resulting in short term margin improvement for us as those consultants relinquished their rights to the
residual commissions from their customer base. We believe that we have stabilized our base energy consultant organization and
are ready to engage our growth strategies to add productive, high-value added independent energy consultants going forward.
We believe that Dynastar will be able to rapidly grow its independent energy consultant organization in order to expand its
business throughout the deregulated markets in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Web-based Selling and
Pricing Tools</I>. Our web-based selling and pricing tools have been developed to facilitate the identification and tracking of
customers and renewals, the pricing of products offered to retail energy customers and the tracking of commissions and bonuses
earned. We believe that these tools will serve as motivators to facilitate the growth of our independent energy consultant organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Advertising and Promotion
Programs</I>. We believe that our advertising and promotion programs are currently being developed and we anticipate that we will
launch these promotion programs in early 2012, after the consummation of our current Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Relationships with Retail
Energy Provider Partners</I>. We have established agency agreements with three deregulated retail energy providers, who operate
in the states of Texas, New York, Pennsylvania, Connecticut, Maryland, New Jersey and Maine. We are targeting to enter into agency
agreements with energy providers across most of the 24 states in which electricity and gas have been deregulated. Through January
20, 2012, we were only operating in the states of Texas, New Jersey, and New York. Our initial focus will be in the Texas, New
Jersey, New York and Pennsylvania markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe that we are
able to attract independent energy consultants to our business by providing opportunities for individuals to start their own business
with a low start-up cost ($99 enrollment fee) and a personalized website (&ldquo;Energy Store&rdquo;) with an easy to use back
office tool set ($49 per month). In addition, we provide comprehensive online training, operations support, and the ability to
participate in corporate sponsored events. We provide the independent energy consultants the opportunity to earn monthly residual
income and leadership bonuses in a flexible business that allows the consultants to work around their schedules with no inventory
or collections to maintain. Finally, we believe that our consultants are provided an incentive to build a business organization
by recruiting other independent energy consultants into their organization and receiving residual income based on the efforts of
those consultants they sponsor in the business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We provide each independent
energy consultant with an Energy Store for $49 per month that includes a replicated consultant oriented website, a replicated customer
oriented website, a custom lead capture site, social media interaction linked to our site, a contact management system integrated
with the lead capture sites, an e-mail auto responder system, a follow up reminder system, a personal @mydynastarenergy.com e-mail
address, cell phone text notices of prospect and enrollment activity, online and printed marketing materials and a fully integrated
help desk with FAQ subsystem. We believe these tools help optimize the consultants time and efforts to give them the ability to
rapidly build their organization whether it be customer oriented or consultant organization oriented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Market</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">According to the U.S. Energy
Information Administration (www.eia.gov), there are approximately 91 million potential retail and commercial energy customers in
the 24 states that have deregulated the selling of electricity and gas. We anticipate that additional states will deregulate their
energy markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We expect that the deregulation
of the energy business in the United States will have effects similar to that of the deregulation of the telecommunications business.
The former AT&amp;T was effectively broken up in 1984, allowing for other players such as MCI, Sprint, Quest and ACN to expand
in the market. The Telecommunications Act of 1996 allowed for the retail resale of telecommunication services. According to Phone+
magazine, with deregulation, over the past 10 years, the telecommunications business has grown to a $100 billion market, from just
$10 billion. Also according to Phone+ magazine, the growth of the telecommunication business was partly attributable to market
participants who utilized direct selling as a tool to rapidly introduce new products and services, thus facilitating the rapid
expansion of their markets and customer base. We believe that we are at the forefront of this same business expansion in the sales
and marketing of energy to consumers and small businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We plan to initially focus
our efforts on deregulated retail energy providers in what we believe are three primary high potential markets: Texas, New York
and Pennsylvania. The Texas market is the most mature having engaged in deregulation since 2002. According to the Texas State Comptroller,
in Texas by 2007, approximately 40% of residential customers had switched from the incumbent local regulated utility to deregulated
retail energy providers. Utilizing information gathered by the U.S. Energy Information Administration, assuming a similar penetration
rate in the New York and Pennsylvania markets, for the year 2010, there were potentially approximately 8.0 million residential
consumers using approximately 100.6 billion kWh of electricity per year resulting in approximately $13.4 billion in revenue for
the retail energy providers. Sales commissions on the resale of electricity by brokers are typically 10% of the price of electricity.
Therefore, within the residential customer market in New York and Pennsylvania, we believe there is a potential for independent
energy selling agents to generate approximately $1.3 billion in total commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Opportunity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Deregulated retail energy
providers, who emerged with the deregulation of the energy markets, operate under a license to sell electricity and gas. To date,
these energy providers have traditionally catered to the industrial and large commercial customer base. For the most part, we believe
these energy providers have ignored the needs of the consumer and small commercial purchasers, as the cost to service this widely
distributed customer base through their own direct sales forces was not cost effective. We are seeing an emerging focus by these
energy providers to target the consumer and small commercial customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We see an opportunity to
partner with these retail energy providers, by bringing customers to them through our independent energy consultant organization,
our marketing programs and our web-based support platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 22pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our energy customers typically
sign 1 year agreements to purchase energy from our deregulated retail energy provider partners. We believe that consumers will
be attracted to our product pricing offerings, as we will be able to offer a choice of energy purchasing plans and reduce their
costs of electric and gas energy purchases by 5% to 15%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The market for our products
is highly competitive and rapidly changing. We target to sign up consumer and small commercial purchasers of electricity and gas.
Even though we will operate on the deregulated side of the selling of energy, we believe that we will be able to effectively compete
for customers with both regulated and deregulated companies. On the regulated side, we intend to compete for customers with the
incumbent public utility. On the deregulated side, we will compete principally against licensed retail energy providers who have
invested in their own direct sales forces. Two of these players are Ignite, Inc. (founded in 2004) and Ambit Energy (founded in
2006). According to Direct Selling News, for the year 2010, through direct selling, Ignite controlled approximately $160 million
in retail energy sales and Ambit approximately $70 million in retail energy sales. During this same time frame, Ignite and Ambit
reported that they had 188 and 275 employees, respectively, committed to their direct selling business. Ignite operates in Texas
and Georgia, and Ambit operates in Texas, New York and Illinois. Further, we may face competition from other direct selling companies
who may add electricity and gas to the other products and services that they are now selling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Marketing and Sales</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our marketing efforts to
date have been to use web-based sales and marketing tools to attract and sign up highly motivated independent energy consultants
and their associated organization. In our target markets, we intend to use inside and outside direct sales representatives to generate
end user sales. Through targeted Internet marketing, advertising and lead generation with firms that have proven success in the
marketplace, we intend to identify the highest potential markets and focus our advertising to attract independent energy consultants
and electricity and gas consumers. In addition, we intend to use proven high potential television advertising to drive electricity
and gas consumers to our retail energy provider partners. Finally, we intend to engage online lead generation companies that have
a reputable web presence to focus on identifying highly qualified independent energy consultant leads.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The historical sales cycle
of Dynastar suggests that an independent energy consultant identifies, qualifies, approaches and closes a large number of customers
within the first month of joining the business. Typically, the consultant is selling to friends and family as well as signing up
themselves. The sales cycle is typically very quick with a span of only a few days between prospect identification and closing.
Each jurisdiction is different but the process typically involves the customer providing copies of their utility bills and a third
party verification that the customer wishes to change provider. We receive one time commission from the retail energy provider
upon the initial enrollment of a new customer (&ldquo;Customer Acquisition Bounty&rdquo;) . Within 30 to 60 days the customer receives
its first bill from the new energy provider and within 60 to 90 days the customer is paying the new energy provider and we are
earning residual commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We expect that with the
infusion of the additional capital we raised and plan to continue to raise and with additional management we will be able to increase
commission revenues, expand the geographic footprint of the markets in which we will operate and increase marketing and promotion.
Our management intends to do the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: 0pt"><FONT STYLE="font-family: Symbol">&#183;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Add additional established and proven independent energy consultants to our sales
organization, which would drive more revenue and take early advantage of signing customers for our retail energy provider partners.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-family: Symbol">&#183;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Establish direct selling arrangements with additional retail energy providers in both
existing marketing geographies and in new geographies.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-family: Symbol">&#183;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Initiate specific new marketing and promotion programs that will serve to drive additional
energy consumers to us and help us to build brand awareness.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-family: Symbol">&#183;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Expand our capabilities for and target growth in the commercial market, where there
are economies of scale that drive greater commission revenues and margins.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: -11pt"><FONT STYLE="font-family: Symbol">&#183;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Increase our independent energy consultant organization by introducing services within
jurisdictions that are not yet deregulated or are not within the footprint of our existing retail energy providers to ensure we
penetrate the market immediately with an existing organization when we are able to sell energy services within such jurisdictions.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our blend and menu of web-based
selling tools is proprietary although the underlying technology is publicly available. We expect to continue to develop our intellectual
property in order to provide greater and more efficient tools to facilitate the sales efforts by our independent energy consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Customers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our customers are the retail
energy providers. As of January 20, 2012, we have 3 retail energy provider customers. Through these three energy providers, we
have enrolled a total of 4,155 retail and commercial energy consumers located in Texas and New York. Substantially all of our revenues
are through just one of these retail energy providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of January 20, 2012,
we had five (5) employees. We have never experienced a work stoppage and believe our relationship with our employees is good.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Properties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We currently lease approximately
2,142 square feet of office space in Louisville, Kentucky for our principal executive offices under a two year operating lease.
We currently pay monthly basic rent of $2,600 per month for this space.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We may, from time to time,
be a party to litigation that arises in the normal course of our business operations.&nbsp;&nbsp;Currently, no legal proceedings,
government actions, administrative actions, investigations or claims are pending against us or involve us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Available Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are currently a voluntary
filer with respect to the reporting requirements of the Securities Exchange Act of 1934 (&ldquo;Exchange Act&rdquo;).&nbsp;&nbsp;Reports
filed with the SEC pursuant to the Exchange Act, including annual and quarterly reports, and other reports we file, can be inspected
and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. Investors may
obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330. Investors can request copies
of these documents upon payment of a duplicating fee by writing to the SEC. The reports we file with the SEC are also available
on the SEC&rsquo;s website (http://www.sec.gov).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><B>RISKS RELATED TO OUR BUSINESS AND OUR INDUSTRY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We have a history of losses and we may
not achieve or maintain profitability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have a history of losses
and have not yet achieved profitability. We had a net loss of $558,903 and a net loss available to common stockholders of $1,025,403
for the period from May 4, 2010 (inception) through December 31, 2010 and $1,158,020 for the nine months ended September
30, 2011. As of September 30, 2011, our cumulative loss available to common stockholders from inception was $2,183,423. We expect
operating expenses to increase in the future due to the expected development activities and marketing expenses we will incur to
increase brand awareness in the deregulated energy marketplace as well as, increased operations costs and general and administrative
costs associated with implementing our business plan. Although we expect to achieve profitability in 2013, such expectation is
based on assumptions that are subject to economic and competitive uncertainties that are largely outside of our control. Our independent registered public accounting firm included an explanatory paragraph in their report for the
year ended December 31, 2010 and <FONT STYLE="line-height: 115%">the period from May 4, 2010
(inception) through December 31, 2010</FONT> on the accompanying financial statements regarding concerns about our ability to continue
as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this
disclosure by our independent registered public accounting firm. We have
a limited operating history upon which you can evaluate our business and prospects. You must consider our business, financial history
and prospects in light of the risks and difficulties we face as an early stage company with a limited operating history. There
can be no assurances that we will achieve or maintain profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We have limited sales and compete in
rapidly evolving markets, which makes our future operating results difficult to predict.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We were formed in May 2010
and began operations in February 2011. We have limited commission revenues in an increasingly competitive industry. We are building
out our network of deregulated Retail Energy Provider partners for which we would sell and we are expanding our organization of
independent sales consultants. Building these partnerships will require time and money. These factors make it difficult to predict
our operating results, which may impair our ability to manage our business and our investors&rsquo; ability to assess our prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>If we are unable to manage our anticipated
growth effectively, our revenues and profits could be adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We anticipate that a significant
expansion of our operations and addition of new personnel is required in all areas of our operations in order to implement our
business plan. Our future operating results depend to a large extent on our ability to manage this expansion and growth successfully.
For us to continue to manage our growth, we must put in place legal and additional accounting systems and implement human resource
management and other tools. We have taken preliminary steps to put this structure in place. However, there is no assurance that
we will be able to successfully manage this anticipated rapid growth. A failure to manage our growth effectively could materially
and adversely affect our ability to market and sell our solutions and products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The rates we charge for our services
may decline over time, which would reduce our revenues and adversely affect our profitability. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As our business model continues
to gain acceptance and attracts the attention of competitors, we may experience pressure to decrease the fees for our services,
which could affect our revenues and gross margin. If we are unable to sell our services at acceptable prices, or if we fail to
offer additional services with sufficient profit margins, our revenue growth will slow and our business and financial results will
suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our future success depends on the continued
services of our employees, including Messrs. John S. Henderson IV and Robert R. Mohr.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our future success depends
on the continued services of our Chief Executive Officer and President, John S. Henderson IV, and Chief Financial Officer, Robert
R. Mohr. We have entered into an employment agreement with each of Messes. Henderson and Mohr; however, each may resign at any
time in his sole discretion. The loss of services of any of these individuals could impair our ability to consummate our business
plan and could have a material adverse effect on our business, financial condition and results of operations. It is our intention
to purchase key man life insurance with respect to Mr. Henderson.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We must also continue to
seek ways to retain and motivate all of our employees through various means, including through enhanced compensation packages.
In addition, we will need to hire more employees as we continue to implement our key strategy of building on our market position
and expanding our business. Competition for qualified personnel in the areas in which we compete remains strong and the pool of
qualified candidates is limited. Our failure to attract, hire and retain qualified staff on a cost efficient basis would have a
material adverse effect on our business, prospects, financial condition, results of operations and ability to successfully implement
our growth strategies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We may be subject to intense competition
and may not be able to compete successfully against larger and more established businesses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Several established companies
are currently offering or looking to offer solutions that compete within the deregulated energy marketplace. There can be no assurance
that competitors with substantially greater financial, technical, managerial, marketing and other resources and experience than
us will not compete more effectively than us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our ability to compete successfully will
depend, in part, on our ability to attract and retain experienced independent sales consultants.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The success of our business
model presumes that we will be able to attract, train, motivate and retain highly skilled and effective independent sales consultants.
Either not being able to develop this independent sales consultant organization or not being able to retain them, could have an
adverse effect on our business, financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>A prolonged recession, instability in
the financial markets, and insufficient financial sector liquidity, could negatively impact our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The consequences of a prolonged
recession could include a lower level of economic activity and uncertainty regarding energy prices. A lower level of economic activity
could result in a decline in energy consumption which could adversely affect our revenues and future growth. Economic downturns
or periods of high energy supply costs typically lead to reductions in energy consumption and increased conservation measures.
These factors could have an adverse effect on our results of operations, cash flows or financial position. Instability in the financial
markets as a result of recession or otherwise, as well as insufficient financial sector liquidity, also could affect the cost of
capital and our ability to raise capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our business is heavily influenced by
how much regulated utility prices for energy are above or below competitive market prices for energy and, accordingly, any changes
in regulated prices or cyclicality or volatility in competitive market prices heavily impacts our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">When energy prices increase
in competitive markets above the price levels of the regulated utilities, energy consumers are less likely to lock-in to higher
fixed price contracts in the competitive markets and so they are less likely to use our alternative pricing platform. Accordingly,
reductions in regulated energy prices can negatively impact our business. Any such reductions in regulated energy prices over a
large geographic area or over a long period of time would have a material adverse effect on our business, prospects, financial
condition and results of operations. Similarly, cyclicality or volatility in competitive market prices that have the effect of
driving those prices above the regulated utility prices will make our alternative pricing platform less useful to energy consumers
and will negatively impact our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We currently derive all of our revenue
as a sales agent to resellers of electricity, and as a result our business is highly susceptible to factors affecting the electricity
market over which we have no control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have derived approximately
100% of our revenues since we began operations in February 2011 from commissions earned in connection with the sale of electricity.
Although we intend to expand into other markets such as gas and commercial markets, we believe that our revenues will continue
to be highly dependent on the level of activity in the electricity market for the near future. Transaction volume in the electricity
market is subject to a number of variables, such as consumption levels, pricing trends, availability of supply and other variables.
We have no control over these variables, which are affected by geopolitical events such as war, threat of war, terrorism, civil
unrest, political instability, environmental or climatic factors and general economic conditions. We are particularly vulnerable
during periods when energy consumers perceive that electricity prices are at elevated levels since transaction volume is typically
lower when prices are high relative to regulated utility prices. Accordingly, if electricity transaction volume declines sharply,
our results will suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our success depends on the widespread
adoption of purchasing electricity from competitive sources.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our success depends, in
large part, on the willingness of energy consumers to embrace competitive sources of supply, and on the ability of the energy resellers
for whom we sell to consistently source electricity at competitive rates. In most regions of North America, energy consumers have
either no or relatively little experience purchasing electricity in a competitive environment. Although electricity consumers in
deregulated regions have been switching from incumbent utilities to competitive sources, there can be no assurance that the trend
will continue. In a majority of states and municipalities, including some areas which are technically &ldquo;deregulated&rdquo;,
electricity is still provided by the incumbent local utility at subsidized rates or at rates that are too low to stimulate meaningful
competition by other providers. In addition, extreme price volatility could delay or impede the widespread adoption of competitive
markets. To the extent that competitive markets do not continue to develop rapidly our prospects for growth will be constrained.
Also, there can be no assurance that trends in government deregulation of energy will continue or will not be reversed. Increased
regulation of energy would significantly damage our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Even if our alternative pricing platform
model achieves widespread acceptance as the preferred means to transact energy, we may be unsuccessful in competing against current
and future competitors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We expect that competition
for the retail marketing of deregulated energy will intensify in the near future in response to expanding restructured energy markets
that permit consumer choice of energy sources and as technological advances create incentives to develop more efficient and less
costly energy procurement in regional and global markets. The barriers to entry into the retail marketing of deregulated energy
and marketplace are relatively low, and we expect to face increased competition from traditional providers and other established
participants in the energy industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Many of our competitors
and potential competitors have longer operating histories, better brand recognition and significantly greater financial resources
than we do. The management of some of these competitors may have more experience in implementing their business plan and strategy
which would give them a competitive advantage. We expect that as competition in the deregulated retail energy marketplace increases,
commissions for the retail sale of energy will decline, which could have a negative impact on the level of commissions we can charge
per transaction and may reduce the relative attractiveness of our services. We expect that our costs relating to marketing and
human resources may increase as our competitors undertake marketing campaigns to enhance their brand names and to increase the
volume of business conducted through their exchanges. We also expect many of our competitors to expend financial and other resources
to improve their network and system infrastructure to compete more aggressively. Our inability to adequately address these and
other competitive pressures would have a material adverse effect on our business, prospects, financial condition and results of
operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>If we are unable to rapidly implement
some or all of our major strategic initiatives, our ability to improve our competitive position may be negatively impacted.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our strategy is to improve
our competitive position by implementing certain key strategic initiatives in advance of competitors, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">continuing to develop deregulated retail energy provider relationships;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">expanding our organization of independent sales consultants;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">leveraging new products such as the sale of gas;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">targeting the commercial markets; and&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">targeting other energy-related markets.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We cannot assure you that
we will be successful in executing against any of these key strategic initiatives, or that our time to market will be sooner than
that of competitors. Some of these initiatives relate to new services or products in which we lack experience and expertise. If
we are unable to continue to implement some or all of our key strategic initiatives in an effective and timely manner, our ability
to improve our competitive position may be negatively impacted, which would have a material and adverse effect on our business
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our costs will continue to increase as
we expand our business and our revenue may not increase proportionately, resulting in operating losses in the future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We expect that we will
need to significantly increase our operating expenses as we expanded our capabilities to offer additional energy-related products,
increase our sales and marketing efforts and developed our administrative organization. As we continue to expand our business,
we may incur additional operating losses. In addition, our budgeted expense levels are based, in significant part, on our expectations
as to future revenue and are largely fixed in the short term. As a result, we may be unable to adjust spending in a timely manner
to compensate for any unexpected shortfall in revenue which could compound those losses in any given fiscal period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We may expand our business through the
acquisition of other businesses and technologies which will present special risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We may expand our business
in certain areas through the acquisition of businesses, technologies, products and services from other businesses. Acquisitions
involve a number of special problems, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">the need to incur additional indebtedness, issue stock or use cash in order to complete
the acquisition;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">difficulty integrating acquired technologies, operations and personnel with the existing
business;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">diversion of management attention in connection with both negotiating the acquisitions
and integrating the assets;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">strain on managerial and operational resources as management tries to oversee larger
operations;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">the funding requirements for acquired companies may be significant;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">exposure to unforeseen liabilities of acquired companies;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">increased risk of costly and time-consuming litigation, including stockholder lawsuits;
and&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><B>&bull;&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">potential issuance of securities in connection with an acquisition with rights that
are superior to the rights of our common stockholders, or which may have a dilutive effect on our common stockholders.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We may not be able to successfully
address these problems. Our future operating results will depend to a significant degree on our ability to successfully integrate
acquisitions and manage operations while also controlling expenses and cash burn.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We depend on a small number of key licensed
deregulated retail energy providers for a significant portion of our revenue, none of which have any obligation to use our services
or continue their relationship with us, and the partial or complete loss of business of one or more of these relationships could
negatively affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We operate as sales agents
through relationships with licensed deregulated retail energy providers. For the nine months ended September 30, 2011, 100% of
our revenues were generated through just one of these relationships. Although we are developing additional relationships, there
is no guarantee that we will be able to develop sufficient relationships to meet our business plan. Further, the loss of certain
of these relationships would impair our ability to consummate our business plan and could have a material adverse effect on our
business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our business depends heavily on our website
selling platform the interruption or unavailability of which could materially damage our operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The satisfactory performance,
reliability and availability of our selling and marketing efforts, as well as network infrastructure are critical to our reputation
and our ability to attract and retain both independent sales consultants and retail customers. Our efforts to mitigate systems
risks may not be adequate and the risk of a system failure or interruption cannot be eliminated. Although we have never experienced
a material unscheduled interruption of service, any such interruption in our services may result in an immediate, and possibly
substantial, loss of revenue and damage to our reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our business also depends
upon the use of the Internet as a transactions medium. Therefore, we must remain current with Internet use and technology developments.
Our current technological architecture may not effectively or efficiently support our changing business requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any substantial increase
in service activities or transaction volume on our exchanges may require us to expand and upgrade our technology, transaction processing
systems and network infrastructure. Although we continually monitor infrastructure performance and plan for scalability, there
can be no assurance that we will be able to successfully do so, and any failure could have a material adverse effect on our business,
results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Breaches of online security could damage
or disrupt our reputation and our ability to do business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To succeed, online communications
must provide a secure transmission of confidential information over public networks. Security measures that are implemented may
not always prevent security breaches that could harm our business. Although to our knowledge we have never experienced a breach
of online security, compromise of our security could harm our reputation and cause users to lose confidence in our security systems
and also subject us to lawsuits, sanctions, fines and other penalties. In addition, a party who is able to circumvent our security
measures could misappropriate proprietary information, cause interruptions in our operations, damage our computers or those of
our users, or otherwise damage our reputation and business. Our insurance policies may not be adequate to reimburse us for losses
caused by security breaches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We may need to expend significant
resources to protect against security breaches or to address problems caused by breaches. These issues are likely to become more
difficult and costly as our business expands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We depend on third-party service and
technology providers and any loss or breakdown in those relationships could damage our operations significantly if we are unable
to find alternative providers.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We depend on a number of
third-party providers for web hosting, elements of our online auction system, data management and other systems, as well as communications
and networking equipment, computer hardware and software and related support and maintenance. There can be no assurance that any
of these providers will be able to continue to provide these services without interruption and in an efficient, cost-effective
manner or that they will be able to adequately meet our needs as our transaction volume increases. An interruption in or the cessation
of such third-party services and our inability to make alternative arrangements in a timely manner, or at all, could have a material
adverse effect on our business, financial condition and operating results. There is also no assurance that any agreements that
we have in place with such third-party providers will be renewed, or if renewed, renewed on favorable terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The application of taxes including sales
taxes and other taxes could negatively affect our business. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The application of indirect
taxes (such as sales and use tax, value added tax, goods and services tax, business tax, and gross receipt tax) to e-commerce businesses
and our users is a complex and evolving issue. Many of the fundamental statutes and regulations that impose these taxes were established
before the growth of the Internet and e-commerce. In many cases, it is not clear how existing statutes apply to the Internet or
e-commerce. In addition, some jurisdictions have implemented or may implement laws specifically addressing the Internet or some
aspect of e-commerce. The application of existing or future laws could have adverse effects on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Several proposals have
been made at the state and local level that would impose additional taxes on the sale of goods and services through the Internet.
These proposals, if adopted, could substantially impair the growth of e-commerce, and could diminish our opportunity to derive
financial benefit from our activities. The United States federal government&rsquo;s moratorium on states and other local authorities
imposing access or discriminatory taxes on the Internet is effective through November&nbsp;1, 2014. This moratorium, however, does
not prohibit federal, state, or local authorities from collecting taxes on our income or generally from collecting taxes that are
due under existing tax rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In conjunction with the
Streamlined Sales Tax Project &ndash; an ongoing, multi-year effort by certain state and local governments to require collection
and remittance of distant sales tax by out-of-state sellers &ndash; bills have been introduced in the U.S. Congress to overturn
the Supreme Court&rsquo;s <I>Quill</I> decision, which limits the ability of state governments to require sellers outside of their
own state to collect and remit sales taxes on goods purchased by in-state residents. An overturning of the <I>Quill</I> decision
would harm our users and our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The passage of new legislation
and the imposition of additional tax requirements could increase the costs to bidders and listers using our auction platform and,
accordingly, could harm our business. There have been, and will continue to be, ongoing costs associated with complying with the
various indirect tax requirements in the numerous states, localities or countries in which we currently conduct or will conduct
business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>U.S. federal or state legislative or
regulatory reform of the current systems governing commodities or energy may affect our ability to conduct our business profitably.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are currently not regulated
as an energy provider, broker or commodities dealer. Changes to the laws or regulations governing activities related to commodities
trading or energy procurement, supply, distribution or sale, or transacting in energy-related products or securities could adversely
affect the profitability of our operations or even our ability to conduct. Changes to the current regulatory framework could result
in additional costs and expenses or prohibit certain of our current business activities or future business plans. We cannot predict
the form any such legislation or rule making may take, the probability of passage, and the ultimate effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase"><B>Risks
Related to the Offering and the Merger</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We may need additional financing. Any
limitation on our ability to obtain such additional financing could have a material adverse effect on our business, financial condition
and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Although we expect that
the proceeds from the Offering will be sufficient (assuming we sell the Maximum Offering) to implement our business plan, there
can be no assurance that we will not require additional capital if we are unable to sell the Maximum Offering for further expansion
of our business. The raising of additional capital could result in dilution to our stockholders. In addition, there is no assurance
that we will be able to obtain additional capital if we need it, or that if available, it will be available to us on favorable
or reasonable terms. Any limitation on our ability to obtain additional capital as and when needed could have a material adverse
effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The shares of Common Stock underlying
the Units and the Investor Warrants comprising part of the Units will be &ldquo;restricted securities&rdquo; and, as such, may
not be sold except in limited circumstances.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Units offered in the
Offering have not been registered under the Securities Act or any state securities law. As a result, the shares of common stock
underlying the Units, the Investor Warrants and shares of common stock issuable upon exercise of the Investor Warrants will be
&ldquo;restricted securities&rdquo; under the Securities Act and they may not be sold, transferred, pledged or otherwise disposed
of unless they are registered under the Securities Act and applicable state securities laws, except in a transaction which, to
our satisfaction and that of our counsel, is exempt from such registration requirements. Although we are required to register the
resale of the shares of common stock underlying the Units and the Investor Warrants issued to the investors in the Offering to
enable those shares to be freely tradable, we cannot assure that the SEC will declare the registration statement effective, or
that once declared effective, that the SEC will not take action to suspend such effectiveness. In addition, although the term of
the Investor Warrants is five years, we are only required to keep the registration statement effective for a period of two years,
so it might not be effective at the time you exercise your Investor Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition, Rule 144 promulgated
under the Securities Act, which permits the resale of the shares of common stock underlying the Units and the Investor Warrants,
subject to various terms and conditions, will generally not apply to our common stock until one year after we cease to be a &ldquo;shell
company&rdquo; under SEC regulations. As a result, your ability to sell those shares will be limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Because the Merger was a reverse merger,
we may not be able to attract the attention of major brokerage firms, which may limit the liquidity of our Common Stock and may
make it more difficult for us to raise additional capital in the future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Additional risks may exist
because the Merger was a &ldquo;reverse merger.&rdquo; Certain SEC rules are more restrictive when applied to reverse merger companies,
such as the ability of stockholders to resell their shares of common stock pursuant to Rule 144. In addition, securities analysts
of major brokerage firms may not provide coverage of our common stock because there may be little incentive for brokerage firms
to recommend the purchase of our common stock. As a result, our common stock may have limited liquidity and investors may have
difficulty selling it. In addition, we cannot assure you that brokerage firms will want to conduct any secondary offerings on our
behalf if we seek to raise additional capital in the future. Our inability to raise additional capital may have a material adverse
effect on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>If we fail to maintain proper and effective
internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating
results, our ability to operate our business and investors&rsquo; views of us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Ensuring that we have adequate
internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely
basis is a costly and time-consuming effort that will need to be evaluated frequently. Section 404 of the Sarbanes-Oxley Act requires
public companies to conduct an annual review and evaluation of their internal controls. Our failure to maintain the effectiveness
of our internal controls in accordance with the requirements of the Sarbanes-Oxley Act could have a material adverse effect on
our business. We could lose investor confidence in the accuracy and completeness of our financial reports, which could have an
adverse effect on the price of our common stock. In addition, if our efforts to comply with new or changed laws, regulations, and
standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory
authorities may initiate legal proceedings against us and our business may be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>If we are unable to register the resale
of the shares of our Common Stock underlying the Units and the Investor Warrants sold in the Offering in a timely manner as required
by the Registration Rights Agreement, we may have to pay cash penalties in connection with such failure. Our use of cash to pay
such penalties may limit our ability to use such cash for other business purposes, which could have a material adverse effect on
our business. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have agreed, at our
expense, to prepare and file a registration statement with the SEC within 75 calendar days after the merger closing date. We have
also agreed to use our best efforts to cause such registration statement to be declared effective by the SEC within 150 calendar
days of filing with the SEC. The registration statement will cover the resale of the shares of our common stock underlying the
Units and the Investor Warrants sold in the offering. There are many reasons, including some over which we have little or no control,
which could delay our filing of the registration statement beyond 75 days after the merger closing date or which could prevent
the registration statement from being declared effective by the SEC, including delays resulting from the SEC review process and
comments raised by the SEC during that process. In the event that the registration statement is not filed, or we fail to use our
commercially reasonable efforts to have it declared effective within these timeframes, we may be required to pay cash penalties
in accordance with the terms of the Registration Rights Agreement. As a result, we may be required to divert cash from other business
purposes to pay such cash penalties, which could have a material adverse effect on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>RISKS RELATED TO OUR COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We do not expect to pay dividends on
our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have no plans to pay
dividends on our common stock for the foreseeable future. We intend to retain future earning to fund operations and future capital
requirements. Because we do not plan to pay dividends on our common stock, our stock may be less attractive to some investors,
which could adversely affect our stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>A trading market for our Common Stock
may not develop or be sustained, and you may not be able to resell your Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No trading market for our
shares presently exists. We cannot assure you that a market for our common stock will develop in the foreseeable future or, if
developed, that it will be sustained. As a result you may not be able to resell your common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our Common Stock will likely be considered
a &ldquo;penny stock,&rdquo; which is likely to limit its liquidity and make it more difficult for us to raise additional capital
in the future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify; text-indent: 0.5in">The market price
of our common stock is, and will likely remain for the foreseeable future, less than $5.00 per share, and therefore will be a &ldquo;penny
stock&rdquo; according to SEC rules, unless our common stock is listed on a national securities exchange. The OTC Bulletin Board
is not a national securities exchange. Designation as a &ldquo;penny stock&rdquo; requires any broker or dealer selling these securities
to disclose certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the
purchaser is reasonably suitable to purchase the securities. These rules may restrict the ability of brokers or dealers to sell
our common stock and may affect the ability of current holders of our common stock to sell their shares. Such rules may also deter
broker-dealers from recommending or selling the common stock, which may further limit its liquidity. This may also make it more
difficult for us to raise additional capital in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify"><B><I>The price of our Common Stock
may become volatile, which could lead to losses by investors and costly securities litigation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I></I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify; text-indent: 0.5in">The future trading
price of our common stock may become highly volatile and could fluctuate in response to factors such as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: -11pt">actual or anticipated variations in our operating results;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: -11pt">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">announcements of developments by us, our strategic partners or our competitors;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: -11pt">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">announcements by us or our competitors of significant acquisitions, strategic partnerships,
joint ventures or capital commitments;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: -11pt">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">adoption of new accounting standards affecting our industry;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: -11pt">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">additions or departures of key personnel;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right; padding-left: -11pt">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">sales of our common stock or other securities in the open market; and&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">&bull;&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">other events or factors, many of which are beyond our control.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">&nbsp;<B><I>As a former shell company,
resales of shares of our restricted Common Stock in reliance on Rule 144 of the Securities Act are subject to the requirements
of Rule 144(i).</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Rule 144 under the
Securities Act, which generally permits the resale, subject to various terms and conditions, of restricted securities after they
have been held for six months will not immediately apply to our common stock because we were at one time designated as a &ldquo;shell
company&rdquo; under SEC regulations. Pursuant to Rule 144(i), securities issued by a current or former shell company that otherwise
meet the holding period and other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 until one year after
the date on which the issuer filed current &ldquo;Form 10 information&rdquo; (as defined in Rule 144(i)) with the SEC reflecting
that it ceased being a shell company, and provided that at the time of a proposed sale pursuant to Rule 144, the issuer has satisfied
certain reporting requirements under the Exchange Act. Because, as a former shell company, the reporting requirements of Rule 144(i)
will apply regardless of holding period, restrictive legends on certificates for shares of our common stock cannot be removed except
in connection with an actual sale that is subject to an effective registration statement under, or an applicable exemption from
the registration requirements of, the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify"><B><I>You may experience dilution of
your ownership interests because of the future issuance of additional shares of our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify; text-indent: 0.5in">In the future, we
may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of our
present stockholders. We are currently authorized to issue an aggregate of 310,000,000 shares of capital stock consisting of 300,000,000
shares of common stock and 10,000,000 shares of preferred stock with preferences and rights to be determined by our Board of Directors.
As of January 20, 2012, following the closing of the Merger and the initial closing of the Offering, there were 38,084,247 shares
of our common stock Outstanding. There are 5,000,000 shares of our common stock reserved for issuance under our 2011 Plan, of which
1,950,000 have been allocated for issuance under outstanding stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify; text-indent: 0.5in">Any future issuance
of our equity or equity-backed securities may dilute then-current stockholders&rsquo; ownership percentages and could also result
in a decrease in the fair market value of our equity securities, because our assets would be owned by a larger pool of outstanding
equity. As described above, we may need to raise additional capital through public or private offerings of our common or preferred
stock or other securities that are convertible into or exercisable for our common or preferred stock. We may also issue such securities
in connection with hiring or retaining employees and consultants (including stock options issued under our 2011 Plan), as payment
to providers of goods and services, in connection with future acquisitions or for other business purposes. Our Board of Directors
may at any time authorize the issuance of additional common or preferred stock without common stockholder approval, subject only
to the total number of authorized common and preferred shares set forth in our certificate of incorporation. The terms of equity
securities issued by us in future transactions may be more favorable to new investors, and may include dividend and/or liquidation
preferences, superior voting rights and the issuance of warrants or other derivative securities, which may have a further dilutive
effect. Also, the future issuance of any such additional shares of common or preferred stock or other securities may create downward
pressure on the trading price of the common stock. There can be no assurance that any such future issuances will not be at a price
(or exercise prices) below the price at which shares of the common stock are then traded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>MANAGEMENT&rsquo;S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>The following discussion and analysis of financial
condition and results of operations should be read in conjunction with the consolidated financial statements and related notes
included elsewhere in this Current Report. This discussion contains forward-looking statements that involve risks, uncertainties
and assumptions. See &ldquo;Note Regarding Forward-Looking Statements.&rdquo; Our actual results could differ materially from
those anticipated in the forward-looking statements as a result of certain factors discussed in &ldquo;Risk Factors&rdquo; and
elsewhere in this Current Report.</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>Overview</B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We are a direct selling company focused
on selling electricity in deregulated energy markets located in Louisville, Kentucky, operating through our wholly owned subsidiary,
Dynastar.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We operate through an organization
of independent energy consultants to sell electricity and gas to consumer and commercial clients on behalf of our retail energy
provider partners. These energy providers are licensed energy resellers in the deregulated retail energy markets.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We plan to leverage our independent
energy consultant organization to grow to meet the demands of the rapidly deregulated retail energy markets by offering alternative
pricing opportunities to consumer and commercial purchasers of electricity and gas.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Revenues</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize revenue from commissions
earned on the sale of energy services through our deregulated energy provider partners. Commissions are earned based upon the
quantity of energy sold (&ldquo;kWh&rdquo;), as well as from customer acquisition bounties (&ldquo;CAB&rdquo;) when we acquire
new energy customers, as well as customer renewal bonuses and fees for customer retention. We recognize these revenues when the
deregulated energy provider partner, as the principal, receives payment for the electricity from the retail customer.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We also recognize revenue from our
independent energy consultants, who pay a flat monthly fee entitling them to the use of our websites which facilitate their business
operations. These revenues are earned and recognized in the month that they are received.</FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0pt; margin-left: 0; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 6pt; margin-left: 0; text-indent: 0pt; text-align: justify"><FONT STYLE="font-size: 10pt"><I>Cost
of Sales&nbsp;&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize as a cost of sales the
commissions earned by our independent energy consultants.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Operating expenses</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Operating expenses consist of the
compensation and overhead of administrative personnel and professional services firms performing administrative functions, including
management, accounting, finance and legal services, plus expenses associated with infrastructure, including depreciation, information
technology, telecommunications, facilities and insurance.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Change in fair value of derivative liabilities</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Gain on change in fair value of derivative
liabilities represents the change in the fair value of derivative liabilities over a reporting period, since derivative liabilities
are required to be revalued at each reporting date.</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"></P>

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<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Interest income</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize interest income related
to a note receivable made on June 22, 2010 and repaid in full as of February 15, 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Interest expense</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize interest expense associated
with our notes payable.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Amortization of debt discount</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize the amortization of debt
discounts related to our notes payable, which are amortized over the terms of the related debt.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>Results of Operations </B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Nine Months Ended September 30, 2011 Compared to
the period May 4, 2010 (Inception) through September 30, 2010</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Overview</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We reported a net loss and net loss
available to common stockholders of $1,158,020 for the nine months ended September 30, 2011, as compared to a net loss of $240,490
and net loss available to common stockholders of $706,990 for the period May 4, 2010 (Inception) through September 30, 2010. The
increase in net loss of $917,530, is primarily due to the costs that we have incurred in 2011 in connection with our planned merger,
offset by the gross profit of $520,905 realized after the commencement of our operations, as a result of our acquisition of the
business and selected assets of Affordable Energy, LLC (&ldquo;Affordable Energy&rdquo;) on February 15, 2011. Operating expenses
incurred in 2011 include compensation, as well as legal, consulting, accounting and professional fees.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Revenues</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Our commission revenues for the nine
months ended September 30, 2011 were $849,367 as compared to revenues of $0 for the corresponding 2010 period. The increase in
revenues is the result of the acquisition of Affordable Energy and the corresponding commencement of operations during February,
2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize revenue from commissions
earned on the sale of energy services by our deregulated energy provider partners. We also receive a customer acquisition bounty
(&ldquo;CAB&rdquo;) when we acquire new residential or commercial energy customers as well as monthly customer renewal bonuses
and customer fees. We recognize these revenues when the deregulated energy provider, as the principal, receives payment for the
electricity from the retail customer.</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We also recognize revenues from our
independent energy consultants, who pay a flat monthly fee entitling them to the use of our website which facilitates their business
operations. These revenues are earned and recognized in the month that they are received.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Revenues consisted of the following
for the nine months ended September 30, 2011:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; font-size: 10pt; text-align: justify">kWh commissions</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">607,843</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify">Customer acquisition and renewal commissions</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">55,560</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Customer fees</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">71,194</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-left: 0.5in">Total commission revenues</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">734,597</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Independent energy consultant fees</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">114,770</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-bottom: 2.5pt">Total revenues</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">849,367</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Cost of Revenues</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Our cost of revenues during the nine
months ended September 30, 2011 was $328,462 as compared to $0 for the corresponding 2010 period. The increase in cost revenues
is the result of the acquisition of Affordable Energy and the corresponding commencement of operations in February, 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Operating Expenses</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Operating expenses are principally
driven by salaries and professional fees as we have been preparing to become a public company. Operating expenses were $1,515,215
during the nine months ended September 30, 2011 as compared to $288,852 during the period May 4, 2010 (inception) through September
30, 2010, representing an increase of $1,226,363. This increase resulted primarily from (i) an increase in compensation and related
expenses of $407,148, principally on account of salaries and stock-based compensation for our CEO and CFO for the full nine months
of 2011 (compared to 5 months in 2010), (ii) an increase of $455,752 in acquisition and merger related costs in connection with
the purchase of the net assets of an operating company and our proposed merger with Pubco, (iii) an increase of $132,426 in consulting
expenses and (iv) an increase of $35,682 in liquidated damages recognized under our registration rights agreement (recorded at
the maximum level at September, 30, 2011). Stock-based compensation included in operating expenses was $34,472 and $27,500 for
the nine months ended September 30, 2011 and the period May 4, 2010 (inception) through September 30, 2010, respectively.</FONT></P>

<P STYLE="text-align: justify; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0"></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Change in fair value of derivative liabilities</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">During the nine months ended September
30, 2011, we recorded a gain from the change in fair value of our derivative liabilities of $6,780 as compared to a gain of $0
during the period May 4, 2010 (inception) through September 30, 2010. The derivative liability is related to warrants which were
deemed to be derivatives, granted in connection with our issuance of 10% secured convertible promissory notes (the &ldquo;Bridge
Notes&rdquo;) during 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Interest income</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Interest income was $3,132 for the
nine months ended September 30, 2011, compared to $48,362 for the period from May 4, 2010 (inception) to September 30, 2010. The
decrease is due to a $24,000 loan origination fee earned during 2010, as well as the payment in full of the related note receivable
as of February 15, 2011.</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I></I></FONT></P>

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<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I> </I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I></I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Interest expense</I></FONT></P>

<P STYLE="text-align: justify; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0"></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Interest expense was $65,166 during
the nine months ended September 30, 2011, compared to $0 for the period from May 4, 2010 (inception) through September 30, 2010.
The increase in interest expense resulted from borrowings in 2011 in connection with the acquisition of an operating company and
from the Bridge Notes issued during 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Amortization of debt discount</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We amortized $108,456 of debt discount
during the nine months ended September 30, 2011 compared to $0 for the period from May 4, 2010 (inception) through September 30,
2010. The increase in debt discount is related to the Bridge Notes issued during 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Results for the Period May 4, 2010 (Inception) through
December 31, 2010</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Overview</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We reported a net loss available to
common stockholders of $1,025,403 for the period May 4, 2010 (inception) through December 31, 2010, which includes a deemed dividend
to the holders of the Dynastar Preferred Stock of $466,500. A net loss of $558,903 reported before the deemed dividend is attributable
to operating costs that were incurred in connection with beginning our operations, seeking acquisition candidates and making preparations
for our planned reverse merger.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Operating Expenses</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Operating expenses for the period
May 4, 2010 (inception) through December 31, 2010 consisted of compensation of $349,388 (including stock based compensation of
$48,342), consulting fees of $102,802, liquidated damages of $71,364 recognized under our registration rights agreement and
other general and administrative costs of $83,767.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>Supplemental Management&rsquo;s Discussion of Results
of Operations </B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>We are providing the following supplemental Management&rsquo;s
Discussion and Analysis to explain the pro forma effect on Dynastar&rsquo;s operations from its acquisition on February 15, 2011
of the net assets of My Affordable Energy (&ldquo;MAE&rdquo;). We are presenting the results of operations as if Dynastar had
acquired MAE on January 1, 2010. You should refer to our Pro Forma Condensed Combined Financial Statements included elsewhere
within this document.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Pro forma Nine Months Ended September 30, 2011 compared
to the pro forma nine months ended September 30, 2010</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Overview</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Our pro forma net loss was $1,198,431
for the nine months ended September 30, 2011, as compared to a pro forma net loss of $284,793 for the nine months ended September
30, 2010. The increase in net loss of $913,638, is primarily due to increases of $871,684 in operating expenses, $57,354 of interest
expense, and $56,254 in amortization of debt discount, a decrease in interest income of $45,230, offset by the increase in gross
profit of $110,104. The increase in operating expenses was principally in connection with the increases in compensation, as well
as legal, consulting, and accounting professional fees, primarily related to our preparations for our pending reverse merger.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="text-align: justify; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Revenues</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Our pro forma revenues for
the nine months ended September 30, 2011 were $958,590 as compared to pro forma revenues of $1,213,079 for the corresponding
2010 period. The decrease of $254,489 was principally on account of a decrease in the number of energy consultants in 2011
related to the transition of Affordable Energy to Dynastar, since turnovers in Affordable Energy employees adversely impacted
our relationship with some of our existing energy consultants, offset by an increase in the rate per kWh received from our
energy provider for new Texas customers and by customer renewal bonuses received in 2011. Furthermore, our consultant
organization has declined over the last 11 months, due to a deliberate change in our energy consultant compensation plan that
offered more incentives to energy consultants to grow their business organization and customer base. As a result of this
shift in our compensation plan, a number of the existing energy consultants left the organization, resulting in short term
margin improvement for us as these consultants relinquished their rights to the residual commissions from their customer
base.</P>


</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Cost of Revenues</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Our pro forma direct cost of revenues
during the nine months ended September 30, 2011 was $396,811 as compared to $761,404 for the corresponding pro forma period. The
decrease in cost of revenues results primarily from the decrease in revenues, as well as an increased emphasis on cutting costs
and improving margins during 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Operating Expenses</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Pro forma operating expenses were
$1,584,497 for the nine months ended September 30, 2011 as compared to $712,813 for the pro forma nine months ended September
30, 2010, representing an increase of $871,684. This increase resulted primarily from an increase in corporate compensation
costs of $282,238 related to a full nine months of compensation and related expenses during expenses 2011, compared to five
months for the period from inception through December 31, 2010, and $455,752 in acquisition and merger related expenses
incurred during 2011 in connection with our proposed merger with the public shell, as well as $35,682 in liquidated damages
under our registration rights agreement (recorded at the maximum level at September, 30, 2011), and an increase of consulting
expenses of $80,783.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Interest income</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Pro forma interest income was $3,132
for the nine months ended September 30, 2011, compared to $48,362 for the period ended September 30, 2010. The decrease is due
to a $24,000 loan origination fee earned during 2010, as well as the payment in full of the related note receivable as of February
15, 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Interest expense</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Pro forma interest expense was $66,729
during the nine months ended September 30, 2011, compared to $9,375 for the period ended September 30, 2010. The increase in interest
expense resulted from borrowings in 2011 in connection with the acquisition of MAE and from the Bridge Notes issued during 2011.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Amortization of debt discount</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Pro forma amortization of debt discount
was $118,896 during the nine months ended September 30, 2011 compared to $62,642 for the period ended September 30, 2010. The
increase in debt discount is related to the Bridge Notes issued during 2011.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Gain on change in fair value of derivative liabilities</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">During the nine months ended September
30, 2011, we recorded a pro forma gain from the change in fair value of our derivative liabilities of $6,780 as compared to a
gain of $0 during the period ended September 30, 2010. Our derivative liabilities result from warrants granted in connection with
the issuance of our 10% secured promissory notes during 2011. Derivative liabilities tend to decrease in value as the remaining
term of the underlying instrument decreases, which results in a gain in the statement of operations.</FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 6pt; margin-left: 22pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

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<P STYLE="margin-top: 0; margin-bottom: 6pt; margin-left: 22pt; text-indent: 0pt; text-align: justify"></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>Liquidity and Capital Resources</B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We measure our liquidity in a variety
of ways, including the following:</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 70%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">September&nbsp;30, <BR>2011 <BR>(unaudited)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December&nbsp;30, <BR>2010</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 60%; font-size: 10pt; text-align: justify">Cash</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 17%; font-size: 10pt; text-align: right">181,462</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 17%; font-size: 10pt; text-align: right">28,968</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify">Working Capital (Deficiency)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(1,708,801</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">75,406</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Through September 30, 2011, we incurred
cumulative net losses since inception of $1,716,923, respectively.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We were formed in May 2010, and through
January 2011, our operations consisted solely of raising capital and conducting due diligence in connection with the targeted
acquisition of an operating company. On February 15, 2011, we closed on our first acquisition and became an operating company.
Following the February 15, 2011 acquisition, we focused our efforts on becoming a public company as a vehicle to raise capital.
We consummated our reverse merger on January 17, 2012. We intend to deploy that additional capital to expand our operations within
additional deregulated energy markets within the United States. We further expect to incur significant auditing, accounting, legal
and other costs in connection with the preparations for and then becoming a public company.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We expect that through the next 12
to 18 months, that the capital requirements to fund our growth and to cover the operating costs of a public company will consume
most of our cash flows that we intend to generate from both the recently acquired operating company, as well as from the proceeds
of planned issuances of debt and equity securities. We further believe that during this period, while we focus on the growth and
expansion of our business, that the operating profits that expect to generate from our commissioned energy selling operations
will not generate sufficient funds to cover these anticipated operating costs.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">On February 15, 2011, we acquired
MAE. Through November 30, 2011, we have reduced our overall headcount in an effort to reduce operating costs and have taken steps
that we believe will drive long-term revenue growth through enhancements in the commission program with our independent energy
consultants.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Since inception, our operations have
primarily been funded through private equity and debt financing, and we expect that we would continue to seek additional funding
through these private or public equity and debt financing sources.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">However, there can be no
assurance that our plans as discussed above will materialize and/or that we will be successful in funding estimated cash
shortfalls through additional debt or equity capital and/or any cash generated by our operations that we acquired in February
2011. Given these conditions, our ability to continue as a going concern is contingent upon our being able to secure an
adequate amount of debt or equity capital to enable us to meet our cash requirements. In addition, our ability to continue as
a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance
into established markets, the competitive environment in which we operate and the current capital raising environment. These
factors, among others, raise<FONT STYLE="font-size: 10pt"><FONT STYLE="line-height: 115%"> substantial doubt about
our ability to continue as a going concern.</FONT></FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"></P>

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<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We raised $1,144,985 in our 10% convertible
bridge notes during the period February through October of 2011, and in connection with the reverse merger and thereafter, are
conducting a private placement to raise $2,000,000 through February 2012 through the issuance of units consisting of common stock
and warrants. The funds raised through this private placement will be used to fund our operations, including the costs that we
expect to incur as a public company, and most importantly, to fund our plans to hire additional personnel to enable us to expand
to additional markets and deepen our penetration into existing markets.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">In connection with our merger, we
affected the following events which we believe improved our liquidity and provided a platform on which we can raise additional
capital:</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 10pt">(i)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><FONT STYLE="font-size: 10pt">We issued 5,822,000 shares of common stock in exchange
for the outstanding $1,164,400 of Dynastar Preferred Stock that remained outstanding after the redemption of $25,000 of Dynastar
Preferred Stock. In connection with the conversion to common stock, these investors waived their rights to receive registration
rights penalties which otherwise are due.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; margin: 0; text-indent: 0.5in"></P>

<P STYLE="text-align: justify; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 10pt">(ii)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><FONT STYLE="font-size: 10pt">We caused the issuance of 5,724,925 shares of our common
stock to holders of the Bridge Notes in exchange for their Bridge Notes and 258,781 shares of our common stock in exchange for
$51,756 of accrued and unpaid interest on the Bridge Notes. The Dynastar Warrants outstanding were exchanged for our warrants
in like amounts and on like terms.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; margin: 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-top: 0; margin-bottom: 6pt"></TABLE>

<P STYLE="text-align: justify; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 10pt">(iii)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><FONT STYLE="font-size: 10pt">Through our ongoing private placement offering we expect
to raise a maximum of $2,000,000 through the sale of up to 10,000,000 Units of our securities, at an offering price of $0.20 per
Unit, each Unit comprised of one (1) share of common stock and a warrant to purchase one-half of one (1/2) share of common stock
at an exercise price of $0.80 per whole share for five (5) years. Each share of common stock is entitled to one vote per share.
We may sell up to an additional 2,500,000 Units for $500,000 in the event the Offering is oversubscribed.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">The current level of cash is not
enough to cover our existing fixed and variable obligations. Increased revenue performance and the addition of more capital
are critical to our success. Should we not be able to raise these additional funds through the private placement or some
other financing source, we would need to consider implementing any or all of the following steps as counter measures to
temporarily conserve cash, including: (i) curtailing our growth plans by limiting the hiring of new personnel, (ii) reducing
the salaries of or deferring the payment of compensation to our employees and (iii) extending the terms of payments to our
vendors, advisors and consultants.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Assuming that we are successful in
our growth plans and development efforts, we believe that we will be able to raise additional funds through the sale of our stock.
There is no guarantee that we will be able to raise these additional funds or to do so at an advantageous price.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Our financial statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification
of liabilities that might be necessary should we not be unable to continue as a going concern.</FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 6pt; margin-left: 22pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

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<P STYLE="margin-top: 0; margin-bottom: 6pt; margin-left: 22pt; text-indent: 0pt; text-align: justify"></P>

<P STYLE="margin-top: 0; margin-bottom: 6pt; margin-left: 0; text-indent: 0pt; text-align: justify">&nbsp;<FONT STYLE="font-size: 10pt"><B><I>Cash
Flows</I></B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;<I>Operating Activities</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We used cash of $779,734 during
the first nine months of 2011, primarily due to net losses of $1,158,020, offset primarily by amortization of debt discount
of $108,456, depreciation and amortization expense of $42,087, stock based compensation of $34,472, consulting services
received in exchange for a promissory note of $29,985, as well as an increase in cash related to the change in our operating
assets and liabilities.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Investing Activities</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Investing activities provided $42,228
during the nine months ended September 30, 2011. This consisted of $150,000 cash received related to the repayment of a note receivable,
offset by $75,000 used for the acquisition of MAE, and $32,772 used for the purchases of property and equipment.</FONT></P>

<P STYLE="text-align: justify; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Financing Activities</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">Financing Activities provided $890,000
during the nine months ended September 30, 2011, representing proceeds from the promissory note issued in connection with our
purchase of MAE.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><B>Off-Balance Sheet Arrangements</B></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">None.</FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt; line-height: 115%">&nbsp;</FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Quantitative and Qualitative Disclosures About Market Risk</B></FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">Not applicable.</FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt"><B>Critical Accounting Policies and Estimates</B></FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt; line-height: 115%">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Use of Estimates</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">The preparation of financial statements
in conformity with United States Generally Accepted Accounting Principles (&ldquo;U.S. GAAP&rdquo;) requires us to make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities,
and reported amounts of revenues and expenses in the financial statements and the accompanying notes. Actual results could differ
from those estimates. Our significant estimates and assumptions are stock-based compensation, the useful lives of fixed assets
and intangibles, allowance for income taxes, fair value of derivative liabilities and warrants.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Derivative Financial Instruments</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We do not use derivative instruments
to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if
such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments
that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial
instruments, we use the binomial lattice option pricing model to value the derivative instruments at inception and on subsequent
valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities
or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as
current or non-current based on whether or not net-cash settlement of the instrument could be required within 12 months of the
balance sheet date.</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"></P>

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<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Revenue Recognition</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We recognize revenue from commissions
earned on the sale of energy services, on behalf of our deregulated energy providers. We also receive a customer acquisition bounty
(&ldquo;CAB&rdquo;) when we acquire new residential or commercial energy customers. We recognize these revenues when our deregulated
energy provider, as the principal, receives payment for the electricity from the retail customer.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">We also recognize revenues from our
independent energy consultants, who pay a flat monthly fee entitling them to the use of our websites which facilitate their business
operations. These revenues are earned and recognized in the month that they are received.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt"><I>Recent Accounting Pronouncements</I></FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">In December 2010, the FASB issued
ASU 2010-28, Intangibles &ndash; Goodwill and Other (Topic 350), related to the way companies test for impairment of goodwill.
Pursuant to ASU 2010-28, goodwill of the reporting unit is not impaired if the carrying amount of a reporting unit is greater
than zero and its fair value exceeds its carrying amount. In that event, the second step of the impairment test is not required.
However, if the carrying amount of a reporting unit is zero or negative, the second step of the impairment test is required to
be performed to measure the amount of impairment loss, if any, when it is more likely than not that goodwill impairment exists.
In considering whether it is more likely than not that goodwill impairment exists, a company must evaluate whether there are qualitative
factors that could adversely affect goodwill. Consistent with the prior requirements, this test must be performed annually or,
if an event occurs or circumstances exist that indicate that it is more likely than not that goodwill impairment exists, in the
interim. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December
15, 2010. This standard is not expected to have a material impact on our reported results of operations or financial position.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">On September 15, 2011, the FASB issued
ASU 2011-08, Intangibles &ndash; Goodwill and Other, which simplifies how an entity is required to test goodwill for impairment.
This ASU would allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two step
quantitative goodwill impairment test. Under the ASU, an entity would not be required to calculate the fair value of a reporting
unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less
than its carrying amount. The ASU includes a number of factors to consider in conducting the qualitative assessment. The ASU is
effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early
adoption is permitted. This standard is not expected to have a material impact on our reported results of operations or financial
position.</FONT></P>

<P STYLE="text-align: justify; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">In May 2011, FASB issued Accounting
Standards Update (&ldquo;ASU&rdquo;) No. 2011-04, &ldquo;Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements
in U.S. GAAP and IFRS.&rdquo; This pronouncement was issued to provide a consistent definition of fair value and ensure that the
fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards
(&ldquo;IFRS&rdquo;). ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly
for Level 3 fair value measurements. This pronouncement is effective for interim and annual reporting periods beginning on or
after December 15, 2011, with early adoption prohibited. The new guidance will require prospective application. The adoption of
this pronouncement is not expected to have a material impact on our consolidated financial statements.</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0"></P>

<P STYLE="text-align: justify; text-indent: 0.5in; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt; line-height: 115%"><B><U>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt; line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The following
tables set forth certain information regarding the beneficial ownership of our common stock as of January 20, 2012 by:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 8pt">&#9679;</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">each person or entity known by us to be the beneficial
owner of more than 5% of our common stock;&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 8pt">&#9679;</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">each of our directors and executive officers following
the Merger; and&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 8pt">&#9679;</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">all of our directors and executive officers following
the Merger as a group.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Unless otherwise
indicated in the footnotes to the following tables, each person named in the table has sole voting and investment power and that
person&rsquo;s address is c/o Dynastar Holdings, Inc., 1311 Herr Lane, Suite 205, Louisville, KY 40222.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid">Name&nbsp;and&nbsp;Address <BR> of&nbsp;Beneficial&nbsp;Owner</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares&nbsp;of&nbsp;Common&nbsp;Stock <BR> Beneficially&nbsp;Owned&nbsp;(1)</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Percent&nbsp;of&nbsp;Common <BR> Stock&nbsp;Beneficially <BR> Owned&nbsp;(2)</TD>
    <TD STYLE="vertical-align: top; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD STYLE="width: 50%">John S. Henderson IV</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 23%; text-align: right">4,500,000</TD>
    <TD STYLE="width: 2%">(3)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: right">11.8</TD>
    <TD STYLE="width: 1%">%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Robert R. Mohr</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">200,000</TD>
    <TD>(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Kenneth Spiegeland</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0.0</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Jerry W. Tyler Jr.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0.0</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD STYLE="padding-left: 0.25in; font-style: italic; text-indent: -0.25in">All directors and executive officers as a group (4 persons)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,700,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">12.3</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Gottbetter Capital Group, Inc. <BR> 488 Madison Avenue, 12th Floor <BR> New York, NY 10022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,093,803</TD>
    <TD>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8.0</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Jerry A. Hickson <BR> 403 Hazeltine Drive <BR> Austin, TX78734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,728,299</TD>
    <TD>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">21.6</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Michael Lichtenstein <BR> 17879 Monte Vista Drive <BR> Boca Raton, FL 33496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,958,101</TD>
    <TD>(7)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10.1</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>Navesink Capital Advisors, LLC <BR> 1200 Federal Highway, Suite 200 <BR> Boca Raton, FL 33432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,721,259</TD>
    <TD>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">9.6</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCFFCC">
    <TD>David Duggins <BR> 7005 New Bern Court <BR> Prospect, KY 40059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,500,000</TD>
    <TD>(9)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">11.8</TD>
    <TD>%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0; text-indent: 0pt; text-align: justify"><FONT STYLE="font-size: 10pt; line-height: 115%">*
Less than 1%.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 0"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Beneficial
                                                                                                                                                                       ownership
                                                                                                                                                                       is
                                                                                                                                                                       determined
                                                                                                                                                                       in
                                                                                                                                                                       accordance
                                                                                                                                                                       with
                                                                                                                                                                       the
                                                                                                                                                                       rules
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       SEC
                                                                                                                                                                       and
                                                                                                                                                                       generally
                                                                                                                                                                       includes
                                                                                                                                                                       voting
                                                                                                                                                                       or
                                                                                                                                                                       investment
                                                                                                                                                                       power
                                                                                                                                                                       with
                                                                                                                                                                       respect
                                                                                                                                                                       to
                                                                                                                                                                       securities.
                                                                                                                                                                       Shares
                                                                                                                                                                       of
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       subject
                                                                                                                                                                       to
                                                                                                                                                                       options
                                                                                                                                                                       or
                                                                                                                                                                       warrants
                                                                                                                                                                       currently
                                                                                                                                                                       exercisable
                                                                                                                                                                       or
                                                                                                                                                                       convertible,
                                                                                                                                                                       or
                                                                                                                                                                       exercisable
                                                                                                                                                                       or
                                                                                                                                                                       convertible
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       date
                                                                                                                                                                       of
                                                                                                                                                                       this
                                                                                                                                                                       Current
                                                                                                                                                                       Report
                                                                                                                                                                       are
                                                                                                                                                                       deemed
                                                                                                                                                                       outstanding
                                                                                                                                                                       for
                                                                                                                                                                       computing
                                                                                                                                                                       the
                                                                                                                                                                       percentage
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       person
                                                                                                                                                                       holding
                                                                                                                                                                       such
                                                                                                                                                                       options
                                                                                                                                                                       or
                                                                                                                                                                       warrants
                                                                                                                                                                       but
                                                                                                                                                                       are
                                                                                                                                                                       not
                                                                                                                                                                       deemed
                                                                                                                                                                       outstanding
                                                                                                                                                                       for
                                                                                                                                                                       computing
                                                                                                                                                                       the
                                                                                                                                                                       percentage
                                                                                                                                                                       of
                                                                                                                                                                       any
                                                                                                                                                                       other
                                                                                                                                                                       person.&nbsp;</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Percentage
                                                                                                                                                                       based
                                                                                                                                                                       on
                                                                                                                                                                       38,084,247
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       issued
                                                                                                                                                                       and
                                                                                                                                                                       outstanding
                                                                                                                                                                       as
                                                                                                                                                                       of
                                                                                                                                                                       January
                                                                                                                                                                       20,
                                                                                                                                                                       2012
                                                                                                                                                                       <FONT STYLE="color: black">(including
                                                                                                                                                                       an
                                                                                                                                                                       aggregate
                                                                                                                                                                       of
                                                                                                                                                                       15,872,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares,
                                                                                                                                                                       5,724,925
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       Shares
                                                                                                                                                                       and
                                                                                                                                                                       258,781
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares
                                                                                                                                                                       received
                                                                                                                                                                       by
                                                                                                                                                                       the
                                                                                                                                                                       former
                                                                                                                                                                       Dynastar
                                                                                                                                                                       stockholders
                                                                                                                                                                       and
                                                                                                                                                                       bridge
                                                                                                                                                                       note
                                                                                                                                                                       holders
                                                                                                                                                                       in
                                                                                                                                                                       the
                                                                                                                                                                       Merger),
                                                                                                                                                                       after
                                                                                                                                                                       giving
                                                                                                                                                                       effect
                                                                                                                                                                       to
                                                                                                                                                                       the
                                                                                                                                                                       Merger
                                                                                                                                                                       and
                                                                                                                                                                       the
                                                                                                                                                                       first
                                                                                                                                                                       closing
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Offering.&nbsp;</FONT></FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                                                                       of
                                                                                                                                                                       4,500,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares.
                                                                                                                                                                       Does
                                                                                                                                                                       not
                                                                                                                                                                       include
                                                                                                                                                                       1,000,000
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       incentive
                                                                                                                                                                       stock
                                                                                                                                                                       options
                                                                                                                                                                       granted
                                                                                                                                                                       under
                                                                                                                                                                       our
                                                                                                                                                                       2011
                                                                                                                                                                       Plan,
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       not
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                                                                       of
                                                                                                                                                                       50,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares
                                                                                                                                                                       and
                                                                                                                                                                       150,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       stock
                                                                                                                                                                       options
                                                                                                                                                                       granted
                                                                                                                                                                       under
                                                                                                                                                                       our
                                                                                                                                                                       2011
                                                                                                                                                                       Plan,
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.
                                                                                                                                                                       Does
                                                                                                                                                                       not
                                                                                                                                                                       include
                                                                                                                                                                       800,000
                                                                                                                                                                       shares
                                                                                                                                                                       issuable
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       such
                                                                                                                                                                       options,
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       not
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes
                                                                                                                                                                       2,587,553
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       and
                                                                                                                                                                       500,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       a
                                                                                                                                                                       warrant
                                                                                                                                                                       which
                                                                                                                                                                       is
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.&nbsp;Also includes 6,250 shares of our common stock that may be issued upon exercise of a broker warrant issued
to Gottbetter Capital Markets, LLC. Adam Gottbetter has voting and investment power with respect to the shares owned by, and issuable
to, Gottbetter Capital Group, Inc. and Gottbetter Capital Markets, LLC.<BR>
</P>


</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(6)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                                                                       of
                                                                                                                                                                       1,207,500
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock,
                                                                                                                                                                       375,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares,
                                                                                                                                                                       4,625,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       conversion
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes,
                                                                                                                                                                       208,299
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares
                                                                                                                                                                       and
                                                                                                                                                                       2,312,500
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(7)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                                                                       of
                                                                                                                                                                       2,553,018
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock,
                                                                                                                                                                       250,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares,
                                                                                                                                                                       100,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       conversion
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes,
                                                                                                                                                                       5,083
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares,
                                                                                                                                                                       50,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days
                                                                                                                                                                       and
                                                                                                                                                                       an
                                                                                                                                                                       additional
                                                                                                                                                                       1,000,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       other
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(8)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                                                                       of
                                                                                                                                                                       2,369,453
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock,
                                                                                                                                                                       400,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       conversion
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes,
                                                                                                                                                                       14,303
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares,
                                                                                                                                                                       250,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days,
                                                                                                                                                                       500,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       an
                                                                                                                                                                       additional
                                                                                                                                                                       warrant
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days,
                                                                                                                                                                       125,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       the
                                                                                                                                                                       initial
                                                                                                                                                                       closing
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Offering
                                                                                                                                                                       and
                                                                                                                                                                       62,500
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       an
                                                                                                                                                                       Investor
                                                                                                                                                                       Warrant
                                                                                                                                                                       issued
                                                                                                                                                                       in
                                                                                                                                                                       the
                                                                                                                                                                       Offering,
                                                                                                                                                                       which
                                                                                                                                                                       is
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days
                                                                                                                                                                       .&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(9)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                                                                       of
                                                                                                                                                                       4,500,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>DIRECTORS,
EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS</U></B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Executive
Officers and Directors</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following persons became the executive officers and directors of the Company following the Merger and  hold the positions
set forth opposite their names:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29%; border-bottom: black 1.5pt solid; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name</FONT></TD>
    <TD STYLE="width: 3%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Age</FONT></TD>
    <TD STYLE="width: 5%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 52%; border-bottom: black 1.5pt solid; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Position</FONT></TD>
    <TD STYLE="width: 2%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">John
    S. Henderson IV</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">39</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief
    Executive Office, President and Director</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Robert
    R. Mohr</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">46</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief
    Financial Officer, Treasurer and Secretary</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Kenneth
    Spiegeland</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;48&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Jerry
    W. Tyler Jr.</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">41</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Directors
are elected to serve until the next annual meeting of stockholders and until their successors are elected and qualified.&nbsp;&nbsp;Officers
are appointed by the Board of Directors and serve until their successors are appointed by the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Biographical
resumes of each officer and director of the Company are set forth below:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>John
S. Henderson, Chief Executive Officer, President and Director</I></B>, has <FONT STYLE="color: black">served as Chief Executive
Officer, President, and the Director of Dynastar since May 4, 2010. &nbsp;Mr. Henderson previously served as President of Lightyear
Wireless Solutions, a division of Lightyear Network Solutions, Inc. (LYNS), from 2003 to 2010 where he founded and built the direct
sales division to $12 million in revenue. &nbsp;Prior to Lightyear, Mr. Henderson served as Vice President of Sales and Marketing
of the Direct Sales division of Excel Communications, a billion dollar direct sales company, from 2001 to 2003.&nbsp; </FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Robert
R. Mohr, Chief Financial Officer</I></B>, <FONT STYLE="color: black"><B><I>Treasurer and Secretary</I></B>, has served as Chief
Financial Officer of Dynastar since November of 2010. &nbsp;Mr. Mohr previously served as Chief Accounting Officer and principal
financial officer of Beacon Enterprise Solutions Group, Inc. (BEAC.OB) from 2007 to 2010 in charge of finance and administration.
&nbsp;Prior to that, Mr. Mohr served as Director of Financial Reporting for Triple Crown Media, Inc. (TCMI), a $130 million sports
marketing, association management and newspaper concern, where he was in charge of SEC compliance, financial reporting and analysis
from 2005 to 2007. &nbsp;Over the past 20 years, Mr. Mohr has served in senior financial roles in both public and private companies
in varying stages of development including start-ups, mergers and acquisitions, restructurings, leveraged buy-outs and turnarounds.
&nbsp;Pursuant to financial roles, Mr. Mohr has also served as the leader of human resources, information technology, logistics,
distribution and customer service.</FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Kenneth
Spiegeland, Director,</I></B> served as Pubco&rsquo;s sole director from October 12, 2011 until the Merger closing on January
17, 2012. Mr. Spiegeland will remain as one of our directors following the Merger closing. He became Pubco&rsquo;s interim Chief
Executive officer, President and Interim Chief Financial Officer on September 14, 2011 and served in those capacities until the
Merger closing on January 17, 2012. Mr. Spiegeland has been a member of the Board of Directors of Rackwise, Inc. (OTCBB: RACK)
since February 1, 2011. From February 1, 2011 through September 21, 2011, he served as the Chief Executive Officer, Chief Financial
Officer, President, Treasurer and Secretary of Rackwise. He has been a Senior Account Manager with Concord Private Jet since January
2010.&nbsp;&nbsp;From April 2008 to January 2010, he was a real estate broker and a partner in KBS Partnership, a real estate
holding company he founded in 1985, and from January 2005 to December 2008, he was the Managing Member of New Space Closet. Prior
to this, from January 2000 to November 2005, he was Division Manager with Masco Contractor Services, a subsidiary of Masco Corporation,
a leading manufacturer of home improvement and building products, and from February 1998 to January 2000, he was the General Manager
of Gabriel-Spry Services, a division of Gale Industries, and prior to this he served as Executive Vice President of Gabriel-Spry
Company Inc. since 1983.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Jerry
W. Tyler Jr., Director, </I></B><FONT STYLE="color: black">has served as private banker to The Liberty Group, a division of Morgan
Stanley Smith Barney, which currently manages over $300 million in client assets and loans, since 2009. &nbsp;Prior to joining
The Liberty Group, Mr. Tyler served was a private banker at JP Morgan from 2001 to 2009. &nbsp;Mr. Tyler has spent his entire
career assisting numerous individuals and companies identify, target and execute investment strategies to improve stakeholder
value. </FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Board
of Directors and Corporate Governance</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Immediately
following the closing of the Merger, our Board consisted of three (3) members, two of which were independent. By January 31, 2012,
the Board of Directors shall consist of at five (5) members as two additional directors shall be appointed by the existing Board
by that date. At least three (3) of the five (5) directors will be independent. Pubco&rsquo;s pre-Merger stockholders appointed
one (1) of the current members of the Board. The Board may be increased up to seven (7) members, provided that at least one of
the additional directors is independent.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Director
Independence</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are not currently subject to listing requirements of any national securities exchange or inter-dealer quotation system which has
requirements that a majority of the board of directors be &ldquo;independent&rdquo; and, as a result, we are not at this time
required to have our Board comprised of a majority of &ldquo;Independent Directors.&rdquo;&nbsp;&nbsp; Nevertheless, our Board
has determined that two of our three directors, Mr. Kenneth Spiegeland and Mr. Jerry Tyler, are &ldquo;independent&rdquo; within
the definition of independence provided in the Marketplace Rules of The Nasdaq Stock Market.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Board
Committees</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
intend to maintain a board of directors that is composed of a majority of &ldquo;independent&rdquo; directors. We may appoint
an audit committee, nominating committee and/or compensation committee, to adopt charters relative to each such committee.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shareholder
Communications</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Currently,
we do not have a policy with regard to the consideration of any director candidates recommended by security holders.&nbsp;&nbsp;To
date, no security holders have made any such recommendations.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Code
of Ethics</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have adopted a written code of ethics (the &ldquo;Code of Ethics&rdquo;) that applies to our principal executive officer, principal
financial officer, principal accounting officer or controller, and persons performing similar functions. We believe that the Code
of Ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely
and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations;
and provide accountability for adherence to the code.&nbsp;&nbsp;To request a copy of the Code of Ethics, please make written
request to our Secretary, at Dynastar Holdings, Inc., <FONT STYLE="color: black">1311 Herr Lane, Louisville, KY 40222</FONT>.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">EXECUTIVE COMPENSATION</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following table sets forth information concerning the total compensation paid or accrued by us during the period from
inception (May 4, 2010) through December 31, 2010 to (i) all individuals that served as our principal executive officer or
acted in a similar capacity at any time during the fiscal years ended December 31, 2011 and 2010; (ii) all individuals that
served as its principal financial officer or acted in a similar capacity at any time during the fiscal years ended December
31, 2011 and 2010; and (iii) all individuals that served as executive officers of Dynastar at any time during the fiscal
years ended December 31, 2011 and 2010 that received annual compensation during the fiscal years ended December 31, 2011 and
2010 in excess of $100,000.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Summary
Compensation Table </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following table presents the compensation for our executive officers since the inception of our operations on May 4, 2010.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name&nbsp;and
    <BR>Principal&nbsp;Position</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Year</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Salary
    <BR>($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Bonus
    <BR>($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Stock
    <BR>Awards <BR>($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Option
    <BR>Awards <BR>&nbsp;($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All&nbsp;Other
    <BR>Compensation <BR>($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total&nbsp;($)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 25%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">John S. Henderson IV</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2011</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">220,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">15,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">21,696</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">256,696</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Executive Office</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2010</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">130,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">130,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Robert R. Mohr</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2011</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">175,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">15,719</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">200,719</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Financial Officer</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2010</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">29,167</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">16,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">127,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">172,667</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">David L. Duggins<SUP>(5)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2010</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">95,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(6)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">-<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">15,417</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(7)</SUP></FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">120,417</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">President</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Represents
                                                                                                                                                  cash
                                                                                                                                                  bonus
                                                                                                                                                  paid
                                                                                                                                                  in
                                                                                                                                                  connection
                                                                                                                                                  with
                                                                                                                                                  performance
                                                                                                                                                  under
                                                                                                                                                  employment
                                                                                                                                                  agreement.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amount
                                                                                                                                                  represents
                                                                                                                                                  an
                                                                                                                                                  automobile
                                                                                                                                                  allowance
                                                                                                                                                  provided
                                                                                                                                                  pursuant
                                                                                                                                                  to
                                                                                                                                                  employment
                                                                                                                                                  agreement.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amount
                                                                                                                                                  represents
                                                                                                                                                  the
                                                                                                                                                  grant
                                                                                                                                                  date
                                                                                                                                                  fair
                                                                                                                                                  value
                                                                                                                                                  of
                                                                                                                                                  50,000
                                                                                                                                                  shares
                                                                                                                                                  of
                                                                                                                                                  fully
                                                                                                                                                  vested
                                                                                                                                                  Dynastar
                                                                                                                                                  common
                                                                                                                                                  stock
                                                                                                                                                  issued
                                                                                                                                                  to
                                                                                                                                                  Mr.
                                                                                                                                                  Mohr
                                                                                                                                                  upon
                                                                                                                                                  the
                                                                                                                                                  execution
                                                                                                                                                  of
                                                                                                                                                  his
                                                                                                                                                  employment
                                                                                                                                                  agreement
                                                                                                                                                  on
                                                                                                                                                  November
                                                                                                                                                  4,
                                                                                                                                                  2010.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amount
                                                                                                                                                  represents
                                                                                                                                                  the
                                                                                                                                                  grant
                                                                                                                                                  date
                                                                                                                                                  fair
                                                                                                                                                  value
                                                                                                                                                  of
                                                                                                                                                  an
                                                                                                                                                  option
                                                                                                                                                  to
                                                                                                                                                  purchase
                                                                                                                                                  450,000
                                                                                                                                                  shares
                                                                                                                                                  of
                                                                                                                                                  Dynastar
                                                                                                                                                  common
                                                                                                                                                  stock
                                                                                                                                                  at
                                                                                                                                                  exercise
                                                                                                                                                  price
                                                                                                                                                  of
                                                                                                                                                  $0.33,
                                                                                                                                                  awarded
                                                                                                                                                  to
                                                                                                                                                  Mr.
                                                                                                                                                  Mohr
                                                                                                                                                  in
                                                                                                                                                  connection
                                                                                                                                                  with
                                                                                                                                                  the
                                                                                                                                                  execution
                                                                                                                                                  of
                                                                                                                                                  his
                                                                                                                                                  employment
                                                                                                                                                  agreement
                                                                                                                                                  on
                                                                                                                                                  November
                                                                                                                                                  4,
                                                                                                                                                  2010.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">David
                                                                                                                                                  Duggins
                                                                                                                                                  resigned
                                                                                                                                                  as
                                                                                                                                                  president
                                                                                                                                                  of
                                                                                                                                                  Dynastar
                                                                                                                                                  on
                                                                                                                                                  November
                                                                                                                                                  4,
                                                                                                                                                  2010.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(6)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amount
                                                                                                                                                  represents
                                                                                                                                                  bonus
                                                                                                                                                  paid
                                                                                                                                                  in
                                                                                                                                                  connection
                                                                                                                                                  with
                                                                                                                                                  the
                                                                                                                                                  timely
                                                                                                                                                  collection
                                                                                                                                                  of
                                                                                                                                                  a
                                                                                                                                                  note
                                                                                                                                                  receivable.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(7)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amount
                                                                                                                                                  represents
                                                                                                                                                  consulting
                                                                                                                                                  fees
                                                                                                                                                  paid
                                                                                                                                                  to
                                                                                                                                                  Mr.
                                                                                                                                                  Duggins,
                                                                                                                                                  subsequent
                                                                                                                                                  to
                                                                                                                                                  his
                                                                                                                                                  resignation
                                                                                                                                                  as
                                                                                                                                                  president
                                                                                                                                                  of
                                                                                                                                                  Dynastar.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Employment
Agreements with Executive Officers </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of and effective upon the closing of the Merger, we have entered into three-year, renewable executive employment agreements with
John S. Henderson, our Chief Executive officer, and Robert R. Mohr, our Chief Financial Officer, which agreements supersede and
replace in the entirety those existing agreements by and between Dynastar and each of Messrs. Henderson and Mohr.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to these employment agreements, Mr. Henderson will receive a base salary for the first twelve months of his agreement in the amount
of $210,000 while Mr. Mohr will receive a base salary for the same period in the amount of $175,000. These amounts will be subject
to annual review by our Board and increase (but not decrease) as the Board determines. Our Board shall determine in its sole discretion,
following the closing of the Merger, what bonuses Messrs. Henderson and Mohr shall be entitled to, based on milestones to be agreed
upon by the Board and each of Messrs. Henderson and Mohr. Messrs. Henderson and Mohr have each received options under our 2011
Plan to acquire shares of our common stock, in such numbers and on such terms as indicated below under the Section &ldquo;<I>2011
Equity Incentive Plan &ndash; Grants to Officers and Directors</I>.&rdquo;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Messrs.
Henderson and Mohr shall be eligible to participate in any other bonus or incentive program established by us for executives of
the Company and shall be entitled to other benefits as may be adopted by us from time to time for the benefit of our executives,
as determined by our Board.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Compensation
of Non-Employee Directors </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Following
the closing of the Merger, our Board consists of two non-employee directors and one executive officer. We currently do not provide
compensation to non-employee directors and we will not provide cash or incentive compensation to our executive officers serving
as directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Until
we establish a compensation committee, amendments to our director compensation arrangements must be approved by a majority of
our independent directors.&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>MARKET
PRICE OF AND DIVIDENDS ON COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
common stock is currently eligible for quotation on the OTCBB under the symbol &ldquo;DYNA.OB.&rdquo;&nbsp;&nbsp;Our common stock
became publicly traded on January 17, 2012.&nbsp;&nbsp;There has been no trading in our common stock to date.&nbsp;&nbsp;As of
the date of this Current Report, we had&nbsp;38,084,247 shares of common stock outstanding held by approximately&nbsp;80 stockholders
of record. To date, we have not paid dividends on our common stock. We have no outstanding shares of preferred stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Dividend
Policy</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have never paid any cash dividends on our capital stock and do not anticipate paying any cash dividends on our common stock in
the foreseeable future. We intend to retain future earnings to fund ongoing operations and future capital requirements. Any future
determination to pay cash dividends will be at the discretion of our Board and will be dependent upon financial condition, results
of operations, capital requirements and such other factors as the Board deems relevant.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Securities
Authorized for Issuance under Equity Compensation Plans</B>&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Plan&nbsp;Category</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Number&nbsp;of&nbsp;shares&nbsp;to&nbsp;
    <BR>be&nbsp;issued&nbsp;upon <BR>exercise&nbsp;of <BR>outstanding&nbsp;options,&nbsp; <BR>warrants&nbsp;and&nbsp;rights</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Weighted-<BR>
    average&nbsp; <BR>exercise&nbsp;price&nbsp; <BR>of&nbsp;outstanding&nbsp; <BR>options,&nbsp; <BR>warrants&nbsp;and&nbsp; <BR>rights</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Number&nbsp;of&nbsp;shares&nbsp;
    <BR>remaining <BR>available&nbsp;for <BR>future&nbsp;issuance <BR>under&nbsp;equity <BR>compensation <BR>plans&nbsp;(excluding
    <BR>shares&nbsp;reflected&nbsp;in&nbsp; <BR>the&nbsp;first&nbsp;column)</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 40%; vertical-align: bottom; text-align: left; padding-left: 9.9pt; text-indent: -9.9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Equity
    compensation plans approved by security holders</FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 19%; font-weight: bold; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1,950,000</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 16%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.20</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 16%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3,050,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -9.9pt; padding-left: 9.9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Equity
    compensation plans not approved by security holders</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -9.9pt; padding-left: 9.9pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1,950,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.20</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3,050,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>2011
Equity Incentive Plan</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
Board and stockholders owning a majority of our outstanding shares adopted our 2011 Plan on October 14, 2011. A total of 5,000,000
shares of our common stock are reserved for issuance under the 2011 Plan.&nbsp;&nbsp;If an incentive award granted under the 2011
Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to us in connection with an incentive
award, the shares subject to such award and the surrendered shares will become available for further awards under the 2011 Plan.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Shares
issued under the 2011 Plan through the settlement, assumption or substitution of outstanding awards or obligations to grant future
awards as a condition of acquiring another entity are not expected to reduce the maximum number of shares available under the
2011 Plan.&nbsp;&nbsp;In addition, the number of shares of common stock subject to the 2011 Plan and the number of shares and
terms of any incentive award are expected to be adjusted in the event of any stock dividend, spin-off, split-up, stock split,
reverse stock split, recapitalization, reclassification, merger, consolidation, liquidation, business combination or exchange
of shares or similar transaction.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Administration</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">It
is expected that the compensation committee of the Board, or the Board in the absence of such a committee, will administer the
2011 Plan.&nbsp;&nbsp;Subject to the terms of the 2011 Plan, the compensation committee would have complete authority and discretion
to determine the terms of awards under the 2011 Plan.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B><I>Eligible
Recipients</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Any
officer or other employee of the Company or its affiliates, or an individual that the Company or an affiliate has engaged to become
an officer or employee, or a consultant or advisor who provides services to the Company or its affiliates, including a non-employee
director of the Board, is eligible to receive awards under the 2011 Plan.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Grants</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
2011 Plan authorizes the grant to eligible recipients of nonqualified stock options, incentive stock options, restricted stock
awards, restricted stock units, performance grants intended to comply with Section 162(m) of the Internal Revenue Code of 1986,
as amended (the &ldquo;Code&rdquo;) and stock appreciation rights, as described below:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Options
                                                                                                                                                                          granted
                                                                                                                                                                          under
                                                                                                                                                                          the
                                                                                                                                                                          2011
                                                                                                                                                                          Plan
                                                                                                                                                                          entitle
                                                                                                                                                                          the
                                                                                                                                                                          grantee,
                                                                                                                                                                          upon
                                                                                                                                                                          exercise,
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          a
                                                                                                                                                                          specified
                                                                                                                                                                          number
                                                                                                                                                                          of
                                                                                                                                                                          shares
                                                                                                                                                                          from
                                                                                                                                                                          us
                                                                                                                                                                          at
                                                                                                                                                                          a
                                                                                                                                                                          specified
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          per
                                                                                                                                                                          share.&nbsp;&nbsp;The
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          for
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          covered
                                                                                                                                                                          by
                                                                                                                                                                          an
                                                                                                                                                                          option
                                                                                                                                                                          cannot
                                                                                                                                                                          be
                                                                                                                                                                          less
                                                                                                                                                                          than
                                                                                                                                                                          the
                                                                                                                                                                          fair
                                                                                                                                                                          market
                                                                                                                                                                          value
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          date
                                                                                                                                                                          of
                                                                                                                                                                          grant
                                                                                                                                                                          unless
                                                                                                                                                                          agreed
                                                                                                                                                                          to
                                                                                                                                                                          otherwise
                                                                                                                                                                          at
                                                                                                                                                                          the
                                                                                                                                                                          time
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          grant.
                                                                                                                                                                          Such
                                                                                                                                                                          awards
                                                                                                                                                                          may
                                                                                                                                                                          include
                                                                                                                                                                          vesting
                                                                                                                                                                          requirements.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Restricted
                                                                                                                                                                          stock
                                                                                                                                                                          awards
                                                                                                                                                                          and
                                                                                                                                                                          restricted
                                                                                                                                                                          stock
                                                                                                                                                                          units
                                                                                                                                                                          may
                                                                                                                                                                          be
                                                                                                                                                                          awarded
                                                                                                                                                                          on
                                                                                                                                                                          terms
                                                                                                                                                                          and
                                                                                                                                                                          conditions
                                                                                                                                                                          established
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          compensation
                                                                                                                                                                          committee,
                                                                                                                                                                          which
                                                                                                                                                                          may
                                                                                                                                                                          include
                                                                                                                                                                          performance
                                                                                                                                                                          conditions
                                                                                                                                                                          for
                                                                                                                                                                          restricted
                                                                                                                                                                          stock
                                                                                                                                                                          awards
                                                                                                                                                                          and
                                                                                                                                                                          the
                                                                                                                                                                          lapse
                                                                                                                                                                          of
                                                                                                                                                                          restrictions
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          achievement
                                                                                                                                                                          of
                                                                                                                                                                          one
                                                                                                                                                                          or
                                                                                                                                                                          more
                                                                                                                                                                          performance
                                                                                                                                                                          goals
                                                                                                                                                                          for
                                                                                                                                                                          restricted
                                                                                                                                                                          stock
                                                                                                                                                                          units.</FONT>&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                                                                          compensation
                                                                                                                                                                          committee
                                                                                                                                                                          may
                                                                                                                                                                          make
                                                                                                                                                                          performance
                                                                                                                                                                          grants,
                                                                                                                                                                          each
                                                                                                                                                                          of
                                                                                                                                                                          which
                                                                                                                                                                          will
                                                                                                                                                                          contain
                                                                                                                                                                          performance
                                                                                                                                                                          goals
                                                                                                                                                                          for
                                                                                                                                                                          the
                                                                                                                                                                          award,
                                                                                                                                                                          including
                                                                                                                                                                          the
                                                                                                                                                                          performance
                                                                                                                                                                          criteria,
                                                                                                                                                                          the
                                                                                                                                                                          target
                                                                                                                                                                          and
                                                                                                                                                                          maximum
                                                                                                                                                                          amounts
                                                                                                                                                                          payable,
                                                                                                                                                                          and
                                                                                                                                                                          other
                                                                                                                                                                          terms
                                                                                                                                                                          and
                                                                                                                                                                          conditions.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Stock
                                                                                                                                                                          awards
                                                                                                                                                                          are
                                                                                                                                                                          permissible.&nbsp;&nbsp;The
                                                                                                                                                                          compensation
                                                                                                                                                                          committee
                                                                                                                                                                          will
                                                                                                                                                                          establish
                                                                                                                                                                          the
                                                                                                                                                                          number
                                                                                                                                                                          of
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          awarded
                                                                                                                                                                          and
                                                                                                                                                                          the
                                                                                                                                                                          terms
                                                                                                                                                                          applicable
                                                                                                                                                                          to
                                                                                                                                                                          each
                                                                                                                                                                          award,
                                                                                                                                                                          including
                                                                                                                                                                          performance
                                                                                                                                                                          restrictions.</FONT>&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Stock
                                                                                                                                                                          appreciation
                                                                                                                                                                          rights
                                                                                                                                                                          or
                                                                                                                                                                          SARs,
                                                                                                                                                                          entitle
                                                                                                                                                                          the
                                                                                                                                                                          participant
                                                                                                                                                                          to
                                                                                                                                                                          receive
                                                                                                                                                                          a
                                                                                                                                                                          distribution
                                                                                                                                                                          in
                                                                                                                                                                          an
                                                                                                                                                                          amount
                                                                                                                                                                          not
                                                                                                                                                                          to
                                                                                                                                                                          exceed
                                                                                                                                                                          the
                                                                                                                                                                          number
                                                                                                                                                                          of
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          subject
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          portion
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          SAR
                                                                                                                                                                          exercised
                                                                                                                                                                          multiplied
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          difference
                                                                                                                                                                          between
                                                                                                                                                                          the
                                                                                                                                                                          market
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          a
                                                                                                                                                                          share
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          date
                                                                                                                                                                          of
                                                                                                                                                                          exercise
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          SAR
                                                                                                                                                                          and
                                                                                                                                                                          the
                                                                                                                                                                          market
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          a
                                                                                                                                                                          share
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          date
                                                                                                                                                                          of
                                                                                                                                                                          grant
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          SAR.&nbsp;</FONT></TD></TR></TABLE>



<P STYLE="font: 10pt Symbol; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Duration,
Amendment, and Termination</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Board may amend, suspend or terminate the 2011 Plan without stockholder approval or ratification at any time or from time to time.&nbsp;&nbsp;No
change may be made that increases the total number of shares of common stock reserved for issuance pursuant to incentive awards
or reduces the minimum exercise price for options or exchange of options for other incentive awards, unless such change is authorized
by our stockholders within one year. Unless sooner terminated, the 2011 Plan terminates ten years after it is adopted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B><I>Grants
to Officers and Directors</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Upon
the closing of the Merger, we granted (i) John S. Henderson IV, our Chief Executive Officer, options under the 2011 Plan to purchase
1,000,000 shares of our common stock vesting in three equal annual installments beginning on the first anniversary of the Merger
Closing Date, with an exercise price of $0.22 per share, to qualify as incentive stock options under the Internal Revenue Code
requirements for 10% stockholders and (ii) Robert R. Mohr options under the 2011 Plan to purchase (a) 450,000 shares of common
stock, of which 150,000 shares were fully vested as of the Merger Closing Date and the remaining 300,000 shares will vest in two
equal annual installments on November 4, 2012 and November 4, 2013 and (b) additional options to purchase 500,000 shares of common
stock vesting in three equal annual installments beginning on the first anniversary of the Merger Closing Date, each with an exercise
price of $0.20 per share.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Other
than these options, Our Board will determine a limitation on the number of options that may be granted pursuant to the 2011 Plan
during the twelve (12) months immediately following the closing of the Merger.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">An
investor in $25,000 principal amount of the Dynastar Bridge Notes is the father of John S. Henderson IV, our chief Executive Officer.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Transactions
with the Placement Agent and Other Related Parties</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Placement
Agent Agreement</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are paying the placement agent in the Offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from
investors in the Offering. In addition, the placement agent will receive five-year warrants, exercisable at $0.20 per share, to
purchase a number of shares of our common stock equal to five percent (5%) of the number of units sold in the Offering. As a result
of the foregoing arrangement, at the initial closing of the Offering, the placement agent was paid commissions of $2,500 and was
issued broker warrants to purchase 6,250 shares of our common stock at an exercise price of $0.20 per share.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Share
Escrow Agreement</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
entered into an Escrow Agreement dated as of January 17, 2012 with John S. Henderson IV, as indemnification representative,&nbsp;and
Gottbetter &amp; Partners, LLP, as Escrow Agent, pursuant to which the Escrow Agent will hold in escrow 5% of the shares of our
common stock that Dynastar&rsquo;s pre-Merger stockholders received in the Merger in exchange for their shares of Dynastar for
any breach of the Merger Agreement by Dynastar that is discovered during the two years immediately following the closing of the
Merger.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Employment
Agreements </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of and effective upon the closing of the Merger, we have entered into three-year, renewable executive employment agreements with
John S. Henderson, our Chief Executive officer, and Robert R. Mohr, our Chief Financial Officer, which agreements supersede and
replace in the entirety those existing agreements by and between Dynastar and each of Messrs. Henderson and Mohr.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to these employment agreements, Mr. Henderson will receive a base salary for the first twelve months of his agreement in the amount
of $210,000 while Mr. Mohr will receive a base salary for the same period in the amount of $175,000. These amounts will be subject
to annual review by our Board and increase (but not decrease) as the Board determines. Our Board shall determine in its sole discretion,
following the closing of the Merger, what bonuses Messrs. Henderson and Mohr shall be entitled to, based on milestones to be agreed
upon by the Board and each of Messrs. Henderson and Mohr. Messrs. Henderson and Mohr each received options under our 2011
Plan to acquire shares of our common stock, in such numbers and on such terms as indicated above under the Section &ldquo;<I>Stock
Option Plans &ndash; Grants to Officers and Directors</I>.&rdquo;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Messrs.
Henderson and Mohr shall be eligible to participate in any other bonus or incentive program established by us for executives of
the Company and shall be entitled to other benefits as may be adopted by us from time to time for the benefit of our executives,
as determined by our Board.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Transactions
with Navesink Capital Advisors, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Consulting
Agreement</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Effective
upon the closing of the Merger, we entered into an agreement with Navesink Capital Advisors, LLC (&ldquo;Navesink&rdquo;) pursuant
to which Navesink agreed to provide us with certain professional consulting services relating to business development and corporate
finance. This agreement has a term of six months. As consideration under this agreement, we agreed to issue to Navesink a five
year warrant exercisable for two million (2,000,000) shares of our common stock at an exercise price of $0.20 per share. Shares
underlying these warrants are entitled to &ldquo;piggyback&rdquo; registration rights at our discretion. Prior to the merger Closing
Date, Navesink assigned to certain third parties its right to receive warrants exercisable for one million five hundred thousand
(1,500,000) shares, including 500,000 shares of which were assigned to Gottbetter Capital Group, Inc.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Navesink
Investments in Dynastar and the Company&#9;&#9;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
October 2011, Navesink purchased $100,000 principal amount of the Bridge Notes and received Dynastar Warrants to purchase 125,000
shares of Dynastar common stock. Upon the closing of the Merger, these Bridge Notes were converted into 500,000 shares of our
common stock and the Dynastar Warrants were exchanged for our warrants to purchase 250,000 shares of our common stock. Prior to
the Merger closing, Navesink sold to a third party its rights to receive 100,000 of the 500,000 shares of our common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Effective
upon the closing of the merger, Navesink purchased 125,000 units in the initial closing of the Offering for a purchase price of
$25,000. As a result of this purchase, Navesink received 125,000 shares of our common stock and five year warrants to purchase
62,500 shares of our common stock at a purchase price of $0.80 per share.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Lock-ups</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Officers,
directors, key employees and certain holders of 10% or more of the Company&rsquo;s common stock have agreed to &ldquo;lock-up&rdquo;
and not sell or otherwise transfer or hypothecate any of their Company shares, including shares that maybe issued upon exercise
of Merger warrants for a term of 18 months from the Closing Date, except in certain limited circumstances.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION
OF CAPITAL STOCK</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Authorized
Capital Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
Articles of Incorporation provide for the issuance of 310,000,000 shares of capital stock, of which 300,000,000 are shares of
common stock, par value $0.001 per share, and 10,000,000 are blank-check preferred stock, par value $0.001 per share.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Equity
Securities Issued and Outstanding</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Immediately
after giving effect to the Transactions, including the units sold in the Offering, the conversion of the Bridge Notes and exchange
of the Dynastar Warrants, the issuance of shares of our common stock to the former Dynastar stockholders in the Merger, the cancellation
of shares owned by Dynastar, the broker warrants issued to the placement agent in connection with the initial closing of the Offering,
the warrants issued to Navesink and its designees under the consulting agreement with Navesink and the granting of options under
the 2011 Plan to each of John S. Henderson IV and Robert Mohr, there were issued and outstanding securities of the Company on
the closing of the Transactions as follows:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 33pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">38,084,247
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          <FONT STYLE="color: black">(including
                                                                                                                                                                          an
                                                                                                                                                                          aggregate
                                                                                                                                                                          of
                                                                                                                                                                          15,872,000
                                                                                                                                                                          shares
                                                                                                                                                                          entitled
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          received
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          former
                                                                                                                                                                          Dynastar
                                                                                                                                                                          stockholders
                                                                                                                                                                          in
                                                                                                                                                                          the
                                                                                                                                                                          Merger,
                                                                                                                                                                          5,724,925
                                                                                                                                                                          shares
                                                                                                                                                                          entitled
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          received
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          former
                                                                                                                                                                          Dynastar
                                                                                                                                                                          Bridge
                                                                                                                                                                          Note
                                                                                                                                                                          holders,
                                                                                                                                                                          258,781
                                                                                                                                                                          shares
                                                                                                                                                                          entitled
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          received
                                                                                                                                                                          by
                                                                                                                                                                          Dynastar&#8217;s
                                                                                                                                                                          former
                                                                                                                                                                          bridge
                                                                                                                                                                          Note
                                                                                                                                                                          holders
                                                                                                                                                                          in
                                                                                                                                                                          payment
                                                                                                                                                                          of
                                                                                                                                                                          accrued
                                                                                                                                                                          but
                                                                                                                                                                          unpaid
                                                                                                                                                                          interest
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          bridge
                                                                                                                                                                          Notes
                                                                                                                                                                          and
                                                                                                                                                                          125,000
                                                                                                                                                                          shares
                                                                                                                                                                          issued
                                                                                                                                                                          in
                                                                                                                                                                          the
                                                                                                                                                                          initial
                                                                                                                                                                          closing
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Offering)</FONT>;&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 33pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Options
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          1,950,000
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          granted
                                                                                                                                                                          under
                                                                                                                                                                          the
                                                                                                                                                                          2011
                                                                                                                                                                          Plan
                                                                                                                                                                          to
                                                                                                                                                                          our
                                                                                                                                                                          executive
                                                                                                                                                                          officers;&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 33pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Investor
                                                                                                                                                                          warrants
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          62,500
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          an
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.80
                                                                                                                                                                          per
                                                                                                                                                                          share
                                                                                                                                                                          issued
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          investor
                                                                                                                                                                          in
                                                                                                                                                                          the
                                                                                                                                                                          initial
                                                                                                                                                                          closing
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Offering,
                                                                                                                                                                          broker
                                                                                                                                                                          warrants
                                                                                                                                                                          <FONT STYLE="color: black">to
                                                                                                                                                                          purchase
                                                                                                                                                                          an
                                                                                                                                                                          aggregate
                                                                                                                                                                          of
                                                                                                                                                                          6,250
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          a
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.25
                                                                                                                                                                          per
                                                                                                                                                                          share
                                                                                                                                                                          issued&nbsp;to
                                                                                                                                                                          the
                                                                                                                                                                          placement
                                                                                                                                                                          agent&nbsp;in
                                                                                                                                                                          connection
                                                                                                                                                                          with
                                                                                                                                                                          the
                                                                                                                                                                          initial
                                                                                                                                                                          closing
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Offering,
                                                                                                                                                                          </FONT>warrants
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          up
                                                                                                                                                                          2,000,000
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          an
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.20
                                                                                                                                                                          per
                                                                                                                                                                          share
                                                                                                                                                                          issued
                                                                                                                                                                          to
                                                                                                                                                                          Navesink
                                                                                                                                                                          and
                                                                                                                                                                          its
                                                                                                                                                                          designees
                                                                                                                                                                          pursuant
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          Navesink
                                                                                                                                                                          consulting
                                                                                                                                                                          agreement
                                                                                                                                                                          and
                                                                                                                                                                          warrants
                                                                                                                                                                          issued
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          holders
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Dynastar
                                                                                                                                                                          Warrants
                                                                                                                                                                          in
                                                                                                                                                                          exchange
                                                                                                                                                                          for
                                                                                                                                                                          such
                                                                                                                                                                          warrants,
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          2,862,463
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          an
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.80
                                                                                                                                                                          per
                                                                                                                                                                          share.&nbsp;</FONT></TD></TR></TABLE>



<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: -0.25in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
issued and outstanding number of shares of our common stock indicated above does not include shares of our common stock that we
expect to issue on or prior to February 15, 2012 to MAE upon conversion of the $900,000 principal amount Dynastar promissory note
held by MAE. This $900,000 in value of shares of our common stock is to be issued to MAE at a price equal to eighty and one-half
percent (80.5%) (as that number may be adjusted for a conversion on or after February 10, 2012), of the average closing price
of the our common stock over the first 22 days of trading following the closing of the Merger on January 17, 2012. The $900,000
promissory note was issued to MAE in connection with the acquisition by Dynastar of the MAE assets.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description
of Common Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Holders
of our common stock are entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of common
stock do not have cumulative voting rights. Therefore, holders of a majority of the shares of common stock voting for the election
of directors can elect all of the directors. Holders of our common stock representing a majority of the voting power of our capital
stock issued, outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum at any
meeting of stockholders. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental
corporate changes such as liquidation, merger or an amendment to our articles of incorporation.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Holders
of our common stock are entitled to share in all dividends that our Board of Directors, in its discretion, declares from legally
available funds. In the event of a liquidation, dissolution or winding up, each outstanding share of our common stock entitles
its holder to participate pro rata in all assets that remain after payment of liabilities and after providing for each class of
stock, if any, having preference over the common stock. Our common stock has no pre-emptive, subscription or conversion rights
and there are no redemption provisions applicable to our common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description
of Preferred Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are authorized to issue 10,000,000 shares of &ldquo;blank check&rdquo; preferred stock, par value $0.001 per share, none of which
as of the date hereof is designated or outstanding.&nbsp;&nbsp;Our Board is vested with authority to divide the shares of preferred
stock into series and to fix and determine the relative rights and preferences of the shares of any such series.&nbsp;&nbsp;Once
authorized, the dividend or interest rates, conversion rates, voting rights, redemption prices, maturity dates and similar characteristics
of preferred stock will be determined by our Board, without the necessity of obtaining approval of our stockholders.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Description
of Investor Warrants</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
connection with the closing of the Merger and the simultaneous initial closing of the offering, we issued investor warrants to
purchase 62,500 shares of our common stock to the investor who purchased units in the initial closing of the Offering. The investor
warrants entitle the holders to purchase one full share of common stock at a purchase price of $0.80 per share during the five
(5) year period that commenced upon issuance of the investor warrants.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: black">The
investor warrants, at the option of the holder, may be exercised by cash payment of the exercise price to us. The investor warrants
may be exercised on a cashless exercise basis commencing one year after the date of filing of this Current Report if no registration
statement registering the shares underlying the investor warrants is then in effect. </FONT>A &ldquo;cashless exercise&rdquo;
means that in lieu of paying the aggregate purchase price for the shares being purchased upon exercise of the warrants in cash,
the holder will forfeit a number of shares underlying the warrants with a &ldquo;fair market value&rdquo; equal to such aggregate
exercise price. We will not receive additional proceeds to the extent that warrants are exercised by cashless exercise.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: black">The
exercise price and number of shares of common stock issuable on exercise of the investor warrants may be adjusted in certain circumstances
including stock splits, stock dividends and future issuances of our equity securities, </FONT>including a weighted average adjustment
in the event of future issuances of our equity securities at a price less than the exercise price of the warrant.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">No
fractional shares will be issued upon exercise of the investor warrants. If, upon exercise of the investor warrants, a holder
would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number,
the number of shares of common stock to be issued to the investor warrant holder.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description
of Broker Warrants</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: black">The
broker warrants issued in connection with the first closing of the Offering permit the placement agent (and, with respect to broker
warrants that may be issued in future closings of the Offering, its sub-agents and designees, if any) to purchase up to 6,250
shares of common stock, or </FONT>five percent (5%) of the number of units sold in the Offering<FONT STYLE="color: black">. The
broker warrants are identical to the investor warrants in all material respects except that (i) the resale of the common stock
underlying them is not covered by a registration statement; and (ii) they have an exercise price of $0.20 per share.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description
of Warrants Issued in Exchange for the Dynastar Warrants</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
warrants issued in exchange for the Dynastar Warrants are identical to the investor warrants in all material respects, and the
resale of our common stock underlying these warrants is covered by the registration rights discussed above.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description
of Warrants Issued to Navesink and its Designees</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
warrants issued to Navesink and its designees pursuant to our consulting agreement with Navesink are identical to the investor
warrants in all material respects except that (i) the resale of the common stock underlying them is not covered by a registration
statement; (ii) they have an exercise price of $0.20 per share and (iii) the cashless exercise provisions become effective 10
months from the date of issuance.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Registration
Rights</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are required to file with the SEC, within 75 days of the closing of the Merger, a registration statement registering for resale
all shares of our common stock (i) included in the units sold in the Offering and issuable upon exercise of the investor warrants
issued in the Offering, (ii) issued upon conversion of the Bridge Notes and issuable upon the exercise of our warrants issued
in exchange for the Dynastar Warrants and (iii) issued in the Merger to the holders, prior to the Merger, of the Dynastar Preferred
Stock, consistent with the terms and conditions of the Registration Rights Agreement.<FONT STYLE="color: black"> </FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
holders of any registrable securities removed from the registration statement a result of a Rule 415 or other comment from the
SEC shall have &ldquo;piggyback&rdquo; registration rights for the shares of common stock or common stock underlying such warrants
with respect to any registration statement filed by us following the effectiveness of the registration statement which would permit
the inclusion of these shares. We have agreed to use our best efforts to have the registration statement declared effective within
150 days of filing the registration statement. Notwithstanding the foregoing, should our Board of Directors deem it advisable
and in our best interests to delay the filing, we may seek the consent of the holders of registrable securities to such delay
and the waiver of monetary penalties described below.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
the registration statement is not filed on or before the Filing Deadline or not declared effective on or before the Effectiveness
Deadline, we shall pay to each holder of registrable securities an amount in cash equal to one percent (1.0%) of the purchase
price per share paid by such holder for the registrable securities for each full period of 30 days that (i) we are late in filing
the registration statement or (ii) the registration statement is late in being declared effective by the SEC. The payment amount
shall be pro rated for partial thirty (30) day periods. The maximum aggregate amount of payments to be made by us as the result
of such failures, whether by reason of a Filing Deadline failure, Effectiveness Deadline failure or any combination thereof, shall
be an amount equal to ten percent (10)% of each holder&rsquo;s purchase price per share for the registrable securities. Notwithstanding
the foregoing, no payments shall be owed with respect to any period during which all of the holder&rsquo;s registrable securities
may be sold by such holder under Rule 144 or pursuant to another exemption from registration. Moreover, no such payments shall
be due and payable with respect to any registrable securities we are unable to register due to limits imposed by the SEC&rsquo;s
interpretation of Rule 415 under the Securities Act.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will keep the registration statement &ldquo;evergreen&rdquo; for two (2) years from the date it is declared effective by the SEC
or until Rule 144 of the Securities Act is available to the holders with respect to all of their registrable securities, whichever
is earlier.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Additionally,
shares of our common stock underlying the warrants issued to Navesink and its designees are entitled to &ldquo;piggyback&rdquo;
registration rights, at our discretion.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Anti-Takeover
Effects of Provisions of Nevada State Law</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
may be or in the future we may become subject to Nevada&rsquo;s control share laws.&nbsp;&nbsp;A corporation is subject to Nevada&rsquo;s
control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Nevada,
and if the corporation does business in Nevada, including through an affiliated corporation.&nbsp;&nbsp;This control share law
may have the effect of discouraging corporate takeovers.&nbsp;&nbsp;We currently have approximately 59 stockholders of record.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
control share law focuses on the acquisition of a &ldquo;controlling interest,&rdquo; which means the ownership of outstanding
voting shares that would be sufficient, but for the operation of the control share law, to enable the acquiring person to exercise
the following proportions of the voting power of the corporation in the election of directors: (1) one-fifth or more but less
than one-third; (2) one-third or more but less than a majority; or (3) a majority or more.&nbsp;&nbsp;The ability to exercise
this voting power may be direct or indirect, as well as individual or in association with others.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
effect of the control share law is that an acquiring person, and those acting in association with that person, will obtain only
such voting rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at
a special or annual meeting of stockholders.&nbsp;&nbsp;The control share law contemplates that voting rights will be considered
only once by the other stockholders.&nbsp;&nbsp;Thus, there is no authority to take away voting rights from the control shares
of an acquiring person once those rights have been approved.&nbsp;&nbsp;If the stockholders do not grant voting rights to the
control shares acquired by an acquiring person, those shares do not become permanent non-voting shares.&nbsp;&nbsp;The acquiring
person is free to sell the shares to others.&nbsp;&nbsp;If the buyer or buyers of those shares themselves do not acquire a controlling
interest, the shares are not governed by the control share law.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of
the voting power, any stockholder of record, other than the acquiring person, who did not vote in favor of approval of voting
rights, is entitled to demand fair value for such stockholder&rsquo;s shares.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition to the control share law, Nevada has a business combination law, which prohibits certain business combinations between
Nevada corporations and &ldquo;interested stockholders&rdquo; for three years after the interested stockholder first becomes an
interested stockholder, unless the corporation&rsquo;s Board of Directors approves the combination in advance.&nbsp;&nbsp;For
purposes of Nevada law, an interested stockholder is any person who is: (a) the beneficial owner, directly or indirectly, of 10%
or more of the voting power of the outstanding voting shares of the corporation, or (b) an affiliate or associate of the corporation
and at any time within the previous three years was the beneficial owner, directly or indirectly, of 10% or more of the voting
power of the then-outstanding shares of the corporation.&nbsp;&nbsp;The definition of &ldquo;business combination&rdquo; contained
in the statute is sufficiently broad to cover virtually any kind of transaction that would allow a potential acquirer to use the
corporation&rsquo;s assets to finance the acquisition or otherwise to benefit its own interests rather than the interests of the
corporation and its other stockholders.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
effect of Nevada&rsquo;s business combination law is to potentially discourage parties interested in taking control of our Company
from doing so if it cannot obtain the approval of our Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 22pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>INDEMNIFICATION
OF DIRECTORS AND OFFICERS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Nevada
Revised Statutes (&ldquo;NRS&rdquo;) Sections 78.7502 and 78.751 provide us with the power to indemnify any of our directors and
officers. The director or officer must have conducted himself/herself in good faith and reasonably believe that his/her conduct
was in, or not opposed to our best interests. In a criminal action, the director, officer, employee or agent must not have had
reasonable cause to believe his/her conduct was unlawful.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Under
NRS Section 78.751, advances for expenses may be made by agreement if the director or officer affirms in writing that he/she believes
he/she has met the standards and will personally repay the expenses if it is determined such officer or director did not meet
the standards.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company&rsquo;s Bylaws include an indemnification provision under which we have the power to indemnify our directors, officers
and former directors and officers (including heirs and personal representatives) against all costs, charges and expenses actually
and reasonably incurred, including an amount paid to settle an action or satisfy a judgment to which the director or officer is
made a party by reason of being or having been a director or officer of the Company or any of its subsidiaries prior to the Merger.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company&rsquo;s Articles of Incorporation provide a limitation of liability such that no director or officer shall be personally
liable to the Company or any of its stockholders for damages for breach of fiduciary duty as director or officer involving any
act or omission of any such director or officer, provided there was no intentional misconduct, fraud or a knowing violation of
the law, or payment of dividends in violation of NRS Section 78.300.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
Board of Directors may take such action as it deems necessary to carry out these indemnification provisions, including adopting
procedures for determining and enforcing indemnification rights and purchasing insurance policies. Our Board of Directors may
also adopt bylaws or resolutions or authorize the entry into contracts implementing indemnification arrangements as may be permitted
by law. Neither the amendment or repeal of these indemnification provisions, nor the adoption of any provision of our articles
of incorporation or bylaws inconsistent with these indemnification provisions, will eliminate or reduce any rights to indemnification
relating to their status or any activities prior to such amendment, repeal or adoption.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted for our directors, officers and controlling
persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Transfer
Agent</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
transfer agent for our common stock is Continental Stock Transfer and Trust Company. The transfer agent&rsquo;s address is 17
Battery Place, New York, New York 10004, and its telephone number is (212)845-3217.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>RECENT
SALES OF UNREGISTERED SECURITIES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Sales
by Dynastar</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
May 4, 2010 Dynastar issued 9,000,000 shares of its common stock to its two founders for aggregate proceeds of $300. One of these
founders is also the Company&rsquo;s chief executive officer and its director. The other founder is no longer actively involved
with Dynastar.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dynastar
also issued 450,000 shares its common stock on May 4, 2010, to an advisor for services in connection with the private placement
transaction.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
June 3, 2010, through a private placement transaction, Dynastar issued 3,604,425 shares of its Series A convertible preferred
stock for aggregate net cash proceeds of $736,574, consisting of gross proceeds of $1,189,400 less cash expenses of $452,826.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
May 4, 2010 Dynastar issued 550,000 shares of its fully vested common stock to a financial consultant for advisory services. The
shares were valued upon issuance at $0.05 per share based upon the value of the services rendered, which was more readily determinable
than the trading value of the common stock (which was not publicly traded). The aggregate fair value of these shares of $27,500
was charged to stock-based compensation expense.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
November 4, 2010, Dynastar awarded 50,000 shares of its fully vested common stock to its chief financial officer, Robert Mohr.
This stock was valued upon issuance at $0.33 per share, by reference to the issuance price of the convertible preferred stock
issued on September 30, 2010. The aggregate fair value of these shares of $16,500 was charged to stock-based compensation expense.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of October 24, 2011, Dynastar has sold an aggregate principal amount of $1,144,985 of its Bridge Notes in a private placement.
Prior to the Merger Closing Date, the holders of these Dynastar Bridge Notes agreed to convert the Bridge Notes along with accrued
but unpaid interest concurrently with the closing of the Merger, at a conversion price of $0.20 per share, into 5,724,925 shares
of our common stock. Purchasers of the Bridge Notes also agreed to exchange their Dynastar Warrants into our warrants to purchase
one share of our common stock for each $0.80 investment in the Bridge Notes. Dynastar Warrants to purchase an aggregate of 1,431,231
shares of Dynastar common stock were issued. Upon the closing of the Merger, the Dynastar Warrants were exchanged for warrants
to purchase 2,862,463 shares of our common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Immediately
prior to the closing of the Merger on January 17, 2012, and in connection with the Merger, Dynastar issued an aggregate of 3,604,425
shares of its common stock upon the conversion of its Dynastar Preferred Stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
issuances of these securities were not registered under the Securities Act in reliance upon the exemption from registration provided
by Section 4(2) of the Securities Act and, in certain cases, under Regulation D promulgated by the SEC under that section, which
exempts transactions by an issuer not involving any public offering.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Sales
by the Company</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
connection with the Merger, we issued an aggregate of 15,872,000 shares of our common to the stockholders
of Dynastar.&nbsp;&nbsp;We also issued 5,724,925 shares of our common stock to the holders of the Bridge Notes for principal
and 258,781 shares for accrued interest and warrants for 2,862,463 shares of our common stock to the holders of the Dynastar
Warrants. The issuance of these shares of our common stock and the warrants to the Dynastar stockholders in connection with
the Merger was not registered under the Securities Act in reliance upon the exemption from registration provided by Section
4(2) of the Securities Act and Regulation D promulgated by the SEC under that section, which exempts transactions by an
issuer not involving any public offering. These securities may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirement.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
January 17, 2012, we sold an aggregate of 125,000 units in an offering of securities at a price of $0.20 per unit for gross proceeds
of $25,000. Each unit consists of one share of our common stock and a warrant to purchase one-half share of our common stock at
a purchase price of $0.80 per full share.&nbsp;&nbsp;The sale of these securities were deemed to be exempt from the registration
requirements of the Securities Act by virtue of Section 4(2) thereof, Regulation S promulgated thereunder and/or Regulation D
promulgated thereunder, as a transaction by an issuer not involving a public offering. The recipient of securities in the offering
represented its intention to acquire the securities for investment only and not with a view to or for sale in connection with
any distribution thereof and appropriate legends were affixed to the certificates issued in the offering. All purchasers of the
securities were accredited or sophisticated persons, or were non-U.S. persons, and had adequate access, through employment, business
or other relationships, to information about us.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 48pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 48pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
January 17, 2012, we issued warrants to purchase 2,000,000 shares of our common stock to Navesink and its designees as compensation
under our consulting agreement with Navesink dated effective as of January 17, 2012. <FONT STYLE="color: black">The issuance of
these warrants was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(2) thereof
and , Regulation D promulgated thereunder, as a transaction by an issuer not involving a public offering. </FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">FINANCIAL
STATEMENTS AND SUPPLEMENTAL DATA</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference
is made to the disclosure set forth under Item 9.01 of this Current Report, which disclosure is incorporated herein by reference.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">INDEX
TO EXHIBITS</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
Item 9.01(c) below, which is incorporated by reference herein.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION
OF EXHIBITS</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
the Exhibit Index below and the corresponding exhibits, which are incorporated by reference herein.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item
3.02.&#9;Unregistered Sales of Equity Securities.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
disclosure set forth in Item 2.01 to this Current Report under the section &ldquo;Recent Sales of Unregistered Securities&rdquo;
is incorporated into this item by reference.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item
5.01.&#9;Changes in Control of the Registrant.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
a result of the closing of the Merger, we experienced a change in control, with the former stockholders of Dynastar acquiring
control of us. The disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item
5.02.&#9;Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference.</FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item
5.06.&#9;Change in Shell Company Status.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference. As a result of the completion
of the Merger, we believe that we are no longer a shell company as defined in Rule 405 of the Securities Act and Rule 12b-2 of
the Exchange Act.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item
9.01.&#9;Financial Statements and Exhibits.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(a)&#9;Financial
Statements of Business Acquired</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial
Statements:(i) audited financial statements and notes thereto of Dynastar and Subsidiary for the period ended May 4, 2010 (inception)
through December 31, 2010, (ii) unaudited condensed consolidated financial statements and notes thereto of Dynastar and Subsidiary
for the nine months ended September 30, 2011 and for the period from May 4, 2010 (inception) through September 30, 2010, (ii)
audited financial statements and notes thereto of My Affordable Energy for the years ended December 31, 2010 and 2009, are included
with this Current Report beginning on Page F-1.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(b)&#9;Pro
forma financial information</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unaudited
pro-forma consolidated financial statements are included with this Current Report beginning on Page F-55.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(d)&#9;Exhibits&#9;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
reviewing the agreements included or incorporated by reference as exhibits to this Current Report on Form 8-K, please remember
that they are included to provide you with information regarding their terms and are not intended to provide any other factual
or disclosure about the Company or the other parties to the agreements. The agreements may contain representations and warranties
by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit
of the parties to the applicable agreement and:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">should
                                                                                                                                                      not
                                                                                                                                                      in
                                                                                                                                                      all
                                                                                                                                                      instances
                                                                                                                                                      be
                                                                                                                                                      treated
                                                                                                                                                      as
                                                                                                                                                      categorical
                                                                                                                                                      statements
                                                                                                                                                      of
                                                                                                                                                      fact,
                                                                                                                                                      but
                                                                                                                                                      rather
                                                                                                                                                      as
                                                                                                                                                      a
                                                                                                                                                      way
                                                                                                                                                      of
                                                                                                                                                      allocating
                                                                                                                                                      the
                                                                                                                                                      risk
                                                                                                                                                      to
                                                                                                                                                      one
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      parties
                                                                                                                                                      if
                                                                                                                                                      those
                                                                                                                                                      statements
                                                                                                                                                      prove
                                                                                                                                                      to
                                                                                                                                                      be
                                                                                                                                                      inaccurate;<BR






















































































































































                                                                                                                                                      STYLE="mso-special-character:






















































































































































                                                                                                                                                      line-break">
                                                                                                                                                      </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">have
                                                                                                                                                      been
                                                                                                                                                      qualified
                                                                                                                                                      by
                                                                                                                                                      disclosures
                                                                                                                                                      that
                                                                                                                                                      were
                                                                                                                                                      made
                                                                                                                                                      to
                                                                                                                                                      the
                                                                                                                                                      other
                                                                                                                                                      party
                                                                                                                                                      in
                                                                                                                                                      connection
                                                                                                                                                      with
                                                                                                                                                      the
                                                                                                                                                      negotiation
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      applicable
                                                                                                                                                      agreement,
                                                                                                                                                      which
                                                                                                                                                      disclosures
                                                                                                                                                      are
                                                                                                                                                      not
                                                                                                                                                      necessarily
                                                                                                                                                      reflected
                                                                                                                                                      in
                                                                                                                                                      the
                                                                                                                                                      agreement;&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">may
                                                                                                                                                      apply
                                                                                                                                                      standards
                                                                                                                                                      of
                                                                                                                                                      materiality
                                                                                                                                                      in
                                                                                                                                                      a
                                                                                                                                                      way
                                                                                                                                                      that
                                                                                                                                                      is
                                                                                                                                                      different
                                                                                                                                                      from
                                                                                                                                                      what
                                                                                                                                                      may
                                                                                                                                                      be
                                                                                                                                                      viewed
                                                                                                                                                      as
                                                                                                                                                      material
                                                                                                                                                      to
                                                                                                                                                      you
                                                                                                                                                      or
                                                                                                                                                      other
                                                                                                                                                      investors;
                                                                                                                                                      and&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">were
                                                                                                                                                      made
                                                                                                                                                      only
                                                                                                                                                      as
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      date
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      applicable
                                                                                                                                                      agreement
                                                                                                                                                      or
                                                                                                                                                      such
                                                                                                                                                      other
                                                                                                                                                      date
                                                                                                                                                      or
                                                                                                                                                      dates
                                                                                                                                                      as
                                                                                                                                                      may
                                                                                                                                                      be
                                                                                                                                                      specified
                                                                                                                                                      in
                                                                                                                                                      the
                                                                                                                                                      agreement
                                                                                                                                                      and
                                                                                                                                                      are
                                                                                                                                                      subject
                                                                                                                                                      to
                                                                                                                                                      more
                                                                                                                                                      recent
                                                                                                                                                      developments.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Accordingly,
these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other
time. Additional information about us may be found elsewhere in this Current Report on Form 8-K and in our other public filings,
which are available without charge through the SEC&rsquo;s website at http://www.sec.gov.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>DESCRIPTION
OF EXHIBITS</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
the Exhibit Index below and the corresponding exhibits, which are incorporated by reference herein.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; border-bottom: Black 1pt solid; width: 14%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exhibit&nbsp;No.</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; border-bottom: Black 1pt solid; width: 84%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Agreement and Plan of Merger and Reorganization
    dated as of January 17, 2012 by and among Registrant, Dynastar Acquisition Corp., and Dynastar Ventures Inc., (a Delaware
    corporation)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Certificate of Merger dated as of January
    17, 2012 for the merger of Dynastar Acquisition Corp. into Dynastar Ventures Inc. (a Delaware corporation)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Articles
        of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant&rsquo;s Registration Statement
        on Form SB-2 filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) on July 16, 2007)</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Certificate
        of Amendment to Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to Current Report
        on Form 8-K filed with the SEC on October 14, 2011)</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.4</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By-Laws
    of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant&rsquo;s Registration Statement on Form SB-2
    filed with the SEC on July 16, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Investor Warrant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Bridge Note Exchange Warrant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Broker&nbsp;Warrant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.4</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Navesink Warrant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Subscription Agreement between the Registrant and the investors in the&nbsp; Unit Private Placement Offering</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Subscription
    Escrow Agreement dated December 15, 2011, by and among the Registrant, Gottbetter Capital Markets, LLC, and CSC Trust Company
    of Delaware</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Placement
    Agency Agreement dated as of October 27, 2011 by and between the Placement Agent and the Registrant</FONT></TD></TR>
</TABLE>


<P STYLE="line-height: 115%"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 14%; padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.4</FONT></TD>
    <TD STYLE="width: 2%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 84%; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Registration Rights Agreement by and between the Registrant and the investors in the Private Placement Offering</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.5</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Escrow
        Agreement dated January 17, 2012 among the Registrant, John S. Henderson IV, as indemnification representative, and Gottbetter
        &amp; Partners, LLP, as escrow agent</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.6</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Share
    Cancellation Agreement dated as of January 17, 2012 by and between the Registrant and Dynastar Ventures Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.7</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Navesink
    Consulting Agreement dated as of January 17, 2002 by and between the Registrant and Navesink Capital Advisors, LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.8</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Undiscovered
    Equities Consulting Agreement dated as of December 20, 2011 by and between Dynastar Ventures, Inc. and Undiscovered Equities,
    Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.9</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Executive
    Employment Agreement for John Henderson</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.10</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Executive
    Employment Agreement for Robert Mohr</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.11</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Registrant&rsquo;s
    2011 Equity Incentive Plan</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.12</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Plan Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.13</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Lock-Up Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">14.1</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Code
    of Ethics</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 19.8pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">21.1</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Subsidiaries
    of Registrant</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

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    <!-- Field: /Page -->
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Signatures</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date:
    &nbsp;January 23, 2012</FONT></TD>
    <TD COLSPAN="2" STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dynastar
    Holdings, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt; width: 50%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt; width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt; width: 46%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/
    John S. Henderson IV</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name:&nbsp;
    John S. Henderson IV</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; text-autospace: ideograph-numeric ideograph-other; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title:&nbsp;&nbsp;&nbsp;
    Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>



<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>DYNASTAR HOLDINGS, INC.</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Form
8K</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FINANCIAL
STATEMENTS </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Table
of Contents</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 83%; text-decoration: underline"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dynastar Ventures,
    Inc. and Subsidiary</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 15%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial Statements
    for the period from May 4, 2010 (inception) through December 31, 2010:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Independent Auditors&rsquo; Report</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-1</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consolidated Balance Sheet</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-2</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consolidated Statement of Operations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-3</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consolidated Statement of Changes
    in Redeemable Preferred Stock and Stockholders&rsquo; Deficit</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-4</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consolidated Statement of Cash Flows</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-5</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Notes to Consolidated Financial Statements</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-6 &ndash; F-19</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Condensed Consolidated
    Financial Statements for the Nine Months Ended September 30, 2011 and for the period from May 4, 2010 (inception) through
    September 30, 2010 (unaudited):</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Condensed Consolidated Balance Sheets</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-20</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Condensed Consolidated Statements
    of Operations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-21</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Condensed Consolidated
    Statement of Changes in Redeemable Preferred Stock and Stockholders&rsquo; Deficit</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-22</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Condensed Consolidated Statements
    of Cash Flows</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-23 &ndash; F-24</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Notes to Condensed Consolidated Financial
    Statements</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-25 &ndash; F-43</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 83%; text-decoration: underline"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">My Affordable Energy,
    LLC</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 15%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial Statements for the years ended December 31, 2010 and
    2009:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Report of Independent Registered Public
    Accounting Firm</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-44</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Balance Sheets</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-45</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Statements of Operations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-46</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Statements of Member&rsquo;s Deficit</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-47</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Statement of Cash Flows</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-48</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Notes to Financial Statements</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-49 &ndash; F-54</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>DYNASTAR
HOLDINGS, INC.</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Form
8k</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FINANCIAL
STATEMENTS </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Table
of Contents, continued</B></FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 83%; text-decoration: underline"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pro Forma Condensed
    Combined Financial Statements (unaudited)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Introduction to the Unaudited Pro
    Forma Condensed Combined Financial Statements</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-55 &ndash; F-56</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unaudited Pro Forma Condensed Combined
    Balance Sheet at September 30, 2011</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-57</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unaudited
Pro Forma Condensed Combined Statement of Operations for the Nine Months Ended September 30, 2011</FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-58</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unaudited
Pro Forma Condensed Combined Statement of Operations for the Nine Months Ended September 30, 2010</FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-59</FONT></P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27.35pt; text-indent: -9.35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unaudited Pro
    Forma Condensed Combined Statement of Operations for the Year Ended December 31, 2010</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-60</FONT></P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Notes to the Unaudited Pro Forma Condensed
    Combined Financial Statements</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">F-61 &ndash; F-67</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"></P>

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<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B><U>REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the Director and Stockholders of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dynastar Ventures, Inc. and Subsidiary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have audited the accompanying consolidated
balance sheet of Dynastar Ventures, Inc. and Subsidiary (a company in the development stage) (the &ldquo;Company&rdquo;) as of
December 31, 2010, and the related consolidated statements of operations, changes in redeemable preferred stock and stockholders&rsquo;
deficit and cash flows for the period from May 4, 2010 (inception) to December 31, 2010. These financial statements are the responsibility
of the Company&rsquo;s management. Our responsibility is to express an opinion on these financial statements based on our audit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We conducted our audit in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over
financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In our opinion, the financial statements referred
to above present fairly, in all material respects, the consolidated financial position of Dynastar Ventures, Inc. and Subsidiary
as of December, 31, 2010, and the results of their consolidated operations, and their consolidated cash flows for the period from
May4, 2010 (inception) to December 31, 2010, in conformity with accounting principles generally accepted in the United States of
America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company&rsquo;s
significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Marcum LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">New York, New York&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify">January 5, 2012</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Company in the Development Stage)</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED BALANCE SHEET</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>December 31, 2010</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center">ASSETS</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Current assets:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; padding-left: 9pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">28,968</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">150,000</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">38,511</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">217,479</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">44,990</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Deposit toward acquisition of My Affordable Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">8,400</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">370,869</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: center">LIABILITIES, REDEEMABLE PREFERRED STOCK</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: center">AND STOCKHOLDERS' DEFICIT</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Current liabilities:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">36,750</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Accrued registration rights damages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">71,364</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Accrued payroll and related benefits</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">33,959</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">142,073</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Other liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,483</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">144,556</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9.35pt; padding-left: 9.35pt">Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized: Series A Convertible Preferred stock, 5,000,000 shares designated; 3,604,245 shares issued and outstanding, at stated value; liquidation preference &nbsp;of $3,568,202</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-size: 10pt">1,189,400</FONT></TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Commitments</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Stockholders' deficit:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Common stock, $0.0001 par value, 50,000,000 shares authorized, 10,050,000 shares &nbsp;issued and outstanding</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-size: 10pt">1,005</FONT></TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">61,311</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Deficit accumulated during development stage</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,025,403</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Total stockholders' deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(963,087</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 9pt">Total liabilities, redeemable preferred stock and &nbsp;stockholders' deficit</TD><TD STYLE="font-size: 12pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right"><FONT STYLE="font-size: 10pt">370,869</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 12pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">See notes to
these consolidated financial statements</FONT></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Company in the Development Stage)</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>STATEMENT OF OPERATIONS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of sales</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Operating expenses:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; text-indent: 10pt">Compensation</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">349,388</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Consulting fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Registration rights damages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,364</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">83,767</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">607,339</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(607,339</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Other Income</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Interest income</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">48,436</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(558,903</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Deemed dividend to Series A convertible preferred stockholders</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(466,500</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Net loss available to common stockholders</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,025,403</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-size: 10pt">See
notes to these consolidated financial statements</FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Company in the Development Stage)</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENT OF CHANGES IN</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REDEEMABLE CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS&rsquo; DEFICIT</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Calibri, Halvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Deficit</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Redeemable</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Accumulated</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Convertible</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Common</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Additional</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">during</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Preferred
    Stock</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Stock</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Paid-in</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Development</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Capital</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Stage</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Total</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Balance,
    May 4, 2010</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 30%; font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Issuance
    of common stock to founders for cash</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">9,000,000</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">900</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(600</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">300</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Issuance
    of common stock to consultants&nbsp; in connection with private placement</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">450,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">45</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">13,629</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">13,674</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Issaunce
    of common stock to consultants for services</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">550,000</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">55</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">27,445</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">27,500</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Issuance
    of preferred stock in connection with private placement, at stated value</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">3,604,245</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">1,189,400</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Stock
    based compensation - common stock issued to officer of the Company</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">50,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">5</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">16,495</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">16,500</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Stock
    based compensation - amortization of employee stock options</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">4,342</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">4,342</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Deemed
    dividend on preferred stock</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(466,500</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(466,500</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Net
    loss</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(558,903</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(558,903</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in"><FONT STYLE="font-size: 8pt">Balance,
    December 31, 2010</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">3,604,245</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">1,189,400</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; border-left: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">10,050,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">1,005</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">61,311</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(1,025,403</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">(963,087</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-size: 10pt">See
notes to these consolidated financial statements&nbsp;</FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Company in the Development Stage)</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENT OF CASH FLOWS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from operating activities:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; text-indent: 10pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(558,903</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 20pt">Depreciation expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Deferred rent expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,483</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 20pt">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,342</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Accrued registration rights damages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,364</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Changes in operating assets and liabilities:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(38,511</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 20pt">Payment of deposit on lease</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,400</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Accrued payroll and related expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">33,959</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 30pt">Total adjustments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">148,487</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 30pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(410,416</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Cash flows from investing activities:</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Issuance of note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(400,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Repayment of note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Deposit toward acquisition of My Affordable Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(100,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Purchases of property and equipment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(47,490</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(297,490</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from financing activities</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Issuance of common stock to founders of the Company</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Issuance of preferred stock, net of cash offering costs of $452,826</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">736,574</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">736,874</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net increase in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,968</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Cash and cash equivalents - beginning of year</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Cash and cash equivalents - end of year</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">28,968</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-size: 10pt">See
notes to these consolidated financial statements</FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 1 - Organization</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">Dynastar Ventures, Inc. (the &ldquo;Company&rdquo;
or &ldquo;Dynastar&rdquo;) was originally formed as Bluegrass Venture Group Inc. on May 4, 2010 in the State of Delaware. The Company
was organized for the purpose of acting as a public holding company of direct selling companies, initially focused in the residential
and commercial electricity and natural gas markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company intends to grow initially
through a series of acquisitions intended to build up its operating infrastructure. Then, the Company intends to leverage that
infrastructure of personnel, technology and best practices to grow organically and through further acquisitions into new geographical
markets and new product lines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company is considered to be a development
stage company and as such, the financial statements are prepared in accordance with the Accounting Standards Codification (&ldquo;ASC&rdquo;)
topic 915 &ldquo;Development Stage Entities.&rdquo; The Company is subject to all of the risks associated with development stage
companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On December 14, 2010, the Company formed
a wholly owned subsidiary, Dynastar Energy LLC (&ldquo;Dynastar Energy&rdquo;) for the purpose of acquiring the assets of My Affordable
Energy, LLC (&ldquo;Affordable Energy&rdquo;). On February 11, 2011, the Company changed its name from Bluegrass Venture Group,
Inc. to Dynastar Ventures, Inc. On February 15, 2011, the Company consummated the acquisition of the business and selected assets
of Affordable Energy (see Note 6 &ndash; Agreement to Purchase Affordable Energy).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 2 &ndash; Liquidity and Management&rsquo;s Plans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Through December 31, 2010, the Company has incurred
cumulative net losses and net losses available to common stockholders since inception of $558,903 and $1,025,403, respectively.
At December 31, 2010, the Company had a cash balance of $28,968. These matters raise substantial doubt about the Company&rsquo;s
ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company was formed in May 2010 and through
January 2011, its operations consisted solely of raising capital and conducting due diligence in connection with the targeted acquisition
of an operating company. On February 15, 2011, the Company closed on its first acquisition and became an operating company. Following
the February 15, 2011 acquisition, it is the Company&rsquo;s plan to become a public company as a vehicle to raise capital. Thereupon,
the Company intends to deploy that additional capital to expand its operations within additional deregulated energy markets within
the United States. The Company further expects to incur significant auditing, accounting, legal and other costs in connection with
the preparations for and then becoming a public company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company expects that through the next 12
to 18 months, the capital requirements to fund the Company&rsquo;s growth and to cover the operating costs of a public company
will consume most of the Company&rsquo;s cash flows that it intends to generate from both the recently acquired operating company,
as well as from the proceeds of planned issuances of debt and equity securities. The Company further believes that during this
period, while the Company is focusing on the growth and expansion of its business, that the gross profits that it expects to generate
from the sale of energy operations will not generate sufficient funds to cover these anticipated operating costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 2 &ndash; Liquidity and Management&rsquo;s Plans,
continued</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As discussed above, on February 15, 2011, the
Company acquired Affordable Energy. Through November 2011, the Company has reduced the Company&rsquo;s overall headcount in an
effort to reduce operating costs and has taken steps that it believes will drive long-term revenue growth through enhancements
in the commission program with its independent energy consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Since inception, the Company&rsquo;s operations
have primarily been funded through private equity and debt financing, and it is expected that the Company would continue to seek
additional funding through these private or public equity and debt financing sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">However, there can be no assurance that the
Company&rsquo;s plans as discussed above will materialize and/or that the Company will be successful in funding estimated cash
shortfalls through additional debt or equity capital and/or any cash generated by the operations that the Company acquired in February
2011. Given these conditions, the Company&rsquo;s ability to continue as a going concern is contingent upon it being able to secure
an adequate amount of debt or equity capital to enable it to meet its cash requirements.&nbsp;&nbsp;In addition, the Company&rsquo;s
ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered
by entrance into established markets, the competitive environment in which the Company operates and the current capital raising
environment. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company raised $1,144,985 in 10.0% convertible
bridge notes during the period February through October of 2011 and plans to conduct a private placement to raise $2,000,000 over
the following 24 months through the issuance of units consisting of common stock and warrants. The funds raised through this private
placement will be used to fund the Company&rsquo;s operations, including the costs that it expects to incur as a public company,
and most importantly, to fund the Company&rsquo;s plans to recruit additional independent energy consultants and sales and marketing
personnel to enable it to expand to additional markets and deepen its penetration into existing markets. The current level of cash
is not enough to cover the existing fixed and variable obligations of the Company, so increased revenue performance and the addition
of more capital are critical to our success. Should the Company not be able to raise these additional funds through the private
placement or some other financing source, the Company would need to consider implementing any or all of the following steps as
counter measures to temporarily conserve cash, including: (i) curtailing its growth plans by limiting hiring of new personnel,
(ii) reducing the salaries of or deferring the payment of compensation to its employees and (iii) extending the terms of payments
to its vendors, advisors and consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Assuming that the Company is successful in its
growth plans and development efforts, the Company believes that it will be able to raise additional funds through sales of its
stock. There is no guarantee that the Company will be able to raise these additional funds or to do so at an advantageous price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company&rsquo;s financial statements do
not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification
of liabilities that might be necessary should the Company not be unable to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 3 - Summary of Significant Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Principles of Consolidation and Basis of Presentation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The accompanying consolidated financial
statements include the accounts of Dynastar Ventures, Inc. and its subsidiary and have been prepared in accordance with accounting
principles generally accepted in the United States of America (&ldquo;US GAAP&rdquo;). All significant inter-company accounts and
transactions have been eliminated in consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Basis of Presentation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The accompanying financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (&ldquo;US GAAP&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Use of Estimates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Management also utilizes various other
estimates, including but not limited to, the value of equity instruments and stock based compensation. Actual results could differ
from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Cash </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company places its cash deposits and cash
investments with financial institutions. At times, the Company&rsquo;s cash may be uninsured or in deposit accounts that exceed
the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) insurance limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Property and Equipment</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">Property and equipment is stated at
cost and is being depreciated using the straight-line method over their estimated useful lives, generally three to five years.
Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization of these assets
are removed from the accounts and the resulting gains or losses are reflected in the consolidated results of operations. Expenditures
for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I> &nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 3 - Summary of Significant Accounting Policies, continued</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company accounts for its preferred stock
in accordance with the guidance of ASC 480 &ldquo;Distinguishing Liabilities from Equity&rdquo;. Preferred shares subject to mandatory
redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred
shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to
redemption upon the occurrence of uncertain events not solely within the Company&rsquo;s control) are classified as temporary equity.
At all other times, preferred shares are classified as stockholders&rsquo; equity. The Company&rsquo;s preferred shares feature
certain redemption rights that are considered by the Company to be outside of the Company&rsquo;s sole control. Accordingly at
December 31, 2010, the Company&rsquo;s convertible preferred stock is presented as temporary equity in the mezzanine section of
the Company&rsquo;s consolidated balance sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Stock-Based Compensation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company accounts for equity instruments
issued to non-employees in accordance with accounting guidance which requires that such equity instruments are recorded at their
fair value on the measurement date, which is typically the date the services are performed. Stock based compensation for non-employees
is reflected within general and administrative expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company accounts for equity instruments
issued to employees in accordance with accounting guidance which requires that awards are recorded at their fair value on the date
of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs over the requisite service
period of the award, which is generally the vesting term of the equity instrument issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Income Taxes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company accounts for income taxes
under ASC 740 Income Taxes (&ldquo;ASC 740&rdquo;). ASC 740 requires the recognition of deferred tax assets and liabilities for
both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected
future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance
to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC 740 also
clarifies the accounting for uncertainty in income taxes recognized in an enterprise&lsquo;s financial statements and prescribes
a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained
upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. The Company has identified Kentucky as its sole tax jurisdiction, as
defined. Based on the Company&lsquo;s evaluation, it has been concluded that there are no significant uncertain tax positions requiring
recognition in the Company&lsquo;s financial statements. Since the Company was incorporated on May 4, 2010, the evaluation was
performed for the 2010 tax year. The Company believes that the income tax positions and deductions that it has taken on its return,
would be sustained on audit and does not anticipate any adjustments that would result in a material changes to its financial position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company&lsquo;s policy for recording
interest and penalties associated with audits is to record such items as a component of income tax expense. There were no amounts
accrued for penalties or interest as of December 31, 2010 or for the period from May 4, 2010 (inception) through December 31, 2010.
Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations
from its position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"><B>Note
4 - Note receivable&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On June 22, 2010, the Company received
a note receivable in the amount of $400,000 in exchange for a loan made to an advisor of the Company, as a means of investing unused
funds raised in connection with a private placement of preferred stock as described in Note 9. Pursuant to the terms of the note,
all principal was payable 21 days from the date of issuance along with interest at 6% per annum and a loan origination fee of $24,000.
Any amounts unpaid after the 21 day term bear interest at the rate of 18% per annum from the date of default until paid in full.
On September 10, 2010, September 16, 2010 and December 31, 2010, the borrower repaid principal amounts of $100,000, $100,000 and
$150,000, respectively. On September 16, 2010, the borrower paid $12,000 of the loan origination fee. During the period from June
22, 2010 through December 31, 2010, the Company recorded interest income of $48,436 on this note receivable, including the $24,000
loan origination fee. The total interest and loan origination fee receivable at December 31, 2010 was $36,436, and was included
in prepaid expenses and other current assets on the accompanying balance sheet. As of December 31, 2010, $150,000 of the principal
balance was outstanding. The borrower made further payments in 2011 and as of February 15, 2011, the remaining balance of the note
receivable as well as the accrued interest and origination fee were received in full.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 5 - Property and Equipment</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">Property and equipment consisted of
the following at December 31, 2010:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 75%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Estimated <BR>Useful&nbsp;Life</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Computers and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">3 years</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,997</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Furniture and fixtures</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">5 years</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">26,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Property and equipment, gross</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,490</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Less: accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Property and equipment, net</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">44,990</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Depreciation expense for the period from
May 4, 2010 (inception) through December 31, 2010 was $2,500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 6 &ndash; Agreement to Purchase Affordable Energy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On December 14, 2010, Dynastar Energy entered
into an asset purchase agreement (the &ldquo;Purchase Agreement&rdquo;) with Affordable Energy, a Texas Limited Liability Company,
to acquire the business and selected assets of Affordable Energy. In accordance with that agreement, on December 14, 2010, Dynastar
Energy paid a deposit to the sellers of Affordable Energy in the amount of $100,000 (See Note 12).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 7 - Commitments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Employment Agreements </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On November 4, 2010 the Company entered
into an employment agreement with its Chief Executive Officer. The agreement provides, a base annual salary of $240,000, $260,000
and $300,000 for the years ended December 31, 2011, 2012 and 2013, respectively, monthly bonuses based upon the number of energy
consultants added and up to 36 months of contractual compensation for termination under certain circumstances.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 7 &ndash; Commitments, continued</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Employment Agreements, continued </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On November 4, 2010 the Company entered
into an employment agreement with its Chief Financial Officer. The agreement provides a base annual salary of $175,000, $200,000
and $250,000 for the years ended December 31, 2011, 2012 and 2013, respectively, monthly bonuses based upon the number of energy
consultants added and up to 12 months of contractual compensation for termination under certain circumstances. In connection with
the execution of the agreement, the officer was granted 50,000 shares of restricted stock with a grant date a fair value of $16,500,
as well as options for the purchase of 450,000 shares of the Company&rsquo;s common stock (see Note 11 - Stock-Based Compensation).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Lease Agreements </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On November 5, 2010 the Company entered
into an agreement to lease 2,142 square feet of office space in Louisville, Kentucky. Payments of rent under the lease are scheduled
to begin in February 2011, with an annual escalation of rent in the year 2012. The lease commenced on December 1, 2010 and expires
on November 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">Future minimum lease payments under
this operating lease are as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">For&nbsp;the&nbsp;year&nbsp;ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 85%; text-align: center">2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">28,800</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; padding-bottom: 1pt">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">30,800</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">59,600</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">Rent expense for the period May 4,
2010 (inception) through December 31, 2010 was $2,483, and was reflected in general and administrative expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Non-contingent rent increases are being
amortized over the life of the lease on a straight line basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Deferred rent of $2,483 represents the
unamortized rent adjustment amount at December 31, 2010 and was reflected in other long-term liabilities in the accompanying balance
sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>Note 8 &ndash; Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The Company&rsquo;s deferred tax assets
are as follows at December 31, 2010:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%">Net operating loss carryforwards</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">165,574</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,920</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Registration rights penalties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,118</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Total deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,612</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Less: valuation allowance</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(200,612</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 9pt">Net deferred tax assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><FONT STYLE="font-size: 11pt"><B>Note 8&mdash;Income Taxes,
continued</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The Company has a net operating loss of
approximately $436,000 that expires in 2030. The ultimate realization of the net operating losses is dependent upon future taxable
income, if any, of the Company and may be limited in any one period by alternative minimum tax rules. Although management&rsquo;
plans forecast that the Company will have sufficient future taxable income to absorb the net operating loss carryovers before the
expiration of the carryover period, it is more likely than not that these operating loss benefits will not be realized. Accordingly,
management has determined that a full valuation allowance of the deferred tax asset is appropriate at December 31, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Internal Revenue Code Section 382 imposes
limitations on the use of net operating loss carryovers when the stock ownership of one or more 5% shareholders (shareholders owning
5% or more of the Company&rsquo;s outstanding capital stock) has increased on a cumulative basis by more than 50 percentage points
within a period of two years. Management cannot control the ownership changes occurring as a result of public trading of the Company&rsquo;s
Common Stock. Accordingly, there is a risk of an ownership change beyond the control of the Company that could trigger a limitation
of the use of the loss carryover.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The Company established a valuation allowance
of $200,612 as of December 31, 2010, which fully offset the net deferred tax asset of $200,612. The deferred tax asset results
from applying an effective combined federal and state tax rate of 38% to the cumulative timing differences of $527,927. Effective
tax rates differ from statutory rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">A reconciliation of the statutory federal
income tax rate to the Company&rsquo;s effective tax rate at December 31, 2010 is as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-indent: -0.1in; padding-left: 0.1in">Tax benefit at federal statutory rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">(34.0</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">State income tax</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.0</TD><TD STYLE="text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Permanent difference: travel and entertainment and stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Increase in valuation allowance</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">35.9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 16.2pt">Effective income tax rate</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-&nbsp; </TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 9 - Series A Convertible Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company is authorized to issue up to 10,000,000
shares of convertible preferred stock, par value of $0.001 per share. It has designated one series of preferred stock: 5,000,000
shares of Series A convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On June 3, 2010, through a private placement
transaction, the Company issued 3,604,425 shares of Series A convertible preferred stock for aggregate net cash proceeds of $736,574,
consisting of gross proceeds of $1,189,400 less cash expenses of $452,826. The Company also issued 450,000 shares of common stock
on May 4, 2010, to an advisor for services in connection with the private placement transaction. Since the redemption rights of
the Series A convertible preferred stock were immediately vested, the Company recorded a deemed dividend of $466,500 to fully accrete
the Series A convertible preferred stock to its stated value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Series A convertible preferred stock is
subordinate to, and ranks junior to, all of the indebtedness of the Company. The Series A convertible preferred stock ranks senior
to the Company&rsquo;s common stock, and has a liquidation preference of 300% of its stated value of $0.33 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Series A convertible preferred
shares feature certain redemption rights that are considered by the Company to be outside of its control. Accordingly, the Series
A convertible preferred stock is required to be classified as mezzanine equity, and is recorded at its redemption value of $1,189,400.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Series A convertible preferred
stock is convertible into 3,604,425 shares of common stock at any time, at the option of the holder at a conversion price of $0.33
per share. The conversion price is subject to adjustment for stock splits, stock dividends, recapitalizations, dilutive issuances
and other anti-dilution provisions, including circumstances in which the Company issues equity securities or convertible instruments
with an effective issuance price lower than the conversion price specified in the Series A convertible preferred stock. Outstanding
shares of Series A convertible preferred stock are also automatically convertible into shares of our common stock, at the then
applicable conversion price, upon the closing of a firm commitment underwritten public offering of shares of our common stock yielding
aggregate proceeds of not less than $20,000,000 or under certain other circumstances when the trading volume and average trading
prices of the stock attain certain specified levels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company determined that the conversion feature
was a derivative since the conversion price was not fixed. The Company evaluated the convertible preferred stock and determined
that the host convertible preferred stock instrument had more equity-like characteristics, since even after considering all conditional
redemption features, it was deemed unlikely that its holders could or would expect to redeem the instrument for cash. As a result,
the Company accounted for the conversion option as an embedded conversion feature. The conversion option did not have any intrinsic
value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In connection with the private placement, the
Company entered into a registration rights agreement with the investors, pursuant to which the Company agreed to pay liquidated
damages to each investor if the Company failed to file a registration statement within 90 days of the closing date, and if the
registration statement is not declared effective with 180 days of the closing date. Under the registration rights agreement, the
Company would be obligated to pay each investor damages equal to 1% of each investor&rsquo;s purchase price for each 30 day period
for each of the failed requirements, provided that such damages will be capped at 10% of each investor&rsquo;s total purchase price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of December 31, 2010, the Company has not
yet filed a registration statement. For the period May 4 through December 31, 2010, the Company has recorded $71,364 in liquidated
damages related to the registration rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 10 - Stockholders&rsquo; Equity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Company is authorized to issue
up to 50,000,000 shares of common stock, par value $0.0001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On May 4, 2010 the Company issued 9,000,000
shares of its common stock to the two founders of the Company for aggregate proceeds of $300. One of these founders is also the
Company&rsquo;s chief executive officer and its director. The other founder is no longer actively involved with the company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On May 4, 2010 the Company issued 550,000 shares
of its fully vested common stock to a financial consultant for advisory services. The shares were valued based upon the value of
the services rendered, which was more readily determinable than the fair value of the common stock. Accordingly, $27,500 was charged
to stock-based compensation expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On November 4, 2010, the Company awarded
50,000 shares of its fully vested common stock to its chief financial officer. This stock was valued upon issuance at $0.33 per
share, by reference to the issuance price of the convertible preferred stock issued on June 30, 2010. Accordingly, $16,500 was
charged to stock-based compensation expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 11 &ndash; Stock-Based Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>The 2010 Long Term Incentive Plan </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The 2010 Long Term Incentive Plan (the
&ldquo;Incentive Plan&rdquo;) was adopted on November 1, 2010, in order to provide the Company&rsquo;s directors, officers and
employees, with additional incentives by increasing their ownership interest in the company. Stock options granted under the Incentive
Plan are intended to constitute &ldquo;incentive stock options&rdquo; as defined in Section 422 of the Internal Revenue Code. However,
to the extent that the aggregate fair market value of shares vested by an individual optionee during any calendar year exceeds
$100,000, the options which exceed such limit will be treated as nonstatutory stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The Incentive Plan provides for 1,000,000
shares of common stock to be reserved for issuance under the plan. Options issued under the plan vest in equal installments on
the first three anniversaries of the date of grant. Unexercised options will expire in ten years. The exercise price is to be equal
to at least 100% of the fair market value of a share of common stock on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt">As of December 31, 2010, 535,000 shares remain eligible
to be issued under the Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Stock Options</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On November 4, 2010, the Company granted
an option for the purchase for 450,000 shares of its common stock to an officer, in connection with the execution of his employment
agreement. The option has a 10 year term, and vests ratably on the first three anniversaries of the date of grant. The option has
a grant date fair value of approximately $127,000 utilizing the Black-Scholes option pricing model with the following assumptions
used: expected life of 6.5 years, volatility of 111%, dividends of 0%, and a risk free interest rate of 2.53%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"><B>Note
11 &ndash; Stock-Based Compensation, continued<I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Stock Options, continued</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">On December 20, 2010, the Company granted
an option for the purchase of 15,000 shares of its common stock to an employee of the Company. The option has a 10 year term, and
vests ratably on the first three anniversaries of the date of grant. In the aggregate, the option has a grant date fair value of
approximately $4,000 utilizing the Black-Sholes option pricing model with the following assumptions used: expected life of 6.5
years, volatility 111%, dividends of 0%, and a risk free interest rate of 3.36%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The expected life of stock options
granted was calculated using the simplified method set out in the SEC Staff accounting Bulletin No. 110, which defines the expected
life as the average of the contractual term and the vesting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Equity instruments issued to employees are recorded
at their fair value on the date of grant and are amortized over the vesting period of the award. Stock based compensation related
to employee stock options was $4,342 for the period from May 4, 2010 (inception) to December 31, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">At December 31, 2010, the unamortized value
of stock options held by employees was approximately $127,000. The unamortized portion will be expensed over a weighted average
period of 2.8 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">The following table is a summary of
the status of the Company&rsquo;s stock options for the period May 4, 2010 (inception) through December 31, 2010.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Number&nbsp; <BR>of&nbsp; <BR>Options</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Weighted <BR>average <BR>exercise <BR>price</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Weighted <BR>average <BR>remaining <BR>contractual <BR>life</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Unamortized <BR>value&nbsp;of <BR>options <BR>outstanding</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Intrinsic&nbsp; <BR>Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Options outstanding at May 4, 2010 (inception)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 30%; padding-left: 9pt">Granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">465,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Forfeited</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in">Options outstanding at December 31, 2010</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">465,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">0.33</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">9.8 years</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">126,938</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in">Exercisable at December 31, 2010</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&#9;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 12 &ndash; Subsequent Events </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Purchase of Affordable Energy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">On December 14, 2010, Dynastar Energy
entered into an asset purchase agreement (the &ldquo;Purchase Agreement&rdquo;) with Affordable Energy, a Texas Limited Liability
Company, to acquire the business and selected assets of Affordable Energy. In accordance with that agreement, on December 14, 2010,
Dynastar Energy paid a deposit to the sellers of Affordable Energy in the amount of $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 12 &ndash; Subsequent Events, continued<I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B><I>Purchase of Affordable Energy, continued</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">On February 15, 2011, pursuant to the
Purchase Agreement, the Company completed the acquisition of the assets of Affordable Energy. The aggregate purchase price for
Affordable Energy&rsquo;s assets was $1,200,000, payable (i) $175,000 in cash, including the application of the deposit described
above, (ii) the issuance of a promissory note for $125,000 with a stated interest rate of 10% per annum due on June 15, 2011 (which
was extended to and paid on September 15, 2011 in exchange for an extension fee of $45,000) and (iii) a non-interest bearing promissory
note with a face value $900,000 due on the earlier of November 12, 2011 (which was extended to February 15, 2012, under the terms
of the agreement, in exchange for a 1.5% increase in the Discount Factor, as described below, for each 30 day period that the note
is extended past November 12, 2011), or thirty days after the day on which the Company&rsquo;s common stock is traded over a nationally
recognized stock exchange (the &ldquo;$900,000 Acquisition Note&rdquo;). The acquisition of Affordable Energy was accounted for
as an asset purchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The terms of the $900,000 Acquisition
Note further provide that if the Company&rsquo;s common stock is publicly traded on the due date, as extended, then repayment shall
be made by the delivery of a sufficient number of shares of the common stock of the Company equal in value to $900,000, where such
value is determined on a per share basis, as an amount equal to eighty and one half percent (80.5%), as adjusted, for a conversion
on or after February 10, 2012, of the average closing price of the Company&rsquo;s common stock during the 22 days of the public
trading of the stock (the &ldquo;Discount Factor&rdquo;). In the event that the Company&rsquo;s common stock is not publicly traded
by February 15, 2012, then the entire amount of the $900,000 Acquisition Note shall be due and payable by such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The non-interest bearing note was discounted
at a market interest rate of 10% per annum, and recorded at its net present value of $835,229, reflecting a discount of $64,771.&#9;The
embedded conversion option featured in the $900,000 acquisition Note could not be exercised unless and until the Company first
becomes a public company, files a statement to register its securities with the SEC and then after that registration statement
is deemed to be effective by the SEC. Accordingly, the Company has determined based upon authoritative guidance that the embedded
conversion option is deemed to be a contingent conversion rather than an active conversion option and that such conversion option
did not require accounting recognition upon the issuance of the $900,000 Acquisition Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Note Receivable</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in">During the period January 1, 2011 through
February 15, 2011, the borrower repaid the $150,000 remaining principal outstanding on the note receivable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>10% Convertible Promissory Notes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">From March 2011 through October 2011,
the Company received aggregate proceeds of $1,144,985 in exchange for the issuance of secured convertible promissory notes
and warrants to purchase 1,431,231 shares of the Company&rsquo;s common stock, including $100,000 in exchange for secured
promissory notes and warrants for the purchase of 125,000 shares of the Company&rsquo;s common stock issued to Navesink
Capital Advisors, LLC (&ldquo;Navesink&rdquo;), a consultant to the Company. The notes have an interest rate of 10% per
annum and are payable one year from their respective dates of issuance. The notes and accrued interest are contingently
convertible at $0.40 per share, and automatically convert into shares of the Company&rsquo;s common stock after the Company
becomes a public company and thereupon the Securities and Exchange Commission declaring the registration of the underlying
common stock effective. The warrants have a term of five years and an exercise price of $0.80 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>


</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Note 12 &ndash; Subsequent Events, continued<I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Partial Redemption of Series A Convertible Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On November 30, 2011, for $25,000, the Company
redeemed 75,758 shares of its Series A convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"><B>Note
12 &ndash; Subsequent Events, continued<I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Reverse Merger, continued</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Private Placement of $2,000,000 of Units through
Pubco</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in; text-align: left">It is the Company&rsquo;s plan to enter
into a merger with a public shell company. In connection therewith, on October 5, 2011, the Company paid $100,000 to acquire 271,400,617
shares of the outstanding common stock of a public shell company (&ldquo;Pubco&rdquo;)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pubco, in turn, plans to initiate a private placement
offering pursuant to Regulation D and/or Regulation S under the Securities Act (the &ldquo;PPO&rdquo;) for a maximum of $2,000,000
(the &ldquo;Maximum PPO&rdquo;) through the sale of up to 10,000,000 Units (as defined below) of Pubco&rsquo;s securities, at
an offering price of $0.20 per Unit (the &ldquo;Offering Price&rdquo;), with each Unit comprised of one (1) share of Pubco&rsquo;s
common stock and a warrant to purchase one-half of one (1/2) share of common stock at an exercise price of $0.80 per whole share
for five (5) years (the &ldquo;Investor Warrants&rdquo;). Each share of common stock is entitled to one vote per share. Pubco
may sell up to an additional 2,500,000 Units for $500,000 (the &ldquo;Over-Allotment Option&rdquo;) in the event the PPO is oversubscribed.
Since the Company intends to merge with Pubco, the Company will be the beneficiary of the net funds raised in this private placement
offering.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the period from May 4, 2010 (inception)
to December 31, 2010</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Note 12 &ndash; Subsequent Events, continued<I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Investor Relations Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On December 20, 2011, Dynastar
entered into a consulting agreement with Undiscovered Equities, Inc. (&ldquo;UEI&rdquo;) pursuant to which UEI will provide certain
public relations and financial communications services to Dynastar and to Dynastar Holdings. Under the agreement, Dynastar has
agree to pay a cash fee of up to $350,000 payable as follows: (i) $200,000 upon Dynastar Holdings raising a minimum of $500,000
in the Offering; an additional $100,000 upon Dynastar Holdings raising a minimum of $1,000,000 in the Offering; and an additional
$50,000 upon Dynastar Holdings raising a minimum of $1,500,000 in the Offering. Additionally, subject to Dynastar Holdings raising
a minimum of $1,500,000 in the Offering, Dynastar Holdings will issue to UEI, 1,000,000 restricted shares of Dynastar Holdings
common stock (subject to adjustment in the event of any stock split or similar event). This agreement with UEI will terminate on
December 31, 2012 unless terminated earlier in accordance with its provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Management&rsquo;s Evaluation of Subsequent Events</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company evaluates events that have occurred
after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify
any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B> </B>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">September&nbsp;30, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Current assets:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 54%; text-indent: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">181,462</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">28,968</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,551</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,776</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,511</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">293,789</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">217,479</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,990</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,009,479</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Intangibles, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Deposit toward acquisition of My Affordable Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,400</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,400</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: 20pt">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,473,093</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">370,869</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center">LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Current liabilities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">65,233</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">36,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Accrued registration rights damages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">118,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,364</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Accrued payroll and related benefits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,959</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Accrued independent energy consultant commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,891</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Accrued expenses and other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">130,207</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Notes payable, net of discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,615,102</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,002,590</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,073</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">366,788</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Other liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">950</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,483</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,370,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">144,556</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Redeemable Preferred Stock:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Series A Convertible Preferred stock, $0.001 par value, 5,000,000 shares authorized,&nbsp; 3,604,245 shares issued and outstanding, at stated value; liquidation preference of $3,568,202</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,189,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,189,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Stockholders' deficit:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.55pt">Common stock, $0.0001 par value, 50,000,000 shares authorized, &nbsp;10,050,000 shares issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,783</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,311</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,183,423</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,025,403</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Total stockholders' deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,086,635</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(963,087</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in">Total liabilities and stockholders' deficit</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,473,093</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">370,869</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 10pt"><FONT STYLE="line-height: 115%">See notes to these
condensed consolidated financial statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 10pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 10pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.65pt; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.65pt; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.65pt; text-align: center"><B>(unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.65pt; text-align: center"><B></B>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">For&nbsp;the&nbsp;Nine</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">For&nbsp;the&nbsp;period</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Months&nbsp;Ended</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">May&nbsp;4,&nbsp;2010&nbsp;(inception)</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">September&nbsp;30,&nbsp;2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Through&nbsp;September&nbsp;30,&nbsp;2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 41%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 25%; text-align: right">849,367</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 28%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">328,462</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520,905</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Liquidated damages under &nbsp;registration rights agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,894</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Compensation and related expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">580,559</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">173,411</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Consulting expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">206,716</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74,290</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Acquisition costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,752</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Amortization of intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">199,612</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">29,257</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,515,215</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">288,852</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(994,310</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(288,852</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Other income (expense):</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Change in fair value of derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,780</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,362</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(65,166</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Amortization of debt discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(108,456</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,158,020</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(240,490</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in; padding-bottom: 1pt">Deemed dividend to Series A &nbsp;convertible preferred stockholders</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(466,500</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Net loss available to common stockholders</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,158,020</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(706,990</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="line-height: 115%"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 10pt"><FONT STYLE="line-height: 115%">See
notes to these condensed consolidated financial statements</FONT>&nbsp;</P>

<!-- Field: Page; Sequence: 78; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 10pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS&rsquo;
DEFICIT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the nine months ended September 30, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Redeemable</TD><TD STYLE="font-weight: bold; border-right: Black 1pt solid">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Convertible</TD><TD STYLE="font-weight: bold; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Common</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Additional</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Preferred&nbsp;Stock</TD><TD STYLE="font-weight: bold; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Stock</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Paid-in</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Capital</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Deficit</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 30%">Balance, January 1, 2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">3,604,245</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">1,189,400</TD><TD STYLE="width: 1%; text-align: left; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">10,050,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">1,005</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">61,311</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(1,025,403</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(963,087</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; border-right: Black 1pt solid">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Stock based compensation -&nbsp; amortization of employee options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; border-right: Black 1pt solid">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,472</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">34,472</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; border-right: Black 1pt solid">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Net loss</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-right: Black 1pt solid; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(1,158,020</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(1,158,020</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; border-right: Black 1pt solid">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Balance, September 30, 2011</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,604,245</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,189,400</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,050,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,005</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">95,783</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,183,423</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,086,635</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">See
notes to these condensed consolidated financial statements</FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-left: 4.65pt; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 100%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">DYNASTAR VENTURES, INC. AND SUBSIDIARY</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">(Unaudited)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>


<P STYLE="font: 10pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">For&nbsp;the&nbsp;Nine</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">For&nbsp;the&nbsp;period</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Months&nbsp;Ended</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">May&nbsp;4,&nbsp;2010&nbsp;(inception)</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">September&nbsp;30,&nbsp;2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Through&nbsp;September&nbsp;30,&nbsp;2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from operating activities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 46%; padding-left: 9pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 24%; text-align: right">(1,158,020</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 24%; text-align: right">(240,490</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Adjustments to reconcile net loss to &nbsp;net cash used in operating activities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Depreciation and amortization expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27pt">Accrued registration rights damages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,894</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Deferred rent expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,533</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27pt">Amortization of discount on note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,456</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Change in fair value of derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,780</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27pt">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,472</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Note payable issued in exchange for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,985</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Changes in operating assets and liabilities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(107,551</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27pt">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,735</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,362</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,483</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27pt">Accrued independent energy consultant commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,891</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 27pt">Accrued payroll and related expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,258</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 27pt">Accrued expenses and other current liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">130,207</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(779,734</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(237,458</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Cash flows from investing activities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Acquisition of Affordable Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(75,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Issuance of note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(400,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Repayment&nbsp; of note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Purchases of property and equipment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(32,772</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,722</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 27pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">42,228</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(202,722</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from financing activities</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Issuance of preferred stock, net of offering costs paid in cash</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">-</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">736,574</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Issuance of common stock to founders of the Company</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">-</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Proceeds from notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,015,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Repayment of notes payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(125,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 27pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">890,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">736,874</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net increase (decrease) in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">152,494</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">296,694</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Cash and cash equivalents - beginning of year</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">28,968</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Cash and cash equivalents - end of year</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">181,462</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">296,694</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">See notes
to these condensed consolidated financial statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC. AND SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">For&nbsp;the&nbsp;Nine</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">For&nbsp;the&nbsp;period</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Months&nbsp;Ended</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">May&nbsp;4,&nbsp;2010&nbsp;(inception)</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">September&nbsp;30,&nbsp;2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Through&nbsp;September&nbsp;30,&nbsp;2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Supplemental non-cash investing and financing activity - acquisition of Affordable Energy:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Assets acquired</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 50%; padding-left: 0.25in">Property and equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 22%; text-align: right">5,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 22%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">120,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Goodwill recognized on purchase business combination</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,009,479</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 27pt">Total purchase price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,135,229</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 27pt">Less: Cash paid to acquire business</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(75,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 27pt">Non-cash consideration to seller</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,060,229</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Non-cash consideration, consisting of:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18pt">Application of deposit towards purchase price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 18pt">Note payable issued to seller, net of $64,771 debt discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">960,229</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.5in">Total non-cash consideration</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,060,229</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">See
notes to these consolidated financial statements</FONT>.</P>

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<P STYLE="margin: 0"></P>


<P STYLE="margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note 1 -
Organization</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Dynastar Ventures,
Inc. (&ldquo;Dynastar&rdquo;) and its subsidiary Dynastar Energy LLC (&ldquo;Dynastar Energy&rdquo;), (together, the &ldquo;Company&rdquo;)
was organized for the purpose of acting as a public holding company for direct selling companies, primarily focused in the residential
and commercial electricity and natural gas markets.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company intends
to grow initially through a series of acquisitions in order to build up its operating infrastructure. Then, the Company intends
to leverage that infrastructure of personnel, technology and best practices to grow organically and through further acquisitions
into new geographical markets and new product lines.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company is
considered to be a development stage company and as such, the financial statements are prepared in accordance with the Accounting
Standards Codification (&ldquo;ASC&rdquo;) topic 915 &ldquo;Development Stage Entities.&rdquo; The Company is subject to all of
the risks associated with development stage companies.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On February 15,
2011, the Company acquired substantially all of the assets of My Affordable Energy, LLC (&ldquo;Affordable Energy&rdquo;). Affordable
Energy is a direct seller of residential and commercial electricity and natural gas (See Note 4 - Acquisition).</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note 2 &ndash;
Management&rsquo;s Plans and Liquidity</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Through September
30, 2011, the Company has incurred cumulative net losses and net losses available to common stockholders since inception of $1,716,923
and $2,183,423, respectively. At September 30, 2011, the Company had a cash balance of $181,462. These matters raise substantial
doubt about the Company&rsquo;s ability to continue as a going concern.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company was
formed in May 2010 and through January 2011, its operations consisted solely of raising capital and conducting due diligence in
connection with the targeted acquisition of an operating company. On February 15, 2011, the Company closed on its first acquisition
and became an operating company. Following the February 15, 2011 acquisition, it is the Company&rsquo;s plan to become a public
company as a vehicle to raise capital. Thereupon, the Company intends to deploy that additional capital to expand its operations
within additional deregulated energy markets within the United States. The Company further expects to incur significant auditing,
accounting, legal and other costs in connection with the preparations for and then becoming a public company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company expects
that through the next 12 to 18 months, the capital requirements to fund the Company&rsquo;s growth and to cover the operating
costs of a public company will consume most of the Company&rsquo;s cash flows that it intends to generate from both the recently
acquired operating company, as well as from the proceeds of planned issuances of debt and equity securities. The Company further
believes that during this period, while the Company is focusing on the growth and expansion of its business, that the gross profits
that it expects to generate from the sale of energy operations will not generate sufficient funds to cover these anticipated operating
costs. Accordingly, the company requires external funding to sustain operations and to follow-through on the execution of its
business plan.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 2 &ndash; Liquidity and Management&rsquo;s
Plans, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">As discussed
above, on February 15, 2011, the Company acquired Affordable Energy. Through November 2011, the Company has reduced the Company&rsquo;s
overall headcount in an effort to reduce operating costs and has taken steps that it believes will drive long-term revenue growth
through enhancements in the commission program with its independent energy consultants.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Since inception,
the Company&rsquo;s operations have primarily been funded through private equity and debt financing, and it is expected that the
Company would continue to seek additional funding through these private or public equity and debt financing sources.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">However, there
can be no assurance that the Company&rsquo;s plans as discussed above will materialize and/or that the Company will be successful
in funding estimated cash shortfalls through additional debt or equity capital and/or any cash generated by the operations that
the Company acquired in February 2011. Given these conditions, the Company&rsquo;s ability to continue as a going concern is contingent
upon it being able to secure an adequate amount of debt or equity capital to enable it to meet its cash requirements.&nbsp;&nbsp;In
addition, the Company&rsquo;s ability to continue as a going concern must be considered in light of the problems, expenses and
complications frequently encountered by entrance into established markets, the competitive environment in which the Company operates
and the current capital raising environment. These factors, among others, raise substantial doubt that the Company will be able
to continue as a going concern.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;The Company
raised $1,144,985 in 10.0% convertible bridge notes during the period of February through October of 2011 and plans to conduct
a private placement to raise $2,000,000 over the following 24 months through the issuance of units consisting of common stock
and warrants. The funds raised through this private placement will be used to fund the Company&rsquo;s operations, including the
costs that it expects to incur as a public company, and most importantly, to fund the Company&rsquo;s plans to recruit additional
independent energy consultants and sales and marketing personnel to enable it to expand to additional markets and deepen its penetration
into existing markets. &nbsp;&nbsp;The current level of cash is not enough to cover the existing fixed and variable obligations
of the Company, so increased revenue performance and the addition of more capital are critical to our success. Should the Company
not be able to raise these additional funds through the private placement or some other financing source, the Company would need
to consider implementing any or all of the following steps as counter measures to temporarily conserve cash, including: (i) curtailing
its growth plans by limiting hiring of new personnel, (ii) reducing the salaries of or deferring the payment of compensation to
its employees and (iii) extending the terms of payments to its vendors, advisors and consultants.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;Assuming
that the Company is successful in its growth plans and development efforts, the Company believes that it will be able to raise
additional funds through&nbsp;sales of its stock. There is no guarantee that the Company will be able to raise these additional
funds or to do so at an advantageous price.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;The Company&rsquo;s
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or the amounts and classification of liabilities that might be necessary should the Company not be unable to continue as a going
concern.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note 3 -
Summary of Significant Accounting Policies</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Principles
of Consolidation and Basis of Presentation</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The consolidated
financial statements include the accounts of Dynastar Ventures, Inc. and its subsidiary and have been prepared in accordance with
accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;). All significant inter-company accounts
and transactions have been eliminated in consolidation. Operating results for the nine months ended September 30, 2011 are not
necessarily indicative of the results that may be expected for the year ended December 31, 2011. For further information, refer
to the consolidated financial statements and footnotes thereto for the period May 4, 2010 through December 31, 2010, included
elsewhere in this Current Report.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Use of Estimates</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The preparation
of financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Management also utilizes various other estimates, including but not limited to, the allocation of the purchase price consideration
in its business combination, the valuation of the warrants, the value of equity instruments and stock based compensation. Actual
results could differ from those estimates.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Concentration of Credit Risk</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Financial instruments
that subject the Company to concentration of credit risk consist primarily of accounts receivable. Amounts receivable from Affordable
Power, a deregulated energy provider, account for 100% of the Company&rsquo;s accounts receivable at September 30, 2011.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Cash</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company places
its cash deposits with financial institutions. At times, the Company&rsquo;s cash may be uninsured or in deposit accounts that
exceed the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) insurance limits.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Accounts Receivable</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Accounts Receivable
represent balances arising from revenues earned from Affordable Power. The Company has had no occurrences of credit losses and
has therefore determined that an allowance for doubtful accounts is not necessary for the periods presented. Management believes
that all receivables from Affordable Power are fully collectible.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Property
and Equipment</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Property and
equipment is stated at cost and is being depreciated using the straight-line method over their estimated useful lives, generally
three to five years. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation of these
assets are removed from the accounts and the resulting gains or losses are reflected in the consolidated results of operations.
Expenditures for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"> </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 3 - Summary of Significant
Accounting Policies, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Convertible
instruments</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company accounts
for hybrid contracts that feature conversion options in accordance with applicable generally accepted accounting principles (&ldquo;GAAP&rdquo;).
Accounting Standards Codification (&ldquo;ASC&rdquo;) 815 &ldquo;Derivatives and Hedging Activities,&rdquo; (&ldquo;ASC 815&rdquo;)
requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative
financial instruments according to certain criteria. The criteria includes circumstances in which (a) the economic characteristics
and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks
of the host contract, (b)&nbsp;the hybrid instrument that embodies both the embedded derivative instrument and the host contract
is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value
reported in earnings as they occur and (c)&nbsp;a separate instrument with the same terms as the embedded derivative instrument
would be considered a derivative instrument.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Conversion options
that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity
or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their
bifurcation from the host instrument.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company accounts
for convertible instruments, when the Company has determined that the embedded conversion options should not be bifurcated from
their host instruments, in accordance with ASC 470-20 &ldquo;Debt with Conversion and Other Options&rdquo; (&ldquo;ASC 470-20&rdquo;).
Under ASC 470-20 the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options
embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment
date of the note transaction and the effective conversion price embedded in the note. The Company accounts for convertible instruments
(when the Company has determined that the embedded conversion options should be bifurcated from their host instruments) in accordance
with ASC 815.&nbsp;&nbsp;Under ASC 815, a portion of the proceeds received upon the issuance of the hybrid contract are allocated
to the fair value of the derivative. The derivative is subsequently marked to market at each reporting date based on current fair
value, with the changes in fair value reported in results of operations.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Common
stock purchase warrants and other derivative financial instruments</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company classifies
as equity any contracts that (i)&nbsp;require physical settlement or net-share settlement or (ii) provides a choice of net-cash
settlement or settlement in the Company&rsquo;s own shares (physical settlement or net-share settlement)&nbsp;providing that such
contracts are indexed to the Company's own stock as defined in ASC 815-40 &quot;Contracts in Entity's Own Equity&quot;. The Company
classifies as assets or liabilities any contracts that (i)&nbsp;require net-cash settlement (including a requirement to net cash
settle the contract if an event occurs and if that event is outside the Company&rsquo;s control) or (ii) gives the counterparty
a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).&nbsp;&nbsp;The Company
assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine
whether a change in classification between assets and liabilities or equity is required.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>N</I>ote 3 - Summary of Significant
Accounting Policies, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Common
stock purchase warrants and other derivative financial instruments, continued</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.5pt"><FONT STYLE="font-size: 10pt">The Company&rsquo;s free standing
derivatives consist of warrants to purchase common stock that were issued to debt holders in connection with the 10% Secured Promissory
Notes (See Note 8 &ndash; Notes Payable). Accordingly, these instruments have been classified as derivative liabilities in the
accompanying balance sheet as of September 30, 2011. Derivative liabilities are initially recorded at fair value and are then
re-valued at each reporting date, with changes in fair value recognized in earnings during the reporting period.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Fair Value Measurements</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.5pt"><FONT STYLE="font-size: 10pt">Fair value is
defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability
in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions
that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the
inputs in measuring fair value as follows:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 0.8pt; text-align: center">&bull;</TD>
    <TD STYLE="width: 95%; padding-right: 0.8pt">Level 1. Observable inputs such as quoted prices in active markets;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center">&bull;</TD>
    <TD STYLE="padding-right: 0.8pt">Level 2. Inputs to the valuation methodology include:</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; padding-right: 0.8pt; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Symbol">&deg;</TD>
    <TD STYLE="width: 86%; padding-right: 0.8pt; font-family: Times New Roman, Times, Serif; text-align: justify">Quoted prices for similar assets and liabilities in active markets.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Symbol">&deg;</TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Times New Roman, Times, Serif; text-align: justify">Quoted prices for identical or similar assets or liabilities in inactive markets.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Symbol">&deg;</TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Times New Roman, Times, Serif; text-align: justify">Inputs other than quoted market prices that are observable for the asset liability.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Symbol">&deg;</TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Times New Roman, Times, Serif; text-align: justify">Inputs that are derived principally from or corroborated by observable market data by correlation or other means.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 44pt; text-align: justify">If the asset or liability has a specified (contractual)
term, the Level 2 input must be observable for substantially the full term of the asset or liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&#9;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: -11pt">&bull;</TD>
    <TD STYLE="width: 95%; padding-right: 0.8pt; font-family: Times New Roman, Times, Serif; text-align: justify">Level 3. Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.</TD></TR>
</TABLE>


<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp; &nbsp;&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 22pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">Assets
(Liabilities) Measured at Fair Value on a Recurring Basis</FONT>:</FONT></P>

<P STYLE="font: 11pt Garamond; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;&#9;&nbsp;&#9;&nbsp;&#9;&nbsp;&#9;&nbsp;&#9;&nbsp;&nbsp;&#9;&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#9;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Condensed Consolidated</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Quoted Prices <BR> in <BR> Active&nbsp;Markets</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Significant<BR> Other <BR>
Observable<BR> Inputs</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Significant<BR> Unobservable<BR> Inputs</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Balance Sheet</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">(Level 1)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">(Level 2)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">(Level 3)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Derivative Liabilities:</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 44%; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2011</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">366,788</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">366,788</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2010</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 3 - Summary of Significant
Accounting Policies, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Fair Value Measurements, continued</I></B>&#9;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">The following table sets forth a
summary of the changes in the fair value of the Company&rsquo;s Level 3 financial liabilities that are measured at fair value
on a recurring basis:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 88%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold"></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Nine
    Months Ended</FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">September&nbsp;30,
    2011</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Beginning balance</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; width: 79%"><FONT STYLE="font-size: 10pt">Aggregate fair value of warrants issued</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">373,568</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Change in fair value of warrants</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(6,780</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Ending balance</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">366,788</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
derivative warrant liabilities are measured at fair value using the lattice pricing model and are classified within Level 3 of
the valuation hierarchy.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The significant
assumptions and valuation methods that the Company used to determine fair value and the change in fair value of the Company&rsquo;s
derivative financial instruments are discussed in Note 8 (disclosure of warrants).</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In accordance
with the provisions of ASC 815, the Company presented the warrant liabilities at fair value on its balance sheet, with the corresponding
changes in fair value recorded in the Company&rsquo;s statement of operations for the applicable reporting periods. As disclosed
in Note 8, the Company computed the fair value of the derivative liability at the date of issuance and the reporting date of September
30, 2011 using both the Black-Scholes option pricing and lattice pricing methods. The fair value calculated using the lattice
pricing method is within 1% of the value determined under the Black-Scholes method.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company
developed the assumptions that were used as follows: The fair value of the Company&rsquo;s common stock was derived from arm&rsquo;s
length issuances to third parties for cash of securities convertible into shares of the Company&rsquo;s common stock. The term
represents the remaining contractual term of the derivative; the volatility rate was developed based on analysis of the historical
volatility rates of several other similarly situated companies (using a number of observations that was at least equal to or exceeded
the number of observations in the life of the derivative financial instrument at issue); the risk free interest rates were obtained
from publicly available US Treasury yield curve rates; the dividend yield is zero because the Company has not paid dividends and
does not expect to pay dividends in the foreseeable future.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0pt"><FONT STYLE="font-size: 10pt"><B><I>Preferred Stock</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0pt">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company accounts
for its preferred stock in accordance with the guidance enumerated in ASC 480 &ldquo;Distinguishing Liabilities from Equity&rdquo;.
Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value.
Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the
control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company&rsquo;s control)
are classified as temporary equity. At all other times, preferred shares are classified as stockholders&rsquo; equity. The Company&rsquo;s
preferred shares feature certain redemption rights that are considered by the Company to be outside of the Company&rsquo;s control.
Accordingly, the Series A Convertible Preferred Stock is presented as temporary equity in the mezzanine section of the Company&rsquo;s
condensed consolidated balance sheets.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 3 - Summary of Significant
Accounting Policies, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Revenue Recognition</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company recognizes
revenue from commissions earned on the sale of energy services by its deregulated energy provider clients. The Company also receives
a customer acquisition bounty (&ldquo;CAB&rdquo;) when it acquires new residential or commercial energy customers as well as monthly
customer renewal bonuses and customer fees. The company recognizes these revenues when the deregulated energy provider, as the
principal, receives payment for the electricity from the retail customer.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
Company also recognizes revenues from its independent energy consultants, who pay a flat monthly fee entitling them to the use
of the Company&rsquo;s websites which facilitate their business operations. These revenues are earned and recognized in the month
that they are received.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Revenues for
the nine months ended September 30, 2011 consisted of the following:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 70%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%"><FONT STYLE="font-size: 10pt">kWh commissions</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">607,843</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Customer acquisition and renewal bonuses</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">55,560</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Customer fees</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">71,194</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Total commission revenues</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">734,597</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Independent energy consultant fees</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">114,770</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Total revenues</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">849,367</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Cost of Sales</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company recognizes
costs of sales for commissions and CABs earned by its independent energy consultants during the month that the Company recognizes
the corresponding revenue.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Stock-Based
Compensation</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company accounts
for equity instruments issued to non-employees in accordance with accounting guidance which requires that such equity instruments
are recorded at their fair value on the measurement date, which is typically the date the services are performed. Stock based
compensation for non-employees is reflected within general and administrative expenses.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company accounts
for equity instruments issued to employees in accordance with accounting guidance which requires that awards are recorded at their
fair value on the date of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs
over the requisite service period of the award, which is generally the vesting term of the equity instrument issued.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 3 - Summary of Significant
Accounting Policies, continued<I> </I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Recent
Accounting Pronouncements</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
December 2010, the FASB issued ASU 2010-28, Intangibles &ndash; Goodwill and Other (Topic 350), related to the way companies test
for impairment of goodwill. Pursuant to ASU 2010-28, goodwill of the reporting unit is not impaired if the carrying amount of
a reporting unit is greater than zero and its fair value exceeds its carrying amount. In that event, the second step of the impairment
test is not required. However, if the carrying amount of a reporting unit is zero or negative, the second step of the impairment
test is required to be performed to measure the amount of impairment loss, if any, when it is more likely than not that goodwill
impairment exists. In considering whether it is more likely than not that goodwill impairment exists, a company must evaluate
whether there are qualitative factors that could adversely affect goodwill. Consistent with the prior requirements, this test
must be performed annually or, if an event occurs or circumstances exist that indicate that it is more likely than not that goodwill
impairment exists, in the interim. The amendments in this ASU are effective for fiscal years, and interim periods within those
years, beginning after December 15, 2010. This standard is not expected to have a material impact on the Company&rsquo;s reported
results of operations or financial position.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On September
15, 2011, the FASB issued ASU 2011-08, Intangibles &ndash; Goodwill and Other, which simplifies how an entity is required to test
goodwill for impairment. This ASU would allow an entity to first assess qualitative factors to determine whether it is necessary
to perform the two step quantitative goodwill impairment test. Under the ASU, an entity would not be required to calculate the
fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not
that its fair value is less than its carrying amount. The ASU includes a number of factors to consider in conducting the qualitative
assessment. The ASU is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December
15, 2011. Early adoption is permitted. This standard is not expected to have a material impact on the Company&rsquo;s reported
results of operations or financial position.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0.1in 0 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In May
2011, FASB issued Accounting Standards Update (&ldquo;ASU&rdquo;) No.&nbsp;2011-04, &ldquo;Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRS.&rdquo; This pronouncement was issued to provide a consistent definition
of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International
Financial Reporting Standards (&ldquo;IFRS&rdquo;). ASU 2011-04 changes certain fair value measurement principles and enhances
the disclosure requirements particularly for Level 3 fair value measurements. This pronouncement is effective for interim and
annual reporting periods beginning on or after December&nbsp;15,&nbsp;2011, with early adoption prohibited. The new guidance will
require prospective application. The adoption of this pronouncement is not expected to have a material impact on the Company&rsquo;s
consolidated financial statements.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Subsequent
Events</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company evaluates
events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation,
the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure
in the financial statements.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note 4 -
Acquisition</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On December 14,
2010, Dynastar Energy entered into an asset purchase agreement (the &ldquo;Purchase Agreement&rdquo;) with Affordable Energy,
a Texas Limited Liability Company, to acquire the business and selected assets of Affordable Energy. In accordance with that agreement,
on December 14, 2010, Dynastar Energy paid a deposit to the sellers of Affordable Energy in the amount of $100,000.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On February 15,
2011, pursuant to the Purchase Agreement, the Company completed the acquisition of the assets of Affordable Energy. The aggregate
purchase price for Affordable Energy&rsquo;s assets was $1,200,000, payable (i) $175,000 in cash, including the application of
the deposit described above, (ii) the issuance of a promissory note for $125,000 with a stated interest rate of 10% per annum
due on June 15, 2011 (which was extended to and paid on September 15, 2011 in exchange for an extension fee of $45,000) and (iii)
a non-interest bearing promissory note with a face value $900,000 due on the earlier of November 12, 2011 (which was extended
to February 15, 2012, under the terms of the agreement, in exchange for a 1.5% increase in the Discount Factor, as described below,
for each 30 day period that the note is extended past November 12, 2011), or thirty days after the day on which the Company&rsquo;s
common stock is traded over a nationally recognized stock exchange (the &ldquo;$900,000 Acquisition Note&rdquo;).</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The terms
of the $900,000 Acquisition Note further provide that if the Company&rsquo;s common stock is publicly traded on the due date,
as extended, then repayment shall be made by the delivery of a sufficient number of shares of the common stock of the Company
equal in value to $900,000, where such value is determined on a per share basis, as an amount equal to eighty and one half percent
(80.5%), as adjusted, for a conversion on or after February 10, 2012, of the average closing price of the Company&rsquo;s common
stock during the 22 days of the public trading of the stock (the &ldquo;Discount Factor&rdquo;). In the event that the Company&rsquo;s
common stock is not publicly traded by February 15, 2012, then the entire amount of the $900,000 Acquisition Note shall be due
and payable by such date.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The non-interest
bearing note was discounted at a market interest rate of 10% per annum, and recorded at its net present value of $835,229, reflecting
a discount of $64,771, amortized over the term of the note. The embedded conversion option featured in the $900,000 acquisition
Note cannot be exercised unless and until the Company first becomes a public company, files a statement to register its securities
with the SEC and then after that registration statement is deemed to be effective by the SEC. Accordingly, the Company has determined
based upon authoritative guidance that the embedded conversion option is deemed to be a contingent conversion rather than an active
conversion option and that such conversion option did not require accounting recognition upon the issuance of the $900,000 Acquisition
Note.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
accordance with the acquisition, the Company identified customer relationships as an amortizable intangible asset. This intangible
asset will be amortized over its expected useful life of 3 years (see Note 7).</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note 4 &ndash;
Acquisition, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
following details the preliminary allocation of the purchase price for the acquisition of Affordable Energy:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%"><FONT STYLE="font-size: 10pt">Property and equipment</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">5,750</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Intangible asset - customer relationships</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">120,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Goodwill</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,009,479</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">1,135,229</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&#9;The
following details the summary of the purchase price consideration:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%"><FONT STYLE="font-size: 10pt">Cash</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">175,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Promissory note due September 15, 2011</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">125,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Promissory note due February 15, 2012</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">835,229</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">1,135,229</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Unaudited
Pro-Forma Financial Information</I></B></FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: 27pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The following
presents the unaudited pro-forma combined results of operations of the Company with Affordable Energy from the beginning of the
year of acquisition (January 1, 2011) and for the entire fiscal year preceding the acquisition (January 1, 2010, even though this
date precedes the date of the formation of the Company). The acquisition date for Affordable Energy was February 15, 2011.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: 27pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: 27pt"><FONT STYLE="font-size: 10pt"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Nine&nbsp;Months&nbsp;Ended<BR>September&nbsp;30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 64%; padding-bottom: 2.5pt">Revenues</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 15%; border-bottom: Black 2.5pt double; text-align: right">958,590</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 15%; border-bottom: Black 2.5pt double; text-align: right">1,213,079</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Net (loss) available to common stockholders</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,198,431</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(751,293</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: 27pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The pro forma
combined results are not necessarily indicative of the results that actually would have occurred if the acquisition of Affordable
Energy had been completed as of the beginning of 2011 or 2010, nor are they necessarily indicative of future consolidated results.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 5 - Note receivable</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On June 22, 2010,
the Company received a note receivable in the amount of $400,000 in exchange for a loan made to an advisor of the Company as a
means of investing unused funds raised in connection with the private placement of its Series A convertible preferred stock described
in Note 10. Pursuant to the terms of the note, all principal was payable 21 days from the date of issuance along with interest
at 6% per annum and a loan origination fee of $24,000. Any amounts unpaid after the 21 day term bear interest at the rate of 18%
per annum from the date of default until paid in full. Through December 31, the borrower repaid $250,000 in principal on the note
receivable, and paid $12,000 of the loan origination fee. During the period from June 22, 2010 through September 30, 2010, the
Company recorded interest income of $48,362 on this note receivable, including the loan origination fee of $24,000. The total
interest and loan origination fee receivable at December 31, 2010 was $36,436, and is included in prepaid expenses and other current
assets on the accompanying condensed consolidated balance sheet. As of December 31, 2010, $150,000 of principal was still outstanding.
The borrower made further payments in 2011 and as of February 15, 2011, the remaining balance of the note receivable as well as
the accrued interest and commitment fee were received in full. The Company recorded interest income of $3,132 and $48,362 on this
note receivable during the nine months ended September 30, 2011 and the period May 4, 2010 (inception) through September 30, 2010,
respectively.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 6 - Property and Equipment</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Property
and equipment consisted of the following:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">As of:</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">September 30, 2011</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">December 31, 2010</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 54%"><FONT STYLE="font-size: 10pt">Computers and equipment</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 10pt">58,339</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 10pt">20,997</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Furniture and fixtures</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">27,673</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">26,493</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Property and equipment</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86,012</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">47,490</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Less: accumulated depreciation</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(19,587</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(2,500</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Property and equipment, net</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">66,425</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">44,990</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Depreciation
expense for the nine months ended September 30, 2011, and the period from May 4, 2010 (inception) through September 30, 2010 was
$17,087 and $0, respectively.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note
7 &ndash; Intangible Assets</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Intangible assets
consist of customer relationships purchased in connection with the acquisition of Affordable Energy as follows:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">As of:</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">September 30, 2011</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">December 31, 2010</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">Customer relationships</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 22%; text-align: right"><FONT STYLE="font-size: 10pt">120,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 22%; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Less: accumulated amortization</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">25,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Intangible assets, net</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">95,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Amortization
of customer relationships is computed using the straight-line method over the estimated useful life of 3 years. The Company recorded
amortization expense related to the acquired customer relationships of $25,000 during the nine months ended September 30, 2011.
The remaining amortization period as of September 30, 2011 is 2.4 years.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 8 &ndash; Notes Payable</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On March 25,
2011, the Company received proceeds of $25,000 in exchange for an unsecured promissory note. The note had an interest rate of
8% per annum, and was payable on or before June 25, 2011. On July 18, 2011 the note was converted to a secured convertible promissory
note, bearing an interest rate of 10% per annum, convertible by the holder into shares of the Company&rsquo;s common stock at
$0.40 per share, automatically convertible into shares of the Company&rsquo;s common upon the Securities and Exchange Commission
(&ldquo;SEC&rdquo;) declaring the registration of the underlying stock effective (the &ldquo;10% Convertible Promissory Notes&rdquo;),
due on July 18, 2012. The 10% Convertible Promissory Notes are subordinate to the $900,000 Acquisition Note. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was granted a warrant for the purchase of up to 31,250 shares
of the Company&rsquo;s common stock with a term of 5 years, an exercise price of $0.80 per share and certain weighted average
anti-dilution protection provisions which would be triggered if the Company issues shares under certain circumstances at a price
below the $0.80 warrant exercise price (the &ldquo;10% Convertible Note Warrant&rdquo;).</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On March 28,
2011 the Company received proceeds of $20,000 in exchange for an unsecured promissory note. The convertible promissory note had
an interest rate of 8% per annum, and was payable on or before June 28, 2011. On July 18, 2011 the note was converted to a 10%
Convertible Promissory Note due on July 18, 2012. In connection with the issuance of the 10% Convertible Promissory Note, the
holder was awarded a 10% Note Warrant to purchase up to 25,000 shares of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On April 8, 2011
the Company received proceeds of $25,000 in exchange for a 10% Convertible Promissory Note due April 7, 2012. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 31,250 shares
of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On May 3, 2011
the Company received proceeds of $20,000 in exchange for a 10% Convertible Promissory Note due May 2, 2012. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 25,000 shares
of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On June 29, 2011
the Company received proceeds of $250,000 in exchange for a 10% Convertible Promissory Note due June 28, 2012. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 312,500 shares
of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On July 19, 2011
the Company issued a 10% Convertible Promissory Note valued at $29,985 to a consultant in exchange for services, due July 18,
2012. In connection with the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase
up to 37,481 shares of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On August 24,
2011 the Company received proceeds of $675,000 in exchange for a 10% Convertible Promissory Note due August 23, 2012. In connection
with the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 843,750
shares of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">See Note 13 Subsequent
Events &ndash; Issuance of 10% Convertible Promissory Note, for an additional issuance.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The embedded
conversion option featured in the 10% Convertible Promissory Notes cannot be exercised unless and until the Company becomes a
public company and its common stock is able to trade for 22 consecutive days. Accordingly, the Company has determined based upon
authoritative guidance that the embedded conversion option is deemed to be a contingent conversion rather than an active conversion
option and that such conversion option did not require accounting recognition upon the issuances of each of the 10% Convertible
Promissory Notes.&#9;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 8 &ndash; Notes Payable,
continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company further
determined, based upon authoritative guidance, that the 10% Promissory Note Warrants should be valued separately. Using the fair
value measurements described below, we allocated $373,568 of the proceeds of the 10% Convertible Promissory Notes to the 10% Promissory
Note Warrants. The value of the 10% Promissory Note Warrants was accounted for as a free-standing derivative liability, and a
corresponding discount was recorded on the 10% Convertible Promissory Notes, amortizable under the interest method over the remaining
term of the 10% Convertible Promissory Notes.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company calculated
the fair value of the 10% Promissory Note Warrants using the Black-Scholes option pricing model with the following assumptions:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">As of <BR>September
    30, 2011</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">As of the Dates of
    Issuances</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 54%; padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Fair value of stock</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 10pt">0.40</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 10pt">0.40</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Exercise price</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.80</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.80</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Weighted average term (years)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4.5</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5.0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Dividend yield</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Expected volatility</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">111</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">111</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Weighted average risk-free interest rate</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">.86</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.28</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Number of warrants</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,431,231</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,431,231</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 2.8pt"><FONT STYLE="font-size: 10pt">Aggregate fair value</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">366,788</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">373,568</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The warrants
issued in connection with issuance of the 10% secured convertible promissory notes have certain anti-dilution and other provisions
that cause them to be a derivative liability. The aggregate fair value of the warrants at their respective dates of issuance amounted
to of $373,568 and was recorded as a debt discount, which is being amortized over the term of the related debt instruments. Amortization
of debt discount related to the 10% secured convertible promissory notes was $55,123 for the nine months ended September 30, 2011.
The derivative liability related to the warrants is revalued at each reporting period. During the nine months ended September
30, 2011, $6,780 representing the decrease in the value fair of the derivative was credited to the statement of operations under
the caption &ldquo;change in fair value of derivative liabilities&rdquo;.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Notes payable
at September 30, 2011 consist of:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Face Value of Promissory<BR>
Note</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Unamortized portion debt discount</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Note Payable,<BR>
net of discount</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 49%; text-align: justify"><FONT STYLE="font-size: 10pt">$900,000 Acquisition Note</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">900,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">(11,438</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">888,562</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">10% Convertible Promissory Notes</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,044,985</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(318,445</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">726,540</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: justify; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">1,944,985</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(329,883</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">1,615,102</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 9 - Commitments</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><FONT STYLE="font-size: 10pt"><B><I>Lease Agreements </I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
November 5, 2010 the Company entered into an agreement to lease 2,142 square feet of office space in Louisville, Kentucky. The
lease commenced on December 1, 2010 and expires on November 30, 2012.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Effective
March 1, 2011, the Company entered into an agreement to lease 2,978 square feet of office space in Houston, Texas. The lease commenced
on March 1, 2011 and expires on February 28, 2014.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Future
minimum lease payments under operating leases are as follows:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 50%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">For the year ended</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">September 30,</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="4" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">2012</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">69,200</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">2013</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">41,600</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">2014</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">15,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">125,800</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Rent
expense for the nine months ended September 30, 2011 and the period from May 4, 2010 (inception) through September 30, 2010 was
$46,850 and $0 respectively, and was reflected in operating expenses.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 10 &ndash; Series A Convertible
Preferred Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company is
authorized to issue up to 10,000,000 shares of convertible preferred stock, par value of $0.001 per share. It has designated one
series of preferred stock: 5,000,000 shares of Series A convertible preferred stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On June 3, 2010,
through a private placement transaction, the Company issued 3,604,425 shares of Series A convertible preferred stock for aggregate
net cash proceeds of $736,574, consisting of gross proceeds of $1,189,400 less cash expenses of $452,826. The Company also issued
450,000 shares of common stock on May 4, 2010, to an advisor for services in connection with the private placement transaction.
Since the redemption rights of the Series A convertible preferred stock were immediately vested, the Company recorded a deemed
dividend of $466,500 to fully accrete the Series A convertible preferred stock to its stated value.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Series A
convertible preferred stock is subordinate to, and ranks junior to, all of the indebtedness of the Company. The Series A convertible
preferred stock ranks senior to the Company&rsquo;s common stock, and has a liquidation preference of 300% of its stated value
of $0.33 per share.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
Series A convertible preferred shares feature certain redemption rights that are considered by the Company to be outside of its
control. Accordingly, the Series A convertible preferred stock is required to be classified as mezzanine equity, and is recorded
at its redemption value of $1,189,400.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 10 &ndash; Series A Convertible
Preferred Stock, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
Series A convertible preferred stock is convertible into 3,604,425 shares of common stock at any time, at the option of the holder
at a conversion price of $0.33 per share. The conversion price is subject to adjustment for stock splits, stock dividends, recapitalizations,
dilutive issuances and other anti-dilution provisions, including circumstances in which the Company issues equity securities or
convertible instruments with an effective issuance price lower than the conversion price specified in the Series A convertible
preferred stock. Outstanding shares of Series A convertible preferred stock are also automatically convertible into shares of
our common stock, at the then applicable conversion price, upon the closing of a firm commitment underwritten public offering
of shares of our common stock yielding aggregate proceeds of not less than $20,000,000 or under certain other circumstances when
the trading volume and average trading prices of the stock attain certain specified levels.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
Company determined that the conversion feature was a derivative since the conversion price was not fixed. The Company evaluated
the convertible preferred stock and determined that the host convertible preferred stock instrument had more equity-like characteristics,
since even after considering all conditional redemption features, it was deemed unlikely that its holders could or would expect
to redeem the instrument for cash. As a result, the Company accounted for the conversion option as an embedded conversion feature.
The conversion option did not have any intrinsic value.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In connection
with the private placement, the Company entered into a registration rights agreement with the investors, pursuant to which the
Company agreed to pay liquidated damages to each investor if the Company failed to file a registration statement within 90 days
of the closing date, and if the registration statement is not declared effective with 180 days of the closing date. Under the
registration rights agreement, the Company would be obligated to pay each investor damages equal to 1% of each investor&rsquo;s
purchase price for each 30 day period for each of the failed requirements, provided that such damages will be capped at 10% of
each investor&rsquo;s total purchase price.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">As of September
30, 2011, the Company has not yet filed a registration statement. Accordingly, Company has recorded $47,576 and $11,894 in liquidated
damages related to the registration rights for the nine months ended September 30, 2011 and for the period from May 4, 2010 (inception)
to September 30, 2010, respectively. The Maximum damages allowed under the registration rights agreement of $118,940 have been
accrued through September 30, 2011.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 11 - Stockholders&rsquo;
Equity</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Common
Stock</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Company
is currently authorized to issue up to 50,000,000 shares of common stock, par value $0.0001 per share. There are 10,050,000 shares
issued and outstanding as of September 30, 2011.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 12 &ndash; Stock-Based Compensation</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On November
4, 2010, the Company granted an option for the purchase for 450,000 shares of its common stock to an officer, in connection with
the execution of his employment agreement. The option has a 10 year term, and vests ratably on the first three anniversaries of
the date of grant. The option has a grant date fair value of $127,027 utilizing the Black-Scholes option pricing model with the
following assumptions used: expected life of 6.5 years, volatility of 111%, dividends of 0%, and a risk free interest rate of
2.53%.</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><FONT STYLE="font-size: 10pt"><B>Note 12 &ndash; Stock-Based
Compensation, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On December
20, 2010, the Company granted an option for the purchase of 15,000 shares of its common stock to an employee of the Company. The
option has a 10 year term, and vests ratably on the first three anniversaries of the date of grant. In the aggregate, the option
has a grant date fair value of $4,254 utilizing the Black-Sholes option pricing model with the following assumptions used: expected
life of 6.5 years, volatility 111%, dividends of 0%, and a risk free interest rate of 3.36%. This option was forfeited during
the nine months ended September 30, 2011, in connection with the termination of the employee.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
expected life of stock options granted was calculated using the simplified method set out in the SEC Staff accounting Bulletin
No. 110, which defines the expected life as the average of the contractual term and the vesting period.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Stock
based compensation related to employee stock options was $34,472 and $0 for the nine months ended September 30, 2011 and for the
period from May 4, 2010 (inception) to September 30, 2010, respectively. As of September 30, 2011, the unamortized value of options
held by employees was $88,213. The unamortized portion will be expensed over a period of 2.1 years.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
following table is a summary of the status of the Company&rsquo;s stock options for the nine months ended September 30, 2011.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Number of Options</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Weighted average exercise <BR>
price</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Weighted average remaining contractual life</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Unamortized<BR>
value&nbsp;of options</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 42%"><FONT STYLE="font-size: 10pt">Options outstanding at January 1, 2011</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">465,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">0.33</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">9.8
                                                       years</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 16%; text-align: right"><FONT STYLE="font-size: 10pt">126,938</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 11pt"><FONT STYLE="font-size: 10pt">Granted</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 11pt"><FONT STYLE="font-size: 10pt">Exercised</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 11pt"><FONT STYLE="font-size: 10pt">Forfeited</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">15,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Options outstanding at September 30, 2011</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">450,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 10pt">0.33</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 10pt">9.1
                                                                   years</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 10pt">88,213</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Exercisable at September 30, 2011</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 13 &ndash; Subsequent Events</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>10% Convertible Promissory
Notes</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
October 7, 2011 the Company received proceeds of $100,000 from Navesink Capital Advisors LLC (&ldquo;Navesink&rdquo;),
a consultant to the Company in exchange for a 10% Convertible Promissory Note due October 6, 2012. In connection with the
issuance of the 10% Convertible Promissory Note, Navesink was awarded a 10% Note Warrant to purchase up to 125,000 shares
of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Note 13 &ndash; Subsequent Events,
continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Partial Redemption of Series
A Convertible Preferred Stock</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">On November 30,
2011, for $25,000, the Company redeemed 75,758 shares of its Series A convertible preferred stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Reverse Merger</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
January 17, 2012, the &ldquo;Closing Date&rdquo;, the Company was merged into Dynastar Acquisition Corp. (&ldquo;Acquisition Corp&rdquo;),
a wholly owned subsidiary of Dynastar Holdings, Inc., a public company (&ldquo;Dynastar Holdings&rdquo;), pursuant to a merger
agreement of the same date (the &ldquo;Merger Agreement&rdquo;, with Dynastar remaining as the surviving entity (the &ldquo;Merger&rdquo;).
As a result of the Merger, Dynastar became a public company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Immediately
after giving effect to the Merger and the related transactions, there were issued and outstanding securities of the Company on
the Closing Date, explained as follows:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Prior
to the closing of the Merger, holders of the Series A Convertible Preferred Stock agreed (i) that their shares would automatically
convert into shares of Dynastar common stock immediately prior to, and conditional upon, the closing of the Merger at the anti-dilution
adjusted conversion price of $0.20 per share, rather than at the original conversion price of $0.33 per share, and (ii) to waive
certain rights they may have had as preferred stockholders. On the Closing Date, the remaining outstanding shares of the Series
A Convertible Preferred Stock were converted into 5,822,000 shares of Dynastar common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">As
a result of the Merger, each share of Dynastar common stock outstanding was cancelled and converted into the right to receive
one (1) share of Dynastar Holdings common stock. On the Closing Date, the stockholders of Dynastar surrendered all of the issued
and outstanding shares of Dynastar&rsquo;s capital stock, including the converted shares of the Series A Convertible Preferred
Stock, and received in exchange an aggregate of 15,872,000 shares of the common stock of Dynastar Holdings.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
October 6, 2011, Dynastar purchased an aggregate of 271,400,076 shares of Dynastar Holdings&rsquo; common stock from the previous
owner for a cash consideration of $100,000. In connection with the Merger, the Company surrendered those shares for cancellation.
The pre-merger closing stockholders of Dynastar Holdings retained 16,103,541 shares of their common stock.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Prior
to the closing of the Merger, holders of the 10% Convertible Promissory Notes agreed (i) that their notes would automatically
convert into shares of the Dynastar Holdings common stock upon the closing of the Merger at the anti-dilution adjusted conversion
price of $0.20 per share, rather than at the original conversion price of $0.40 per share, (ii) that the warrants issued in connection
therewith, (the &ldquo;Dynastar Warrants&rdquo; (defined below) would automatically convert upon the closing of the Merger into
warrants of Dynastar Holdings and (iii) to waive certain rights they may have had under the terms of the Dynastar Warrants.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
the Closing Date, the 10% Convertible Promissory Notes were converted, as to their outstanding principal amount, into an aggregate
of 5,724,925 shares of Dynastar Holdings common stock and as to their accrued interest amount, into an aggregate of 258,781 shares
of Dynastar Holdings common stock and the Dynastar Warrants were exchanged into Dynastar Holdings warrants to purchase an aggregate
of 2,862,463 shares of its common stock;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><FONT STYLE="font-size: 10pt"><B>Note 13 &ndash; Subsequent
Events, continued<I> </I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Reverse Merger, continued</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
Merger was accounted for as a &ldquo;reverse merger,&rdquo; and Dynastar is deemed to be the acquirer in the reverse merger for
accounting purposes. Consequently, the assets and liabilities and the historical operations of the Company that will be reflected
in the financial statements prior to the Merger will be those of Dynastar, and the consolidated financial statements of the Company
after completion of the Merger will include the assets and liabilities of Dynastar, historical operations of Dynastar and operations
of Dynastar from the Closing Date of the Merger.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B><I>Consulting Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Effective upon the closing of the Merger, the Company
entered into an agreement with Navesink pursuant to which Navesink agreed to provide certain professional consulting services
relating to business development and corporate finance. This agreement has a term of six months. As consideration under this agreement,
the Company agreed to issue to Navesink a five year warrant exercisable for two million (2,000,000) shares of its common stock
at an exercise price of $0.20 per share. Shares underlying these warrants are entitled to &ldquo;piggyback&rdquo; registration
rights at the Company&rsquo;s discretion. Prior to the merger Closing Date, Navesink assigned to certain third parties its right
to receive warrants exercisable for one million five hundred thousand (1,500,000) shares.</FONT></P>



<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Stock Option Grants</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
connection with the Merger, the Company&rsquo;s Chief Executive Officer received an option exercisable for 1,000,000 shares of
Dynastar Holdings&rsquo; common stock, with an exercise price of $0.22 to qualify as incentive stock options under the Internal
Revenue Code requirements for 10% stockholders, vesting in three equal annual installments beginning on the first anniversary
of the Closing Date and a term of 10 years. In addition, in connection with the Merger, the Company&rsquo;s Chief Financial Officer,
exchanged an option exercisable for 450,000 Dynastar shares of common stock for an option exercisable for 450,000 shares of Dynastar
Holdings common stock of which 150,000 shares were fully vested as of the Closing Date and the remaining 300,000 shares will vest
in two equal annual installments on November 4, 2012 and November 4, 2013 and received an additional option exercisable for 500,000
shares of Dynastar Holdings common stock, vesting in three equal annual installments beginning on the first anniversary of the
Closing Date, each with an exercise price of $0.20, and a term of ten years. The Company&rsquo;s Chief Executive Officer received
an option exercisable for 1,000,000 shares of Dynastar Holdings&rsquo; common stock, with an exercise price of $0.22 to qualify
as incentive stock options under the Internal Revenue Code requirements for 10% stockholders, vesting in three equal annual installments
beginning on the first anniversary of the Closing Date and a term of 10 years.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Private Placement</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-indent: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">Just
prior to the consummation of the Merger, Dynastar Holdings initiated a private placement offering pursuant to Regulation D and/or
Regulation S under the Securities Act (the &ldquo;Offering&rdquo;) for a maximum of $2,000,000 (the &ldquo;Maximum Offering&rdquo;)
through the sale of up to 10,000,000 Units (as defined below) of Dynastar Holdings&rsquo;s securities, at an offering price of
$0.20 per Unit (the &ldquo;Offering Price&rdquo;), with each Unit comprised of one (1) share of Dynastar Holdings&rsquo;s common
stock and a warrant to purchase one-half of one (1/2) share of common stock at an exercise price of $0.80 per whole share for
five (5) years (the &ldquo;Investor Warrants&rdquo;). Each share of common stock is entitled to one vote per share. Dynastar Holdings
may sell up to an additional 2,500,000 Units for $500,000 (the &ldquo;Over-Allotment Option&rdquo;) in the event the Offering
is oversubscribed. Upon the consummation of the Merger, Dynastar became the beneficiary of the net funds which will be raised
in this private placement offering.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
the Closing Date, an investor in the Offering purchased 125,000 units for total cash consideration of $25,000.&nbsp;&nbsp;The
Offering for the remaining 9,875,000 units will continue after the closing of the Merger.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Dynastar
Holdings paid the placement agent in the Offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from
investors in the offering. In addition, the placement agent received five-year warrants to purchase a number of shares of our
common stock equal to five (5%) of the units sold to investors in the Offering. As a result of the foregoing arrangement, at the
initial closing of the Offering, the placement agent was paid commissions of $2,500 and was issued broker warrants to purchase
6,250 shares of Dynastar Holdings common stock at an exercise price of $0.20 per share.&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DYNASTAR VENTURES,
INC. AND SUBSIDIARY<BR>
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
<FONT STYLE="color: black">FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND </FONT></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><FONT STYLE="font-size: 10pt"><B>Note 13 &ndash; Subsequent
Events, continued<I> </I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Investor
Relations Agreement</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
December 20, 2011, Dynastar entered into a consulting agreement with Undiscovered Equities, Inc. (&ldquo;UEI&rdquo;) pursuant
to which UEI will provide certain public relations and financial communications services to Dynastar and to Dynastar Holdings.
Under the agreement, Dynastar has agree to pay a cash fee of up to $350,000 payable as follows: (i) $200,000 upon Dynastar Holdings
raising a minimum of $500,000 in the Offering; an additional $100,000 upon Dynastar Holdings raising a minimum of $1,000,000 in
the Offering; and an additional $50,000 upon Dynastar Holdings raising a minimum of $1,500,000 in the Offering. Additionally,
subject to Dynastar Holdings raising a minimum of $1,500,000 in the Offering, Dynastar Holdings will issue to UEI, 1,000,000 restricted
shares of Dynastar Holdings common stock (subject to adjustment in the event of any stock split or similar event). This agreement
with UEI will terminate on December 31, 2012 unless terminated earlier in accordance with its provisions.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B><U>REPORT
OF</U> <U>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</U></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">To the Member
of</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">My Affordable
Energy, LLC</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">We
have audited the accompanying balance sheets of My Affordable Energy, LLC (the &ldquo;Company&rdquo;) as of December 31, 2010
and 2009, and the related statements of operations, member&rsquo;s deficit and cash flows for the years then ended. These financial
statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on these financial
statements based on our audits.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of My
Affordable Energy, LLC as of December 31, 2010 and 2009, and the results of its operations, and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United States of America.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">As
discussed in Note 6 to the financial statements, on February 15, 2011, substantially all of the assets of the Company were acquired
by Dynastar Energy, LLC, a wholly owned subsidiary of Dynastar Ventures, Inc., pursuant to a certain asset purchase agreement
dated December 14, 2010.&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 40%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 10pt">/s/
    Marcum LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 10pt">New
    York, New York</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 10pt">January
    5, 2012</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>



<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>MY AFFORDABLE ENERGY, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center">ASSETS</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Current assets:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; padding-left: 9pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">22,365</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">65,871</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Accounts receivable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">82,282</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">170,270</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">104,647</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">236,141</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Property and equipment, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">57,889</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">91,978</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">162,536</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">328,119</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center; padding-left: 0.1in">LIABILITIES AND MEMBER'S DEFICIT</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Current liabilities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,345</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">63,757</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Accrued commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,003</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,334</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Notes payable - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,188</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,188</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Other accrued liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,803</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,836</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">130,339</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,115</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Note payable - related party, non current portion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">131,426</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">207,614</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Other liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,910</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">153</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">263,675</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">407,882</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Commitments</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Member's Deficit:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Member's interests - 100 units issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Contributed capital due from member</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Accumulated losses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(101,139</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(79,763</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Total member's deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(101,139</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(79,763</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in">Total liabilities and member's deficit</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">162,536</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">328,119</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See notes to these financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>&nbsp;</I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>MY AFFORDABLE ENERGY, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>STATEMENTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Years&nbsp;Ended&nbsp;December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,544,865</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,392,711</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">862,801</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">761,282</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">682,064</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">631,429</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">703,440</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">514,199</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: 10pt">Net (loss) income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(21,376</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">117,230</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See notes to these financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>MY AFFORDABLE ENERGY, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>STATEMENTS OF MEMBER'S DEFICIT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the Years Ended December 31, 2010 and
2009</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Calibri, Halvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Membership&nbsp;Interests</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Capital&nbsp;Contribution</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Accumulated</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Units</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Amount</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Due&nbsp;from&nbsp;Member</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Losses</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Total</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 30%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Balance, January 1, 2009</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">100</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">1,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(1,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(196,993</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(196,993</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Net income</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">117,230</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">117,230</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Balance, December 31, 2009</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">100</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">1,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(1,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(79,763</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(79,763</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Net loss</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(21,376</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(21,376</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Balance, December 31, 2010</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">100</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">1,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(1,000</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(101,139</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">(101,139</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See notes to these financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>MY AFFORDABLE ENERGY, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Years&nbsp;Ended&nbsp;December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; text-indent: 10pt">Net (loss) income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(21,376</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">117,230</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Adjustments to reconcile net (loss) income to net cash&nbsp; provided by operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 20pt">Depreciation and amortization expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,089</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,307</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 10pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 20pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,988</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(164,777</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(60,412</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,757</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 20pt">Accrued commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,331</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,341</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Other liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,276</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,324</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 30pt">Total adjustments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">54,058</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(48,696</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 30pt">Net cash provided by operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">32,682</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">68,534</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Purchases of property and equipment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(83,490</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(83,490</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash flows from financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 10pt">Proceeds from note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,474</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: 10pt">Repayment of note payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(76,188</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(19,047</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: 20pt">Net cash (used in) provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(76,188</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">49,427</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net (decrease) increase in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,506</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,471</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Cash and cash equivalents - beginning of year</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">65,871</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">31,400</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Cash and cash equivalents - end of year</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">22,365</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">65,871</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See notes to these financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MY AFFORDABLE
ENERGY, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DECEMBER 31,
2010 AND 2009</B></FONT></P>



<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note 1 &ndash; Organization</B></FONT></P>

<P STYLE="margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Business Organization</I></B></FONT></P>

<P STYLE="margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">My
Affordable Energy, LLC (&ldquo;Affordable Energy&rdquo; or the &ldquo;Company&rdquo;) is a direct sales marketing company focused
on offering electrical energy to individuals, families and small businesses in Texas. The Company&rsquo;s services feature residential
and small business solutions offered through a network of independent energy consultants. The Company&rsquo;s solutions offer
customers a competitive alternative to the purchase of electricity from the incumbent electrical provider.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Affordable
Energy was formed on February 7, 2008, as a Texas limited liability company to engage in the retail marketing of electricity.</FONT></P>

<P STYLE="text-align: left; margin-top: 0; margin-right: 0; margin-left: 0; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">On
February 15, 2011, the business and certain assets of the Company were sold to Dynastar Energy, LLC, a wholly owned subsidiary
of Dynastar Ventures, Inc. Thereupon, the Company&rsquo;s existence was terminated (See Note 6).</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Description
of Business</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company&rsquo;s business model applies a direct sales approach. The business strategy relies on a market sales force that compensates
independent business owners (&ldquo;Consultants&rdquo;) not only for sales of the Company&rsquo;s services they generate personally,
but also for the sales of other Consultants whom they have introduced to the Company, creating a sales organization of Consultants
and a hierarchy of levels of compensation. The Company&rsquo;s energy services products are typically marketed directly to residential
and small business customers by means of referrals, national advertising, video promotions, conferences, the Internet, and word-of-mouth
marketing. Consultants become associated with the Company through an independent contractor relationship and receive remuneration
for selling energy services and for expanding their organization of people doing the same by promoting the Company&rsquo;s business
opportunity.</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note 2 - Summary
of Significant Accounting Policies</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Basis of
Presentation</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (&ldquo;U.S. GAAP&rdquo;).</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Use
of Estimates</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="text-align: left; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MY AFFORDABLE
ENERGY, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DECEMBER 31,
2010 AND 2009</B></FONT></P>



<P STYLE="text-align: left; margin: 0; text-indent: 0.5in"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note
2 - Summary of Significant Accounting Policies, continued</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Concentration
of Credit Risk</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Financial
instruments that subject the Company to concentration of credit risk consist primarily of accounts receivable. Amounts receivable
from Affordable Power account for 100% of the Company&rsquo;s accounts receivable at December 31, 2010 and 2009.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Cash
</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company places its cash deposits and cash investments with financial institutions. At times, the Company&rsquo;s cash may be uninsured
or in deposit amounts that exceed the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) insurance limits.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Accounts
Receivable</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Accounts
Receivable represent balances arising from revenues earned from Affordable Power. The Company has had no occurrences of credit
losses and has therefore determined that an allowance for doubtful accounts is not necessary for the periods presented. Management
believes that all receivables from Affordable Power are fully collectible.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Property
and Equipment</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif; text-indent: 22pt"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Property and
equipment is stated at cost and is being depreciated using the straight-line method over their estimated useful lives, generally
three to five years. Leasehold improvements are being amortized over the shorter of the useful life or the remaining lease term.
Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization of these
assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations. Expenditures
for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Membership
Interests</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Operating Agreement dated as of February 8, 2008 (&ldquo;LLC Operation Agreement&rdquo;) governs the rights and privileges associated
with the Membership Interest held by its member, distributions to its member, management and oversight of its business and operations
and restrictions on transferability of membership interest.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Revenue
Recognition</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company recognizes revenue from commissions earned on the sale of energy services by its independent energy consultants, on behalf
of Affordable Power (See Note 6 &ndash; Related Party). The Company also receives a customer acquisition bounty (&ldquo;CAB&rdquo;)
when it acquires new residential or commercial energy customers, as monthly fees based on customer retention. The Company recognizes
these revenues when Affordable Power, as the principal, receives payment for the electricity from the retail customer.&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company also recognizes revenues from its independent energy consultants, who pay a flat monthly fee entitling them to the use
of the Company&rsquo;s websites which facilitate their business operations. These revenues are earned and recognized in the month
that they are received.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

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    <!-- Field: /Page -->
<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MY AFFORDABLE
ENERGY, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DECEMBER 31,
2010 AND 2009</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note 2 - Summary
of Significant Accounting Policies, continued</B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Cost
of Sales</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company recognizes costs of sales for commissions and CABs earned by its independent energy consultants in the same month the
related revenue is recognized.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Advertising
Expense</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company expenses advertising costs as incurred. Advertising expense was $134,307 and $80,066 for the years ended December 31,
2010 and 2009, respectively.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Income
Taxes</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company is a limited liability company classified as a partnership entity for U.S. federal and state income tax purposes. The
Company is a pass-through entity for income tax purposes, and is not subject to income taxes. Rather, all items of taxable income
and deductions are passed through to its member. The federal tax status as a pass-through is based on its legal status as a partnership.
Accordingly, the partnership is not required to take any tax positions in order to qualify as a pass-through entity. The partnership
is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities, including franchise
tax returns in the state of Texas. Accordingly, these financial statements do no reflect a provision for income taxes and the
Company has no other tax positions which must be considered for disclosure. All of our tax years are open to examination.</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-right: 0; margin-left: 0"><FONT STYLE="font-size: 10pt">For
all open tax years and for all major taxing jurisdictions, the Company has concluded that the partnership is a pass-through entity
and there are no uncertain tax positions that would require recognition in the financial statements.&nbsp;&nbsp; If the partnership
were to incur an income tax liability in the future, interest on any income tax liability would be reported as interest expense
and penalties on any income tax liability would be reported as income taxes.&nbsp; No interest expense or penalties have been
recognized as of or for the years ended December 31, 2010 and 2009.&nbsp; The Company does not expect that its assessment regarding
unrecognized tax benefits will materially change over the next 12 months.&nbsp; However, the Company&rsquo;s conclusions regarding
uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations
and interpretations thereof.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>Recent
Accounting Pronouncements</I></B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
Company does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a
material effect on the Company&rsquo;s financial statements.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

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<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;
</I></B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MY AFFORDABLE
ENERGY, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DECEMBER 31,
2010 AND 2009</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note
3 - Property and Equipment</B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Property
and equipment consisted of the following at December 31, 2010 and 2009:</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">December
    31,</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Estimated</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Useful
        Life</B></FONT></P></TD>
    <TD STYLE="padding-bottom: 1.65pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">2010</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">2009</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 55%"><FONT STYLE="font-size: 10pt">Computer software</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 18%; text-align: center"><FONT STYLE="font-size: 10pt">3.0 years</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">10,499</FONT></TD>
    <TD NOWRAP STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">10,499</FONT></TD>
    <TD NOWRAP STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Furniture and fixtures</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">5.0 years</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,224</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,224</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 10pt">Office equipment</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">3.0 years</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,335</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,335</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">Leasehold improvements</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; text-align: center"><FONT STYLE="font-size: 10pt">2.5 years</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-size: 10pt">63,227</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-size: 10pt">63,227</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 11pt"><FONT STYLE="font-size: 10pt">Property and equipment</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">96,285</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">96,285</FONT></TD>
    <TD NOWRAP><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">Less: accumulated depreciation and amortization</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(38,396</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 1.65pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(4,307</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1.65pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 3.35pt; padding-left: 11pt"><FONT STYLE="font-size: 10pt">Property and equipment, net</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 3.35pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 3.35pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt">57,889</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 3.35pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 3.35pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt">91,978</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 3.35pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"></P>



<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"></P>



<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Depreciation
and amortization expense for the years ended December 31, 2010 and 2009 was $34,089 and $4,307, respectively.</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note 4 - Note
Payable - Related Party</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">From
inception through September 30, 2009, the Company was financed primarily through cash advances made by and services paid or provided
by Affordable Power (See Note 6 &ndash; Related Party). Through September 30, 2009, these advances accumulated to a balance of
$304,753. On September 30, 2009 in connection with these advances, the Company and Affordable Power formalized the Company&rsquo;s
obligation and terms of repayment to Affordable Power through a note payable. The terms of the unsecured note payable provide
for 48 interest free monthly payments of $6,349. The balance of the note was $207,614 and $283,802 as of December 31, 2010 and
2009, respectively (See Note 6 &ndash; Related Party).</FONT></P>

<P STYLE="text-align: left; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Future
obligations under the note are as follows:</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><U>For the year ended December 31,</U></FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><U>Amount</U></FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left"><FONT STYLE="font-size: 10pt">2011</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">76,188</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">2012</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">76,188</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">2013</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">55,238</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">207,614</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MY AFFORDABLE
ENERGY, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DECEMBER 31,
2010 AND 2009</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note 5 - Commitments</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">On
November 6, 2009 the Company entered into an agreement to lease approximately 3,668 rentable square feet of office space in Houston,
Texas, effective on December 1, 2009. The lease expires on November 30, 2012. Prior to entering into the lease agreement, the
Company rented this space on a month-to-month basis.</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Future
minimum lease payments under this lease are as follows:</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"><U>For the year ended December 31,</U></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><U>Amount</U></TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; width: 87%">2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">57,160</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">55,479</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">112,639</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Rent
expense charged to operations amounted to $52,731 and $20,460 for the years ended December 31, 2010 and 2009, respectively.</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The
terms of the Company&rsquo; lease obligation provides for scheduled escalations in the monthly rent. Non-contingent rent increases
are amortized over the life of the lease on a straight line basis. Deferred rent of $1,910 and $153 represents the unamortized
rent adjustment amount at December 31, 2010 and 2009, respectively, and is reflected in other long-term obligations in the accompanying
balance sheets.</FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note 6 &ndash;
Related Party</B></FONT></P>

<P STYLE="text-align: left; margin: 0; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">From
the date of the Company&rsquo;s formation through February 15, 2011, 100% of the Company&rsquo;s membership interest was owned
by Malik A. Kheraj who is a principal of Affordable Power LP (&ldquo;Affordable Power&rdquo;). Mr. Kheraj was the Company&rsquo;s
President, Secretary, Treasurer, Chief Executive Officer and Chief Financial Officer during such period.</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">From
the date of its formation, Affordable Energy has operated as an agent solely to Affordable Power for the sales and marketing of
electrical energy. In addition, the Company has a note payable to Affordable Power (see Note 4).</FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Note
7 - Subsequent Events</B></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><I>Sale
of Company</I></FONT></P>

<P STYLE="text-align: left; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">On
February 15, 2011, substantially all of the assets of the Company were acquired by Dynastar Ventures, Inc., pursuant to a certain
asset purchase agreement dated December 14, 2010. The aggregate purchase price for the Company&rsquo;s assets was $1,200,000,
payable (i) $175,000 in cash at closing, (ii) a promissory note for $125,000 due 120 days after closing on June 15, 2011, and
(iii) a promissory note for $900,000 due 275 days after closing on November 17, 2011. On June 14, the due date of the $125,000
promissory note was extended to September 15, 2011, in exchange for a note extension fee of $20,000. Both promissory notes bear
a stated interest rate of 10% per annum and automatically become due immediately when the stock of Dynastar Ventures, Inc. begins
trading on a nationally recognized exchange.</FONT></P>

<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

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<P STYLE="text-align: left; text-indent: 0.5in; margin: 0 0 6pt; font-family: Times New Roman, Times, Serif"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MY AFFORDABLE
ENERGY, LLC</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO FINANCIAL
STATEMENTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DECEMBER 31,
2010 AND 2009</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Note 7 -
Subsequent Events, continued</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The
Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based
upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required
adjustment or disclosure in the financial statements.</FONT></P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.<BR>
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>Introduction to the Unaudited Pro Forma Condensed Combined Financial Statements</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">On January 17, 2012 (the &ldquo;Closing
Date&rdquo;), Dynastar Holdings, Inc. (&ldquo;Dynastar Holdings&rdquo;) consummated a reverse merger with Dynastar Ventures, Inc.
(&ldquo;Dynastar&rdquo;). Dynastar was formed on May 4, 2010 and became an operating company upon its acquisition of My Affordable
Energy, LLC (&ldquo;Affordable Energy&rdquo;) on February 15, 2011. The core Affordable Energy business represented the operations
of Dynastar that became the operations of the Company after the reverse merger. In anticipation of the reverse merger, Dynastar
Holdings commenced a private offering to raise up to $2,000,000 (&ldquo;Private Placement&rdquo;). Concurrently with the closing
of the reverse merger, the Company completed an initial closing of this private placement in the amount of $25,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">The following unaudited pro forma
condensed combined financial statements are derived from our historical combined financial statements and give effect to Dynastar&rsquo;s
acquisition of Affordable Energy, the reverse merger and the initial closing of the private placement. Further possible closings
under the private placement were not included within these pro forma condensed combined financial statements, since there is no
assurance of the amount of funds that might be raised in the private placement in any subsequent closings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 4.5pt"><U>Dynastar</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">The unaudited pro forma condensed
combined statements of operations for the nine months ended September 30, 2011 and 2010 and for the year ended December 31, 2010
were prepared under the assumption that Dynastar&rsquo;s acquisition of Affordable Energy was consummated on January 1, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">Dynastar&rsquo;s acquisition of
Affordable Energy was completed on February 15, 2011, pursuant to the terms of a certain Asset Purchase Agreement dated December
14, 2010, and from February 15, 2011 its results are reflected in the actual results through September 30, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 4.5pt"><U>Merger with Dynastar </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">Dynastar Holdings, Dynastar, and
Dynastar Acquisition Corp. entered into a merger agreement on January 17, 2012, and consummated the reverse merger on the same
day. As a result of the merger, Dynastar Holdings became the legal acquirer of the business of Dynastar and Dynastar Holdings will
continue the existing business operations of Dynastar as a wholly owned subsidiary of Dynastar Holdings. Dynastar will remain as
the surviving business. The term, &ldquo;the Company&rdquo; refers to Dynastar Holdings and subsidiaries after the effect of the
reverse merger. Dynastar is considered the acquirer for accounting purposes because the management of Dynastar was in control of
the Company after the merger. As a result of the merger, the stockholders of Dynastar received one share of Dynastar Holdings common
stock in exchange for each share of Dynastar stock owned prior to the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 27pt">Upon the closing of the merger:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(i)&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: left; vertical-align: middle">the stockholders of Dynastar surrendered all of the issued and outstanding shares
of Dynastar&rsquo;s capital stock (after the remaining outstanding shares of the Series A Convertible Preferred Stock were converted
into 5,822,000 shares of Dynastar common stock, and received, in exchange for such shares, an aggregate of 15,872,000 shares of
common stock of Dynastar Holdings;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(ii)&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: left; vertical-align: middle">Dynastar Holdings&rsquo; pre merger stockholders retained 16,103,541 shares of the
common stock of Dynastar Holdings;&nbsp;&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(iii)&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: left; vertical-align: middle">certain Dynastar notes payable (the &ldquo;Bridge Notes&rdquo;) were converted, as
to their outstanding principal amount of $1,144,985 and interest accrued thereon through the Closing Date of $51,756, into 5,724,925
and 258,781 shares of common stock of Dynastar Holdings, respectively. There were outstanding prior to the merger Dynastar warrants
for the purchase of 1,431,231 shares of Dynastar common stock at an exercise price of $0.80 per share (the &ldquo;Bridge Note
Warrants&rdquo;) which were converted into warrants of Dynastar Holdings to purchase an aggregate of 2,862,462 shares of Dynastar
Holdings common stock at an exercise price of $0.80 per share;&nbsp;&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(iv)&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: left; vertical-align: middle">Dynastar surrendered to Dynastar Holdings for cancellation the 271,400,076 shares
of Dynastar Holdings common stock which Dynastar had purchased on October 6, 2011 at a cost of $100,000;&nbsp;&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right"><FONT STYLE="font-size: 10pt">(v)&nbsp;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: left; vertical-align: middle"><FONT STYLE="font-size: 10pt">Robert
                                                                                     R. Mohr, Chief Financial Officer of Dynastar
                                                                                     and Chief Financial Officer of the Company,
                                                                                     exchanged an option exercisable for 450,000
                                                                                     Dynastar shares of common stock at an exercise
                                                                                     price of $0.80 per share for an option under
                                                                                     the Dynastar Holdings equity incentive plan
                                                                                     (the &ldquo;2011 Plan&rdquo;) exercisable
                                                                                     for 450,000 shares of Dynastar Holdings common
                                                                                     stock at an exercise price of $0.20 per share;
                                                                                     further, Mr. Mohr was granted an option under
                                                                                     the 2011 Plan exercisable for 500,000 shares
                                                                                     of common stock at an exercise price of $0.20
                                                                                     per share; John S. Henderson IV, Chief Executive
                                                                                     Officer of Dynastar and Chief Executive Officer
                                                                                     of the Company received an option exercisable
                                                                                     for 1,000,000 shares of Dynastar Holdings
                                                                                     common stock under the 2011 Plan at an exercise
                                                                                     price of $0.20 per share;&nbsp;&nbsp;one investor purchased 125,000
units in the offering at $0.20 per unit, of which each unit included one share of Dynastar Holdings common stock and one half
of a warrant to purchase a share of Dynsatar Holdings common stock at an exercise price of $0.80 (the &ldquo;Units&rdquo;). In
connection with this initial closing of the Private Placement, the&nbsp;</FONT></TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>DYNASTAR HOLDINGS,
INC.<BR>
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 0.25in"><B>&nbsp;&nbsp;Introduction to the Unaudited Pro Forma Condensed
Combined Financial Statements, continued</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 27pt; text-indent: -27pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(vi)&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">placement agent received a cash fee of $2,500 and a warrant to purchase up to 6,250
shares of Dynastar Holdings common stock;&nbsp;&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 39pt; text-align: right">(vii)&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Dynastar and Dynastar Holdings entered into a six month agreement with an advisor
to provide business development and corporate finance services. As compensation for these services to be rendered after the merger,
Dynastar Holdings issued to the advisor a warrant for the purchase of 2,000,000 shares of Dynastar Holdings common stock with
terms that included an exercise price of $0.20 per share. The entire warrant was fully vested upon issuance .&nbsp;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">The parties have agreed to take
all actions necessary to ensure the merger is treated as a &ldquo;plan of reorganization&rdquo; under Section 368(a) of the Internal
Revenue Code of 1986, as amended.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">The unaudited pro forma condensed
combined statements of operations for the nine months ended September 30, 2011 and the year ended December 31, 2010 were prepared
under the assumption that the reverse merger with Dynastar and the first closing of the Private Placement were both consummated
on January 1, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">In the preparation of the pro
forma condensed combined balance sheet as of September 30, 2011, it was assumed that the reverse merger with Dynastar and the first
closing of the Private Placement were both consummated on September 30, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">The unaudited pro forma condensed
combined financial statements are based upon information and assumptions available at the time of release of this document. The
pro forma condensed combined financial statements do not purport to represent, and are not necessarily indicative of, what our
actual financial position and results of operations would have been had the various events occurred on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 6pt; text-indent: 19.85pt">These unaudited pro forma condensed
combined financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read
in conjunction with, the (i) the Dynastar Holdings audited historical financial statements and the notes thereto for the years
ended December 31, 2010 and 2009 and the Dynastar Holdings unaudited historical condensed financial statements and the notes thereto
for the nine months ended September 30, 2011 and 2010, previously filed pursuant to the Securities and Exchange Act of 1934 and
incorporated herein by reference, (ii) the Dynastar audited financial statements and the notes thereto for the period from May
4, 2011 (Inception) through December 31, 2010 and the Dynastar condensed consolidated financial statements and the notes thereto
for the nine months ended September 30, 2011 and 2010, included within this Current Report starting on page F-1; and the Affordable
Energy, Inc. audited financial statements and the notes thereto for the years ended December 31, 2010 and 2009, included within
this Current Report starting on page F-44.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR VENTURES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SEPTEMBER 30, 2011</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Dynastar</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Dynastar&nbsp;Ventures,&nbsp;Inc.</TD><TD>&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Reverse&nbsp;Merger&nbsp;Adjustments</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Pro&nbsp;forma</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Holdings,&nbsp;Inc.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">and&nbsp;Subsidiary</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">As&nbsp;Adjusted</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note 1</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note 2</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; padding-left: 0; text-align: center">ASSETS</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Current assets:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 23%; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="width: 1%; font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 8%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">100,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 8%; text-align: center">16</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">14</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,092</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">9</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">6</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">5</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,092</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">181,462</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">3</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">4</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">168,962</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,551</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,551</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,055</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,776</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">321,444</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">19</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,055</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">9</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">326,220</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,147</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">293,789</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">446,444</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,647</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">602,733</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,425</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,009,479</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,009,479</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,400</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,400</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.35in">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,147</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,473,093</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">446,444</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">142,647</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,782,037</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: center">LIABILITIES, REDEEMABLE PREFERRED STOCK <BR>AND STOCKHOLDERS' EQUITY</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Current liabilities:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">65,233</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">65,233</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Accrued registration rights damages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">118,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">118,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">10</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Accrued payroll and related benefits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,217</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Accrued independent energy consultant commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,891</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,891</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Accrued expenses and other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">130,207</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,965</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">7</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">113,242</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,251</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">6</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">Notes payable, net of discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,615,102</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,144,985</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">7</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">354,194</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">12</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">888,562</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,002,590</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,280,890</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">418,445</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,140,145</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">18</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,919</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">17</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">366,788</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,687</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">13</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,749</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">6</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">371,774</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Other liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">950</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">950</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,370,328</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,320,577</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">463,118</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,512,869</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Redeemable preferred stock, $0.0001 par value:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,164,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">15</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Series A Convertible Preferred stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,189,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">14</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Commitments</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Stockholders' equity:</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,822</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">15</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">8</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">271,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">16</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,810</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">7</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Common stock, $0.001 par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">287,504</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">8</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">3</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,911</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">18</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,919</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">17</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">16</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">176,808</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">11</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,617,281</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">15</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,147</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">9</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">321,444</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">19</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,045</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">8</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">118,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">10</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">5</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,156,140</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">7</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(105,549</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,783</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">4</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">3</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,187,890</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">458,703</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">15</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,687</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">13</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(176,808</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,183,423</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">354,194</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">12</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">176,808</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">11</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,956,633</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.35in">Total stockholders' equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,147</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,086,635</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,297,726</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,648,382</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">269,168</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.35in">Total liabilities, redeemable preferred stock and stockholders' equity</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,147</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,473,093</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,807,703</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,111,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,782,037</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">See footnotes to unaudited pro forma condensed
combined financial statements&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NINE MONTHS ENDED SEPTEMBER 30, 2011</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="27" STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;Pro&nbsp;Forma&nbsp;Combination&nbsp;of&nbsp;Dynastar&nbsp;Ventures,&nbsp;Inc.&nbsp;with&nbsp;My&nbsp;Affordable&nbsp;Energy,&nbsp;LLC</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Dynastar&nbsp;Ventures, <BR>Inc.</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Acquisition&nbsp;of&nbsp;My<BR>
Affordable&nbsp;Energy,<BR>LLC</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Pro&nbsp;forma&nbsp;as</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Pro&nbsp;forma&nbsp;as</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Dynastar</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Corporation</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Business&nbsp;Unit</TD><TD>&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Adjustments</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">adjusted&nbsp;before</TD><TD>&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Reverse&nbsp;Merger&nbsp;Adjustments</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">adjusted&nbsp;after</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Holdings,&nbsp;Inc.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Historical</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Historical</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">reverse&nbsp;merger</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">reverse&nbsp;merger</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note&nbsp;A</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note&nbsp;B</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note&nbsp;C</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(a)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(b)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(c)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(d)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(d)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(b)&nbsp;+ (c) + (d) = (e)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(f)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(f)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(a) + (e) + (f)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
<TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Revenues</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">849,367</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">109,223</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">958,590</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">958,590</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">328,462</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">68,349</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">396,811</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">396,811</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Gross profit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">520,905</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">40,874</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">561,779</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">561,779</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Liquidated damages under registration rights agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,576</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Compensation and related expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">580,559</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,828</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">617,387</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,440</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;G</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">644,827</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Consulting expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,987</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">206,716</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">211,716</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">245,703</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Acquisition costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,752</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,752</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,752</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Amortization of intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;D</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">General and administrative expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,565</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">199,612</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">22,454</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">222,066</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">226,631</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.35in">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,552</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,515,215</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">64,282</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,584,497</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,650,489</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Operating income</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(38,552</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(994,310</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(23,408</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,022,718</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,088,710</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Other income (expense), net:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Change in fair value of derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,780</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,780</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,780</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,132</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(65,166</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,563</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;E</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(66,729</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,166</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;H</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(46,563</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Amortization of debt discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(108,456</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,440</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;F</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(118,896</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">55,123</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;I</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(63,773</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Other income (expense), net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(163,710</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(175,713</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(100,424</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Net income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(38,552</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,158,020</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(23,408</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,198,431</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,189,134</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Basic and diluted net loss per share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(271,400,076</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;J</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,822,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;K</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,293,600</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;L</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;M</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Weighted average number of common shares outstanding - basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">287,503,617</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,050,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,809,750</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;N</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Calibri, Halvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">36,616,691</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">See footnotes to unaudited pro forma condensed
combined financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 115; Value: 57 -->
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    <!-- Field: /Page -->
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NINE MONTHS ENDED SEPTEMBER 30, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Acquisition&nbsp;of&nbsp;My <BR>Affordable&nbsp;Energy,&nbsp;LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-family: Calibri, Halvetica, Sans-serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Calibri, Halvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Dynastar</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Business&nbsp;Unit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Adjustments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;forma</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Ventures,&nbsp;Inc.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Historical</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">As&nbsp;Adjusted</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Period&nbsp;from <BR>May&nbsp;4,&nbsp;2010&nbsp;through <BR>September&nbsp;30,&nbsp;2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Nine&nbsp;Months <BR>Ended&nbsp;September&nbsp;30,&nbsp;2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note&nbsp;O</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Note&nbsp;P</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 37%">Revenues</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">1,213,079</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 5%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 5%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 5%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">1,213,079</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">761,404</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">761,404</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Gross profit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">451,675</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">451,675</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 16.2pt">Liquidated damages under registration rights agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,894</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,894</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Compensation and related expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">173,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">161,738</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">335,149</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Consulting expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74,290</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,643</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">130,933</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Acquisition costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Amortization of intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;Q</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center"></TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center"></TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">General and administrative expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">29,257</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">175,580</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">204,837</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">288,852</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">393,961</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">712,813</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Operating income</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(288,852</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">57,714</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(261,138</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Other income (expense), net:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Change in fair value of derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,362</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,362</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;R</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,375</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt">Amortization of debt discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,642</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;S</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(62,642</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.25in">Other income (expense), net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">48,362</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(23,655</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Net income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(240,490</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">57,714</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(284,793</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">See footnotes to unaudited pro forma condensed
combined financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>YEAR ENDED DECEMBER 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="27" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Combination&nbsp;of&nbsp;Dynastar&nbsp;Ventures,&nbsp;Inc.&nbsp;with&nbsp;My&nbsp;Affordable&nbsp;Energy,&nbsp;LLC</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Dynastar&nbsp;Ventures,&nbsp;Inc.</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Acquisition&nbsp;of&nbsp;My <BR>Affordable&nbsp;Energy,&nbsp;LLC</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;forma&nbsp;as</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;forma&nbsp;as</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Dynastar</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Corporation</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Business&nbsp;Unit</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Adjustments</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">adjusted&nbsp;before</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Pro&nbsp;Forma&nbsp;Reverse&nbsp;Merger&nbsp;Adjustments</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">adjusted&nbsp;after</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Holdings,&nbsp;Inc.</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Historical</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Historical</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Credit</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">reverse&nbsp;merger</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Credit</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">reverse&nbsp;merger</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Year&nbsp;Ended <BR>December&nbsp;31,&nbsp;2010</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Period&nbsp;from&nbsp;May&nbsp;4, <BR>2010&nbsp;through&nbsp;December&nbsp;31, <BR>2010</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid">For&nbsp;the&nbsp;Year&nbsp;Ended <BR>December&nbsp;31,&nbsp;2010</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">Note T</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">Note U</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">Note V</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(a)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(b)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(c)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(d)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(d)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(b) + (c) + (d) = (e)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(f)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">(f)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: center">(a) + (e) + (f)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 52%; font-size: 8pt">Revenues</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">$</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">$</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">$</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right">1,544,865</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">$</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right">1,544,865</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 8pt">$&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">1,544,865</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt">Cost of revenues</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">862,801</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">862,801</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">862,801</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt; padding-left: 9pt">Gross profit</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">682,064</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">682,064</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">682,064</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt">Operating expenses:</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; text-indent: -0.1in; padding-left: 16.2pt">Liquidated damages under registration rights agreement</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">71,364</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">71,364</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">71,364</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Compensation and related expenses</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">349,388</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">349,388</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">34,375</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">Z</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">383,763</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Consulting expenses</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">17,763</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">102,820</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">102,820</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">120,583</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Acquisition costs</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Amortization of intangibles</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt; padding-left: 9pt">General and administrative expenses</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">4,732</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">83,767</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">703,440</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">40,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">W</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">827,207</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">831,939</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt; padding-left: 0.25in">Total operating expenses</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">22,495</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">607,339</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">703,440</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,350,779</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,407,649</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt">Operating income</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(22,495</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(607,339</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(21,376</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(668,715</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(725,585)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">Other income (expense), net:</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Change in fair value of derivative liabilities</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Interest income</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">48,436</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">48,436</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">48,436</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-left: 9pt">Interest expense</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">12,500</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">X</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">(12,500</TD><TD STYLE="font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right">(12,500)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt; padding-left: 9pt">Amortization of debt discount</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">83,523</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">Y</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(83,523</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(83,523)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-bottom: 1pt; padding-left: 0.25in">Other income (expense), net</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">48,436</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(47,587</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(47,587)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">Net income</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(22,495</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(558,903</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(21,376</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(716,302</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">$&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(773,172)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">Basic and diluted net loss per share</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt; text-align: center">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.02)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">(271,400,076</TD><TD STYLE="font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">AA</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">5,822,000</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">BB</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">(1,293,000</TD><TD STYLE="font-size: 8pt; text-align: left">)</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">CC</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">125,000</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">DD</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right"></TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">Weighted average number of common shares outstanding - basic and diluted</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">287,503,617</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">10,050,000</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">5,890,750</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">EE</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">36,698,291</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: right"></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">See footnotes to unaudited pro forma condensed
combined financial statements</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left"><B>I.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">&nbsp;<B>&nbsp;Background&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 4.5pt; text-align: justify; text-indent: 22.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 4.5pt; text-align: justify; text-indent: 22.5pt"><B><I>Dynastar&rsquo;s
Acquisition of Affordable Energy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 4.5pt; text-align: justify; text-indent: 22.5pt">On February
15, 2011, pursuant to a certain asset purchase agreement dated December 14, 2010, Dynastar completed the acquisition of the assets
of Affordable Energy. The aggregate purchase price for Affordable Energy&rsquo;s assets was $1,200,000, payable (i) $175,000 in
cash, including the application of a $100,000 deposit, (ii) the issuance of a promissory note for $125,000 with a stated interest
rate of 10% per annum due on June 15, 2011 (which was extended to and paid on September 15, 2011 in exchange for an extension fee
of $45,000, of which $10,000 was paid on June 15, 2011; $15,000 was paid on July 15, 2011 and $20,000 was paid on August 15, 2011),
and (iii) a non-interest bearing promissory note with a face value of $900,000 due on November 12, 2011 (which was extended to
February 15, 2012 under the terms of the agreement in exchange for a 1.5% increase in the discount factor for each 30 day period
that the note is extended past November 12, 2011), or thirty days after the day on which the Company&rsquo;s common stock is traded.
The non-interest bearing note was discounted at a market interest rate of 10% per annum, and recorded at its net present value
of $835,229, reflecting a discount of $64,771.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The terms of the $900,000 promissory note
further provide that if Dynastar&rsquo;s common stock, or the common stock of its successor in a merger, is publicly traded on
the due date, as extended, then repayment shall be made by the delivery of a sufficient number of shares of the common stock of
Dynastar Holdings equal in value to $900,000, where such value is determined on a per share basis, as an amount equal to eighty
and one half percent (80.5%), as adjusted, for a conversion on or after February 10, 2012, of the average closing price of the
Company&rsquo;s common stock during the 22 days of the public trading of the stock (the &ldquo;Discount Factor&rdquo;). In the
event that the Company&rsquo;s common stock is not publicly traded by February 15, 2012, then the entire amount of the $900,000
Acquisition Note shall be due and payable by such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 4.5pt; text-align: justify; text-indent: 22.5pt"><B><I>Merger
with Dynastar</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 4.5pt; text-align: justify; text-indent: 22.5pt">The Company
consummated a reverse merger with Dynastar on January 17, 2012. After the merger, Dynastar became the surviving company for accounting
purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 4.5pt; text-align: justify; text-indent: 22.5pt"><B><I>Private
Placement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company consummated
an initial closing of the private placement of 125,000 units at $0.20 per unit. Each unit contains one share of common stock and
one half of a warrant to purchase common stock at an exercise price of $0.80 for five years. In addition, Dynastar Holdings paid
the placement agent in the Offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from investors in
the offering. In addition, the placement agent received five-year warrants to purchase a number of shares of our common stock equal
to five (5%) of the units sold to investors in the Offering. As a result of the foregoing arrangement, at the initial closing of
the Offering, the placement agent was paid commissions of $2,500 and was issued broker warrants to purchase 6,250 shares of Dynastar
Holdings common stock at an exercise price of $0.20 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">&nbsp;</P>

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    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left; vertical-align: middle"><B>II.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><B>Pro Forma Adjustments&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>The following pro forma adjustments give effect to these
asset dispositions:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 2.25pt; text-indent: 0.25in"><B><I>Pro Forma Condensed Combined
Balance Sheet &ndash; as of September 30, 2011</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -0.5in"><I>Note 1</I> &nbsp;&nbsp;&#9;Derived from the
Dynastar Holdings&rsquo; unaudited consolidated financial statements as of September 30, 2011, as filed with the Securities and
Exchange Commission (&ldquo;SEC&rdquo;) on November 14, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><I>Note 2</I> &nbsp;&nbsp;&nbsp;Derived from the unaudited
financial statements of Dynastar as of September 30, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 2.25pt; text-indent: 0.25in"><B><I>Pro Forma Adjustments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -0.5in"><I>Note 3&#9;&nbsp;&nbsp;</I>To record the private
placement of 125,000 units at an offering price of $0.20 per unit, each unit consisting of one share of the Dynastar Holdings common
stock at a par value of $0.001 per shares and a warrant to purchase one-half of one share of the Dynastar Holdings common stock
at an exercise price of $0.80 per whole share for five years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">25,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">125</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,875</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -0.5in"><I>Note 4&nbsp;&nbsp;&#9;</I>To record the fees
paid to the broker in connection with the first closing of the Private Placement. Broker fee is computed based upon 10% of the
gross cash proceeds received.&nbsp;<I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Additional paid-in capital</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -0.5in"><I>Note 5&#9;&nbsp;&nbsp;</I>To record the payment
of professional fees in connection with the first closing of the Private Placement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Additional paid-in capital</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">10,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 6pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><B>II.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 15pt"><B>Pro Forma Adjustments, continued&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-indent: -0.5in"><I>Note 6&#9;&nbsp;&nbsp;</I>To record the issuance
of a Bridge Note on October 7, 2011 with a face value of $100,000 and a warrant to purchase 125,000 shares of Dynastar common stock.
The embedded conversion option featured in the this note cannot be exercised unless and until the Company becomes a public company
and its common stock is able to trade for 22 consecutive days. Accordingly, it was determined based upon authoritative guidance
that the embedded conversion option is deemed to be a contingent conversion rather than an active conversion option and that such
conversion option did not require accounting recognition upon the issuance of such note. It was further determined, based upon
authoritative guidance, that the warrant should be valued separately. Using the Black-Scholes model, the fair value inputs included:
exercise price of $0.80 per share, fair value per share of $0.40, a term of 5 years, volatility of 111% and a discount rate of
3.5%, it was determined that there would be a discount of $35, 749 representing the value attributable to the value of the free-standing
derivative liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">100,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Notes payable, net of discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">64,251</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,749</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 7 &nbsp;</I>To
record the conversion of $1,144,985 of the Bridge Notes, representing $1,044,985 issued through September 30, 2011 and $100,000
issued on October 7, 2011and $16,965 in accrued and unpaid interest through September 30, 2011, at a conversion price of $0.20
per share, converted into 5,809,750 shares of Dynastar Holdings common stock.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Notes payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,144,985</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Accrued expenses and other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,965</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,810</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,156,140</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 8&nbsp; </I>To
record the exchange of all Dynastar outstanding common stock, par value $0.0001 per share, into 10,050,000 shares of Dynastar
Holdings common stock, par value $0.001 per share.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Common Stock (Dynastar)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,005</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,045</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,050</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<!-- Field: Page; Sequence: 120; Value: 57 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left; vertical-align: middle"><B>II.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><B>Pro Forma Adjustments, continued&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 9 </I>To
record the split off of the Dynastar Holdings pre merger assets and liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-left: 70pt; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Additional paid-in capital</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">5,147</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,092</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,055</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 10 </I>To
record the reversal of the accrued registration rights penalties on the books of Dynastar as of September 30, 2011, in connection
with the those stockholders waiving their right to these penalties and the subsequent conversion of the Dynastar Series A redeemable
preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Accrued registration rights penalties</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">118,940</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">118,940</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 11 </I>To
record the elimination of Dynastar&rsquo;s historical accumulated deficit pursuant to the merger and plan of recapitalization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Additional paid-in capital</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">176,808</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">176,808</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left; vertical-align: middle"><B>II.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><B>Pro Forma Adjustments, continued&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note12 </I>To
expense the aggregate unamortized discount related to Dynastar&rsquo;s Bridge Notes, consisting of $318,445 unamortized at September
30, 2011 for Bridge Notes issued through that date and $35,749 of discount in connection with the Bridge Note issued on October
7, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Accumulated deficit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">354,194</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">354,194</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 13 </I>To
adjust the value of the derivative liability recorded for the warrants issued through October 7, 2011 in connection with Dynastar&rsquo;s
Bridge Notes. In connection with the reverse merger, Bridge Note Warrants for the purchase of an aggregate of 1,431,231 shares
of Dynastar&rsquo;s common stock with an exercise price of $0.80 per share were cancelled and exchanged for Dynastar Holdings warrants.
It was determined that both the Dynastar Bridge Note Warrants and the new Dynastar Holdings warrants issued at closing were deemed
to be derivatives, as their terms certain anti-dilution provisions. The pro forma adjustment below was to record the adjustment
to fair value for these warrants as of the pro forma balance sheet date of September 30, 2011. In the adjustment below, the warrant
derivative liability is adjusted to a fair value of $362,850, from a value of $402,357.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Derivative liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">39,687</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">39,687</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: 2.25pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 14 </I>To
record the redemption of $25,000 of Dynastar&rsquo;s Series A redeemable preferred stock by a certain shareholder prior to the
Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Redeemable preferred stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">25,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 15 </I>To
record the conversion of Dynastar Series A redeemable preferred stock ($1,164,400 redemption value) into 5,822,000 shares of
Dynastar common stock, which in turn, upon the Closing Date, were converted into shares of Dynastar Holdings common stock,
$0.001 par value and to record a deemed divided in connection with the induced conversion of these shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Redeemable preferred stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,164,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">458,703&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,822</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,617,281</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: left">
<TD STYLE="width: 17pt; text-align: left; padding-left: 0; vertical-align: top"><B>II.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><B>Pro Forma Adjustments, continued&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: 2.25pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 16 </I>To
record the acquisition of 271,400,036 shares of Dynastar Holdings common stock by Dynastar for $100,000 and the subsequent surrender
and cancellation of those shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Common stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">271,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 17 </I>In
connection with the initial closing of the Private Placement, to record the derivative liability related to (i) the warrant for
the purchase of 62,500 shares of Dynastar Holdings common stock issued as part of units sold. This warrant has certain anti-dilution
and other provisions that causes it be a derivative liability. It was further determined, based upon authoritative guidance, that
the warrant should be valued separately. Using the Black-Scholes model, the fair value inputs included: exercise price of $0.80
per share, fair value per share of $0.20, a term of 5 years, volatility of 111% and a discount rate of 3.5%, to determine the value
of $7,919.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Additional paid-in capital</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">7,919</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,919</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 18 </I>In
connection with the initial closing of the Private Placement, to record the derivative liability related to the warrant for the
purchase of 6,250 shares of Dynastar Holdings common stock issued to the broker. This warrant has certain anti-dilution and other
provisions that causes it to be a derivative liability. It was further determined, based upon authoritative guidance, that the
warrant should be valued separately. Using the Black-Scholes model, the fair value inputs included: exercise price of $0.20 per
share, fair value per share of $0.20, a term of 5 years, volatility of 111% and a discount rate of 3.5%, to determine a value of
$1,005.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Additional paid-in capital</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,005</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Derivative liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: left">
<TD STYLE="width: 17pt; text-align: left; padding-left: 0; vertical-align: top"><B>II.&nbsp;</B></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify; padding-left: 11pt"><B>Pro Forma Adjustments, continued&nbsp;</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in"><I>Note 19 </I>To
record the prepaid expense and charge to additional paid in capital for the warrant to purchase 2,000,000 shares of Dynastar Holdings
common stock issued to Navesink in consideration for advisory services to be provided over the six months following the Closing
Date of the merger. This warrant was fully vested upon issuance. Using the Black-Scholes model, the fair value inputs included:
exercise price of $0.20 per share, fair value per share of $0.20, a term of 5 years, volatility of 111% and a discount rate of
3.5%, to determine a value of $321,444. Since no services had been provided as of the pro forma balance sheet date, the full value
was recorded as a prepaid asset.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 70pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Debit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Credit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Prepaid expenses</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">321,444</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">321,444</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Pro Forma Adjustments, continued</B><I> </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: 2.25pt"><B><I><U>Pro Forma Condensed Combined
Statement of Operations - For the Nine Months Ended September 30, 2011 </U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left; vertical-align: top; padding-left: 22pt"><I>Note&nbsp;A</I>&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the Dynastar unaudited financial statements for the nine months ended
September 30, 2011 as filed with the SEC on November 14, 2011, and included herewith.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;B</I>&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the unaudited financial statements of Dynastar for the nine months ended
September 30, 2011, as included herewith.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;C&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the unaudited financial information of Affordable Energy for the period
from January 1, 2011 through February 15, 2011.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24pt"><B><I>Pro Forma Adjustments to arrive at the pro forma
combined financial statements of Dynastar assuming the purchase of Affordable Energy (but before the merger and private placement):
</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;D&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the amortization of the customer relationships acquired in the acquisition
of Affordable Energy for January 1, 2011 through February 15, 2011.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;E&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record interest expense for the $125,000 note issued in connection with the acquisition
of Affordable Energy.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;F&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To<I> </I>record the amortization of the debt discount related to the $900,000 note
issued in connection with the acquisition of Affordable Energy.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24pt"><B><I>Pro Forma adjustments to arrive at the pro forma
combined financial statements of Dynastar Holdings, Inc. assuming the consummation of the reverse merger and the simultaneous closing
of the private placement:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;G&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To<I> </I>record stock based compensation for stock options granted to the Company&rsquo;s
two executive officers in connection with the merger. On the Closing Date, an option for the purchase of 1,000,000 shares of Dynastar
Holdings common stock was granted to the Company&rsquo;s Chief Executive Officer. On the same date, options for the purchase of
an aggregate of 950,000 shares of Dynastar Holdings common stock at an exercise price of $0.20 per share were issued to the Company&rsquo;s
Chief Financial Officer. In connection with this award, the Company&rsquo;s Chief Financial Officer surrendered an option for
the purchase of 450,000 shares of Dynastar common stock at an exercise of price of $0.80 per share that had been issued to him
by Dynastar in 2010. The options were valued using the Black-Scholes model, with fair value inputs of: exercise price of $0.20
per share, fair value per share of $0.20, a expected term of approximately 6.5 years, volatility of 111% and a discount rate of
3.96%, to determine fair values of the new options of $147,600 and $163,800 for each of the Company&rsquo;s Chief Executive Officer
and Chief Financial Officer, respectively.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;H&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To adjust interest expense for the effect of the Bridge Notes conversion into the
common stock of Dynastar Holdings.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;I&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To adjust amortization of debt discount for the effect of the Bridge Notes conversion
into the common stock of Dynastar Holdings.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;J&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the cancellation of 27,400,076 shares of Dynastar Holdings common stock
in connection with the merger.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;K&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the conversion of Dynastar Series A redeemable preferred shares initially
into 5,822,000 shares of Dynastar common stock and then on the Closing Date, into the common stock of Dynastar Holdings.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;L&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the effect of 1,293,600 shares held in escrow at closing and deemed to be
forfeitable.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;M&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the issuance of 125,000 shares of Dynastar common stock in connection with
the Private Placement.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;N&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the issuance of 5,809,750 shares of Dynastar common stock in connection
with the conversion of the Bridge Notes with a face value of $1,144,985 and interest of $16,965 accrued through September 30,
2011.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -45pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>II.&#9;Pro Forma Adjustments, continued</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20.25pt"><B><I><U>Pro Forma Condensed Combined Statement
of Operations - For the Nine Months Ended September 30, 2010</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20.25pt"><I>This statement was prepared in order to
support the supplemental Management&rsquo;s Discussion and Analysis.</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;O&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the unaudited financial statements of Dynastar for the nine months ended
September 30, 2010 as included herewith.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;P&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the unaudited financial information of Affordable Energy for the nine
months ended September 30, 2010.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"><B><I>Pro Forma Adjustments to arrive at the pro forma
combined financial statements of Dynastar assuming the purchase of Affordable Energy (not including our merger with Dynastar):</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;Q&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the amortization of the customer relationships acquired in the acquisition
of Affordable Energy.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;R</I>&nbsp;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record interest expense for the $125,000 note issued in connection with the acquisition
of Affordable Energy.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;S&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To<I> </I>record the amortization of the debt discount related to the $900,000 note
issued in connection with the acquisition of Affordable Energy.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt"><B><I><U>Pro Forma Condensed Combined Statement of Operations
- For the Year Ended December 31, 2010</U></I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;T&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the Dynastar Holdings audited financial statements for the year ended
December 31, 2010 as filed with the SEC on March 31, 2011.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;U&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the audited financial statements of Dynastar for the year ended December
31, 2010 as included herewith.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;V&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Derived from the audited financial statements of Affordable Energy for the year ended
December 31, 2010 as included herewith.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left; margin-left: 22pt"><B><I>Pro Forma Adjustments to arrive
at the pro forma combined financial statements of Dynastar assuming the purchase of My Affordable Energy (but before the merger
with Dynastar Holdings): </I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;W&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the amortization of the customer relationships acquired in the acquisition
of Affordable Energy.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;X&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record interest expense for the $125,000 note issued in connection with the acquisition
of Affordable Energy.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;Y&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To<I> </I>record the amortization of the debt discount related to the $900,000 note
issued in connection with the acquisition of Affordable Energy.&nbsp;</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DYNASTAR HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Unaudited Pro Forma Condensed Combined
Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"><B><I>Pro Forma adjustments to arrive at the pro forma
combined financial statements of Dynastar Holdings, Inc. assuming the consummation of the reverse merger and the simultaneous closing
of the private placement:</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;&nbsp;&nbsp;Z&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To<I> </I>record stock based compensation for stock options granted to the Company&rsquo;s
two executive officers in connection with the merger. On the Closing Date, an option for the purchase of 1,000,000 shares of Dynastar
Holdings common stock was granted to the Company&rsquo;s Chief Executive Officer. On the same date, options for the purchase of
an aggregate of 950,000 shares of Dynastar Holdings common stock at an exercise price of $0.20 per share were issued to the Company&rsquo;s
Chief Financial Officer. In connection with this award, the Company&rsquo;s Chief Financial Officer surrendered an option for
the purchase of 450,000 shares of Dynastar common stock at an exercise of price of $0.80 per share that had been issued to him
by Dynastar in 2010. The options were valued using the Black-Scholes model, with fair value inputs of: exercise price of $0.20
per share, fair value per share of $0.20, a expected term of approximately 6.5 years, volatility of 111% and a discount rate of
3.96%, to determine fair values of the new options of $148,100 and $163,700 for each of the Company&rsquo;s Chief Executive Officer
and Chief Financial Officer, respectively.&nbsp;</TD></TR></TABLE>

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<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;AA&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the cancellation of 27,400,076 shares of Dynastar Holdings common stock
in connection with the merger.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;BB&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the conversion of Dynastar Series A redeemable preferred shares initially
into 5,822,000 shares of Dynastar common stock and then, on the Closing Date, into the common stock of Dynastar Holdings&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;CC&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the effect of 1,293,600 shares held in escrow at closing and deemed to be
forfeitable.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;DD&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the issuance of 125,000 shares of Dynastar common stock in connection with
the Private Placement.&nbsp;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right; padding-left: 22pt"><I>Note&nbsp;EE&nbsp;</I></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">To record the issuance of 5,890,750 shares of Dynastar Holdings common stock in connection
with the conversion of the Bridge Notes, with a face value of $1,144,985 and interest of $16,965 accrued through September 30,
2011.&nbsp;</TD></TR></TABLE>

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[{"type": "8-K", "sequence": "1", "filename": "v300086_8k.htm", "description": "CURRENT REPORT", "secsgml_size_bytes": 1716007}]
{"company-data": {"conformed-name": "Dynastar Holdings, Inc.", "cik": "0001405917", "assigned-sic": "7389", "irs-number": "260482524", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-144596", "film-number": "12540198"}, "business-address": {"street1": "C/O GOTTBETTER & PARTNERS, LLP", "street2": "488 MADISON AVENUE, 12TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "212-400-6900"}, "mail-address": {"street1": "C/O GOTTBETTER & PARTNERS, LLP", "street2": "488 MADISON AVENUE, 12TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022"}, "former-company": {"former-conformed-name": "Medical Design Studios, Inc.", "date-changed": "20070709"}}
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):  January
17, 2012
DYNASTAR HOLDINGS, INC.
(Exact name of registrant as specified in its
charter)
Nevada
333-144596
32-0309317
(State or other jurisdiction of
(Commission File Number)
(I.R.S. Employer Identification No.)
incorporation)
1311 Herr Lane, Louisville, KY 40222
(Address of principal executive offices)
502.326.8100
(Registrant's telephone number, including area code)
c/o Gottbetter & Partners, LLP, 488 Madison Avenue, 12
th
Floor, new York NY 10022
(Former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Cautionary Note Regarding Forward-Looking Statements
This Current Report contains
forward-looking statements as that term is defined under the federal securities laws. These statements relate to anticipated future
events, future results of operations or future financial performance. These forward-looking statements include, but are not limited
to, statements relating to the adequacy of our capital to finance our planned operations, market acceptance of our services and
product offerings, our ability to attract and retain key personnel, and our ability to protect our intellectual property. In some
cases, you can identify forward-looking statements by terminology such as "may," "might," "will,"
"should," "intends," "expects," "plans," "goals," "projects,"
"anticipates," "believes," "estimates," "predicts," "potential," or
"continue" or the negative of these terms or other comparable terminology.
These forward-looking statements
are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may
cause our (or our industry's) actual results, levels of activity or performance to be materially different from any future
results, levels of activity or performance expressed or implied by these forward-looking statements. The "Risk Factors"
section of this current report sets forth detailed risks, uncertainties and cautionary statements regarding our business and these
forward-looking statements.
We cannot guarantee future
results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak
only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking
statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States,
we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events
or circumstances or to reflect the occurrence of unanticipated events.
Explanatory Note
On October 14, 2011, we
changed our corporate name from Medical Design Studios, Inc. to Dynastar Holdings, Inc. ("Dynastar Holdings").
Effective November 2, 2011, our trading symbol was changed from "MEDD.OB" to "DYNA.OB".
On January 17, 2012, our
wholly owned Delaware subsidiary, Dynastar Acquisition Corp. ("Acquisition Corp."), merged (the "Merger")
with and into Dynastar Ventures, Inc., a Delaware corporation ("Dynastar"). In connection with the Merger, each share
of Dynastar common stock, on a fully diluted basis, was converted into the right to receive, one (1) share of our common stock.
Dynastar was the surviving corporation of that Merger. As a result of the Merger, Dynastar Holdings acquired the business of Dynastar
and will continue the existing business operations of Dynastar, as its wholly owned subsidiary.
Unless the context indicates
otherwise, the terms "Dynastar Holdings," "Company," "we," "us" and "our"
herein refer to Dynastar Holdings, Inc. and its subsidiaries (including Dynastar Ventures, Inc.), after giving effect to the Merger.
References to "Pubco" refer to the public company prior to giving effect to the Merger. References to "Dynastar"
refer to Dynastar Ventures, Inc., a Delaware corporation, both before and after giving effect to the Merger.
This Current Report contains
summaries of the material terms of various agreements executed in connection with the transactions described herein. The summaries
of these agreements are subject to, and are qualified in their entirety by, reference to these agreements, all of which are incorporated
herein by reference.
This Current Report is
being filed in connection with a series of transactions consummated by the Company and certain related events and actions taken
by the Company.
i
Table of Contents
Cautionary Note Regarding Forward-Looking Statements
i
Explanatory Note
i
Item 1.01.
Entry into a Material Definitive Agreement
1
Item 2.01.
Completion of Acquisition or Disposition of Assets
1
The Merger and Related Transactions
1
Description of Business
6
Risk Factors
12
Management's Discussion and Analysis of Financial Condition and Results of Operation
23
Securities Ownership of Certain Beneficial Owners and Management
32
Directors and Executive Officers
34
Executive Compensation
36
Market Price of and Dividends on Common Equity and Related Stockholder Matters
37
Certain Relationships and Related Transactions
40
Description of Capital Stock
41
Indemnification of Officers and Directors
46
Recent Sales of Unregistered Securities
46
Financial Statements and Supplemental Data
48
Index to Exhibits
48
Description of Exhibits
48
Item 3.02.
Unregistered Sales of Equity Securities.
48
Item 5.01.
Changes in Control of the Registrant.
48
Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
48
Item 5.03.
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
Item 5.06.
Change in Shell Company Status.
49
Item 9.01.
Financial Statements and Exhibits.
49
Financial Statements
F-1
ii
Item 1.01.	Entry into a Material Definitive Agreement
On January 17, 2012, Pubco
entered into an Agreement and Plan of Merger and Reorganization with Acquisition Corp. and Dynastar which we refer to in this Current
Report as the "Merger Agreement", and completed the Merger. For a description of the Merger and the material agreements
entered into in connection with the Merger, please see the disclosures set forth in Item 2.01 to this Current Report, which disclosures
are incorporated into this item by reference.
Item 2.01.	Completion of Acquisition or Disposition
of Assets
THE MERGER AND RELATED TRANSACTIONS
The Merger
On January 17, 2012, which
we refer to as the "Closing Date", Pubco, Dynastar, and Acquisition Corp. entered into the Merger Agreement and completed
the Merger. As a result of the Merger, we acquired the business of Dynastar and will continue the existing business operations
of Dynastar as our wholly owned subsidiary. A copy of the Merger Agreement is attached as Exhibit 2.1 to this Current Report and
is incorporated herein by reference.
On October 6, 2011, Dynastar
purchased an aggregate of 271,400,076 (6,742,859 pre-split) shares of Pubco's restricted common stock from the previous owner
for a cash consideration of $100,000. The 271,400,076 shares purchased by Dynastar represented approximately 94.4% of Pubco's
issued and outstanding common stock as of the purchase date. Dynastar surrendered those shares to Pubco for cancellation concurrent
with the closing of the Merger. Prior to the Merger, no material relationship existed between Acquisition Corp. and Dynastar.
Pursuant to the Merger
Agreement, on the Closing Date, Acquisition Corp., a wholly owned subsidiary of Dynastar Holdings, merged with and into Dynastar,
with Dynastar remaining as the surviving entity.
As a result of the Merger, each share of Dynastar common
stock outstanding was cancelled and converted into the right to receive one (1) share of our common stock.
Prior to the closing of
the Merger, holders of the Series A Convertible Preferred Stock of Dynastar (the "Dynastar Preferred Stock") agreed
(i) that their shares of Dynastar Preferred Stock would automatically convert into shares of Dynastar common stock immediately
prior to, and conditional upon, the closing of the Merger at the anti-dilution adjusted conversion price of $0.20 per share, rather
than at the original conversion price of $0.33 per share, and (ii) to waive certain rights they may have had under the terms of
the Dynastar Preferred Stock.
Prior to the closing of
the Merger, holders of the Dynastar 10% Secured Convertible Promissory Notes (the "Bridge Notes") agreed (i) that their
Bridge Notes would automatically convert into shares of our common stock upon the closing of the Merger at the anti-dilution adjusted
conversion price of $0.20 per share, rather than at the original conversion price of $0.40 per share, (ii) that the Dynastar Warrants
(defined below) would automatically convert upon the closing of the Merger into our warrants (on terms discussed below) and (iii)
to waive certain rights they may have had under the terms of the Dynastar Warrants
1
As of the closing of the
Merger, there were no outstanding or authorized options, warrants, rights, agreements or commitments to which Dynastar is a party
or which are binding upon Dynastar providing for the issuance or redemption of any of its capital stock.
The Merger Agreement contains
customary representations, warranties and covenants of Dynastar Holdings, Dynastar, and, as applicable, Acquisition Corp., for
like transactions. Breaches of representations and warranties are secured by indemnification provisions. The Merger Agreement provides
for a post-closing adjustment in an aggregate amount of up to 500,000 additional shares of our common stock issuable pro rata to
Dynastar's pre-Merger stockholders for any breach of the Merger Agreement by us that is discovered during the two-year period
following the closing of the Merger.  The Merger Agreement also provides that 5% of the shares of our common stock that
Dynastar's pre-Merger stockholders receive in the Merger in exchange for their shares of Dynastar are to be held in escrow
for any breach of the Merger Agreement by Dynastar that is discovered during the two years following the Merger pursuant to the
terms of an Escrow Agreement dated as of January 17, 2012, among the Company, John S. Henderson IV, as indemnification representative,
and Gottbetter & Partners, LLP, as Escrow Agent.
For
financial reporting purposes, the Merger represents a capital transaction of Dynastar or a "reverse merger" rather
than a business combination, because the sellers of Dynastar controlled the combined company immediately following the completion
of the Merger. As such, Dynastar is deemed to be the accounting acquirer in the transaction and, consequently, the transaction
is being treated as a recapitalization of Dynastar.  Accordingly, the assets and liabilities and the historical operations
that will be reflected in Dynastar Holdings' ongoing financial statements will be those of Dynastar and will be recorded
at the historical cost basis of Dynastar. Dynastar Holdings' assets, liabilities and results of operations will be consolidated
with the assets, liabilities and results of operations of Dynastar after consummation of the Merger. The historical financial statements
of Pubco before the Merger will be replaced with the historical financial statements of Dynastar before the Merger in all future
filings with the Securities and Exchange Commission (the "SEC"). The Merger is intended to be treated as, and t
he
parties have agreed to take all actions necessary to ensure that the Merger is treated as,
a tax-free
exchange under Section 368(a) of the Internal Revenue Code of 1986, as amended.
Following the closing of
the Merger, our board of directors consists of three (3) members. In connection with the foregoing, on the Closing Date, Kenneth
Spiegeland, the sole director of Pubco before the Merger, appointed John S. Henderson IV and Jerry Tyler to fill vacancies on the
board of directors. Also on the Closing Date, Mr. Spiegeland, the then-sole officer of Pubco, resigned and new executive officers
designated by Dynastar were appointed. The officers and directors of the Company as of the Closing Date are identified in this
Current Report under the heading "Directors and Executive Officers."
As a result of the Merger,
Pubco acquired the business of and will
continue the existing business operations of Dynastar, its wholly-owned subsidiary,
as a publicly-traded company. We will continue to comply with the information and reporting requirements of the federal securities
laws applicable to us.
Prior to the Merger, Pubco's
Board and shareholders owning a majority of its outstanding common stock adopted the 2011 Equity Incentive Plan (the "2011
Plan"), which became effective on September 20, 2011. The 2011 Plan provides for the issuance of up to 5,000,000 shares of
our common stock as incentive awards to be granted to executive officers, key employees, consultants and directors of the Company.
2
The Offering
Concurrently with the closing
of the Merger and in contemplation of the Merger, we completed an initial closing of a private offering (the "Offering")
of 125,000 units of our securities, at a price of $0.20 per unit. Each unit consists of one share of our common stock and a warrant
to purchase one-half share of our common stock. The warrants are exercisable for a period of five years at a purchase price of
$0.80 per whole share of our common stock.
The Offering is being conducted
on a "best efforts" basis with respect to a maximum of 10,000,000 units.  In addition, in the event the maximum
number of units is sold, the placement agent and the Company have the option to offer an additional 2,500,000 units.  The
initial closing of the Offering and the closing of the Merger were not conditioned upon each other.
On the Closing Date, an
investor in the Offering purchased 125,000 units for total cash consideration of $25,000.  The Offering for the remaining
9,875,000 units will continue after the closing of the Merger.
We paid the placement agent
in the offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from investors in the offering. In addition,
the placement agent received five-year warrants to purchase a number of shares of our common stock equal to five (5%) of the units
sold to investors in the offering. As a result of the foregoing arrangement, at the initial closing of the offering, the placement
agent was paid commissions of $2,500 and was issued broker warrants to purchase 6,250 shares of our common stock at an exercise
price of $0.20 per share.
The forms of the investor
warrant and broker warrant issued in the offering are attached as Exhibits 4.1 and 4.3, respectively, to this Current Report and
are incorporated herein by reference.
Investor Relations Agreement
On December 20, 2011, Dynastar
entered into a consulting agreement with Undiscovered Equities, Inc. ("UEI") pursuant to which UEI will provide certain
public relations and financial communications services to Dynastar and us. Our Board has agreed to assume the obligations to UEI
under this agreement. In exchange for UEI's services to us, we will pay UEI a cash fee of up to $350,000 payable as follows:
$200,000 upon our raising a minimum of $500,000 in the Offering; an additional $100,000 upon our raising a minimum of $1,000,000
in the Offering; and an additional $50,000 upon our raising a minimum of $1,500,000 in the Offering. Additionally, subject to our
raising a minimum of $1,500,000 in the Offering, we will
issue to UEI, 1,000,000 restricted
shares of our common stock (subject to adjustment in the event of any stock split or similar event).
This agreement with
UEI will terminate on December 31, 2012 unless terminated earlier in accordance with its provisions.
The Bridge Financing
In October 2010, Dynastar
completed a bridge financing (the "Bridge Note Offering") involving the sale of its Bridge Notes. The purchasers of
the Bridge Notes also received, for each $0.80 principal amount of the Bridge Notes purchased, a warrant (the "Dynastar Warrants")
to purchase one share of common stock of Dynastar, exercisable for a period of five (5) years, at an exercise price of $0.80 per
share. As of the completion of the Bridge Note Offering, Dynastar had sold Bridge Notes in the aggregate principal amount of $1,144,985,
and had issued to the purchasers of the Bridge Notes Dynastar Warrants to purchase an aggregate of 1,431,231 shares of Dynastar
common stock.
3
Upon the closing of the
Merger and following consent of the Bridge Note holders, the entire principal amount of the Bridge Notes was converted into 5,724,925
shares of our common stock and $51,756 in accrued and unpaid interest on the Bridge Notes was converted into 258,781 shares of
our common stock, each at a conversion price of $0.20 per share. Additionally, the Dynastar Warrants were exchanged for our five-year
warrants exercisable for 2,864,463 shares of our common stock, at an exercise price of $0.80 per whole share. Prior to the consummation
of the Merger, holders of the Dynastar Warrants agreed to waive any and all anti-dilution rights they might have had under the
terms of the Dynastar Warrants.
The Merger, the Offering
and the bridge financing and the related transactions are collectively referred to in this Current Report as the "Transactions."
Registration Rights
In connection with the
Merger and the Offering, we have agreed to file a registration statement registering for resale (i) the shares of our common stock
issued in the Offering (including the shares of our common stock underlying the Investor Warrants, but not those underlying any
Agent Warrants), (ii) the shares of our common stock issued upon conversion of the Bridge Notes and underlying the Bridge Warrants
and (iii) the shares of our common stock issued in the Merger to the holders, prior to the Merger, of the Dynastar Series A Preferred
Stock, consistent with the terms and conditions of the registration rights agreement we have entered into with the holders of the
registrable shares listed above. We have agreed to file the registration statement no later than seventy-five (75) calendar days
following the closing of the Merger (the "Filing Deadline") and use our best efforts to ensure that such registration
statement is declared effective within one hundred fifty (150) calendar days of filing with the SEC (the "Effectiveness Deadline").
Notwithstanding the foregoing, should our Board deem it advisable and in the best interests of us to delay the filing, we may seek
the consent of the holders of registrable securities to such delay and the waiver of monetary penalties described below.
If we are late in filing
the registration statement or if the registration statement is not declared effective within one hundred fifty (150) days of filing
with the SEC, monetary penalties payable by us to each holder of registrable securities will commence to accrue and cumulate at
a rate equal to one percent (1.00%) of the purchase price per share paid by such holder for the registrable securities for each
full period of 30 days that (i) we are late in filing the registration statement or (ii) the registration statement is late in
being declared effective by the SEC (which shall be pro rated for any period less than 30 days); provided, however, that in no
event shall the aggregate of any such penalties exceed ten percent (10%) of the purchase price per share paid by such holder for
the registrable securities. Notwithstanding the foregoing, no payments shall be owed with respect to any period during which all
of the holder's registrable securities may be sold by such holder under Rule 144 or pursuant to another exemption from registration.
Moreover, no such payments shall be due and payable with respect to any registrable securities we are unable to register due to
limits imposed by the SEC's interpretation of Rule 415 under the Securities Act.
We have agreed to maintain
the effectiveness of the registration statement through the earlier of second anniversary of the date the registration statement
is declared effective by the SEC or until Rule 144 of the Securities Act is available to the holders to allow them to sell all
of their registrable securities thereunder. The holders of any registrable securities removed from the registration statement as
a result of any Rule 415 or other comments from the SEC shall have "piggyback" registration rights for the shares of
common stock or common stock underlying such warrants with respect to any registration statement filed by us following the effectiveness
of the registration statement which would permit the inclusion of these shares.
4
We will pay all expenses
in connection with any registration obligation provided in the registration rights agreement, including, without limitation, all
registration, filing, stock exchange fees, printing expenses, all fees and expenses of complying with applicable securities laws,
and the fees and disbursements of our counsel and of our independent accountants.  Each investor will be responsible
for its own underwriting discounts and commissions, transfer taxes and the expenses of any attorney or other advisor such investor
decides to employ.
The form of the registration
rights agreement is attached as Exhibit 10.4 to this Current Report and is incorporated herein by reference.
Lock-up Agreements
In connection with the
Merger, each of the officers, directors, key employees and certain holders of 10% or more of our common stock after giving effect
to the Transactions agreed to "lock-up" and not sell or otherwise transfer or hypothecate any of their shares of our
common stock for a term of eighteen (18) months from the Closing Date of the Merger except in certain limited circumstances.  We
also agreed not to register under the Securities Act the resale of the shares of our common stock received by those officers, directors,
key employees and 10% holders in the Merger for a period of two years following the closing of the Merger.
Current Ownership
Immediately after giving
effect to the Transactions, including the units sold in the initial closing of the Offering, the conversion of the Bridge Notes
and the exchange of the Dynastar Warrants, the issuance of shares of our common stock to the former Dynastar stockholders in the
Merger, the cancellation of shares owned by Dynastar, and the broker warrants issued to the placement agent in connection with
the Offering, there were issued and outstanding securities of the Company on the closing of the Transactions as follows:
(i)
the stockholders of Dynastar surrendered all of the issued and outstanding shares
of Dynastar's capital stock, assuming the conversion of Dynastar's outstanding Dynastar Preferred Stock at the as
adjusted conversion price of $0.20 per share, and received, in exchange for such shares, an aggregate of 15,872,000 shares of
our common stock (the "Merger Shares");
(ii)
the pre-merger closing stockholders of Pubco other than Dynastar retained 16,103,541
shares of our common stock;
(iii)
Dynastar surrendered to Pubco for cancellation 271,400,076 shares of our common stock
pursuant to a share cancellation agreement dated effective as of January 17, 2012;
(iv)
one investor purchasing Units in the Offering will receive 125,000 shares of our common
stock and investor warrants to purchase up to 62,500 shares of our common stock;
(v)
the Bridge Notes were converted, as to their outstanding principal amount, into an
aggregate of 5,724,925 shares of our common stock and as to their accrued interest amount, into an aggregate of 258,781 shares
of our common stock;
(vi)
the Dynastar Warrants were exchanged into our warrants to purchase an aggregate of
2,862,463 shares of our common stock;
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(vii)
Robert R. Mohr, Chief Financial Officer of Dynastar and designated Chief Financial
Officer of Pubco, exchanged an option exercisable for 450,000 Dynastar shares of common stock for an option under the 2011 Plan
exercisable for 450,000 shares of our common stock and received an additional option under the 2011 Plan exercisable for 500,000
shares of our common stock; and John S. Henderson IV, Chief Executive Officer of Dynastar and designated Chief Executive Officer
of Pubco received an option exercisable for 1,000,000 shares of our common stock under the 2011 Plan;
(viii)
the placement agent received agent warrants to purchase up to 6,250 shares of our
common stock; and
(ix)
Acquisition Corp. merged with and into Dynastar, with Dynastar remaining as the
surviving entity.
Accounting Treatment; Change of Control
The Merger is being accounted
for as a "reverse merger," and Dynastar is deemed to be the acquirer in the reverse merger for accounting purposes.
Consequently, the assets and liabilities and the historical operations of the Company that will be reflected in the financial statements
prior to the Merger will be those of Dynastar, and the consolidated financial statements of the Company after completion of the
Merger will include the assets and liabilities of Dynastar, historical operations of Dynastar and operations of Dynastar from the
Closing Date of the Merger.
Except as described in
the previous paragraphs, no arrangements or understandings exist among present or former controlling stockholders with respect
to the election of members of the Company's board of directors and, to our knowledge, no other arrangements exist that might
result in a change of control of the Company. Further, as a result of the issuance of the shares of common stock pursuant to the
Merger, a change in control of the Company occurred as of the date of consummation of the Merger.
DESCRIPTION OF BUSINESS
Overview
Through our wholly owned
subsidiary Dynastar, we are a direct selling company focused on selling electricity in deregulated energy markets with headquarters
located in Louisville, Kentucky.
We operate through an organization
of independent energy consultants to sell electricity to consumer and commercial clients on behalf of our deregulated retail energy
provider partners. These energy providers are licensed energy resellers in the deregulated retail energy markets.
We plan to leverage our
independent energy consultant organization to grow to meet the demands of the rapidly deregulated retail energy markets by offering
alternative pricing opportunities to consumer and commercial purchasers of electricity and gas.
Solutions
We are a focused energy
marketing company. Our focus is on building a selling and marketing organization of independent energy consultants. We are not
in the business of purchasing or actually selling electricity or gas. That responsibility is left to our deregulated retail energy
provider partners. We provide a service to both the deregulated energy providers and to the consumers. To the deregulated retail
energy provider partners, we bring energy customers at an affordable commission cost, helping the deregulated energy providers
avoid the costs of having to invest in the fixed costs of hiring and managing their own direct sales forces. To consumers, as a
result of deregulation, we intend to bring cost savings and alternative pricing programs that are not available through the incumbent
local regulated utility.
6
As a sales and marketing
company, our principal tools consist of (i) our independent energy consultant organization, (ii) our web-based selling and pricing
tools, (iii) our advertising and promotion programs and (iv) our relationships with our deregulated retail energy provider partners.
Independent Energy
Consultant Organization
. At December 31, 2011, our independent energy consultant organization consisted of 292 active
consultants. Our consultant organization has declined over the last 11 months, due to a deliberate change in our  energy
consultant compensation plan that offered more incentives to energy consultants to grow their business organization and
customer base. As a result of this shift in compensation, a number of the existing independent energy consultants left the
organization, resulting in short term margin improvement for us as those consultants relinquished their rights to the
residual commissions from their customer base. We believe that we have stabilized our base energy consultant organization and
are ready to engage our growth strategies to add productive, high-value added independent energy consultants going forward.
We believe that Dynastar will be able to rapidly grow its independent energy consultant organization in order to expand its
business throughout the deregulated markets in the United States.
Web-based Selling and
Pricing Tools
. Our web-based selling and pricing tools have been developed to facilitate the identification and tracking of
customers and renewals, the pricing of products offered to retail energy customers and the tracking of commissions and bonuses
earned. We believe that these tools will serve as motivators to facilitate the growth of our independent energy consultant organization.
Advertising and Promotion
Programs
. We believe that our advertising and promotion programs are currently being developed and we anticipate that we will
launch these promotion programs in early 2012, after the consummation of our current Offering.
Relationships with Retail
Energy Provider Partners
. We have established agency agreements with three deregulated retail energy providers, who operate
in the states of Texas, New York, Pennsylvania, Connecticut, Maryland, New Jersey and Maine. We are targeting to enter into agency
agreements with energy providers across most of the 24 states in which electricity and gas have been deregulated. Through January
20, 2012, we were only operating in the states of Texas, New Jersey, and New York. Our initial focus will be in the Texas, New
Jersey, New York and Pennsylvania markets.
We believe that we are
able to attract independent energy consultants to our business by providing opportunities for individuals to start their own business
with a low start-up cost ($99 enrollment fee) and a personalized website ("Energy Store") with an easy to use back
office tool set ($49 per month). In addition, we provide comprehensive online training, operations support, and the ability to
participate in corporate sponsored events. We provide the independent energy consultants the opportunity to earn monthly residual
income and leadership bonuses in a flexible business that allows the consultants to work around their schedules with no inventory
or collections to maintain. Finally, we believe that our consultants are provided an incentive to build a business organization
by recruiting other independent energy consultants into their organization and receiving residual income based on the efforts of
those consultants they sponsor in the business.
7
We provide each independent
energy consultant with an Energy Store for $49 per month that includes a replicated consultant oriented website, a replicated customer
oriented website, a custom lead capture site, social media interaction linked to our site, a contact management system integrated
with the lead capture sites, an e-mail auto responder system, a follow up reminder system, a personal @mydynastarenergy.com e-mail
address, cell phone text notices of prospect and enrollment activity, online and printed marketing materials and a fully integrated
help desk with FAQ subsystem. We believe these tools help optimize the consultants time and efforts to give them the ability to
rapidly build their organization whether it be customer oriented or consultant organization oriented.
Market
According to the U.S. Energy
Information Administration (www.eia.gov), there are approximately 91 million potential retail and commercial energy customers in
the 24 states that have deregulated the selling of electricity and gas. We anticipate that additional states will deregulate their
energy markets.
We expect that the deregulation
of the energy business in the United States will have effects similar to that of the deregulation of the telecommunications business.
The former AT&T was effectively broken up in 1984, allowing for other players such as MCI, Sprint, Quest and ACN to expand
in the market. The Telecommunications Act of 1996 allowed for the retail resale of telecommunication services. According to Phone+
magazine, with deregulation, over the past 10 years, the telecommunications business has grown to a $100 billion market, from just
$10 billion. Also according to Phone+ magazine, the growth of the telecommunication business was partly attributable to market
participants who utilized direct selling as a tool to rapidly introduce new products and services, thus facilitating the rapid
expansion of their markets and customer base. We believe that we are at the forefront of this same business expansion in the sales
and marketing of energy to consumers and small businesses.
We plan to initially focus
our efforts on deregulated retail energy providers in what we believe are three primary high potential markets: Texas, New York
and Pennsylvania. The Texas market is the most mature having engaged in deregulation since 2002. According to the Texas State Comptroller,
in Texas by 2007, approximately 40% of residential customers had switched from the incumbent local regulated utility to deregulated
retail energy providers. Utilizing information gathered by the U.S. Energy Information Administration, assuming a similar penetration
rate in the New York and Pennsylvania markets, for the year 2010, there were potentially approximately 8.0 million residential
consumers using approximately 100.6 billion kWh of electricity per year resulting in approximately $13.4 billion in revenue for
the retail energy providers. Sales commissions on the resale of electricity by brokers are typically 10% of the price of electricity.
Therefore, within the residential customer market in New York and Pennsylvania, we believe there is a potential for independent
energy selling agents to generate approximately $1.3 billion in total commissions.
Opportunity
Deregulated retail energy
providers, who emerged with the deregulation of the energy markets, operate under a license to sell electricity and gas. To date,
these energy providers have traditionally catered to the industrial and large commercial customer base. For the most part, we believe
these energy providers have ignored the needs of the consumer and small commercial purchasers, as the cost to service this widely
distributed customer base through their own direct sales forces was not cost effective. We are seeing an emerging focus by these
energy providers to target the consumer and small commercial customers.
We see an opportunity to
partner with these retail energy providers, by bringing customers to them through our independent energy consultant organization,
our marketing programs and our web-based support platform.
8
Our energy customers typically
sign 1 year agreements to purchase energy from our deregulated retail energy provider partners. We believe that consumers will
be attracted to our product pricing offerings, as we will be able to offer a choice of energy purchasing plans and reduce their
costs of electric and gas energy purchases by 5% to 15%.
Competition
The market for our products
is highly competitive and rapidly changing. We target to sign up consumer and small commercial purchasers of electricity and gas.
Even though we will operate on the deregulated side of the selling of energy, we believe that we will be able to effectively compete
for customers with both regulated and deregulated companies. On the regulated side, we intend to compete for customers with the
incumbent public utility. On the deregulated side, we will compete principally against licensed retail energy providers who have
invested in their own direct sales forces. Two of these players are Ignite, Inc. (founded in 2004) and Ambit Energy (founded in
2006). According to Direct Selling News, for the year 2010, through direct selling, Ignite controlled approximately $160 million
in retail energy sales and Ambit approximately $70 million in retail energy sales. During this same time frame, Ignite and Ambit
reported that they had 188 and 275 employees, respectively, committed to their direct selling business. Ignite operates in Texas
and Georgia, and Ambit operates in Texas, New York and Illinois. Further, we may face competition from other direct selling companies
who may add electricity and gas to the other products and services that they are now selling.
Marketing and Sales
Our marketing efforts to
date have been to use web-based sales and marketing tools to attract and sign up highly motivated independent energy consultants
and their associated organization. In our target markets, we intend to use inside and outside direct sales representatives to generate
end user sales. Through targeted Internet marketing, advertising and lead generation with firms that have proven success in the
marketplace, we intend to identify the highest potential markets and focus our advertising to attract independent energy consultants
and electricity and gas consumers. In addition, we intend to use proven high potential television advertising to drive electricity
and gas consumers to our retail energy provider partners. Finally, we intend to engage online lead generation companies that have
a reputable web presence to focus on identifying highly qualified independent energy consultant leads.
The historical sales cycle
of Dynastar suggests that an independent energy consultant identifies, qualifies, approaches and closes a large number of customers
within the first month of joining the business. Typically, the consultant is selling to friends and family as well as signing up
themselves. The sales cycle is typically very quick with a span of only a few days between prospect identification and closing.
Each jurisdiction is different but the process typically involves the customer providing copies of their utility bills and a third
party verification that the customer wishes to change provider. We receive one time commission from the retail energy provider
upon the initial enrollment of a new customer ("Customer Acquisition Bounty") . Within 30 to 60 days the customer receives
its first bill from the new energy provider and within 60 to 90 days the customer is paying the new energy provider and we are
earning residual commissions.
Strategy
We expect that with the
infusion of the additional capital we raised and plan to continue to raise and with additional management we will be able to increase
commission revenues, expand the geographic footprint of the markets in which we will operate and increase marketing and promotion.
Our management intends to do the following:
9
·
Add additional established and proven independent energy consultants to our sales
organization, which would drive more revenue and take early advantage of signing customers for our retail energy provider partners.
·
Establish direct selling arrangements with additional retail energy providers in both
existing marketing geographies and in new geographies.
·
Initiate specific new marketing and promotion programs that will serve to drive additional
energy consumers to us and help us to build brand awareness.
·
Expand our capabilities for and target growth in the commercial market, where there
are economies of scale that drive greater commission revenues and margins.
·
Increase our independent energy consultant organization by introducing services within
jurisdictions that are not yet deregulated or are not within the footprint of our existing retail energy providers to ensure we
penetrate the market immediately with an existing organization when we are able to sell energy services within such jurisdictions.
Intellectual Property
Our blend and menu of web-based
selling tools is proprietary although the underlying technology is publicly available. We expect to continue to develop our intellectual
property in order to provide greater and more efficient tools to facilitate the sales efforts by our independent energy consultants.
Customers
Our customers are the retail
energy providers. As of January 20, 2012, we have 3 retail energy provider customers. Through these three energy providers, we
have enrolled a total of 4,155 retail and commercial energy consumers located in Texas and New York. Substantially all of our revenues
are through just one of these retail energy providers.
Employees
As of January 20, 2012,
we had five (5) employees. We have never experienced a work stoppage and believe our relationship with our employees is good.
Properties
We currently lease approximately
2,142 square feet of office space in Louisville, Kentucky for our principal executive offices under a two year operating lease.
We currently pay monthly basic rent of $2,600 per month for this space.
Legal Proceedings
We may, from time to time,
be a party to litigation that arises in the normal course of our business operations.  Currently, no legal proceedings,
government actions, administrative actions, investigations or claims are pending against us or involve us.
10
Available Information
We are currently a voluntary
filer with respect to the reporting requirements of the Securities Exchange Act of 1934 ("Exchange Act").  Reports
filed with the SEC pursuant to the Exchange Act, including annual and quarterly reports, and other reports we file, can be inspected
and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. Investors may
obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330. Investors can request copies
of these documents upon payment of a duplicating fee by writing to the SEC. The reports we file with the SEC are also available
on the SEC's website (http://www.sec.gov).
11
RISK FACTORS
RISKS RELATED TO OUR BUSINESS AND OUR INDUSTRY
We have a history of losses and we may
not achieve or maintain profitability.
We have a history of losses
and have not yet achieved profitability. We had a net loss of $558,903 and a net loss available to common stockholders of $1,025,403
for the period from May 4, 2010 (inception) through December 31, 2010 and $1,158,020 for the nine months ended September
30, 2011. As of September 30, 2011, our cumulative loss available to common stockholders from inception was $2,183,423. We expect
operating expenses to increase in the future due to the expected development activities and marketing expenses we will incur to
increase brand awareness in the deregulated energy marketplace as well as, increased operations costs and general and administrative
costs associated with implementing our business plan. Although we expect to achieve profitability in 2013, such expectation is
based on assumptions that are subject to economic and competitive uncertainties that are largely outside of our control. Our independent registered public accounting firm included an explanatory paragraph in their report for the
year ended December 31, 2010 and
the period from May 4, 2010
(inception) through December 31, 2010
on the accompanying financial statements regarding concerns about our ability to continue
as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this
disclosure by our independent registered public accounting firm. We have
a limited operating history upon which you can evaluate our business and prospects. You must consider our business, financial history
and prospects in light of the risks and difficulties we face as an early stage company with a limited operating history. There
can be no assurances that we will achieve or maintain profitability.
We have limited sales and compete in
rapidly evolving markets, which makes our future operating results difficult to predict.
We were formed in May 2010
and began operations in February 2011. We have limited commission revenues in an increasingly competitive industry. We are building
out our network of deregulated Retail Energy Provider partners for which we would sell and we are expanding our organization of
independent sales consultants. Building these partnerships will require time and money. These factors make it difficult to predict
our operating results, which may impair our ability to manage our business and our investors' ability to assess our prospects.
If we are unable to manage our anticipated
growth effectively, our revenues and profits could be adversely affected.
We anticipate that a significant
expansion of our operations and addition of new personnel is required in all areas of our operations in order to implement our
business plan. Our future operating results depend to a large extent on our ability to manage this expansion and growth successfully.
For us to continue to manage our growth, we must put in place legal and additional accounting systems and implement human resource
management and other tools. We have taken preliminary steps to put this structure in place. However, there is no assurance that
we will be able to successfully manage this anticipated rapid growth. A failure to manage our growth effectively could materially
and adversely affect our ability to market and sell our solutions and products.
The rates we charge for our services
may decline over time, which would reduce our revenues and adversely affect our profitability.
As our business model continues
to gain acceptance and attracts the attention of competitors, we may experience pressure to decrease the fees for our services,
which could affect our revenues and gross margin. If we are unable to sell our services at acceptable prices, or if we fail to
offer additional services with sufficient profit margins, our revenue growth will slow and our business and financial results will
suffer.
12
Our future success depends on the continued
services of our employees, including Messrs. John S. Henderson IV and Robert R. Mohr.
Our future success depends
on the continued services of our Chief Executive Officer and President, John S. Henderson IV, and Chief Financial Officer, Robert
R. Mohr. We have entered into an employment agreement with each of Messes. Henderson and Mohr; however, each may resign at any
time in his sole discretion. The loss of services of any of these individuals could impair our ability to consummate our business
plan and could have a material adverse effect on our business, financial condition and results of operations. It is our intention
to purchase key man life insurance with respect to Mr. Henderson.
We must also continue to
seek ways to retain and motivate all of our employees through various means, including through enhanced compensation packages.
In addition, we will need to hire more employees as we continue to implement our key strategy of building on our market position
and expanding our business. Competition for qualified personnel in the areas in which we compete remains strong and the pool of
qualified candidates is limited. Our failure to attract, hire and retain qualified staff on a cost efficient basis would have a
material adverse effect on our business, prospects, financial condition, results of operations and ability to successfully implement
our growth strategies.
We may be subject to intense competition
and may not be able to compete successfully against larger and more established businesses.
Several established companies
are currently offering or looking to offer solutions that compete within the deregulated energy marketplace. There can be no assurance
that competitors with substantially greater financial, technical, managerial, marketing and other resources and experience than
us will not compete more effectively than us.
Our ability to compete successfully will
depend, in part, on our ability to attract and retain experienced independent sales consultants.
The success of our business
model presumes that we will be able to attract, train, motivate and retain highly skilled and effective independent sales consultants.
Either not being able to develop this independent sales consultant organization or not being able to retain them, could have an
adverse effect on our business, financial condition or results of operations.
A prolonged recession, instability in
the financial markets, and insufficient financial sector liquidity, could negatively impact our business.
The consequences of a prolonged
recession could include a lower level of economic activity and uncertainty regarding energy prices. A lower level of economic activity
could result in a decline in energy consumption which could adversely affect our revenues and future growth. Economic downturns
or periods of high energy supply costs typically lead to reductions in energy consumption and increased conservation measures.
These factors could have an adverse effect on our results of operations, cash flows or financial position. Instability in the financial
markets as a result of recession or otherwise, as well as insufficient financial sector liquidity, also could affect the cost of
capital and our ability to raise capital.
13
Our business is heavily influenced by
how much regulated utility prices for energy are above or below competitive market prices for energy and, accordingly, any changes
in regulated prices or cyclicality or volatility in competitive market prices heavily impacts our business.
When energy prices increase
in competitive markets above the price levels of the regulated utilities, energy consumers are less likely to lock-in to higher
fixed price contracts in the competitive markets and so they are less likely to use our alternative pricing platform. Accordingly,
reductions in regulated energy prices can negatively impact our business. Any such reductions in regulated energy prices over a
large geographic area or over a long period of time would have a material adverse effect on our business, prospects, financial
condition and results of operations. Similarly, cyclicality or volatility in competitive market prices that have the effect of
driving those prices above the regulated utility prices will make our alternative pricing platform less useful to energy consumers
and will negatively impact our business.
We currently derive all of our revenue
as a sales agent to resellers of electricity, and as a result our business is highly susceptible to factors affecting the electricity
market over which we have no control.
We have derived approximately
100% of our revenues since we began operations in February 2011 from commissions earned in connection with the sale of electricity.
Although we intend to expand into other markets such as gas and commercial markets, we believe that our revenues will continue
to be highly dependent on the level of activity in the electricity market for the near future. Transaction volume in the electricity
market is subject to a number of variables, such as consumption levels, pricing trends, availability of supply and other variables.
We have no control over these variables, which are affected by geopolitical events such as war, threat of war, terrorism, civil
unrest, political instability, environmental or climatic factors and general economic conditions. We are particularly vulnerable
during periods when energy consumers perceive that electricity prices are at elevated levels since transaction volume is typically
lower when prices are high relative to regulated utility prices. Accordingly, if electricity transaction volume declines sharply,
our results will suffer.
Our success depends on the widespread
adoption of purchasing electricity from competitive sources.
Our success depends, in
large part, on the willingness of energy consumers to embrace competitive sources of supply, and on the ability of the energy resellers
for whom we sell to consistently source electricity at competitive rates. In most regions of North America, energy consumers have
either no or relatively little experience purchasing electricity in a competitive environment. Although electricity consumers in
deregulated regions have been switching from incumbent utilities to competitive sources, there can be no assurance that the trend
will continue. In a majority of states and municipalities, including some areas which are technically "deregulated",
electricity is still provided by the incumbent local utility at subsidized rates or at rates that are too low to stimulate meaningful
competition by other providers. In addition, extreme price volatility could delay or impede the widespread adoption of competitive
markets. To the extent that competitive markets do not continue to develop rapidly our prospects for growth will be constrained.
Also, there can be no assurance that trends in government deregulation of energy will continue or will not be reversed. Increased
regulation of energy would significantly damage our business.
14
Even if our alternative pricing platform
model achieves widespread acceptance as the preferred means to transact energy, we may be unsuccessful in competing against current
and future competitors.
We expect that competition
for the retail marketing of deregulated energy will intensify in the near future in response to expanding restructured energy markets
that permit consumer choice of energy sources and as technological advances create incentives to develop more efficient and less
costly energy procurement in regional and global markets. The barriers to entry into the retail marketing of deregulated energy
and marketplace are relatively low, and we expect to face increased competition from traditional providers and other established
participants in the energy industry.
Many of our competitors
and potential competitors have longer operating histories, better brand recognition and significantly greater financial resources
than we do. The management of some of these competitors may have more experience in implementing their business plan and strategy
which would give them a competitive advantage. We expect that as competition in the deregulated retail energy marketplace increases,
commissions for the retail sale of energy will decline, which could have a negative impact on the level of commissions we can charge
per transaction and may reduce the relative attractiveness of our services. We expect that our costs relating to marketing and
human resources may increase as our competitors undertake marketing campaigns to enhance their brand names and to increase the
volume of business conducted through their exchanges. We also expect many of our competitors to expend financial and other resources
to improve their network and system infrastructure to compete more aggressively. Our inability to adequately address these and
other competitive pressures would have a material adverse effect on our business, prospects, financial condition and results of
operations.
If we are unable to rapidly implement
some or all of our major strategic initiatives, our ability to improve our competitive position may be negatively impacted.
Our strategy is to improve
our competitive position by implementing certain key strategic initiatives in advance of competitors, including the following:
•
continuing to develop deregulated retail energy provider relationships;
•
expanding our organization of independent sales consultants;
•
leveraging new products such as the sale of gas;
•
targeting the commercial markets; and
•
targeting other energy-related markets.
We cannot assure you that
we will be successful in executing against any of these key strategic initiatives, or that our time to market will be sooner than
that of competitors. Some of these initiatives relate to new services or products in which we lack experience and expertise. If
we are unable to continue to implement some or all of our key strategic initiatives in an effective and timely manner, our ability
to improve our competitive position may be negatively impacted, which would have a material and adverse effect on our business
and prospects.
Our costs will continue to increase as
we expand our business and our revenue may not increase proportionately, resulting in operating losses in the future.
We expect that we will
need to significantly increase our operating expenses as we expanded our capabilities to offer additional energy-related products,
increase our sales and marketing efforts and developed our administrative organization. As we continue to expand our business,
we may incur additional operating losses. In addition, our budgeted expense levels are based, in significant part, on our expectations
as to future revenue and are largely fixed in the short term. As a result, we may be unable to adjust spending in a timely manner
to compensate for any unexpected shortfall in revenue which could compound those losses in any given fiscal period.
15
We may expand our business through the
acquisition of other businesses and technologies which will present special risks.
We may expand our business
in certain areas through the acquisition of businesses, technologies, products and services from other businesses. Acquisitions
involve a number of special problems, including:
•
the need to incur additional indebtedness, issue stock or use cash in order to complete
the acquisition;
•
difficulty integrating acquired technologies, operations and personnel with the existing
business;
•
diversion of management attention in connection with both negotiating the acquisitions
and integrating the assets;
•
strain on managerial and operational resources as management tries to oversee larger
operations;
•
the funding requirements for acquired companies may be significant;
•
exposure to unforeseen liabilities of acquired companies;
•
increased risk of costly and time-consuming litigation, including stockholder lawsuits;
and
•
potential issuance of securities in connection with an acquisition with rights that
are superior to the rights of our common stockholders, or which may have a dilutive effect on our common stockholders.
We may not be able to successfully
address these problems. Our future operating results will depend to a significant degree on our ability to successfully integrate
acquisitions and manage operations while also controlling expenses and cash burn.
We depend on a small number of key licensed
deregulated retail energy providers for a significant portion of our revenue, none of which have any obligation to use our services
or continue their relationship with us, and the partial or complete loss of business of one or more of these relationships could
negatively affect our business.
We operate as sales agents
through relationships with licensed deregulated retail energy providers. For the nine months ended September 30, 2011, 100% of
our revenues were generated through just one of these relationships. Although we are developing additional relationships, there
is no guarantee that we will be able to develop sufficient relationships to meet our business plan. Further, the loss of certain
of these relationships would impair our ability to consummate our business plan and could have a material adverse effect on our
business, financial condition and results of operations.
Our business depends heavily on our website
selling platform the interruption or unavailability of which could materially damage our operations.
The satisfactory performance,
reliability and availability of our selling and marketing efforts, as well as network infrastructure are critical to our reputation
and our ability to attract and retain both independent sales consultants and retail customers. Our efforts to mitigate systems
risks may not be adequate and the risk of a system failure or interruption cannot be eliminated. Although we have never experienced
a material unscheduled interruption of service, any such interruption in our services may result in an immediate, and possibly
substantial, loss of revenue and damage to our reputation.
16
Our business also depends
upon the use of the Internet as a transactions medium. Therefore, we must remain current with Internet use and technology developments.
Our current technological architecture may not effectively or efficiently support our changing business requirements.
Any substantial increase
in service activities or transaction volume on our exchanges may require us to expand and upgrade our technology, transaction processing
systems and network infrastructure. Although we continually monitor infrastructure performance and plan for scalability, there
can be no assurance that we will be able to successfully do so, and any failure could have a material adverse effect on our business,
results of operations and financial condition.
Breaches of online security could damage
or disrupt our reputation and our ability to do business.
To succeed, online communications
must provide a secure transmission of confidential information over public networks. Security measures that are implemented may
not always prevent security breaches that could harm our business. Although to our knowledge we have never experienced a breach
of online security, compromise of our security could harm our reputation and cause users to lose confidence in our security systems
and also subject us to lawsuits, sanctions, fines and other penalties. In addition, a party who is able to circumvent our security
measures could misappropriate proprietary information, cause interruptions in our operations, damage our computers or those of
our users, or otherwise damage our reputation and business. Our insurance policies may not be adequate to reimburse us for losses
caused by security breaches.
We may need to expend significant
resources to protect against security breaches or to address problems caused by breaches. These issues are likely to become more
difficult and costly as our business expands.
We depend on third-party service and
technology providers and any loss or breakdown in those relationships could damage our operations significantly if we are unable
to find alternative providers.
We depend on a number of
third-party providers for web hosting, elements of our online auction system, data management and other systems, as well as communications
and networking equipment, computer hardware and software and related support and maintenance. There can be no assurance that any
of these providers will be able to continue to provide these services without interruption and in an efficient, cost-effective
manner or that they will be able to adequately meet our needs as our transaction volume increases. An interruption in or the cessation
of such third-party services and our inability to make alternative arrangements in a timely manner, or at all, could have a material
adverse effect on our business, financial condition and operating results. There is also no assurance that any agreements that
we have in place with such third-party providers will be renewed, or if renewed, renewed on favorable terms.
The application of taxes including sales
taxes and other taxes could negatively affect our business.
The application of indirect
taxes (such as sales and use tax, value added tax, goods and services tax, business tax, and gross receipt tax) to e-commerce businesses
and our users is a complex and evolving issue. Many of the fundamental statutes and regulations that impose these taxes were established
before the growth of the Internet and e-commerce. In many cases, it is not clear how existing statutes apply to the Internet or
e-commerce. In addition, some jurisdictions have implemented or may implement laws specifically addressing the Internet or some
aspect of e-commerce. The application of existing or future laws could have adverse effects on our business.
17
Several proposals have
been made at the state and local level that would impose additional taxes on the sale of goods and services through the Internet.
These proposals, if adopted, could substantially impair the growth of e-commerce, and could diminish our opportunity to derive
financial benefit from our activities. The United States federal government's moratorium on states and other local authorities
imposing access or discriminatory taxes on the Internet is effective through November 1, 2014. This moratorium, however, does
not prohibit federal, state, or local authorities from collecting taxes on our income or generally from collecting taxes that are
due under existing tax rules.
In conjunction with the
Streamlined Sales Tax Project – an ongoing, multi-year effort by certain state and local governments to require collection
and remittance of distant sales tax by out-of-state sellers – bills have been introduced in the U.S. Congress to overturn
the Supreme Court's
Quill
decision, which limits the ability of state governments to require sellers outside of their
own state to collect and remit sales taxes on goods purchased by in-state residents. An overturning of the
Quill
decision
would harm our users and our business.
The passage of new legislation
and the imposition of additional tax requirements could increase the costs to bidders and listers using our auction platform and,
accordingly, could harm our business. There have been, and will continue to be, ongoing costs associated with complying with the
various indirect tax requirements in the numerous states, localities or countries in which we currently conduct or will conduct
business.
U.S. federal or state legislative or
regulatory reform of the current systems governing commodities or energy may affect our ability to conduct our business profitably.
We are currently not regulated
as an energy provider, broker or commodities dealer. Changes to the laws or regulations governing activities related to commodities
trading or energy procurement, supply, distribution or sale, or transacting in energy-related products or securities could adversely
affect the profitability of our operations or even our ability to conduct. Changes to the current regulatory framework could result
in additional costs and expenses or prohibit certain of our current business activities or future business plans. We cannot predict
the form any such legislation or rule making may take, the probability of passage, and the ultimate effect on us.
Risks
Related to the Offering and the Merger
We may need additional financing. Any
limitation on our ability to obtain such additional financing could have a material adverse effect on our business, financial condition
and results of operations.
Although we expect that
the proceeds from the Offering will be sufficient (assuming we sell the Maximum Offering) to implement our business plan, there
can be no assurance that we will not require additional capital if we are unable to sell the Maximum Offering for further expansion
of our business. The raising of additional capital could result in dilution to our stockholders. In addition, there is no assurance
that we will be able to obtain additional capital if we need it, or that if available, it will be available to us on favorable
or reasonable terms. Any limitation on our ability to obtain additional capital as and when needed could have a material adverse
effect on our business, financial condition and results of operations.
18
The shares of Common Stock underlying
the Units and the Investor Warrants comprising part of the Units will be "restricted securities" and, as such, may
not be sold except in limited circumstances.
The Units offered in the
Offering have not been registered under the Securities Act or any state securities law. As a result, the shares of common stock
underlying the Units, the Investor Warrants and shares of common stock issuable upon exercise of the Investor Warrants will be
"restricted securities" under the Securities Act and they may not be sold, transferred, pledged or otherwise disposed
of unless they are registered under the Securities Act and applicable state securities laws, except in a transaction which, to
our satisfaction and that of our counsel, is exempt from such registration requirements. Although we are required to register the
resale of the shares of common stock underlying the Units and the Investor Warrants issued to the investors in the Offering to
enable those shares to be freely tradable, we cannot assure that the SEC will declare the registration statement effective, or
that once declared effective, that the SEC will not take action to suspend such effectiveness. In addition, although the term of
the Investor Warrants is five years, we are only required to keep the registration statement effective for a period of two years,
so it might not be effective at the time you exercise your Investor Warrant.
In addition, Rule 144 promulgated
under the Securities Act, which permits the resale of the shares of common stock underlying the Units and the Investor Warrants,
subject to various terms and conditions, will generally not apply to our common stock until one year after we cease to be a "shell
company" under SEC regulations. As a result, your ability to sell those shares will be limited.
Because the Merger was a reverse merger,
we may not be able to attract the attention of major brokerage firms, which may limit the liquidity of our Common Stock and may
make it more difficult for us to raise additional capital in the future.
Additional risks may exist
because the Merger was a "reverse merger." Certain SEC rules are more restrictive when applied to reverse merger companies,
such as the ability of stockholders to resell their shares of common stock pursuant to Rule 144. In addition, securities analysts
of major brokerage firms may not provide coverage of our common stock because there may be little incentive for brokerage firms
to recommend the purchase of our common stock. As a result, our common stock may have limited liquidity and investors may have
difficulty selling it. In addition, we cannot assure you that brokerage firms will want to conduct any secondary offerings on our
behalf if we seek to raise additional capital in the future. Our inability to raise additional capital may have a material adverse
effect on our business.
If we fail to maintain proper and effective
internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating
results, our ability to operate our business and investors' views of us.
Ensuring that we have adequate
internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely
basis is a costly and time-consuming effort that will need to be evaluated frequently. Section 404 of the Sarbanes-Oxley Act requires
public companies to conduct an annual review and evaluation of their internal controls. Our failure to maintain the effectiveness
of our internal controls in accordance with the requirements of the Sarbanes-Oxley Act could have a material adverse effect on
our business. We could lose investor confidence in the accuracy and completeness of our financial reports, which could have an
adverse effect on the price of our common stock. In addition, if our efforts to comply with new or changed laws, regulations, and
standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory
authorities may initiate legal proceedings against us and our business may be harmed.
19
If we are unable to register the resale
of the shares of our Common Stock underlying the Units and the Investor Warrants sold in the Offering in a timely manner as required
by the Registration Rights Agreement, we may have to pay cash penalties in connection with such failure. Our use of cash to pay
such penalties may limit our ability to use such cash for other business purposes, which could have a material adverse effect on
our business.
We have agreed, at our
expense, to prepare and file a registration statement with the SEC within 75 calendar days after the merger closing date. We have
also agreed to use our best efforts to cause such registration statement to be declared effective by the SEC within 150 calendar
days of filing with the SEC. The registration statement will cover the resale of the shares of our common stock underlying the
Units and the Investor Warrants sold in the offering. There are many reasons, including some over which we have little or no control,
which could delay our filing of the registration statement beyond 75 days after the merger closing date or which could prevent
the registration statement from being declared effective by the SEC, including delays resulting from the SEC review process and
comments raised by the SEC during that process. In the event that the registration statement is not filed, or we fail to use our
commercially reasonable efforts to have it declared effective within these timeframes, we may be required to pay cash penalties
in accordance with the terms of the Registration Rights Agreement. As a result, we may be required to divert cash from other business
purposes to pay such cash penalties, which could have a material adverse effect on our business.
RISKS RELATED TO OUR COMMON STOCK
We do not expect to pay dividends on
our Common Stock.
We have no plans to pay
dividends on our common stock for the foreseeable future. We intend to retain future earning to fund operations and future capital
requirements. Because we do not plan to pay dividends on our common stock, our stock may be less attractive to some investors,
which could adversely affect our stock price.
A trading market for our Common Stock
may not develop or be sustained, and you may not be able to resell your Common Stock.
No trading market for our
shares presently exists. We cannot assure you that a market for our common stock will develop in the foreseeable future or, if
developed, that it will be sustained. As a result you may not be able to resell your common stock.
Our Common Stock will likely be considered
a "penny stock," which is likely to limit its liquidity and make it more difficult for us to raise additional capital
in the future.
The market price
of our common stock is, and will likely remain for the foreseeable future, less than $5.00 per share, and therefore will be a "penny
stock" according to SEC rules, unless our common stock is listed on a national securities exchange. The OTC Bulletin Board
is not a national securities exchange. Designation as a "penny stock" requires any broker or dealer selling these securities
to disclose certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the
purchaser is reasonably suitable to purchase the securities. These rules may restrict the ability of brokers or dealers to sell
our common stock and may affect the ability of current holders of our common stock to sell their shares. Such rules may also deter
broker-dealers from recommending or selling the common stock, which may further limit its liquidity. This may also make it more
difficult for us to raise additional capital in the future.
20
The price of our Common Stock
may become volatile, which could lead to losses by investors and costly securities litigation.
The future trading
price of our common stock may become highly volatile and could fluctuate in response to factors such as:
•
actual or anticipated variations in our operating results;
•
announcements of developments by us, our strategic partners or our competitors;
•
announcements by us or our competitors of significant acquisitions, strategic partnerships,
joint ventures or capital commitments;
•
adoption of new accounting standards affecting our industry;
•
additions or departures of key personnel;
•
sales of our common stock or other securities in the open market; and
•
other events or factors, many of which are beyond our control.
As a former shell company,
resales of shares of our restricted Common Stock in reliance on Rule 144 of the Securities Act are subject to the requirements
of Rule 144(i).
Rule 144 under the
Securities Act, which generally permits the resale, subject to various terms and conditions, of restricted securities after they
have been held for six months will not immediately apply to our common stock because we were at one time designated as a "shell
company" under SEC regulations. Pursuant to Rule 144(i), securities issued by a current or former shell company that otherwise
meet the holding period and other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 until one year after
the date on which the issuer filed current "Form 10 information" (as defined in Rule 144(i)) with the SEC reflecting
that it ceased being a shell company, and provided that at the time of a proposed sale pursuant to Rule 144, the issuer has satisfied
certain reporting requirements under the Exchange Act. Because, as a former shell company, the reporting requirements of Rule 144(i)
will apply regardless of holding period, restrictive legends on certificates for shares of our common stock cannot be removed except
in connection with an actual sale that is subject to an effective registration statement under, or an applicable exemption from
the registration requirements of, the Securities Act.
You may experience dilution of
your ownership interests because of the future issuance of additional shares of our Common Stock.
In the future, we
may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of our
present stockholders. We are currently authorized to issue an aggregate of 310,000,000 shares of capital stock consisting of 300,000,000
shares of common stock and 10,000,000 shares of preferred stock with preferences and rights to be determined by our Board of Directors.
As of January 20, 2012, following the closing of the Merger and the initial closing of the Offering, there were 38,084,247 shares
of our common stock Outstanding. There are 5,000,000 shares of our common stock reserved for issuance under our 2011 Plan, of which
1,950,000 have been allocated for issuance under outstanding stock options.
21
Any future issuance
of our equity or equity-backed securities may dilute then-current stockholders' ownership percentages and could also result
in a decrease in the fair market value of our equity securities, because our assets would be owned by a larger pool of outstanding
equity. As described above, we may need to raise additional capital through public or private offerings of our common or preferred
stock or other securities that are convertible into or exercisable for our common or preferred stock. We may also issue such securities
in connection with hiring or retaining employees and consultants (including stock options issued under our 2011 Plan), as payment
to providers of goods and services, in connection with future acquisitions or for other business purposes. Our Board of Directors
may at any time authorize the issuance of additional common or preferred stock without common stockholder approval, subject only
to the total number of authorized common and preferred shares set forth in our certificate of incorporation. The terms of equity
securities issued by us in future transactions may be more favorable to new investors, and may include dividend and/or liquidation
preferences, superior voting rights and the issuance of warrants or other derivative securities, which may have a further dilutive
effect. Also, the future issuance of any such additional shares of common or preferred stock or other securities may create downward
pressure on the trading price of the common stock. There can be no assurance that any such future issuances will not be at a price
(or exercise prices) below the price at which shares of the common stock are then traded.
22
MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of financial
condition and results of operations should be read in conjunction with the consolidated financial statements and related notes
included elsewhere in this Current Report. This discussion contains forward-looking statements that involve risks, uncertainties
and assumptions. See "Note Regarding Forward-Looking Statements." Our actual results could differ materially from
those anticipated in the forward-looking statements as a result of certain factors discussed in "Risk Factors" and
elsewhere in this Current Report.
Overview
We are a direct selling company focused
on selling electricity in deregulated energy markets located in Louisville, Kentucky, operating through our wholly owned subsidiary,
Dynastar.
We operate through an organization
of independent energy consultants to sell electricity and gas to consumer and commercial clients on behalf of our retail energy
provider partners. These energy providers are licensed energy resellers in the deregulated retail energy markets.
We plan to leverage our independent
energy consultant organization to grow to meet the demands of the rapidly deregulated retail energy markets by offering alternative
pricing opportunities to consumer and commercial purchasers of electricity and gas.
Revenues
We recognize revenue from commissions
earned on the sale of energy services through our deregulated energy provider partners. Commissions are earned based upon the
quantity of energy sold ("kWh"), as well as from customer acquisition bounties ("CAB") when we acquire
new energy customers, as well as customer renewal bonuses and fees for customer retention. We recognize these revenues when the
deregulated energy provider partner, as the principal, receives payment for the electricity from the retail customer.
We also recognize revenue from our
independent energy consultants, who pay a flat monthly fee entitling them to the use of our websites which facilitate their business
operations. These revenues are earned and recognized in the month that they are received.
Cost
of Sales
We recognize as a cost of sales the
commissions earned by our independent energy consultants.
Operating expenses
Operating expenses consist of the
compensation and overhead of administrative personnel and professional services firms performing administrative functions, including
management, accounting, finance and legal services, plus expenses associated with infrastructure, including depreciation, information
technology, telecommunications, facilities and insurance.
Change in fair value of derivative liabilities
Gain on change in fair value of derivative
liabilities represents the change in the fair value of derivative liabilities over a reporting period, since derivative liabilities
are required to be revalued at each reporting date.
23
Interest income
We recognize interest income related
to a note receivable made on June 22, 2010 and repaid in full as of February 15, 2011.
Interest expense
We recognize interest expense associated
with our notes payable.
Amortization of debt discount
We recognize the amortization of debt
discounts related to our notes payable, which are amortized over the terms of the related debt.
Results of Operations
Nine Months Ended September 30, 2011 Compared to
the period May 4, 2010 (Inception) through September 30, 2010
Overview
We reported a net loss and net loss
available to common stockholders of $1,158,020 for the nine months ended September 30, 2011, as compared to a net loss of $240,490
and net loss available to common stockholders of $706,990 for the period May 4, 2010 (Inception) through September 30, 2010. The
increase in net loss of $917,530, is primarily due to the costs that we have incurred in 2011 in connection with our planned merger,
offset by the gross profit of $520,905 realized after the commencement of our operations, as a result of our acquisition of the
business and selected assets of Affordable Energy, LLC ("Affordable Energy") on February 15, 2011. Operating expenses
incurred in 2011 include compensation, as well as legal, consulting, accounting and professional fees.
Revenues
Our commission revenues for the nine
months ended September 30, 2011 were $849,367 as compared to revenues of $0 for the corresponding 2010 period. The increase in
revenues is the result of the acquisition of Affordable Energy and the corresponding commencement of operations during February,
2011.
We recognize revenue from commissions
earned on the sale of energy services by our deregulated energy provider partners. We also receive a customer acquisition bounty
("CAB") when we acquire new residential or commercial energy customers as well as monthly customer renewal bonuses
and customer fees. We recognize these revenues when the deregulated energy provider, as the principal, receives payment for the
electricity from the retail customer.
24
We also recognize revenues from our
independent energy consultants, who pay a flat monthly fee entitling them to the use of our website which facilitates their business
operations. These revenues are earned and recognized in the month that they are received.
Revenues consisted of the following
for the nine months ended September 30, 2011:
kWh commissions
$
607,843
Customer acquisition and renewal commissions
55,560
Customer fees
71,194
Total commission revenues
734,597
Independent energy consultant fees
114,770
Total revenues
$
849,367
Cost of Revenues
Our cost of revenues during the nine
months ended September 30, 2011 was $328,462 as compared to $0 for the corresponding 2010 period. The increase in cost revenues
is the result of the acquisition of Affordable Energy and the corresponding commencement of operations in February, 2011.
Operating Expenses
Operating expenses are principally
driven by salaries and professional fees as we have been preparing to become a public company. Operating expenses were $1,515,215
during the nine months ended September 30, 2011 as compared to $288,852 during the period May 4, 2010 (inception) through September
30, 2010, representing an increase of $1,226,363. This increase resulted primarily from (i) an increase in compensation and related
expenses of $407,148, principally on account of salaries and stock-based compensation for our CEO and CFO for the full nine months
of 2011 (compared to 5 months in 2010), (ii) an increase of $455,752 in acquisition and merger related costs in connection with
the purchase of the net assets of an operating company and our proposed merger with Pubco, (iii) an increase of $132,426 in consulting
expenses and (iv) an increase of $35,682 in liquidated damages recognized under our registration rights agreement (recorded at
the maximum level at September, 30, 2011). Stock-based compensation included in operating expenses was $34,472 and $27,500 for
the nine months ended September 30, 2011 and the period May 4, 2010 (inception) through September 30, 2010, respectively.
Change in fair value of derivative liabilities
During the nine months ended September
30, 2011, we recorded a gain from the change in fair value of our derivative liabilities of $6,780 as compared to a gain of $0
during the period May 4, 2010 (inception) through September 30, 2010. The derivative liability is related to warrants which were
deemed to be derivatives, granted in connection with our issuance of 10% secured convertible promissory notes (the "Bridge
Notes") during 2011.
Interest income
Interest income was $3,132 for the
nine months ended September 30, 2011, compared to $48,362 for the period from May 4, 2010 (inception) to September 30, 2010. The
decrease is due to a $24,000 loan origination fee earned during 2010, as well as the payment in full of the related note receivable
as of February 15, 2011.
25
Interest expense
Interest expense was $65,166 during
the nine months ended September 30, 2011, compared to $0 for the period from May 4, 2010 (inception) through September 30, 2010.
The increase in interest expense resulted from borrowings in 2011 in connection with the acquisition of an operating company and
from the Bridge Notes issued during 2011.
Amortization of debt discount
We amortized $108,456 of debt discount
during the nine months ended September 30, 2011 compared to $0 for the period from May 4, 2010 (inception) through September 30,
2010. The increase in debt discount is related to the Bridge Notes issued during 2011.
Results for the Period May 4, 2010 (Inception) through
December 31, 2010
Overview
We reported a net loss available to
common stockholders of $1,025,403 for the period May 4, 2010 (inception) through December 31, 2010, which includes a deemed dividend
to the holders of the Dynastar Preferred Stock of $466,500. A net loss of $558,903 reported before the deemed dividend is attributable
to operating costs that were incurred in connection with beginning our operations, seeking acquisition candidates and making preparations
for our planned reverse merger.
Operating Expenses
Operating expenses for the period
May 4, 2010 (inception) through December 31, 2010 consisted of compensation of $349,388 (including stock based compensation of
$48,342), consulting fees of $102,802, liquidated damages of $71,364 recognized under our registration rights agreement and
other general and administrative costs of $83,767.
Supplemental Management's Discussion of Results
of Operations
We are providing the following supplemental Management's
Discussion and Analysis to explain the pro forma effect on Dynastar's operations from its acquisition on February 15, 2011
of the net assets of My Affordable Energy ("MAE"). We are presenting the results of operations as if Dynastar had
acquired MAE on January 1, 2010. You should refer to our Pro Forma Condensed Combined Financial Statements included elsewhere
within this document.
Pro forma Nine Months Ended September 30, 2011 compared
to the pro forma nine months ended September 30, 2010
Overview
Our pro forma net loss was $1,198,431
for the nine months ended September 30, 2011, as compared to a pro forma net loss of $284,793 for the nine months ended September
30, 2010. The increase in net loss of $913,638, is primarily due to increases of $871,684 in operating expenses, $57,354 of interest
expense, and $56,254 in amortization of debt discount, a decrease in interest income of $45,230, offset by the increase in gross
profit of $110,104. The increase in operating expenses was principally in connection with the increases in compensation, as well
as legal, consulting, and accounting professional fees, primarily related to our preparations for our pending reverse merger.
26
Revenues
Our pro forma revenues for
the nine months ended September 30, 2011 were $958,590 as compared to pro forma revenues of $1,213,079 for the corresponding
2010 period. The decrease of $254,489 was principally on account of a decrease in the number of energy consultants in 2011
related to the transition of Affordable Energy to Dynastar, since turnovers in Affordable Energy employees adversely impacted
our relationship with some of our existing energy consultants, offset by an increase in the rate per kWh received from our
energy provider for new Texas customers and by customer renewal bonuses received in 2011. Furthermore, our consultant
organization has declined over the last 11 months, due to a deliberate change in our energy consultant compensation plan that
offered more incentives to energy consultants to grow their business organization and customer base. As a result of this
shift in our compensation plan, a number of the existing energy consultants left the organization, resulting in short term
margin improvement for us as these consultants relinquished their rights to the residual commissions from their customer
base.
Cost of Revenues
Our pro forma direct cost of revenues
during the nine months ended September 30, 2011 was $396,811 as compared to $761,404 for the corresponding pro forma period. The
decrease in cost of revenues results primarily from the decrease in revenues, as well as an increased emphasis on cutting costs
and improving margins during 2011.
Operating Expenses
Pro forma operating expenses were
$1,584,497 for the nine months ended September 30, 2011 as compared to $712,813 for the pro forma nine months ended September
30, 2010, representing an increase of $871,684. This increase resulted primarily from an increase in corporate compensation
costs of $282,238 related to a full nine months of compensation and related expenses during expenses 2011, compared to five
months for the period from inception through December 31, 2010, and $455,752 in acquisition and merger related expenses
incurred during 2011 in connection with our proposed merger with the public shell, as well as $35,682 in liquidated damages
under our registration rights agreement (recorded at the maximum level at September, 30, 2011), and an increase of consulting
expenses of $80,783.
Interest income
Pro forma interest income was $3,132
for the nine months ended September 30, 2011, compared to $48,362 for the period ended September 30, 2010. The decrease is due
to a $24,000 loan origination fee earned during 2010, as well as the payment in full of the related note receivable as of February
15, 2011.
Interest expense
Pro forma interest expense was $66,729
during the nine months ended September 30, 2011, compared to $9,375 for the period ended September 30, 2010. The increase in interest
expense resulted from borrowings in 2011 in connection with the acquisition of MAE and from the Bridge Notes issued during 2011.
Amortization of debt discount
Pro forma amortization of debt discount
was $118,896 during the nine months ended September 30, 2011 compared to $62,642 for the period ended September 30, 2010. The
increase in debt discount is related to the Bridge Notes issued during 2011.
Gain on change in fair value of derivative liabilities
During the nine months ended September
30, 2011, we recorded a pro forma gain from the change in fair value of our derivative liabilities of $6,780 as compared to a
gain of $0 during the period ended September 30, 2010. Our derivative liabilities result from warrants granted in connection with
the issuance of our 10% secured promissory notes during 2011. Derivative liabilities tend to decrease in value as the remaining
term of the underlying instrument decreases, which results in a gain in the statement of operations.
27
Liquidity and Capital Resources
We measure our liquidity in a variety
of ways, including the following:
September 30,
2011
(unaudited)
December 30,
2010
Cash
$
181,462
$
28,968
Working Capital (Deficiency)
$
(1,708,801
)
$
75,406
Through September 30, 2011, we incurred
cumulative net losses since inception of $1,716,923, respectively.
We were formed in May 2010, and through
January 2011, our operations consisted solely of raising capital and conducting due diligence in connection with the targeted
acquisition of an operating company. On February 15, 2011, we closed on our first acquisition and became an operating company.
Following the February 15, 2011 acquisition, we focused our efforts on becoming a public company as a vehicle to raise capital.
We consummated our reverse merger on January 17, 2012. We intend to deploy that additional capital to expand our operations within
additional deregulated energy markets within the United States. We further expect to incur significant auditing, accounting, legal
and other costs in connection with the preparations for and then becoming a public company.
We expect that through the next 12
to 18 months, that the capital requirements to fund our growth and to cover the operating costs of a public company will consume
most of our cash flows that we intend to generate from both the recently acquired operating company, as well as from the proceeds
of planned issuances of debt and equity securities. We further believe that during this period, while we focus on the growth and
expansion of our business, that the operating profits that expect to generate from our commissioned energy selling operations
will not generate sufficient funds to cover these anticipated operating costs.
On February 15, 2011, we acquired
MAE. Through November 30, 2011, we have reduced our overall headcount in an effort to reduce operating costs and have taken steps
that we believe will drive long-term revenue growth through enhancements in the commission program with our independent energy
consultants.
Since inception, our operations have
primarily been funded through private equity and debt financing, and we expect that we would continue to seek additional funding
through these private or public equity and debt financing sources.
However, there can be no
assurance that our plans as discussed above will materialize and/or that we will be successful in funding estimated cash
shortfalls through additional debt or equity capital and/or any cash generated by our operations that we acquired in February
2011. Given these conditions, our ability to continue as a going concern is contingent upon our being able to secure an
adequate amount of debt or equity capital to enable us to meet our cash requirements. In addition, our ability to continue as
a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance
into established markets, the competitive environment in which we operate and the current capital raising environment. These
factors, among others, raise
substantial doubt about
our ability to continue as a going concern.
28
We raised $1,144,985 in our 10% convertible
bridge notes during the period February through October of 2011, and in connection with the reverse merger and thereafter, are
conducting a private placement to raise $2,000,000 through February 2012 through the issuance of units consisting of common stock
and warrants. The funds raised through this private placement will be used to fund our operations, including the costs that we
expect to incur as a public company, and most importantly, to fund our plans to hire additional personnel to enable us to expand
to additional markets and deepen our penetration into existing markets.
In connection with our merger, we
affected the following events which we believe improved our liquidity and provided a platform on which we can raise additional
capital:
(i)
We issued 5,822,000 shares of common stock in exchange
for the outstanding $1,164,400 of Dynastar Preferred Stock that remained outstanding after the redemption of $25,000 of Dynastar
Preferred Stock. In connection with the conversion to common stock, these investors waived their rights to receive registration
rights penalties which otherwise are due.
(ii)
We caused the issuance of 5,724,925 shares of our common
stock to holders of the Bridge Notes in exchange for their Bridge Notes and 258,781 shares of our common stock in exchange for
$51,756 of accrued and unpaid interest on the Bridge Notes. The Dynastar Warrants outstanding were exchanged for our warrants
in like amounts and on like terms.
(iii)
Through our ongoing private placement offering we expect
to raise a maximum of $2,000,000 through the sale of up to 10,000,000 Units of our securities, at an offering price of $0.20 per
Unit, each Unit comprised of one (1) share of common stock and a warrant to purchase one-half of one (1/2) share of common stock
at an exercise price of $0.80 per whole share for five (5) years. Each share of common stock is entitled to one vote per share.
We may sell up to an additional 2,500,000 Units for $500,000 in the event the Offering is oversubscribed.
The current level of cash is not
enough to cover our existing fixed and variable obligations. Increased revenue performance and the addition of more capital
are critical to our success. Should we not be able to raise these additional funds through the private placement or some
other financing source, we would need to consider implementing any or all of the following steps as counter measures to
temporarily conserve cash, including: (i) curtailing our growth plans by limiting the hiring of new personnel, (ii) reducing
the salaries of or deferring the payment of compensation to our employees and (iii) extending the terms of payments to our
vendors, advisors and consultants.
Assuming that we are successful in
our growth plans and development efforts, we believe that we will be able to raise additional funds through the sale of our stock.
There is no guarantee that we will be able to raise these additional funds or to do so at an advantageous price.
Our financial statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification
of liabilities that might be necessary should we not be unable to continue as a going concern.
29
Cash
Flows
Operating Activities
We used cash of $779,734 during
the first nine months of 2011, primarily due to net losses of $1,158,020, offset primarily by amortization of debt discount
of $108,456, depreciation and amortization expense of $42,087, stock based compensation of $34,472, consulting services
received in exchange for a promissory note of $29,985, as well as an increase in cash related to the change in our operating
assets and liabilities.
Investing Activities
Investing activities provided $42,228
during the nine months ended September 30, 2011. This consisted of $150,000 cash received related to the repayment of a note receivable,
offset by $75,000 used for the acquisition of MAE, and $32,772 used for the purchases of property and equipment.
Financing Activities
Financing Activities provided $890,000
during the nine months ended September 30, 2011, representing proceeds from the promissory note issued in connection with our
purchase of MAE.
Off-Balance Sheet Arrangements
None.
Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
Critical Accounting Policies and Estimates
Use of Estimates
The preparation of financial statements
in conformity with United States Generally Accepted Accounting Principles ("U.S. GAAP") requires us to make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities,
and reported amounts of revenues and expenses in the financial statements and the accompanying notes. Actual results could differ
from those estimates. Our significant estimates and assumptions are stock-based compensation, the useful lives of fixed assets
and intangibles, allowance for income taxes, fair value of derivative liabilities and warrants.
Derivative Financial Instruments
We do not use derivative instruments
to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if
such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments
that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial
instruments, we use the binomial lattice option pricing model to value the derivative instruments at inception and on subsequent
valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities
or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as
current or non-current based on whether or not net-cash settlement of the instrument could be required within 12 months of the
balance sheet date.
30
Revenue Recognition
We recognize revenue from commissions
earned on the sale of energy services, on behalf of our deregulated energy providers. We also receive a customer acquisition bounty
("CAB") when we acquire new residential or commercial energy customers. We recognize these revenues when our deregulated
energy provider, as the principal, receives payment for the electricity from the retail customer.
We also recognize revenues from our
independent energy consultants, who pay a flat monthly fee entitling them to the use of our websites which facilitate their business
operations. These revenues are earned and recognized in the month that they are received.
Recent Accounting Pronouncements
In December 2010, the FASB issued
ASU 2010-28, Intangibles – Goodwill and Other (Topic 350), related to the way companies test for impairment of goodwill.
Pursuant to ASU 2010-28, goodwill of the reporting unit is not impaired if the carrying amount of a reporting unit is greater
than zero and its fair value exceeds its carrying amount. In that event, the second step of the impairment test is not required.
However, if the carrying amount of a reporting unit is zero or negative, the second step of the impairment test is required to
be performed to measure the amount of impairment loss, if any, when it is more likely than not that goodwill impairment exists.
In considering whether it is more likely than not that goodwill impairment exists, a company must evaluate whether there are qualitative
factors that could adversely affect goodwill. Consistent with the prior requirements, this test must be performed annually or,
if an event occurs or circumstances exist that indicate that it is more likely than not that goodwill impairment exists, in the
interim. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December
15, 2010. This standard is not expected to have a material impact on our reported results of operations or financial position.
On September 15, 2011, the FASB issued
ASU 2011-08, Intangibles – Goodwill and Other, which simplifies how an entity is required to test goodwill for impairment.
This ASU would allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two step
quantitative goodwill impairment test. Under the ASU, an entity would not be required to calculate the fair value of a reporting
unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less
than its carrying amount. The ASU includes a number of factors to consider in conducting the qualitative assessment. The ASU is
effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early
adoption is permitted. This standard is not expected to have a material impact on our reported results of operations or financial
position.
In May 2011, FASB issued Accounting
Standards Update ("ASU") No. 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements
in U.S. GAAP and IFRS." This pronouncement was issued to provide a consistent definition of fair value and ensure that the
fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards
("IFRS"). ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly
for Level 3 fair value measurements. This pronouncement is effective for interim and annual reporting periods beginning on or
after December 15, 2011, with early adoption prohibited. The new guidance will require prospective application. The adoption of
this pronouncement is not expected to have a material impact on our consolidated financial statements.
31
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following
tables set forth certain information regarding the beneficial ownership of our common stock as of January 20, 2012 by:
●
each person or entity known by us to be the beneficial
owner of more than 5% of our common stock;
●
each of our directors and executive officers following
the Merger; and
●
all of our directors and executive officers following
the Merger as a group.
Unless otherwise
indicated in the footnotes to the following tables, each person named in the table has sole voting and investment power and that
person's address is c/o Dynastar Holdings, Inc., 1311 Herr Lane, Suite 205, Louisville, KY 40222.
Name and Address
of Beneficial Owner
Shares of Common Stock
Beneficially Owned (1)
Percent of Common
Stock Beneficially
Owned (2)
John S. Henderson IV
4,500,000
(3)
11.8
%
Robert R. Mohr
200,000
(4)
*
Kenneth Spiegeland
0
0.0
%
Jerry W. Tyler Jr.
0
0.0
%
All directors and executive officers as a group (4 persons)
4,700,000
12.3
%
Gottbetter Capital Group, Inc.
488 Madison Avenue, 12th Floor
New York, NY 10022
3,093,803
(5)
8.0
%
Jerry A. Hickson
403 Hazeltine Drive
Austin, TX78734
8,728,299
(6)
21.6
%
Michael Lichtenstein
17879 Monte Vista Drive
Boca Raton, FL 33496
3,958,101
(7)
10.1
%
Navesink Capital Advisors, LLC
1200 Federal Highway, Suite 200
Boca Raton, FL 33432
3,721,259
(8)
9.6
%
David Duggins
7005 New Bern Court
Prospect, KY 40059
4,500,000
(9)
11.8
%
*
Less than 1%.
32
(1)
Beneficial
                                                                                                                                                                       ownership
                                                                                                                                                                       is
                                                                                                                                                                       determined
                                                                                                                                                                       in
                                                                                                                                                                       accordance
                                                                                                                                                                       with
                                                                                                                                                                       the
                                                                                                                                                                       rules
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       SEC
                                                                                                                                                                       and
                                                                                                                                                                       generally
                                                                                                                                                                       includes
                                                                                                                                                                       voting
                                                                                                                                                                       or
                                                                                                                                                                       investment
                                                                                                                                                                       power
                                                                                                                                                                       with
                                                                                                                                                                       respect
                                                                                                                                                                       to
                                                                                                                                                                       securities.
                                                                                                                                                                       Shares
                                                                                                                                                                       of
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       subject
                                                                                                                                                                       to
                                                                                                                                                                       options
                                                                                                                                                                       or
                                                                                                                                                                       warrants
                                                                                                                                                                       currently
                                                                                                                                                                       exercisable
                                                                                                                                                                       or
                                                                                                                                                                       convertible,
                                                                                                                                                                       or
                                                                                                                                                                       exercisable
                                                                                                                                                                       or
                                                                                                                                                                       convertible
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       date
                                                                                                                                                                       of
                                                                                                                                                                       this
                                                                                                                                                                       Current
                                                                                                                                                                       Report
                                                                                                                                                                       are
                                                                                                                                                                       deemed
                                                                                                                                                                       outstanding
                                                                                                                                                                       for
                                                                                                                                                                       computing
                                                                                                                                                                       the
                                                                                                                                                                       percentage
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       person
                                                                                                                                                                       holding
                                                                                                                                                                       such
                                                                                                                                                                       options
                                                                                                                                                                       or
                                                                                                                                                                       warrants
                                                                                                                                                                       but
                                                                                                                                                                       are
                                                                                                                                                                       not
                                                                                                                                                                       deemed
                                                                                                                                                                       outstanding
                                                                                                                                                                       for
                                                                                                                                                                       computing
                                                                                                                                                                       the
                                                                                                                                                                       percentage
                                                                                                                                                                       of
                                                                                                                                                                       any
                                                                                                                                                                       other
                                                                                                                                                                       person.
(2)
Percentage
                                                                                                                                                                       based
                                                                                                                                                                       on
                                                                                                                                                                       38,084,247
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       issued
                                                                                                                                                                       and
                                                                                                                                                                       outstanding
                                                                                                                                                                       as
                                                                                                                                                                       of
                                                                                                                                                                       January
                                                                                                                                                                       20,
                                                                                                                                                                       2012
(including
                                                                                                                                                                       an
                                                                                                                                                                       aggregate
                                                                                                                                                                       of
                                                                                                                                                                       15,872,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares,
                                                                                                                                                                       5,724,925
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       Shares
                                                                                                                                                                       and
                                                                                                                                                                       258,781
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares
                                                                                                                                                                       received
                                                                                                                                                                       by
                                                                                                                                                                       the
                                                                                                                                                                       former
                                                                                                                                                                       Dynastar
                                                                                                                                                                       stockholders
                                                                                                                                                                       and
                                                                                                                                                                       bridge
                                                                                                                                                                       note
                                                                                                                                                                       holders
                                                                                                                                                                       in
                                                                                                                                                                       the
                                                                                                                                                                       Merger),
                                                                                                                                                                       after
                                                                                                                                                                       giving
                                                                                                                                                                       effect
                                                                                                                                                                       to
                                                                                                                                                                       the
                                                                                                                                                                       Merger
                                                                                                                                                                       and
                                                                                                                                                                       the
                                                                                                                                                                       first
                                                                                                                                                                       closing
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Offering.
(3)
Consists
                                                                                                                                                                       of
                                                                                                                                                                       4,500,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares.
                                                                                                                                                                       Does
                                                                                                                                                                       not
                                                                                                                                                                       include
                                                                                                                                                                       1,000,000
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       incentive
                                                                                                                                                                       stock
                                                                                                                                                                       options
                                                                                                                                                                       granted
                                                                                                                                                                       under
                                                                                                                                                                       our
                                                                                                                                                                       2011
                                                                                                                                                                       Plan,
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       not
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.
(4)
Consists
                                                                                                                                                                       of
                                                                                                                                                                       50,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares
                                                                                                                                                                       and
                                                                                                                                                                       150,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       stock
                                                                                                                                                                       options
                                                                                                                                                                       granted
                                                                                                                                                                       under
                                                                                                                                                                       our
                                                                                                                                                                       2011
                                                                                                                                                                       Plan,
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.
                                                                                                                                                                       Does
                                                                                                                                                                       not
                                                                                                                                                                       include
                                                                                                                                                                       800,000
                                                                                                                                                                       shares
                                                                                                                                                                       issuable
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       such
                                                                                                                                                                       options,
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       not
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.
(5)
Includes
                                                                                                                                                                       2,587,553
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock
                                                                                                                                                                       and
                                                                                                                                                                       500,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       a
                                                                                                                                                                       warrant
                                                                                                                                                                       which
                                                                                                                                                                       is
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days. Also includes 6,250 shares of our common stock that may be issued upon exercise of a broker warrant issued
to Gottbetter Capital Markets, LLC. Adam Gottbetter has voting and investment power with respect to the shares owned by, and issuable
to, Gottbetter Capital Group, Inc. and Gottbetter Capital Markets, LLC.
(6)
Consists
                                                                                                                                                                       of
                                                                                                                                                                       1,207,500
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock,
                                                                                                                                                                       375,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares,
                                                                                                                                                                       4,625,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       conversion
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes,
                                                                                                                                                                       208,299
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares
                                                                                                                                                                       and
                                                                                                                                                                       2,312,500
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.
(7)
Consists
                                                                                                                                                                       of
                                                                                                                                                                       2,553,018
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock,
                                                                                                                                                                       250,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares,
                                                                                                                                                                       100,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       conversion
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes,
                                                                                                                                                                       5,083
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares,
                                                                                                                                                                       50,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days
                                                                                                                                                                       and
                                                                                                                                                                       an
                                                                                                                                                                       additional
                                                                                                                                                                       1,000,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       other
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days.
(8)
Consists
                                                                                                                                                                       of
                                                                                                                                                                       2,369,453
                                                                                                                                                                       shares
                                                                                                                                                                       of
                                                                                                                                                                       our
                                                                                                                                                                       common
                                                                                                                                                                       stock,
                                                                                                                                                                       400,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       conversion
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes,
                                                                                                                                                                       14,303
                                                                                                                                                                       Bridge
                                                                                                                                                                       Note
                                                                                                                                                                       interest
                                                                                                                                                                       shares,
                                                                                                                                                                       250,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       Bridge
                                                                                                                                                                       Notes
                                                                                                                                                                       warrants
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days,
                                                                                                                                                                       500,000
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       an
                                                                                                                                                                       additional
                                                                                                                                                                       warrant
                                                                                                                                                                       which
                                                                                                                                                                       are
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days,
                                                                                                                                                                       125,000
                                                                                                                                                                       shares
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       the
                                                                                                                                                                       initial
                                                                                                                                                                       closing
                                                                                                                                                                       of
                                                                                                                                                                       the
                                                                                                                                                                       Offering
                                                                                                                                                                       and
                                                                                                                                                                       62,500
                                                                                                                                                                       shares
                                                                                                                                                                       that
                                                                                                                                                                       may
                                                                                                                                                                       be
                                                                                                                                                                       issued
                                                                                                                                                                       upon
                                                                                                                                                                       exercise
                                                                                                                                                                       of
                                                                                                                                                                       an
                                                                                                                                                                       Investor
                                                                                                                                                                       Warrant
                                                                                                                                                                       issued
                                                                                                                                                                       in
                                                                                                                                                                       the
                                                                                                                                                                       Offering,
                                                                                                                                                                       which
                                                                                                                                                                       is
                                                                                                                                                                       exercisable
                                                                                                                                                                       within
                                                                                                                                                                       60
                                                                                                                                                                       days
                                                                                                                                                                       .
(9)
Consists
                                                                                                                                                                       of
                                                                                                                                                                       4,500,000
                                                                                                                                                                       Merger
                                                                                                                                                                       Shares.
33
DIRECTORS,
EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
Executive
Officers and Directors
The
following persons became the executive officers and directors of the Company following the Merger and  hold the positions
set forth opposite their names:
Name
Age
Position
John
    S. Henderson IV
39
Chief
    Executive Office, President and Director
Robert
    R. Mohr
46
Chief
    Financial Officer, Treasurer and Secretary
Kenneth
    Spiegeland
48
Director
Jerry
    W. Tyler Jr.
41
Director
Directors
are elected to serve until the next annual meeting of stockholders and until their successors are elected and qualified.  Officers
are appointed by the Board of Directors and serve until their successors are appointed by the Board of Directors.
Biographical
resumes of each officer and director of the Company are set forth below:
John
S. Henderson, Chief Executive Officer, President and Director
, has
served as Chief Executive
Officer, President, and the Director of Dynastar since May 4, 2010.  Mr. Henderson previously served as President of Lightyear
Wireless Solutions, a division of Lightyear Network Solutions, Inc. (LYNS), from 2003 to 2010 where he founded and built the direct
sales division to $12 million in revenue.  Prior to Lightyear, Mr. Henderson served as Vice President of Sales and Marketing
of the Direct Sales division of Excel Communications, a billion dollar direct sales company, from 2001 to 2003.
Robert
R. Mohr, Chief Financial Officer
,
Treasurer and Secretary
, has served as Chief
Financial Officer of Dynastar since November of 2010.  Mr. Mohr previously served as Chief Accounting Officer and principal
financial officer of Beacon Enterprise Solutions Group, Inc. (BEAC.OB) from 2007 to 2010 in charge of finance and administration.
 Prior to that, Mr. Mohr served as Director of Financial Reporting for Triple Crown Media, Inc. (TCMI), a $130 million sports
marketing, association management and newspaper concern, where he was in charge of SEC compliance, financial reporting and analysis
from 2005 to 2007.  Over the past 20 years, Mr. Mohr has served in senior financial roles in both public and private companies
in varying stages of development including start-ups, mergers and acquisitions, restructurings, leveraged buy-outs and turnarounds.
 Pursuant to financial roles, Mr. Mohr has also served as the leader of human resources, information technology, logistics,
distribution and customer service.
Kenneth
Spiegeland, Director,
served as Pubco's sole director from October 12, 2011 until the Merger closing on January
17, 2012. Mr. Spiegeland will remain as one of our directors following the Merger closing. He became Pubco's interim Chief
Executive officer, President and Interim Chief Financial Officer on September 14, 2011 and served in those capacities until the
Merger closing on January 17, 2012. Mr. Spiegeland has been a member of the Board of Directors of Rackwise, Inc. (OTCBB: RACK)
since February 1, 2011. From February 1, 2011 through September 21, 2011, he served as the Chief Executive Officer, Chief Financial
Officer, President, Treasurer and Secretary of Rackwise. He has been a Senior Account Manager with Concord Private Jet since January
2010.  From April 2008 to January 2010, he was a real estate broker and a partner in KBS Partnership, a real estate
holding company he founded in 1985, and from January 2005 to December 2008, he was the Managing Member of New Space Closet. Prior
to this, from January 2000 to November 2005, he was Division Manager with Masco Contractor Services, a subsidiary of Masco Corporation,
a leading manufacturer of home improvement and building products, and from February 1998 to January 2000, he was the General Manager
of Gabriel-Spry Services, a division of Gale Industries, and prior to this he served as Executive Vice President of Gabriel-Spry
Company Inc. since 1983.
34
Jerry
W. Tyler Jr., Director,
has served as private banker to The Liberty Group, a division of Morgan
Stanley Smith Barney, which currently manages over $300 million in client assets and loans, since 2009.  Prior to joining
The Liberty Group, Mr. Tyler served was a private banker at JP Morgan from 2001 to 2009.  Mr. Tyler has spent his entire
career assisting numerous individuals and companies identify, target and execute investment strategies to improve stakeholder
value.
Board
of Directors and Corporate Governance
Immediately
following the closing of the Merger, our Board consisted of three (3) members, two of which were independent. By January 31, 2012,
the Board of Directors shall consist of at five (5) members as two additional directors shall be appointed by the existing Board
by that date. At least three (3) of the five (5) directors will be independent. Pubco's pre-Merger stockholders appointed
one (1) of the current members of the Board. The Board may be increased up to seven (7) members, provided that at least one of
the additional directors is independent.
Director
Independence
We
are not currently subject to listing requirements of any national securities exchange or inter-dealer quotation system which has
requirements that a majority of the board of directors be "independent" and, as a result, we are not at this time
required to have our Board comprised of a majority of "Independent Directors."   Nevertheless, our Board
has determined that two of our three directors, Mr. Kenneth Spiegeland and Mr. Jerry Tyler, are "independent" within
the definition of independence provided in the Marketplace Rules of The Nasdaq Stock Market.
Board
Committees
We
intend to maintain a board of directors that is composed of a majority of "independent" directors. We may appoint
an audit committee, nominating committee and/or compensation committee, to adopt charters relative to each such committee.
Shareholder
Communications
Currently,
we do not have a policy with regard to the consideration of any director candidates recommended by security holders.  To
date, no security holders have made any such recommendations.
Code
of Ethics
We
have adopted a written code of ethics (the "Code of Ethics") that applies to our principal executive officer, principal
financial officer, principal accounting officer or controller, and persons performing similar functions. We believe that the Code
of Ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely
and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations;
and provide accountability for adherence to the code.  To request a copy of the Code of Ethics, please make written
request to our Secretary, at Dynastar Holdings, Inc.,
1311 Herr Lane, Louisville, KY 40222
.
35
EXECUTIVE COMPENSATION
The
following table sets forth information concerning the total compensation paid or accrued by us during the period from
inception (May 4, 2010) through December 31, 2010 to (i) all individuals that served as our principal executive officer or
acted in a similar capacity at any time during the fiscal years ended December 31, 2011 and 2010; (ii) all individuals that
served as its principal financial officer or acted in a similar capacity at any time during the fiscal years ended December
31, 2011 and 2010; and (iii) all individuals that served as executive officers of Dynastar at any time during the fiscal
years ended December 31, 2011 and 2010 that received annual compensation during the fiscal years ended December 31, 2011 and
2010 in excess of $100,000.
Summary
Compensation Table
The
following table presents the compensation for our executive officers since the inception of our operations on May 4, 2010.
Name and
Principal Position
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
Option
Awards
($)
All Other
Compensation
($)
Total ($)
John S. Henderson IV
2011
$
220,000
$
15,000
(1)
-
-
$
21,696
(2)
$
256,696
Chief Executive Office
2010
$
130,000
-
-
-
-
$
130,000
Robert R. Mohr
2011
$
175,000
$
10,000
(1)
-
-
$
15,719
(2)
$
200,719
Chief Financial Officer
2010
$
29,167
-
$
16,500
(3)
$
127,000
(4)
-
$
172,667
David L. Duggins
(5)
2010
$
95,000
$
10,000
(6)
-
-
$
15,417
(7)
$
120,417
President
(1)
Represents
                                                                                                                                                  cash
                                                                                                                                                  bonus
                                                                                                                                                  paid
                                                                                                                                                  in
                                                                                                                                                  connection
                                                                                                                                                  with
                                                                                                                                                  performance
                                                                                                                                                  under
                                                                                                                                                  employment
                                                                                                                                                  agreement.
(2)
Amount
                                                                                                                                                  represents
                                                                                                                                                  an
                                                                                                                                                  automobile
                                                                                                                                                  allowance
                                                                                                                                                  provided
                                                                                                                                                  pursuant
                                                                                                                                                  to
                                                                                                                                                  employment
                                                                                                                                                  agreement.
(3)
Amount
                                                                                                                                                  represents
                                                                                                                                                  the
                                                                                                                                                  grant
                                                                                                                                                  date
                                                                                                                                                  fair
                                                                                                                                                  value
                                                                                                                                                  of
                                                                                                                                                  50,000
                                                                                                                                                  shares
                                                                                                                                                  of
                                                                                                                                                  fully
                                                                                                                                                  vested
                                                                                                                                                  Dynastar
                                                                                                                                                  common
                                                                                                                                                  stock
                                                                                                                                                  issued
                                                                                                                                                  to
                                                                                                                                                  Mr.
                                                                                                                                                  Mohr
                                                                                                                                                  upon
                                                                                                                                                  the
                                                                                                                                                  execution
                                                                                                                                                  of
                                                                                                                                                  his
                                                                                                                                                  employment
                                                                                                                                                  agreement
                                                                                                                                                  on
                                                                                                                                                  November
                                                                                                                                                  4,
                                                                                                                                                  2010.
(4)
Amount
                                                                                                                                                  represents
                                                                                                                                                  the
                                                                                                                                                  grant
                                                                                                                                                  date
                                                                                                                                                  fair
                                                                                                                                                  value
                                                                                                                                                  of
                                                                                                                                                  an
                                                                                                                                                  option
                                                                                                                                                  to
                                                                                                                                                  purchase
                                                                                                                                                  450,000
                                                                                                                                                  shares
                                                                                                                                                  of
                                                                                                                                                  Dynastar
                                                                                                                                                  common
                                                                                                                                                  stock
                                                                                                                                                  at
                                                                                                                                                  exercise
                                                                                                                                                  price
                                                                                                                                                  of
                                                                                                                                                  $0.33,
                                                                                                                                                  awarded
                                                                                                                                                  to
                                                                                                                                                  Mr.
                                                                                                                                                  Mohr
                                                                                                                                                  in
                                                                                                                                                  connection
                                                                                                                                                  with
                                                                                                                                                  the
                                                                                                                                                  execution
                                                                                                                                                  of
                                                                                                                                                  his
                                                                                                                                                  employment
                                                                                                                                                  agreement
                                                                                                                                                  on
                                                                                                                                                  November
                                                                                                                                                  4,
                                                                                                                                                  2010.
(5)
David
                                                                                                                                                  Duggins
                                                                                                                                                  resigned
                                                                                                                                                  as
                                                                                                                                                  president
                                                                                                                                                  of
                                                                                                                                                  Dynastar
                                                                                                                                                  on
                                                                                                                                                  November
                                                                                                                                                  4,
                                                                                                                                                  2010.
(6)
Amount
                                                                                                                                                  represents
                                                                                                                                                  bonus
                                                                                                                                                  paid
                                                                                                                                                  in
                                                                                                                                                  connection
                                                                                                                                                  with
                                                                                                                                                  the
                                                                                                                                                  timely
                                                                                                                                                  collection
                                                                                                                                                  of
                                                                                                                                                  a
                                                                                                                                                  note
                                                                                                                                                  receivable.
(7)
Amount
                                                                                                                                                  represents
                                                                                                                                                  consulting
                                                                                                                                                  fees
                                                                                                                                                  paid
                                                                                                                                                  to
                                                                                                                                                  Mr.
                                                                                                                                                  Duggins,
                                                                                                                                                  subsequent
                                                                                                                                                  to
                                                                                                                                                  his
                                                                                                                                                  resignation
                                                                                                                                                  as
                                                                                                                                                  president
                                                                                                                                                  of
                                                                                                                                                  Dynastar.
36
Employment
Agreements with Executive Officers
As
of and effective upon the closing of the Merger, we have entered into three-year, renewable executive employment agreements with
John S. Henderson, our Chief Executive officer, and Robert R. Mohr, our Chief Financial Officer, which agreements supersede and
replace in the entirety those existing agreements by and between Dynastar and each of Messrs. Henderson and Mohr.
Pursuant
to these employment agreements, Mr. Henderson will receive a base salary for the first twelve months of his agreement in the amount
of $210,000 while Mr. Mohr will receive a base salary for the same period in the amount of $175,000. These amounts will be subject
to annual review by our Board and increase (but not decrease) as the Board determines. Our Board shall determine in its sole discretion,
following the closing of the Merger, what bonuses Messrs. Henderson and Mohr shall be entitled to, based on milestones to be agreed
upon by the Board and each of Messrs. Henderson and Mohr. Messrs. Henderson and Mohr have each received options under our 2011
Plan to acquire shares of our common stock, in such numbers and on such terms as indicated below under the Section "
2011
Equity Incentive Plan – Grants to Officers and Directors
."
Messrs.
Henderson and Mohr shall be eligible to participate in any other bonus or incentive program established by us for executives of
the Company and shall be entitled to other benefits as may be adopted by us from time to time for the benefit of our executives,
as determined by our Board.
Compensation
of Non-Employee Directors
Following
the closing of the Merger, our Board consists of two non-employee directors and one executive officer. We currently do not provide
compensation to non-employee directors and we will not provide cash or incentive compensation to our executive officers serving
as directors.
Until
we establish a compensation committee, amendments to our director compensation arrangements must be approved by a majority of
our independent directors.
MARKET
PRICE OF AND DIVIDENDS ON COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Our
common stock is currently eligible for quotation on the OTCBB under the symbol "DYNA.OB."  Our common stock
became publicly traded on January 17, 2012.  There has been no trading in our common stock to date.  As of
the date of this Current Report, we had 38,084,247 shares of common stock outstanding held by approximately 80 stockholders
of record. To date, we have not paid dividends on our common stock. We have no outstanding shares of preferred stock.
Dividend
Policy
We
have never paid any cash dividends on our capital stock and do not anticipate paying any cash dividends on our common stock in
the foreseeable future. We intend to retain future earnings to fund ongoing operations and future capital requirements. Any future
determination to pay cash dividends will be at the discretion of our Board and will be dependent upon financial condition, results
of operations, capital requirements and such other factors as the Board deems relevant.
37
Securities
Authorized for Issuance under Equity Compensation Plans
Plan Category
Number of shares to
be issued upon
exercise of
outstanding options,
warrants and rights
Weighted-
average
exercise price
of outstanding
options,
warrants and
rights
Number of shares
remaining
available for
future issuance
under equity
compensation
plans (excluding
shares reflected in
the first column)
Equity
    compensation plans approved by security holders
1,950,000
$
0.20
3,050,000
Equity
    compensation plans not approved by security holders
—
—
—
Total
1,950,000
$
0.20
3,050,000
2011
Equity Incentive Plan
Our
Board and stockholders owning a majority of our outstanding shares adopted our 2011 Plan on October 14, 2011. A total of 5,000,000
shares of our common stock are reserved for issuance under the 2011 Plan.  If an incentive award granted under the 2011
Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to us in connection with an incentive
award, the shares subject to such award and the surrendered shares will become available for further awards under the 2011 Plan.
Shares
issued under the 2011 Plan through the settlement, assumption or substitution of outstanding awards or obligations to grant future
awards as a condition of acquiring another entity are not expected to reduce the maximum number of shares available under the
2011 Plan.  In addition, the number of shares of common stock subject to the 2011 Plan and the number of shares and
terms of any incentive award are expected to be adjusted in the event of any stock dividend, spin-off, split-up, stock split,
reverse stock split, recapitalization, reclassification, merger, consolidation, liquidation, business combination or exchange
of shares or similar transaction.
Administration
It
is expected that the compensation committee of the Board, or the Board in the absence of such a committee, will administer the
2011 Plan.  Subject to the terms of the 2011 Plan, the compensation committee would have complete authority and discretion
to determine the terms of awards under the 2011 Plan.
Eligible
Recipients
Any
officer or other employee of the Company or its affiliates, or an individual that the Company or an affiliate has engaged to become
an officer or employee, or a consultant or advisor who provides services to the Company or its affiliates, including a non-employee
director of the Board, is eligible to receive awards under the 2011 Plan.
38
Grants
The
2011 Plan authorizes the grant to eligible recipients of nonqualified stock options, incentive stock options, restricted stock
awards, restricted stock units, performance grants intended to comply with Section 162(m) of the Internal Revenue Code of 1986,
as amended (the "Code") and stock appreciation rights, as described below:
·
Options
                                                                                                                                                                          granted
                                                                                                                                                                          under
                                                                                                                                                                          the
                                                                                                                                                                          2011
                                                                                                                                                                          Plan
                                                                                                                                                                          entitle
                                                                                                                                                                          the
                                                                                                                                                                          grantee,
                                                                                                                                                                          upon
                                                                                                                                                                          exercise,
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          a
                                                                                                                                                                          specified
                                                                                                                                                                          number
                                                                                                                                                                          of
                                                                                                                                                                          shares
                                                                                                                                                                          from
                                                                                                                                                                          us
                                                                                                                                                                          at
                                                                                                                                                                          a
                                                                                                                                                                          specified
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          per
                                                                                                                                                                          share.  The
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          for
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          covered
                                                                                                                                                                          by
                                                                                                                                                                          an
                                                                                                                                                                          option
                                                                                                                                                                          cannot
                                                                                                                                                                          be
                                                                                                                                                                          less
                                                                                                                                                                          than
                                                                                                                                                                          the
                                                                                                                                                                          fair
                                                                                                                                                                          market
                                                                                                                                                                          value
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          date
                                                                                                                                                                          of
                                                                                                                                                                          grant
                                                                                                                                                                          unless
                                                                                                                                                                          agreed
                                                                                                                                                                          to
                                                                                                                                                                          otherwise
                                                                                                                                                                          at
                                                                                                                                                                          the
                                                                                                                                                                          time
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          grant.
                                                                                                                                                                          Such
                                                                                                                                                                          awards
                                                                                                                                                                          may
                                                                                                                                                                          include
                                                                                                                                                                          vesting
                                                                                                                                                                          requirements.
·
Restricted
                                                                                                                                                                          stock
                                                                                                                                                                          awards
                                                                                                                                                                          and
                                                                                                                                                                          restricted
                                                                                                                                                                          stock
                                                                                                                                                                          units
                                                                                                                                                                          may
                                                                                                                                                                          be
                                                                                                                                                                          awarded
                                                                                                                                                                          on
                                                                                                                                                                          terms
                                                                                                                                                                          and
                                                                                                                                                                          conditions
                                                                                                                                                                          established
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          compensation
                                                                                                                                                                          committee,
                                                                                                                                                                          which
                                                                                                                                                                          may
                                                                                                                                                                          include
                                                                                                                                                                          performance
                                                                                                                                                                          conditions
                                                                                                                                                                          for
                                                                                                                                                                          restricted
                                                                                                                                                                          stock
                                                                                                                                                                          awards
                                                                                                                                                                          and
                                                                                                                                                                          the
                                                                                                                                                                          lapse
                                                                                                                                                                          of
                                                                                                                                                                          restrictions
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          achievement
                                                                                                                                                                          of
                                                                                                                                                                          one
                                                                                                                                                                          or
                                                                                                                                                                          more
                                                                                                                                                                          performance
                                                                                                                                                                          goals
                                                                                                                                                                          for
                                                                                                                                                                          restricted
                                                                                                                                                                          stock
                                                                                                                                                                          units.
·
The
                                                                                                                                                                          compensation
                                                                                                                                                                          committee
                                                                                                                                                                          may
                                                                                                                                                                          make
                                                                                                                                                                          performance
                                                                                                                                                                          grants,
                                                                                                                                                                          each
                                                                                                                                                                          of
                                                                                                                                                                          which
                                                                                                                                                                          will
                                                                                                                                                                          contain
                                                                                                                                                                          performance
                                                                                                                                                                          goals
                                                                                                                                                                          for
                                                                                                                                                                          the
                                                                                                                                                                          award,
                                                                                                                                                                          including
                                                                                                                                                                          the
                                                                                                                                                                          performance
                                                                                                                                                                          criteria,
                                                                                                                                                                          the
                                                                                                                                                                          target
                                                                                                                                                                          and
                                                                                                                                                                          maximum
                                                                                                                                                                          amounts
                                                                                                                                                                          payable,
                                                                                                                                                                          and
                                                                                                                                                                          other
                                                                                                                                                                          terms
                                                                                                                                                                          and
                                                                                                                                                                          conditions.
·
Stock
                                                                                                                                                                          awards
                                                                                                                                                                          are
                                                                                                                                                                          permissible.  The
                                                                                                                                                                          compensation
                                                                                                                                                                          committee
                                                                                                                                                                          will
                                                                                                                                                                          establish
                                                                                                                                                                          the
                                                                                                                                                                          number
                                                                                                                                                                          of
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          awarded
                                                                                                                                                                          and
                                                                                                                                                                          the
                                                                                                                                                                          terms
                                                                                                                                                                          applicable
                                                                                                                                                                          to
                                                                                                                                                                          each
                                                                                                                                                                          award,
                                                                                                                                                                          including
                                                                                                                                                                          performance
                                                                                                                                                                          restrictions.
·
Stock
                                                                                                                                                                          appreciation
                                                                                                                                                                          rights
                                                                                                                                                                          or
                                                                                                                                                                          SARs,
                                                                                                                                                                          entitle
                                                                                                                                                                          the
                                                                                                                                                                          participant
                                                                                                                                                                          to
                                                                                                                                                                          receive
                                                                                                                                                                          a
                                                                                                                                                                          distribution
                                                                                                                                                                          in
                                                                                                                                                                          an
                                                                                                                                                                          amount
                                                                                                                                                                          not
                                                                                                                                                                          to
                                                                                                                                                                          exceed
                                                                                                                                                                          the
                                                                                                                                                                          number
                                                                                                                                                                          of
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          subject
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          portion
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          SAR
                                                                                                                                                                          exercised
                                                                                                                                                                          multiplied
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          difference
                                                                                                                                                                          between
                                                                                                                                                                          the
                                                                                                                                                                          market
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          a
                                                                                                                                                                          share
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          date
                                                                                                                                                                          of
                                                                                                                                                                          exercise
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          SAR
                                                                                                                                                                          and
                                                                                                                                                                          the
                                                                                                                                                                          market
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          a
                                                                                                                                                                          share
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          date
                                                                                                                                                                          of
                                                                                                                                                                          grant
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          SAR.
Duration,
Amendment, and Termination
The
Board may amend, suspend or terminate the 2011 Plan without stockholder approval or ratification at any time or from time to time.  No
change may be made that increases the total number of shares of common stock reserved for issuance pursuant to incentive awards
or reduces the minimum exercise price for options or exchange of options for other incentive awards, unless such change is authorized
by our stockholders within one year. Unless sooner terminated, the 2011 Plan terminates ten years after it is adopted.
Grants
to Officers and Directors
Upon
the closing of the Merger, we granted (i) John S. Henderson IV, our Chief Executive Officer, options under the 2011 Plan to purchase
1,000,000 shares of our common stock vesting in three equal annual installments beginning on the first anniversary of the Merger
Closing Date, with an exercise price of $0.22 per share, to qualify as incentive stock options under the Internal Revenue Code
requirements for 10% stockholders and (ii) Robert R. Mohr options under the 2011 Plan to purchase (a) 450,000 shares of common
stock, of which 150,000 shares were fully vested as of the Merger Closing Date and the remaining 300,000 shares will vest in two
equal annual installments on November 4, 2012 and November 4, 2013 and (b) additional options to purchase 500,000 shares of common
stock vesting in three equal annual installments beginning on the first anniversary of the Merger Closing Date, each with an exercise
price of $0.20 per share.
39
Other
than these options, Our Board will determine a limitation on the number of options that may be granted pursuant to the 2011 Plan
during the twelve (12) months immediately following the closing of the Merger.
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
An
investor in $25,000 principal amount of the Dynastar Bridge Notes is the father of John S. Henderson IV, our chief Executive Officer.
Transactions
with the Placement Agent and Other Related Parties
Placement
Agent Agreement
We
are paying the placement agent in the Offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from
investors in the Offering. In addition, the placement agent will receive five-year warrants, exercisable at $0.20 per share, to
purchase a number of shares of our common stock equal to five percent (5%) of the number of units sold in the Offering. As a result
of the foregoing arrangement, at the initial closing of the Offering, the placement agent was paid commissions of $2,500 and was
issued broker warrants to purchase 6,250 shares of our common stock at an exercise price of $0.20 per share.
Share
Escrow Agreement
We
entered into an Escrow Agreement dated as of January 17, 2012 with John S. Henderson IV, as indemnification representative, and
Gottbetter & Partners, LLP, as Escrow Agent, pursuant to which the Escrow Agent will hold in escrow 5% of the shares of our
common stock that Dynastar's pre-Merger stockholders received in the Merger in exchange for their shares of Dynastar for
any breach of the Merger Agreement by Dynastar that is discovered during the two years immediately following the closing of the
Merger.
Employment
Agreements
As
of and effective upon the closing of the Merger, we have entered into three-year, renewable executive employment agreements with
John S. Henderson, our Chief Executive officer, and Robert R. Mohr, our Chief Financial Officer, which agreements supersede and
replace in the entirety those existing agreements by and between Dynastar and each of Messrs. Henderson and Mohr.
Pursuant
to these employment agreements, Mr. Henderson will receive a base salary for the first twelve months of his agreement in the amount
of $210,000 while Mr. Mohr will receive a base salary for the same period in the amount of $175,000. These amounts will be subject
to annual review by our Board and increase (but not decrease) as the Board determines. Our Board shall determine in its sole discretion,
following the closing of the Merger, what bonuses Messrs. Henderson and Mohr shall be entitled to, based on milestones to be agreed
upon by the Board and each of Messrs. Henderson and Mohr. Messrs. Henderson and Mohr each received options under our 2011
Plan to acquire shares of our common stock, in such numbers and on such terms as indicated above under the Section "
Stock
Option Plans – Grants to Officers and Directors
."
40
Messrs.
Henderson and Mohr shall be eligible to participate in any other bonus or incentive program established by us for executives of
the Company and shall be entitled to other benefits as may be adopted by us from time to time for the benefit of our executives,
as determined by our Board.
Transactions
with Navesink Capital Advisors, LLC
Consulting
Agreement
Effective
upon the closing of the Merger, we entered into an agreement with Navesink Capital Advisors, LLC ("Navesink") pursuant
to which Navesink agreed to provide us with certain professional consulting services relating to business development and corporate
finance. This agreement has a term of six months. As consideration under this agreement, we agreed to issue to Navesink a five
year warrant exercisable for two million (2,000,000) shares of our common stock at an exercise price of $0.20 per share. Shares
underlying these warrants are entitled to "piggyback" registration rights at our discretion. Prior to the merger Closing
Date, Navesink assigned to certain third parties its right to receive warrants exercisable for one million five hundred thousand
(1,500,000) shares, including 500,000 shares of which were assigned to Gottbetter Capital Group, Inc.
Navesink
Investments in Dynastar and the Company
In
October 2011, Navesink purchased $100,000 principal amount of the Bridge Notes and received Dynastar Warrants to purchase 125,000
shares of Dynastar common stock. Upon the closing of the Merger, these Bridge Notes were converted into 500,000 shares of our
common stock and the Dynastar Warrants were exchanged for our warrants to purchase 250,000 shares of our common stock. Prior to
the Merger closing, Navesink sold to a third party its rights to receive 100,000 of the 500,000 shares of our common stock.
Effective
upon the closing of the merger, Navesink purchased 125,000 units in the initial closing of the Offering for a purchase price of
$25,000. As a result of this purchase, Navesink received 125,000 shares of our common stock and five year warrants to purchase
62,500 shares of our common stock at a purchase price of $0.80 per share.
Lock-ups
Officers,
directors, key employees and certain holders of 10% or more of the Company's common stock have agreed to "lock-up"
and not sell or otherwise transfer or hypothecate any of their Company shares, including shares that maybe issued upon exercise
of Merger warrants for a term of 18 months from the Closing Date, except in certain limited circumstances.
DESCRIPTION
OF CAPITAL STOCK
Authorized
Capital Stock
Our
Articles of Incorporation provide for the issuance of 310,000,000 shares of capital stock, of which 300,000,000 are shares of
common stock, par value $0.001 per share, and 10,000,000 are blank-check preferred stock, par value $0.001 per share.
41
Equity
Securities Issued and Outstanding
Immediately
after giving effect to the Transactions, including the units sold in the Offering, the conversion of the Bridge Notes and exchange
of the Dynastar Warrants, the issuance of shares of our common stock to the former Dynastar stockholders in the Merger, the cancellation
of shares owned by Dynastar, the broker warrants issued to the placement agent in connection with the initial closing of the Offering,
the warrants issued to Navesink and its designees under the consulting agreement with Navesink and the granting of options under
the 2011 Plan to each of John S. Henderson IV and Robert Mohr, there were issued and outstanding securities of the Company on
the closing of the Transactions as follows:
·
38,084,247
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
(including
                                                                                                                                                                          an
                                                                                                                                                                          aggregate
                                                                                                                                                                          of
                                                                                                                                                                          15,872,000
                                                                                                                                                                          shares
                                                                                                                                                                          entitled
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          received
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          former
                                                                                                                                                                          Dynastar
                                                                                                                                                                          stockholders
                                                                                                                                                                          in
                                                                                                                                                                          the
                                                                                                                                                                          Merger,
                                                                                                                                                                          5,724,925
                                                                                                                                                                          shares
                                                                                                                                                                          entitled
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          received
                                                                                                                                                                          by
                                                                                                                                                                          the
                                                                                                                                                                          former
                                                                                                                                                                          Dynastar
                                                                                                                                                                          Bridge
                                                                                                                                                                          Note
                                                                                                                                                                          holders,
                                                                                                                                                                          258,781
                                                                                                                                                                          shares
                                                                                                                                                                          entitled
                                                                                                                                                                          to
                                                                                                                                                                          be
                                                                                                                                                                          received
                                                                                                                                                                          by
                                                                                                                                                                          Dynastar's
                                                                                                                                                                          former
                                                                                                                                                                          bridge
                                                                                                                                                                          Note
                                                                                                                                                                          holders
                                                                                                                                                                          in
                                                                                                                                                                          payment
                                                                                                                                                                          of
                                                                                                                                                                          accrued
                                                                                                                                                                          but
                                                                                                                                                                          unpaid
                                                                                                                                                                          interest
                                                                                                                                                                          on
                                                                                                                                                                          the
                                                                                                                                                                          bridge
                                                                                                                                                                          Notes
                                                                                                                                                                          and
                                                                                                                                                                          125,000
                                                                                                                                                                          shares
                                                                                                                                                                          issued
                                                                                                                                                                          in
                                                                                                                                                                          the
                                                                                                                                                                          initial
                                                                                                                                                                          closing
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Offering)
;
·
Options
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          1,950,000
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          granted
                                                                                                                                                                          under
                                                                                                                                                                          the
                                                                                                                                                                          2011
                                                                                                                                                                          Plan
                                                                                                                                                                          to
                                                                                                                                                                          our
                                                                                                                                                                          executive
                                                                                                                                                                          officers;
·
Investor
                                                                                                                                                                          warrants
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          62,500
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          an
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.80
                                                                                                                                                                          per
                                                                                                                                                                          share
                                                                                                                                                                          issued
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          investor
                                                                                                                                                                          in
                                                                                                                                                                          the
                                                                                                                                                                          initial
                                                                                                                                                                          closing
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Offering,
                                                                                                                                                                          broker
                                                                                                                                                                          warrants
to
                                                                                                                                                                          purchase
                                                                                                                                                                          an
                                                                                                                                                                          aggregate
                                                                                                                                                                          of
                                                                                                                                                                          6,250
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          a
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.25
                                                                                                                                                                          per
                                                                                                                                                                          share
                                                                                                                                                                          issued to
                                                                                                                                                                          the
                                                                                                                                                                          placement
                                                                                                                                                                          agent in
                                                                                                                                                                          connection
                                                                                                                                                                          with
                                                                                                                                                                          the
                                                                                                                                                                          initial
                                                                                                                                                                          closing
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Offering,
warrants
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          up
                                                                                                                                                                          2,000,000
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          an
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.20
                                                                                                                                                                          per
                                                                                                                                                                          share
                                                                                                                                                                          issued
                                                                                                                                                                          to
                                                                                                                                                                          Navesink
                                                                                                                                                                          and
                                                                                                                                                                          its
                                                                                                                                                                          designees
                                                                                                                                                                          pursuant
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          Navesink
                                                                                                                                                                          consulting
                                                                                                                                                                          agreement
                                                                                                                                                                          and
                                                                                                                                                                          warrants
                                                                                                                                                                          issued
                                                                                                                                                                          to
                                                                                                                                                                          the
                                                                                                                                                                          holders
                                                                                                                                                                          of
                                                                                                                                                                          the
                                                                                                                                                                          Dynastar
                                                                                                                                                                          Warrants
                                                                                                                                                                          in
                                                                                                                                                                          exchange
                                                                                                                                                                          for
                                                                                                                                                                          such
                                                                                                                                                                          warrants,
                                                                                                                                                                          to
                                                                                                                                                                          purchase
                                                                                                                                                                          2,862,463
                                                                                                                                                                          shares
                                                                                                                                                                          of
                                                                                                                                                                          our
                                                                                                                                                                          common
                                                                                                                                                                          stock
                                                                                                                                                                          at
                                                                                                                                                                          an
                                                                                                                                                                          exercise
                                                                                                                                                                          price
                                                                                                                                                                          of
                                                                                                                                                                          $0.80
                                                                                                                                                                          per
                                                                                                                                                                          share.
The
issued and outstanding number of shares of our common stock indicated above does not include shares of our common stock that we
expect to issue on or prior to February 15, 2012 to MAE upon conversion of the $900,000 principal amount Dynastar promissory note
held by MAE. This $900,000 in value of shares of our common stock is to be issued to MAE at a price equal to eighty and one-half
percent (80.5%) (as that number may be adjusted for a conversion on or after February 10, 2012), of the average closing price
of the our common stock over the first 22 days of trading following the closing of the Merger on January 17, 2012. The $900,000
promissory note was issued to MAE in connection with the acquisition by Dynastar of the MAE assets.
Description
of Common Stock
Holders
of our common stock are entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of common
stock do not have cumulative voting rights. Therefore, holders of a majority of the shares of common stock voting for the election
of directors can elect all of the directors. Holders of our common stock representing a majority of the voting power of our capital
stock issued, outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum at any
meeting of stockholders. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental
corporate changes such as liquidation, merger or an amendment to our articles of incorporation.
42
Holders
of our common stock are entitled to share in all dividends that our Board of Directors, in its discretion, declares from legally
available funds. In the event of a liquidation, dissolution or winding up, each outstanding share of our common stock entitles
its holder to participate pro rata in all assets that remain after payment of liabilities and after providing for each class of
stock, if any, having preference over the common stock. Our common stock has no pre-emptive, subscription or conversion rights
and there are no redemption provisions applicable to our common stock.
Description
of Preferred Stock
We
are authorized to issue 10,000,000 shares of "blank check" preferred stock, par value $0.001 per share, none of which
as of the date hereof is designated or outstanding.  Our Board is vested with authority to divide the shares of preferred
stock into series and to fix and determine the relative rights and preferences of the shares of any such series.  Once
authorized, the dividend or interest rates, conversion rates, voting rights, redemption prices, maturity dates and similar characteristics
of preferred stock will be determined by our Board, without the necessity of obtaining approval of our stockholders.
Description
of Investor Warrants
In
connection with the closing of the Merger and the simultaneous initial closing of the offering, we issued investor warrants to
purchase 62,500 shares of our common stock to the investor who purchased units in the initial closing of the Offering. The investor
warrants entitle the holders to purchase one full share of common stock at a purchase price of $0.80 per share during the five
(5) year period that commenced upon issuance of the investor warrants.
The
investor warrants, at the option of the holder, may be exercised by cash payment of the exercise price to us. The investor warrants
may be exercised on a cashless exercise basis commencing one year after the date of filing of this Current Report if no registration
statement registering the shares underlying the investor warrants is then in effect.
A "cashless exercise"
means that in lieu of paying the aggregate purchase price for the shares being purchased upon exercise of the warrants in cash,
the holder will forfeit a number of shares underlying the warrants with a "fair market value" equal to such aggregate
exercise price. We will not receive additional proceeds to the extent that warrants are exercised by cashless exercise.
The
exercise price and number of shares of common stock issuable on exercise of the investor warrants may be adjusted in certain circumstances
including stock splits, stock dividends and future issuances of our equity securities,
including a weighted average adjustment
in the event of future issuances of our equity securities at a price less than the exercise price of the warrant.
No
fractional shares will be issued upon exercise of the investor warrants. If, upon exercise of the investor warrants, a holder
would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number,
the number of shares of common stock to be issued to the investor warrant holder.
Description
of Broker Warrants
The
broker warrants issued in connection with the first closing of the Offering permit the placement agent (and, with respect to broker
warrants that may be issued in future closings of the Offering, its sub-agents and designees, if any) to purchase up to 6,250
shares of common stock, or
five percent (5%) of the number of units sold in the Offering
. The
broker warrants are identical to the investor warrants in all material respects except that (i) the resale of the common stock
underlying them is not covered by a registration statement; and (ii) they have an exercise price of $0.20 per share.
43
Description
of Warrants Issued in Exchange for the Dynastar Warrants
The
warrants issued in exchange for the Dynastar Warrants are identical to the investor warrants in all material respects, and the
resale of our common stock underlying these warrants is covered by the registration rights discussed above.
Description
of Warrants Issued to Navesink and its Designees
The
warrants issued to Navesink and its designees pursuant to our consulting agreement with Navesink are identical to the investor
warrants in all material respects except that (i) the resale of the common stock underlying them is not covered by a registration
statement; (ii) they have an exercise price of $0.20 per share and (iii) the cashless exercise provisions become effective 10
months from the date of issuance.
Registration
Rights
We
are required to file with the SEC, within 75 days of the closing of the Merger, a registration statement registering for resale
all shares of our common stock (i) included in the units sold in the Offering and issuable upon exercise of the investor warrants
issued in the Offering, (ii) issued upon conversion of the Bridge Notes and issuable upon the exercise of our warrants issued
in exchange for the Dynastar Warrants and (iii) issued in the Merger to the holders, prior to the Merger, of the Dynastar Preferred
Stock, consistent with the terms and conditions of the Registration Rights Agreement.
The
holders of any registrable securities removed from the registration statement a result of a Rule 415 or other comment from the
SEC shall have "piggyback" registration rights for the shares of common stock or common stock underlying such warrants
with respect to any registration statement filed by us following the effectiveness of the registration statement which would permit
the inclusion of these shares. We have agreed to use our best efforts to have the registration statement declared effective within
150 days of filing the registration statement. Notwithstanding the foregoing, should our Board of Directors deem it advisable
and in our best interests to delay the filing, we may seek the consent of the holders of registrable securities to such delay
and the waiver of monetary penalties described below.
If
the registration statement is not filed on or before the Filing Deadline or not declared effective on or before the Effectiveness
Deadline, we shall pay to each holder of registrable securities an amount in cash equal to one percent (1.0%) of the purchase
price per share paid by such holder for the registrable securities for each full period of 30 days that (i) we are late in filing
the registration statement or (ii) the registration statement is late in being declared effective by the SEC. The payment amount
shall be pro rated for partial thirty (30) day periods. The maximum aggregate amount of payments to be made by us as the result
of such failures, whether by reason of a Filing Deadline failure, Effectiveness Deadline failure or any combination thereof, shall
be an amount equal to ten percent (10)% of each holder's purchase price per share for the registrable securities. Notwithstanding
the foregoing, no payments shall be owed with respect to any period during which all of the holder's registrable securities
may be sold by such holder under Rule 144 or pursuant to another exemption from registration. Moreover, no such payments shall
be due and payable with respect to any registrable securities we are unable to register due to limits imposed by the SEC's
interpretation of Rule 415 under the Securities Act.
We
will keep the registration statement "evergreen" for two (2) years from the date it is declared effective by the SEC
or until Rule 144 of the Securities Act is available to the holders with respect to all of their registrable securities, whichever
is earlier.
44
Additionally,
shares of our common stock underlying the warrants issued to Navesink and its designees are entitled to "piggyback"
registration rights, at our discretion.
Anti-Takeover
Effects of Provisions of Nevada State Law
We
may be or in the future we may become subject to Nevada's control share laws.  A corporation is subject to Nevada's
control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Nevada,
and if the corporation does business in Nevada, including through an affiliated corporation.  This control share law
may have the effect of discouraging corporate takeovers.  We currently have approximately 59 stockholders of record.
The
control share law focuses on the acquisition of a "controlling interest," which means the ownership of outstanding
voting shares that would be sufficient, but for the operation of the control share law, to enable the acquiring person to exercise
the following proportions of the voting power of the corporation in the election of directors: (1) one-fifth or more but less
than one-third; (2) one-third or more but less than a majority; or (3) a majority or more.  The ability to exercise
this voting power may be direct or indirect, as well as individual or in association with others.
The
effect of the control share law is that an acquiring person, and those acting in association with that person, will obtain only
such voting rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at
a special or annual meeting of stockholders.  The control share law contemplates that voting rights will be considered
only once by the other stockholders.  Thus, there is no authority to take away voting rights from the control shares
of an acquiring person once those rights have been approved.  If the stockholders do not grant voting rights to the
control shares acquired by an acquiring person, those shares do not become permanent non-voting shares.  The acquiring
person is free to sell the shares to others.  If the buyer or buyers of those shares themselves do not acquire a controlling
interest, the shares are not governed by the control share law.
If
control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of
the voting power, any stockholder of record, other than the acquiring person, who did not vote in favor of approval of voting
rights, is entitled to demand fair value for such stockholder's shares.
In
addition to the control share law, Nevada has a business combination law, which prohibits certain business combinations between
Nevada corporations and "interested stockholders" for three years after the interested stockholder first becomes an
interested stockholder, unless the corporation's Board of Directors approves the combination in advance.  For
purposes of Nevada law, an interested stockholder is any person who is: (a) the beneficial owner, directly or indirectly, of 10%
or more of the voting power of the outstanding voting shares of the corporation, or (b) an affiliate or associate of the corporation
and at any time within the previous three years was the beneficial owner, directly or indirectly, of 10% or more of the voting
power of the then-outstanding shares of the corporation.  The definition of "business combination" contained
in the statute is sufficiently broad to cover virtually any kind of transaction that would allow a potential acquirer to use the
corporation's assets to finance the acquisition or otherwise to benefit its own interests rather than the interests of the
corporation and its other stockholders.
The
effect of Nevada's business combination law is to potentially discourage parties interested in taking control of our Company
from doing so if it cannot obtain the approval of our Board of Directors.
45
INDEMNIFICATION
OF DIRECTORS AND OFFICERS
Nevada
Revised Statutes ("NRS") Sections 78.7502 and 78.751 provide us with the power to indemnify any of our directors and
officers. The director or officer must have conducted himself/herself in good faith and reasonably believe that his/her conduct
was in, or not opposed to our best interests. In a criminal action, the director, officer, employee or agent must not have had
reasonable cause to believe his/her conduct was unlawful.
Under
NRS Section 78.751, advances for expenses may be made by agreement if the director or officer affirms in writing that he/she believes
he/she has met the standards and will personally repay the expenses if it is determined such officer or director did not meet
the standards.
The
Company's Bylaws include an indemnification provision under which we have the power to indemnify our directors, officers
and former directors and officers (including heirs and personal representatives) against all costs, charges and expenses actually
and reasonably incurred, including an amount paid to settle an action or satisfy a judgment to which the director or officer is
made a party by reason of being or having been a director or officer of the Company or any of its subsidiaries prior to the Merger.
The
Company's Articles of Incorporation provide a limitation of liability such that no director or officer shall be personally
liable to the Company or any of its stockholders for damages for breach of fiduciary duty as director or officer involving any
act or omission of any such director or officer, provided there was no intentional misconduct, fraud or a knowing violation of
the law, or payment of dividends in violation of NRS Section 78.300.
Our
Board of Directors may take such action as it deems necessary to carry out these indemnification provisions, including adopting
procedures for determining and enforcing indemnification rights and purchasing insurance policies. Our Board of Directors may
also adopt bylaws or resolutions or authorize the entry into contracts implementing indemnification arrangements as may be permitted
by law. Neither the amendment or repeal of these indemnification provisions, nor the adoption of any provision of our articles
of incorporation or bylaws inconsistent with these indemnification provisions, will eliminate or reduce any rights to indemnification
relating to their status or any activities prior to such amendment, repeal or adoption.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted for our directors, officers and controlling
persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
Transfer
Agent
The
transfer agent for our common stock is Continental Stock Transfer and Trust Company. The transfer agent's address is 17
Battery Place, New York, New York 10004, and its telephone number is (212)845-3217.
RECENT
SALES OF UNREGISTERED SECURITIES
Sales
by Dynastar
On
May 4, 2010 Dynastar issued 9,000,000 shares of its common stock to its two founders for aggregate proceeds of $300. One of these
founders is also the Company's chief executive officer and its director. The other founder is no longer actively involved
with Dynastar.
Dynastar
also issued 450,000 shares its common stock on May 4, 2010, to an advisor for services in connection with the private placement
transaction.
46
On
June 3, 2010, through a private placement transaction, Dynastar issued 3,604,425 shares of its Series A convertible preferred
stock for aggregate net cash proceeds of $736,574, consisting of gross proceeds of $1,189,400 less cash expenses of $452,826.
On
May 4, 2010 Dynastar issued 550,000 shares of its fully vested common stock to a financial consultant for advisory services. The
shares were valued upon issuance at $0.05 per share based upon the value of the services rendered, which was more readily determinable
than the trading value of the common stock (which was not publicly traded). The aggregate fair value of these shares of $27,500
was charged to stock-based compensation expense.
On
November 4, 2010, Dynastar awarded 50,000 shares of its fully vested common stock to its chief financial officer, Robert Mohr.
This stock was valued upon issuance at $0.33 per share, by reference to the issuance price of the convertible preferred stock
issued on September 30, 2010. The aggregate fair value of these shares of $16,500 was charged to stock-based compensation expense.
As
of October 24, 2011, Dynastar has sold an aggregate principal amount of $1,144,985 of its Bridge Notes in a private placement.
Prior to the Merger Closing Date, the holders of these Dynastar Bridge Notes agreed to convert the Bridge Notes along with accrued
but unpaid interest concurrently with the closing of the Merger, at a conversion price of $0.20 per share, into 5,724,925 shares
of our common stock. Purchasers of the Bridge Notes also agreed to exchange their Dynastar Warrants into our warrants to purchase
one share of our common stock for each $0.80 investment in the Bridge Notes. Dynastar Warrants to purchase an aggregate of 1,431,231
shares of Dynastar common stock were issued. Upon the closing of the Merger, the Dynastar Warrants were exchanged for warrants
to purchase 2,862,463 shares of our common stock.
Immediately
prior to the closing of the Merger on January 17, 2012, and in connection with the Merger, Dynastar issued an aggregate of 3,604,425
shares of its common stock upon the conversion of its Dynastar Preferred Stock.
The
issuances of these securities were not registered under the Securities Act in reliance upon the exemption from registration provided
by Section 4(2) of the Securities Act and, in certain cases, under Regulation D promulgated by the SEC under that section, which
exempts transactions by an issuer not involving any public offering.
Sales
by the Company
In
connection with the Merger, we issued an aggregate of 15,872,000 shares of our common to the stockholders
of Dynastar.  We also issued 5,724,925 shares of our common stock to the holders of the Bridge Notes for principal
and 258,781 shares for accrued interest and warrants for 2,862,463 shares of our common stock to the holders of the Dynastar
Warrants. The issuance of these shares of our common stock and the warrants to the Dynastar stockholders in connection with
the Merger was not registered under the Securities Act in reliance upon the exemption from registration provided by Section
4(2) of the Securities Act and Regulation D promulgated by the SEC under that section, which exempts transactions by an
issuer not involving any public offering. These securities may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirement.
47
On
January 17, 2012, we sold an aggregate of 125,000 units in an offering of securities at a price of $0.20 per unit for gross proceeds
of $25,000. Each unit consists of one share of our common stock and a warrant to purchase one-half share of our common stock at
a purchase price of $0.80 per full share.  The sale of these securities were deemed to be exempt from the registration
requirements of the Securities Act by virtue of Section 4(2) thereof, Regulation S promulgated thereunder and/or Regulation D
promulgated thereunder, as a transaction by an issuer not involving a public offering. The recipient of securities in the offering
represented its intention to acquire the securities for investment only and not with a view to or for sale in connection with
any distribution thereof and appropriate legends were affixed to the certificates issued in the offering. All purchasers of the
securities were accredited or sophisticated persons, or were non-U.S. persons, and had adequate access, through employment, business
or other relationships, to information about us.
On
January 17, 2012, we issued warrants to purchase 2,000,000 shares of our common stock to Navesink and its designees as compensation
under our consulting agreement with Navesink dated effective as of January 17, 2012.
The issuance of
these warrants was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(2) thereof
and , Regulation D promulgated thereunder, as a transaction by an issuer not involving a public offering.
FINANCIAL
STATEMENTS AND SUPPLEMENTAL DATA
Reference
is made to the disclosure set forth under Item 9.01 of this Current Report, which disclosure is incorporated herein by reference.
INDEX
TO EXHIBITS
See
Item 9.01(c) below, which is incorporated by reference herein.
DESCRIPTION
OF EXHIBITS
See
the Exhibit Index below and the corresponding exhibits, which are incorporated by reference herein.
Item
3.02.	Unregistered Sales of Equity Securities.
The
disclosure set forth in Item 2.01 to this Current Report under the section "Recent Sales of Unregistered Securities"
is incorporated into this item by reference.
Item
5.01.	Changes in Control of the Registrant.
As
a result of the closing of the Merger, we experienced a change in control, with the former stockholders of Dynastar acquiring
control of us. The disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference.
Item
5.02.	Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.
The
disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference.
48
Item
5.06.	Change in Shell Company Status.
The
disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference. As a result of the completion
of the Merger, we believe that we are no longer a shell company as defined in Rule 405 of the Securities Act and Rule 12b-2 of
the Exchange Act.
Item
9.01.	Financial Statements and Exhibits.
(a)	Financial
Statements of Business Acquired
Financial
Statements:(i) audited financial statements and notes thereto of Dynastar and Subsidiary for the period ended May 4, 2010 (inception)
through December 31, 2010, (ii) unaudited condensed consolidated financial statements and notes thereto of Dynastar and Subsidiary
for the nine months ended September 30, 2011 and for the period from May 4, 2010 (inception) through September 30, 2010, (ii)
audited financial statements and notes thereto of My Affordable Energy for the years ended December 31, 2010 and 2009, are included
with this Current Report beginning on Page F-1.
(b)	Pro
forma financial information
Unaudited
pro-forma consolidated financial statements are included with this Current Report beginning on Page F-55.
(d)	Exhibits
In
reviewing the agreements included or incorporated by reference as exhibits to this Current Report on Form 8-K, please remember
that they are included to provide you with information regarding their terms and are not intended to provide any other factual
or disclosure about the Company or the other parties to the agreements. The agreements may contain representations and warranties
by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit
of the parties to the applicable agreement and:
•
should
                                                                                                                                                      not
                                                                                                                                                      in
                                                                                                                                                      all
                                                                                                                                                      instances
                                                                                                                                                      be
                                                                                                                                                      treated
                                                                                                                                                      as
                                                                                                                                                      categorical
                                                                                                                                                      statements
                                                                                                                                                      of
                                                                                                                                                      fact,
                                                                                                                                                      but
                                                                                                                                                      rather
                                                                                                                                                      as
                                                                                                                                                      a
                                                                                                                                                      way
                                                                                                                                                      of
                                                                                                                                                      allocating
                                                                                                                                                      the
                                                                                                                                                      risk
                                                                                                                                                      to
                                                                                                                                                      one
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      parties
                                                                                                                                                      if
                                                                                                                                                      those
                                                                                                                                                      statements
                                                                                                                                                      prove
                                                                                                                                                      to
                                                                                                                                                      be
                                                                                                                                                      inaccurate;
•
have
                                                                                                                                                      been
                                                                                                                                                      qualified
                                                                                                                                                      by
                                                                                                                                                      disclosures
                                                                                                                                                      that
                                                                                                                                                      were
                                                                                                                                                      made
                                                                                                                                                      to
                                                                                                                                                      the
                                                                                                                                                      other
                                                                                                                                                      party
                                                                                                                                                      in
                                                                                                                                                      connection
                                                                                                                                                      with
                                                                                                                                                      the
                                                                                                                                                      negotiation
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      applicable
                                                                                                                                                      agreement,
                                                                                                                                                      which
                                                                                                                                                      disclosures
                                                                                                                                                      are
                                                                                                                                                      not
                                                                                                                                                      necessarily
                                                                                                                                                      reflected
                                                                                                                                                      in
                                                                                                                                                      the
                                                                                                                                                      agreement;
•
may
                                                                                                                                                      apply
                                                                                                                                                      standards
                                                                                                                                                      of
                                                                                                                                                      materiality
                                                                                                                                                      in
                                                                                                                                                      a
                                                                                                                                                      way
                                                                                                                                                      that
                                                                                                                                                      is
                                                                                                                                                      different
                                                                                                                                                      from
                                                                                                                                                      what
                                                                                                                                                      may
                                                                                                                                                      be
                                                                                                                                                      viewed
                                                                                                                                                      as
                                                                                                                                                      material
                                                                                                                                                      to
                                                                                                                                                      you
                                                                                                                                                      or
                                                                                                                                                      other
                                                                                                                                                      investors;
                                                                                                                                                      and
•
were
                                                                                                                                                      made
                                                                                                                                                      only
                                                                                                                                                      as
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      date
                                                                                                                                                      of
                                                                                                                                                      the
                                                                                                                                                      applicable
                                                                                                                                                      agreement
                                                                                                                                                      or
                                                                                                                                                      such
                                                                                                                                                      other
                                                                                                                                                      date
                                                                                                                                                      or
                                                                                                                                                      dates
                                                                                                                                                      as
                                                                                                                                                      may
                                                                                                                                                      be
                                                                                                                                                      specified
                                                                                                                                                      in
                                                                                                                                                      the
                                                                                                                                                      agreement
                                                                                                                                                      and
                                                                                                                                                      are
                                                                                                                                                      subject
                                                                                                                                                      to
                                                                                                                                                      more
                                                                                                                                                      recent
                                                                                                                                                      developments.
Accordingly,
these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other
time. Additional information about us may be found elsewhere in this Current Report on Form 8-K and in our other public filings,
which are available without charge through the SEC's website at http://www.sec.gov.
49
DESCRIPTION
OF EXHIBITS
See
the Exhibit Index below and the corresponding exhibits, which are incorporated by reference herein.
Exhibit No.
Description
2.1
Agreement and Plan of Merger and Reorganization
    dated as of January 17, 2012 by and among Registrant, Dynastar Acquisition Corp., and Dynastar Ventures Inc., (a Delaware
    corporation)
2.2
Certificate of Merger dated as of January
    17, 2012 for the merger of Dynastar Acquisition Corp. into Dynastar Ventures Inc. (a Delaware corporation)
3.1
Articles
        of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Registration Statement
        on Form SB-2 filed with the Securities and Exchange Commission (the "SEC") on July 16, 2007)
3.2
Certificate
        of Amendment to Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to Current Report
        on Form 8-K filed with the SEC on October 14, 2011)
3.4
By-Laws
    of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form SB-2
    filed with the SEC on July 16, 2007)
4.1
Form
    of Investor Warrant
4.2
Form
    of Bridge Note Exchange Warrant
4.3
Form
    of Broker Warrant
4.4
Form
    of Navesink Warrant
10.1
Form
    of Subscription Agreement between the Registrant and the investors in the  Unit Private Placement Offering
10.2
Subscription
    Escrow Agreement dated December 15, 2011, by and among the Registrant, Gottbetter Capital Markets, LLC, and CSC Trust Company
    of Delaware
10.3
Placement
    Agency Agreement dated as of October 27, 2011 by and between the Placement Agent and the Registrant
50
10.4
Form
    of Registration Rights Agreement by and between the Registrant and the investors in the Private Placement Offering
10.5
Escrow
        Agreement dated January 17, 2012 among the Registrant, John S. Henderson IV, as indemnification representative, and Gottbetter
        & Partners, LLP, as escrow agent
10.6
Share
    Cancellation Agreement dated as of January 17, 2012 by and between the Registrant and Dynastar Ventures Inc.
10.7
Navesink
    Consulting Agreement dated as of January 17, 2002 by and between the Registrant and Navesink Capital Advisors, LLC
10.8
Undiscovered
    Equities Consulting Agreement dated as of December 20, 2011 by and between Dynastar Ventures, Inc. and Undiscovered Equities,
    Inc.
10.9
Executive
    Employment Agreement for John Henderson
10.10
Executive
    Employment Agreement for Robert Mohr
10.11
Registrant's
    2011 Equity Incentive Plan
10.12
Form
    of Plan Agreement
10.13
Form
    of Lock-Up Agreement
14.1
Code
    of Ethics
21.1
Subsidiaries
    of Registrant
51
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date:
     January 23, 2012
Dynastar
    Holdings, Inc.
By:
/s/
    John S. Henderson IV
Name: 
    John S. Henderson IV
Title:   
    Chief Executive Officer
52
DYNASTAR HOLDINGS, INC.
Form
8K
FINANCIAL
STATEMENTS
Table
of Contents
Dynastar Ventures,
    Inc. and Subsidiary
Financial Statements
    for the period from May 4, 2010 (inception) through December 31, 2010:
Independent Auditors' Report
F-1
Consolidated Balance Sheet
F-2
Consolidated Statement of Operations
F-3
Consolidated Statement of Changes
    in Redeemable Preferred Stock and Stockholders' Deficit
F-4
Consolidated Statement of Cash Flows
F-5
Notes to Consolidated Financial Statements
F-6 – F-19
Condensed Consolidated
    Financial Statements for the Nine Months Ended September 30, 2011 and for the period from May 4, 2010 (inception) through
    September 30, 2010 (unaudited):
Condensed Consolidated Balance Sheets
F-20
Condensed Consolidated Statements
    of Operations
F-21
Condensed Consolidated
    Statement of Changes in Redeemable Preferred Stock and Stockholders' Deficit
F-22
Condensed Consolidated Statements
    of Cash Flows
F-23 – F-24
Notes to Condensed Consolidated Financial
    Statements
F-25 – F-43
My Affordable Energy,
    LLC
Financial Statements for the years ended December 31, 2010 and
    2009:
Report of Independent Registered Public
    Accounting Firm
F-44
Balance Sheets
F-45
Statements of Operations
F-46
Statements of Member's Deficit
F-47
Statement of Cash Flows
F-48
Notes to Financial Statements
F-49 – F-54
DYNASTAR
HOLDINGS, INC.
Form
8k
FINANCIAL
STATEMENTS
Table
of Contents, continued
Pro Forma Condensed
    Combined Financial Statements (unaudited)
Introduction to the Unaudited Pro
    Forma Condensed Combined Financial Statements
F-55 – F-56
Unaudited Pro Forma Condensed Combined
    Balance Sheet at September 30, 2011
F-57
Unaudited
Pro Forma Condensed Combined Statement of Operations for the Nine Months Ended September 30, 2011
F-58
Unaudited
Pro Forma Condensed Combined Statement of Operations for the Nine Months Ended September 30, 2010
F-59
Unaudited Pro
    Forma Condensed Combined Statement of Operations for the Year Ended December 31, 2010
F-60
Notes to the Unaudited Pro Forma Condensed
    Combined Financial Statements
F-61 – F-67
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Director and Stockholders of
Dynastar Ventures, Inc. and Subsidiary
We have audited the accompanying consolidated
balance sheet of Dynastar Ventures, Inc. and Subsidiary (a company in the development stage) (the "Company") as of
December 31, 2010, and the related consolidated statements of operations, changes in redeemable preferred stock and stockholders'
deficit and cash flows for the period from May 4, 2010 (inception) to December 31, 2010. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements referred
to above present fairly, in all material respects, the consolidated financial position of Dynastar Ventures, Inc. and Subsidiary
as of December, 31, 2010, and the results of their consolidated operations, and their consolidated cash flows for the period from
May4, 2010 (inception) to December 31, 2010, in conformity with accounting principles generally accepted in the United States of
America.
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company's
significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Marcum LLP
New York, New York
January 5, 2012
F-
1
DYNASTAR VENTURES, INC. AND SUBSIDIARY
(A Company in the Development Stage)
CONSOLIDATED BALANCE SHEET
December 31, 2010
ASSETS
Current assets:
Cash
$
28,968
Note receivable
150,000
Prepaid expenses and other current assets
38,511
Total current assets
217,479
Property and equipment, net
44,990
Deposit toward acquisition of My Affordable Energy
100,000
Other assets
8,400
Total assets
$
370,869
LIABILITIES, REDEEMABLE PREFERRED STOCK
AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
36,750
Accrued registration rights damages
71,364
Accrued payroll and related benefits
33,959
Total current liabilities
142,073
Other liabilities
2,483
Total liabilities
144,556
Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized: Series A Convertible Preferred stock, 5,000,000 shares designated; 3,604,245 shares issued and outstanding, at stated value; liquidation preference  of $3,568,202
1,189,400
Commitments
Stockholders' deficit:
Common stock, $0.0001 par value, 50,000,000 shares authorized, 10,050,000 shares  issued and outstanding
1,005
Additional paid-in capital
61,311
Deficit accumulated during development stage
(1,025,403
)
Total stockholders' deficit
(963,087
)
Total liabilities, redeemable preferred stock and  stockholders' deficit
$
370,869
See notes to
these consolidated financial statements
F-
2
DYNASTAR VENTURES, INC. AND SUBSIDIARY
(A Company in the Development Stage)
STATEMENT OF OPERATIONS
For the period from May 4, 2010 (inception)
to December 31, 2010
Revenue
$
-
Cost of sales
-
Gross profit
-
Operating expenses:
Compensation
349,388
Consulting fees
102,820
Registration rights damages
71,364
General and administrative
83,767
Total operating expenses
607,339
Loss from operations
(607,339
)
Other Income
Interest income
48,436
Net loss
(558,903
)
Deemed dividend to Series A convertible preferred stockholders
(466,500
)
Net loss available to common stockholders
$
(1,025,403
)
See
notes to these consolidated financial statements
F-
3
DYNASTAR VENTURES, INC. AND SUBSIDIARY
(A Company in the Development Stage)
CONSOLIDATED STATEMENT OF CHANGES IN
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS' DEFICIT
For the period from May 4, 2010 (inception)
to December 31, 2010
Deficit
Redeemable
Accumulated
Convertible
Common
Additional
during
Preferred
    Stock
Stock
Paid-in
Development
Shares
Amount
Shares
Amount
Capital
Stage
Total
Balance,
    May 4, 2010
-
$
-
-
$
-
$
-
$
-
$
-
Issuance
    of common stock to founders for cash
-
-
9,000,000
900
(600
)
-
300
Issuance
    of common stock to consultants  in connection with private placement
-
-
450,000
45
13,629
-
13,674
Issaunce
    of common stock to consultants for services
-
-
550,000
55
27,445
-
27,500
Issuance
    of preferred stock in connection with private placement, at stated value
3,604,245
1,189,400
-
-
-
-
-
Stock
    based compensation - common stock issued to officer of the Company
-
-
50,000
5
16,495
-
16,500
Stock
    based compensation - amortization of employee stock options
-
-
-
-
4,342
-
4,342
Deemed
    dividend on preferred stock
-
-
-
-
-
(466,500
)
(466,500
)
Net
    loss
-
-
-
-
(558,903
)
(558,903
)
Balance,
    December 31, 2010
3,604,245
$
1,189,400
10,050,000
$
1,005
$
61,311
$
(1,025,403
)
$
(963,087
)
See
notes to these consolidated financial statements
F-
4
DYNASTAR VENTURES, INC. AND SUBSIDIARY
(A Company in the Development Stage)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period from May 4, 2010 (inception)
to December 31, 2010
Cash flows from operating activities:
Net loss
$
(558,903
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense
2,500
Deferred rent expense
2,483
Stock based compensation
48,342
Accrued registration rights damages
71,364
Changes in operating assets and liabilities:
Prepaid expenses and other current assets
(38,511
)
Payment of deposit on lease
(8,400
)
Accounts payable
36,750
Accrued payroll and related expenses
33,959
Total adjustments
148,487
Net cash used in operating activities
(410,416
)
Cash flows from investing activities:
Issuance of note receivable
(400,000
)
Repayment of note receivable
250,000
Deposit toward acquisition of My Affordable Energy
(100,000
)
Purchases of property and equipment
(47,490
)
Net cash used in investing activities
(297,490
)
Cash flows from financing activities
Issuance of common stock to founders of the Company
300
Issuance of preferred stock, net of cash offering costs of $452,826
736,574
Net cash provided by financing activities
736,874
Net increase in cash and cash equivalents
28,968
Cash and cash equivalents - beginning of year
-
Cash and cash equivalents - end of year
$
28,968
See
notes to these consolidated financial statements
F-
5
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 1 - Organization
Dynastar Ventures, Inc. (the "Company"
or "Dynastar") was originally formed as Bluegrass Venture Group Inc. on May 4, 2010 in the State of Delaware. The Company
was organized for the purpose of acting as a public holding company of direct selling companies, initially focused in the residential
and commercial electricity and natural gas markets.
The Company intends to grow initially
through a series of acquisitions intended to build up its operating infrastructure. Then, the Company intends to leverage that
infrastructure of personnel, technology and best practices to grow organically and through further acquisitions into new geographical
markets and new product lines.
The Company is considered to be a development
stage company and as such, the financial statements are prepared in accordance with the Accounting Standards Codification ("ASC")
topic 915 "Development Stage Entities." The Company is subject to all of the risks associated with development stage
companies.
On December 14, 2010, the Company formed
a wholly owned subsidiary, Dynastar Energy LLC ("Dynastar Energy") for the purpose of acquiring the assets of My Affordable
Energy, LLC ("Affordable Energy"). On February 11, 2011, the Company changed its name from Bluegrass Venture Group,
Inc. to Dynastar Ventures, Inc. On February 15, 2011, the Company consummated the acquisition of the business and selected assets
of Affordable Energy (see Note 6 – Agreement to Purchase Affordable Energy).
Note 2 – Liquidity and Management's Plans
Through December 31, 2010, the Company has incurred
cumulative net losses and net losses available to common stockholders since inception of $558,903 and $1,025,403, respectively.
At December 31, 2010, the Company had a cash balance of $28,968. These matters raise substantial doubt about the Company's
ability to continue as a going concern.
The Company was formed in May 2010 and through
January 2011, its operations consisted solely of raising capital and conducting due diligence in connection with the targeted acquisition
of an operating company. On February 15, 2011, the Company closed on its first acquisition and became an operating company. Following
the February 15, 2011 acquisition, it is the Company's plan to become a public company as a vehicle to raise capital. Thereupon,
the Company intends to deploy that additional capital to expand its operations within additional deregulated energy markets within
the United States. The Company further expects to incur significant auditing, accounting, legal and other costs in connection with
the preparations for and then becoming a public company.
The Company expects that through the next 12
to 18 months, the capital requirements to fund the Company's growth and to cover the operating costs of a public company
will consume most of the Company's cash flows that it intends to generate from both the recently acquired operating company,
as well as from the proceeds of planned issuances of debt and equity securities. The Company further believes that during this
period, while the Company is focusing on the growth and expansion of its business, that the gross profits that it expects to generate
from the sale of energy operations will not generate sufficient funds to cover these anticipated operating costs.
F-
6
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 2 – Liquidity and Management's Plans,
continued
As discussed above, on February 15, 2011, the
Company acquired Affordable Energy. Through November 2011, the Company has reduced the Company's overall headcount in an
effort to reduce operating costs and has taken steps that it believes will drive long-term revenue growth through enhancements
in the commission program with its independent energy consultants.
Since inception, the Company's operations
have primarily been funded through private equity and debt financing, and it is expected that the Company would continue to seek
additional funding through these private or public equity and debt financing sources.
However, there can be no assurance that the
Company's plans as discussed above will materialize and/or that the Company will be successful in funding estimated cash
shortfalls through additional debt or equity capital and/or any cash generated by the operations that the Company acquired in February
2011. Given these conditions, the Company's ability to continue as a going concern is contingent upon it being able to secure
an adequate amount of debt or equity capital to enable it to meet its cash requirements.  In addition, the Company's
ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered
by entrance into established markets, the competitive environment in which the Company operates and the current capital raising
environment. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern.
The Company raised $1,144,985 in 10.0% convertible
bridge notes during the period February through October of 2011 and plans to conduct a private placement to raise $2,000,000 over
the following 24 months through the issuance of units consisting of common stock and warrants. The funds raised through this private
placement will be used to fund the Company's operations, including the costs that it expects to incur as a public company,
and most importantly, to fund the Company's plans to recruit additional independent energy consultants and sales and marketing
personnel to enable it to expand to additional markets and deepen its penetration into existing markets. The current level of cash
is not enough to cover the existing fixed and variable obligations of the Company, so increased revenue performance and the addition
of more capital are critical to our success. Should the Company not be able to raise these additional funds through the private
placement or some other financing source, the Company would need to consider implementing any or all of the following steps as
counter measures to temporarily conserve cash, including: (i) curtailing its growth plans by limiting hiring of new personnel,
(ii) reducing the salaries of or deferring the payment of compensation to its employees and (iii) extending the terms of payments
to its vendors, advisors and consultants.
Assuming that the Company is successful in its
growth plans and development efforts, the Company believes that it will be able to raise additional funds through sales of its
stock. There is no guarantee that the Company will be able to raise these additional funds or to do so at an advantageous price.
The Company's financial statements do
not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification
of liabilities that might be necessary should the Company not be unable to continue as a going concern.
F-
7
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 3 - Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation
The accompanying consolidated financial
statements include the accounts of Dynastar Ventures, Inc. and its subsidiary and have been prepared in accordance with accounting
principles generally accepted in the United States of America ("US GAAP"). All significant inter-company accounts and
transactions have been eliminated in consolidation.
Basis of Presentation
The accompanying financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").
Use of Estimates
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Management also utilizes various other
estimates, including but not limited to, the value of equity instruments and stock based compensation. Actual results could differ
from those estimates.
Cash
The Company places its cash deposits and cash
investments with financial institutions. At times, the Company's cash may be uninsured or in deposit accounts that exceed
the Federal Deposit Insurance Corporation ("FDIC") insurance limits.
Property and Equipment
Property and equipment is stated at
cost and is being depreciated using the straight-line method over their estimated useful lives, generally three to five years.
Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization of these assets
are removed from the accounts and the resulting gains or losses are reflected in the consolidated results of operations. Expenditures
for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized.
F-
8
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 3 - Summary of Significant Accounting Policies, continued
Preferred Stock
The Company accounts for its preferred stock
in accordance with the guidance of ASC 480 "Distinguishing Liabilities from Equity". Preferred shares subject to mandatory
redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred
shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to
redemption upon the occurrence of uncertain events not solely within the Company's control) are classified as temporary equity.
At all other times, preferred shares are classified as stockholders' equity. The Company's preferred shares feature
certain redemption rights that are considered by the Company to be outside of the Company's sole control. Accordingly at
December 31, 2010, the Company's convertible preferred stock is presented as temporary equity in the mezzanine section of
the Company's consolidated balance sheet.
Stock-Based Compensation
The Company accounts for equity instruments
issued to non-employees in accordance with accounting guidance which requires that such equity instruments are recorded at their
fair value on the measurement date, which is typically the date the services are performed. Stock based compensation for non-employees
is reflected within general and administrative expenses.
The Company accounts for equity instruments
issued to employees in accordance with accounting guidance which requires that awards are recorded at their fair value on the date
of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs over the requisite service
period of the award, which is generally the vesting term of the equity instrument issued.
Income Taxes
The Company accounts for income taxes
under ASC 740 Income Taxes ("ASC 740"). ASC 740 requires the recognition of deferred tax assets and liabilities for
both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected
future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance
to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC 740 also
clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes
a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained
upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. The Company has identified Kentucky as its sole tax jurisdiction, as
defined. Based on the Company's evaluation, it has been concluded that there are no significant uncertain tax positions requiring
recognition in the Company's financial statements. Since the Company was incorporated on May 4, 2010, the evaluation was
performed for the 2010 tax year. The Company believes that the income tax positions and deductions that it has taken on its return,
would be sustained on audit and does not anticipate any adjustments that would result in a material changes to its financial position.
The Company's policy for recording
interest and penalties associated with audits is to record such items as a component of income tax expense. There were no amounts
accrued for penalties or interest as of December 31, 2010 or for the period from May 4, 2010 (inception) through December 31, 2010.
Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations
from its position.
F-
9
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note
4 - Note receivable
On June 22, 2010, the Company received
a note receivable in the amount of $400,000 in exchange for a loan made to an advisor of the Company, as a means of investing unused
funds raised in connection with a private placement of preferred stock as described in Note 9. Pursuant to the terms of the note,
all principal was payable 21 days from the date of issuance along with interest at 6% per annum and a loan origination fee of $24,000.
Any amounts unpaid after the 21 day term bear interest at the rate of 18% per annum from the date of default until paid in full.
On September 10, 2010, September 16, 2010 and December 31, 2010, the borrower repaid principal amounts of $100,000, $100,000 and
$150,000, respectively. On September 16, 2010, the borrower paid $12,000 of the loan origination fee. During the period from June
22, 2010 through December 31, 2010, the Company recorded interest income of $48,436 on this note receivable, including the $24,000
loan origination fee. The total interest and loan origination fee receivable at December 31, 2010 was $36,436, and was included
in prepaid expenses and other current assets on the accompanying balance sheet. As of December 31, 2010, $150,000 of the principal
balance was outstanding. The borrower made further payments in 2011 and as of February 15, 2011, the remaining balance of the note
receivable as well as the accrued interest and origination fee were received in full.
Note 5 - Property and Equipment
Property and equipment consisted of
the following at December 31, 2010:
Estimated
Useful Life
Computers and equipment
3 years
$
20,997
Furniture and fixtures
5 years
26,493
Property and equipment, gross
47,490
Less: accumulated depreciation
(2,500
)
Property and equipment, net
$
44,990
Depreciation expense for the period from
May 4, 2010 (inception) through December 31, 2010 was $2,500.
Note 6 – Agreement to Purchase Affordable Energy
On December 14, 2010, Dynastar Energy entered
into an asset purchase agreement (the "Purchase Agreement") with Affordable Energy, a Texas Limited Liability Company,
to acquire the business and selected assets of Affordable Energy. In accordance with that agreement, on December 14, 2010, Dynastar
Energy paid a deposit to the sellers of Affordable Energy in the amount of $100,000 (See Note 12).
Note 7 - Commitments
Employment Agreements
On November 4, 2010 the Company entered
into an employment agreement with its Chief Executive Officer. The agreement provides, a base annual salary of $240,000, $260,000
and $300,000 for the years ended December 31, 2011, 2012 and 2013, respectively, monthly bonuses based upon the number of energy
consultants added and up to 36 months of contractual compensation for termination under certain circumstances.
F-
10
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 7 – Commitments, continued
Employment Agreements, continued
On November 4, 2010 the Company entered
into an employment agreement with its Chief Financial Officer. The agreement provides a base annual salary of $175,000, $200,000
and $250,000 for the years ended December 31, 2011, 2012 and 2013, respectively, monthly bonuses based upon the number of energy
consultants added and up to 12 months of contractual compensation for termination under certain circumstances. In connection with
the execution of the agreement, the officer was granted 50,000 shares of restricted stock with a grant date a fair value of $16,500,
as well as options for the purchase of 450,000 shares of the Company's common stock (see Note 11 - Stock-Based Compensation).
Lease Agreements
On November 5, 2010 the Company entered
into an agreement to lease 2,142 square feet of office space in Louisville, Kentucky. Payments of rent under the lease are scheduled
to begin in February 2011, with an annual escalation of rent in the year 2012. The lease commenced on December 1, 2010 and expires
on November 30, 2012.
Future minimum lease payments under
this operating lease are as follows:
For the year ended
December 31,
Amount
2011
$
28,800
2012
30,800
Total
$
59,600
Rent expense for the period May 4,
2010 (inception) through December 31, 2010 was $2,483, and was reflected in general and administrative expenses.
Non-contingent rent increases are being
amortized over the life of the lease on a straight line basis.
Deferred rent of $2,483 represents the
unamortized rent adjustment amount at December 31, 2010 and was reflected in other long-term liabilities in the accompanying balance
sheet.
Note 8 – Income Taxes
The Company's deferred tax assets
are as follows at December 31, 2010:
Net operating loss carryforwards
$
165,574
Stock-based compensation
7,920
Registration rights penalties
27,118
Total deferred tax assets
200,612
Less: valuation allowance
(200,612
)
Net deferred tax assets
$
-
F-
11
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 8—Income Taxes,
continued
The Company has a net operating loss of
approximately $436,000 that expires in 2030. The ultimate realization of the net operating losses is dependent upon future taxable
income, if any, of the Company and may be limited in any one period by alternative minimum tax rules. Although management'
plans forecast that the Company will have sufficient future taxable income to absorb the net operating loss carryovers before the
expiration of the carryover period, it is more likely than not that these operating loss benefits will not be realized. Accordingly,
management has determined that a full valuation allowance of the deferred tax asset is appropriate at December 31, 2010.
Internal Revenue Code Section 382 imposes
limitations on the use of net operating loss carryovers when the stock ownership of one or more 5% shareholders (shareholders owning
5% or more of the Company's outstanding capital stock) has increased on a cumulative basis by more than 50 percentage points
within a period of two years. Management cannot control the ownership changes occurring as a result of public trading of the Company's
Common Stock. Accordingly, there is a risk of an ownership change beyond the control of the Company that could trigger a limitation
of the use of the loss carryover.
The Company established a valuation allowance
of $200,612 as of December 31, 2010, which fully offset the net deferred tax asset of $200,612. The deferred tax asset results
from applying an effective combined federal and state tax rate of 38% to the cumulative timing differences of $527,927. Effective
tax rates differ from statutory rates.
A reconciliation of the statutory federal
income tax rate to the Company's effective tax rate at December 31, 2010 is as follows:
Tax benefit at federal statutory rate
(34.0
)%
State income tax
(4.0
)%
Permanent difference: travel and entertainment and stock-based compensation
2.1
%
Increase in valuation allowance
35.9
%
Effective income tax rate
-
%
F-
12
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 9 - Series A Convertible Preferred Stock
The Company is authorized to issue up to 10,000,000
shares of convertible preferred stock, par value of $0.001 per share. It has designated one series of preferred stock: 5,000,000
shares of Series A convertible preferred stock.
On June 3, 2010, through a private placement
transaction, the Company issued 3,604,425 shares of Series A convertible preferred stock for aggregate net cash proceeds of $736,574,
consisting of gross proceeds of $1,189,400 less cash expenses of $452,826. The Company also issued 450,000 shares of common stock
on May 4, 2010, to an advisor for services in connection with the private placement transaction. Since the redemption rights of
the Series A convertible preferred stock were immediately vested, the Company recorded a deemed dividend of $466,500 to fully accrete
the Series A convertible preferred stock to its stated value.
The Series A convertible preferred stock is
subordinate to, and ranks junior to, all of the indebtedness of the Company. The Series A convertible preferred stock ranks senior
to the Company's common stock, and has a liquidation preference of 300% of its stated value of $0.33 per share.
The Series A convertible preferred
shares feature certain redemption rights that are considered by the Company to be outside of its control. Accordingly, the Series
A convertible preferred stock is required to be classified as mezzanine equity, and is recorded at its redemption value of $1,189,400.
The Series A convertible preferred
stock is convertible into 3,604,425 shares of common stock at any time, at the option of the holder at a conversion price of $0.33
per share. The conversion price is subject to adjustment for stock splits, stock dividends, recapitalizations, dilutive issuances
and other anti-dilution provisions, including circumstances in which the Company issues equity securities or convertible instruments
with an effective issuance price lower than the conversion price specified in the Series A convertible preferred stock. Outstanding
shares of Series A convertible preferred stock are also automatically convertible into shares of our common stock, at the then
applicable conversion price, upon the closing of a firm commitment underwritten public offering of shares of our common stock yielding
aggregate proceeds of not less than $20,000,000 or under certain other circumstances when the trading volume and average trading
prices of the stock attain certain specified levels.
The Company determined that the conversion feature
was a derivative since the conversion price was not fixed. The Company evaluated the convertible preferred stock and determined
that the host convertible preferred stock instrument had more equity-like characteristics, since even after considering all conditional
redemption features, it was deemed unlikely that its holders could or would expect to redeem the instrument for cash. As a result,
the Company accounted for the conversion option as an embedded conversion feature. The conversion option did not have any intrinsic
value.
In connection with the private placement, the
Company entered into a registration rights agreement with the investors, pursuant to which the Company agreed to pay liquidated
damages to each investor if the Company failed to file a registration statement within 90 days of the closing date, and if the
registration statement is not declared effective with 180 days of the closing date. Under the registration rights agreement, the
Company would be obligated to pay each investor damages equal to 1% of each investor's purchase price for each 30 day period
for each of the failed requirements, provided that such damages will be capped at 10% of each investor's total purchase price.
As of December 31, 2010, the Company has not
yet filed a registration statement. For the period May 4 through December 31, 2010, the Company has recorded $71,364 in liquidated
damages related to the registration rights.
F-
13
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 10 - Stockholders' Equity
Common Stock
The Company is authorized to issue
up to 50,000,000 shares of common stock, par value $0.0001 per share.
On May 4, 2010 the Company issued 9,000,000
shares of its common stock to the two founders of the Company for aggregate proceeds of $300. One of these founders is also the
Company's chief executive officer and its director. The other founder is no longer actively involved with the company.
On May 4, 2010 the Company issued 550,000 shares
of its fully vested common stock to a financial consultant for advisory services. The shares were valued based upon the value of
the services rendered, which was more readily determinable than the fair value of the common stock. Accordingly, $27,500 was charged
to stock-based compensation expense.
On November 4, 2010, the Company awarded
50,000 shares of its fully vested common stock to its chief financial officer. This stock was valued upon issuance at $0.33 per
share, by reference to the issuance price of the convertible preferred stock issued on June 30, 2010. Accordingly, $16,500 was
charged to stock-based compensation expense.
Note 11 – Stock-Based Compensation
The 2010 Long Term Incentive Plan
The 2010 Long Term Incentive Plan (the
"Incentive Plan") was adopted on November 1, 2010, in order to provide the Company's directors, officers and
employees, with additional incentives by increasing their ownership interest in the company. Stock options granted under the Incentive
Plan are intended to constitute "incentive stock options" as defined in Section 422 of the Internal Revenue Code. However,
to the extent that the aggregate fair market value of shares vested by an individual optionee during any calendar year exceeds
$100,000, the options which exceed such limit will be treated as nonstatutory stock options.
The Incentive Plan provides for 1,000,000
shares of common stock to be reserved for issuance under the plan. Options issued under the plan vest in equal installments on
the first three anniversaries of the date of grant. Unexercised options will expire in ten years. The exercise price is to be equal
to at least 100% of the fair market value of a share of common stock on the date of grant.
As of December 31, 2010, 535,000 shares remain eligible
to be issued under the Incentive Plan.
Stock Options
On November 4, 2010, the Company granted
an option for the purchase for 450,000 shares of its common stock to an officer, in connection with the execution of his employment
agreement. The option has a 10 year term, and vests ratably on the first three anniversaries of the date of grant. The option has
a grant date fair value of approximately $127,000 utilizing the Black-Scholes option pricing model with the following assumptions
used: expected life of 6.5 years, volatility of 111%, dividends of 0%, and a risk free interest rate of 2.53%.
F-
14
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note
11 – Stock-Based Compensation, continued
Stock Options, continued
On December 20, 2010, the Company granted
an option for the purchase of 15,000 shares of its common stock to an employee of the Company. The option has a 10 year term, and
vests ratably on the first three anniversaries of the date of grant. In the aggregate, the option has a grant date fair value of
approximately $4,000 utilizing the Black-Sholes option pricing model with the following assumptions used: expected life of 6.5
years, volatility 111%, dividends of 0%, and a risk free interest rate of 3.36%.
The expected life of stock options
granted was calculated using the simplified method set out in the SEC Staff accounting Bulletin No. 110, which defines the expected
life as the average of the contractual term and the vesting period.
Equity instruments issued to employees are recorded
at their fair value on the date of grant and are amortized over the vesting period of the award. Stock based compensation related
to employee stock options was $4,342 for the period from May 4, 2010 (inception) to December 31, 2010.
At December 31, 2010, the unamortized value
of stock options held by employees was approximately $127,000. The unamortized portion will be expensed over a weighted average
period of 2.8 years.
The following table is a summary of
the status of the Company's stock options for the period May 4, 2010 (inception) through December 31, 2010.
Number
of
Options
Weighted
average
exercise
price
Weighted
average
remaining
contractual
life
Unamortized
value of
options
outstanding
Intrinsic
Value
Options outstanding at May 4, 2010 (inception)
-
Granted
465,000
Exercised
-
Forfeited
-
Options outstanding at December 31, 2010
465,000
$
0.33
9.8 years
$
126,938
$
-
Exercisable at December 31, 2010
-
$
-
Note 12 – Subsequent Events
Purchase of Affordable Energy
On December 14, 2010, Dynastar Energy
entered into an asset purchase agreement (the "Purchase Agreement") with Affordable Energy, a Texas Limited Liability
Company, to acquire the business and selected assets of Affordable Energy. In accordance with that agreement, on December 14, 2010,
Dynastar Energy paid a deposit to the sellers of Affordable Energy in the amount of $100,000.
F-
15
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 12 – Subsequent Events, continued
Purchase of Affordable Energy, continued
On February 15, 2011, pursuant to the
Purchase Agreement, the Company completed the acquisition of the assets of Affordable Energy. The aggregate purchase price for
Affordable Energy's assets was $1,200,000, payable (i) $175,000 in cash, including the application of the deposit described
above, (ii) the issuance of a promissory note for $125,000 with a stated interest rate of 10% per annum due on June 15, 2011 (which
was extended to and paid on September 15, 2011 in exchange for an extension fee of $45,000) and (iii) a non-interest bearing promissory
note with a face value $900,000 due on the earlier of November 12, 2011 (which was extended to February 15, 2012, under the terms
of the agreement, in exchange for a 1.5% increase in the Discount Factor, as described below, for each 30 day period that the note
is extended past November 12, 2011), or thirty days after the day on which the Company's common stock is traded over a nationally
recognized stock exchange (the "$900,000 Acquisition Note"). The acquisition of Affordable Energy was accounted for
as an asset purchase.
The terms of the $900,000 Acquisition
Note further provide that if the Company's common stock is publicly traded on the due date, as extended, then repayment shall
be made by the delivery of a sufficient number of shares of the common stock of the Company equal in value to $900,000, where such
value is determined on a per share basis, as an amount equal to eighty and one half percent (80.5%), as adjusted, for a conversion
on or after February 10, 2012, of the average closing price of the Company's common stock during the 22 days of the public
trading of the stock (the "Discount Factor"). In the event that the Company's common stock is not publicly traded
by February 15, 2012, then the entire amount of the $900,000 Acquisition Note shall be due and payable by such date.
The non-interest bearing note was discounted
at a market interest rate of 10% per annum, and recorded at its net present value of $835,229, reflecting a discount of $64,771.	The
embedded conversion option featured in the $900,000 acquisition Note could not be exercised unless and until the Company first
becomes a public company, files a statement to register its securities with the SEC and then after that registration statement
is deemed to be effective by the SEC. Accordingly, the Company has determined based upon authoritative guidance that the embedded
conversion option is deemed to be a contingent conversion rather than an active conversion option and that such conversion option
did not require accounting recognition upon the issuance of the $900,000 Acquisition Note.
Note Receivable
During the period January 1, 2011 through
February 15, 2011, the borrower repaid the $150,000 remaining principal outstanding on the note receivable.
10% Convertible Promissory Notes
From March 2011 through October 2011,
the Company received aggregate proceeds of $1,144,985 in exchange for the issuance of secured convertible promissory notes
and warrants to purchase 1,431,231 shares of the Company's common stock, including $100,000 in exchange for secured
promissory notes and warrants for the purchase of 125,000 shares of the Company's common stock issued to Navesink
Capital Advisors, LLC ("Navesink"), a consultant to the Company. The notes have an interest rate of 10% per
annum and are payable one year from their respective dates of issuance. The notes and accrued interest are contingently
convertible at $0.40 per share, and automatically convert into shares of the Company's common stock after the Company
becomes a public company and thereupon the Securities and Exchange Commission declaring the registration of the underlying
common stock effective. The warrants have a term of five years and an exercise price of $0.80 per share.
F-
16
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 12 – Subsequent Events, continued
Partial Redemption of Series A Convertible Preferred Stock
On November 30, 2011, for $25,000, the Company
redeemed 75,758 shares of its Series A convertible preferred stock.
F-
17
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note
12 – Subsequent Events, continued
Reverse Merger, continued
Private Placement of $2,000,000 of Units through
Pubco
It is the Company's plan to enter
into a merger with a public shell company. In connection therewith, on October 5, 2011, the Company paid $100,000 to acquire 271,400,617
shares of the outstanding common stock of a public shell company ("Pubco")
Pubco, in turn, plans to initiate a private placement
offering pursuant to Regulation D and/or Regulation S under the Securities Act (the "PPO") for a maximum of $2,000,000
(the "Maximum PPO") through the sale of up to 10,000,000 Units (as defined below) of Pubco's securities, at
an offering price of $0.20 per Unit (the "Offering Price"), with each Unit comprised of one (1) share of Pubco's
common stock and a warrant to purchase one-half of one (1/2) share of common stock at an exercise price of $0.80 per whole share
for five (5) years (the "Investor Warrants"). Each share of common stock is entitled to one vote per share. Pubco
may sell up to an additional 2,500,000 Units for $500,000 (the "Over-Allotment Option") in the event the PPO is oversubscribed.
Since the Company intends to merge with Pubco, the Company will be the beneficiary of the net funds raised in this private placement
offering.
F-
18
DYNASTAR VENTURES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the period from May 4, 2010 (inception)
to December 31, 2010
Note 12 – Subsequent Events, continued
Investor Relations Agreement
On December 20, 2011, Dynastar
entered into a consulting agreement with Undiscovered Equities, Inc. ("UEI") pursuant to which UEI will provide certain
public relations and financial communications services to Dynastar and to Dynastar Holdings. Under the agreement, Dynastar has
agree to pay a cash fee of up to $350,000 payable as follows: (i) $200,000 upon Dynastar Holdings raising a minimum of $500,000
in the Offering; an additional $100,000 upon Dynastar Holdings raising a minimum of $1,000,000 in the Offering; and an additional
$50,000 upon Dynastar Holdings raising a minimum of $1,500,000 in the Offering. Additionally, subject to Dynastar Holdings raising
a minimum of $1,500,000 in the Offering, Dynastar Holdings will issue to UEI, 1,000,000 restricted shares of Dynastar Holdings
common stock (subject to adjustment in the event of any stock split or similar event). This agreement with UEI will terminate on
December 31, 2012 unless terminated earlier in accordance with its provisions.
Management's Evaluation of Subsequent Events
The Company evaluates events that have occurred
after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify
any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements.
F-
19
DYNASTAR VENTURES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2011
December 31, 2010
(unaudited)
ASSETS
Current assets:
Cash
$
181,462
$
28,968
Accounts receivable
107,551
-
Note receivable
-
150,000
Prepaid expenses and other current assets
4,776
38,511
Total current assets
293,789
217,479
Property and equipment, net
66,425
44,990
Goodwill
1,009,479
-
Intangibles, net
95,000
-
Deposit toward acquisition of My Affordable Energy
-
100,000
Other assets
8,400
8,400
Total assets
$
1,473,093
$
370,869
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
65,233
$
36,750
Accrued registration rights damages
118,940
71,364
Accrued payroll and related benefits
38,217
33,959
Accrued independent energy consultant commissions
34,891
-
Accrued expenses and other current liabilities
130,207
-
Notes payable, net of discount
1,615,102
-
Total current liabilities
2,002,590
142,073
Derivative liabilities
366,788
-
Other liabilities
950
2,483
Total liabilities
2,370,328
144,556
Redeemable Preferred Stock:
Series A Convertible Preferred stock, $0.001 par value, 5,000,000 shares authorized,  3,604,245 shares issued and outstanding, at stated value; liquidation preference of $3,568,202
1,189,400
1,189,400
Stockholders' deficit:
Common stock, $0.0001 par value, 50,000,000 shares authorized,  10,050,000 shares issued and outstanding
1,005
1,005
Additional paid-in capital
95,783
61,311
Accumulated deficit
(2,183,423
)
(1,025,403
)
Total stockholders' deficit
(2,086,635
)
(963,087
)
Total liabilities and stockholders' deficit
$
1,473,093
$
370,869
See notes to these
condensed consolidated financial statements
F-
20
DYNASTAR VENTURES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(unaudited)
For the Nine
For the period
Months Ended
May 4, 2010 (inception)
September 30, 2011
Through September 30, 2010
Revenue
$
849,367
$
-
Cost of revenues
328,462
-
Gross profit
520,905
-
Operating expenses:
Liquidated damages under  registration rights agreement
47,576
11,894
Compensation and related expenses
580,559
173,411
Consulting expenses
206,716
74,290
Acquisition costs
455,752
-
Amortization of intangibles
25,000
-
General and administrative
199,612
29,257
Total operating expenses
1,515,215
288,852
Loss from operations
(994,310
)
(288,852
)
Other income (expense):
Change in fair value of derivative liabilities
6,780
-
Interest income
3,132
48,362
Interest expense
(65,166
)
-
Amortization of debt discount
(108,456
)
-
Net loss
(1,158,020
)
(240,490
)
Deemed dividend to Series A  convertible preferred stockholders
-
(466,500
)
Net loss available to common stockholders
$
(1,158,020
)
$
(706,990
)
See
notes to these condensed consolidated financial statements
F-
21
DYNASTAR VENTURES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN
REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS'
DEFICIT
For the nine months ended September 30, 2011
(Unaudited)
Redeemable
Convertible
Common
Additional
Preferred Stock
Stock
Paid-in
Accumulated
Shares
Amount
Shares
Amount
Capital
Deficit
Total
Balance, January 1, 2011
3,604,245
$
1,189,400
10,050,000
$
1,005
$
61,311
$
(1,025,403
)
$
(963,087
)
Stock based compensation -  amortization of employee options
34,472
$
34,472
Net loss
(1,158,020
)
$
(1,158,020
)
Balance, September 30, 2011
3,604,245
$
1,189,400
10,050,000
$
1,005
$
95,783
$
(2,183,423
)
$
(2,086,635
)
See
notes to these condensed consolidated financial statements
F-
22
DYNASTAR VENTURES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine
For the period
Months Ended
May 4, 2010 (inception)
September 30, 2011
Through September 30, 2010
Cash flows from operating activities:
Net loss
$
(1,158,020
)
$
(240,490
)
Adjustments to reconcile net loss to  net cash used in operating activities:
Depreciation and amortization expense
42,087
-
Accrued registration rights damages
47,576
11,894
Deferred rent expense
(1,533
)
-
Amortization of discount on note payable
108,456
-
Change in fair value of derivative liabilities
(6,780
)
-
Stock based compensation
34,472
27,500
Note payable issued in exchange for services
29,985
-
Changes in operating assets and liabilities:
Accounts receivable
(107,551
)
-
Prepaid expenses and other current assets
33,735
(36,362
)
Accounts payable
28,483
-
Accrued independent energy consultant commissions
34,891
-
Accrued payroll and related expenses
4,258
-
Accrued expenses and other current liabilities
130,207
-
Net cash used in operating activities
(779,734
)
(237,458
)
Cash flows from investing activities:
Acquisition of Affordable Energy
(75,000
)
-
Issuance of note receivable
-
(400,000
)
Repayment  of note receivable
150,000
200,000
Purchases of property and equipment
(32,772
)
(2,722
)
Net cash used in investing activities
42,228
(202,722
)
Cash flows from financing activities
Issuance of preferred stock, net of offering costs paid in cash
-
736,574
Issuance of common stock to founders of the Company
-
300
Proceeds from notes payable
1,015,000
-
Repayment of notes payable
(125,000
)
-
Net cash provided by financing activities
890,000
736,874
Net increase (decrease) in cash and cash equivalents
$
152,494
$
296,694
Cash and cash equivalents - beginning of year
28,968
-
Cash and cash equivalents - end of year
$
181,462
$
296,694
See notes
to these condensed consolidated financial statements
F-
23
DYNASTAR VENTURES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
For the Nine
For the period
Months Ended
May 4, 2010 (inception)
September 30, 2011
Through September 30, 2010
2011
2010
Supplemental non-cash investing and financing activity - acquisition of Affordable Energy:
Assets acquired
Property and equipment
$
5,750
$
—
Intangible assets
120,000
—
Goodwill recognized on purchase business combination
1,009,479
—
Total purchase price
1,135,229
—
Less: Cash paid to acquire business
(75,000
)
—
Non-cash consideration to seller
$
1,060,229
$
—
Non-cash consideration, consisting of:
Application of deposit towards purchase price
$
100,000
Note payable issued to seller, net of $64,771 debt discount
960,229
Total non-cash consideration
$
1,060,229
—
See
notes to these consolidated financial statements
.
F-
24
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 1 -
Organization
Dynastar Ventures,
Inc. ("Dynastar") and its subsidiary Dynastar Energy LLC ("Dynastar Energy"), (together, the "Company")
was organized for the purpose of acting as a public holding company for direct selling companies, primarily focused in the residential
and commercial electricity and natural gas markets.
The Company intends
to grow initially through a series of acquisitions in order to build up its operating infrastructure. Then, the Company intends
to leverage that infrastructure of personnel, technology and best practices to grow organically and through further acquisitions
into new geographical markets and new product lines.
The Company is
considered to be a development stage company and as such, the financial statements are prepared in accordance with the Accounting
Standards Codification ("ASC") topic 915 "Development Stage Entities." The Company is subject to all of
the risks associated with development stage companies.
On February 15,
2011, the Company acquired substantially all of the assets of My Affordable Energy, LLC ("Affordable Energy"). Affordable
Energy is a direct seller of residential and commercial electricity and natural gas (See Note 4 - Acquisition).
Note 2 –
Management's Plans and Liquidity
Through September
30, 2011, the Company has incurred cumulative net losses and net losses available to common stockholders since inception of $1,716,923
and $2,183,423, respectively. At September 30, 2011, the Company had a cash balance of $181,462. These matters raise substantial
doubt about the Company's ability to continue as a going concern.
The Company was
formed in May 2010 and through January 2011, its operations consisted solely of raising capital and conducting due diligence in
connection with the targeted acquisition of an operating company. On February 15, 2011, the Company closed on its first acquisition
and became an operating company. Following the February 15, 2011 acquisition, it is the Company's plan to become a public
company as a vehicle to raise capital. Thereupon, the Company intends to deploy that additional capital to expand its operations
within additional deregulated energy markets within the United States. The Company further expects to incur significant auditing,
accounting, legal and other costs in connection with the preparations for and then becoming a public company.
The Company expects
that through the next 12 to 18 months, the capital requirements to fund the Company's growth and to cover the operating
costs of a public company will consume most of the Company's cash flows that it intends to generate from both the recently
acquired operating company, as well as from the proceeds of planned issuances of debt and equity securities. The Company further
believes that during this period, while the Company is focusing on the growth and expansion of its business, that the gross profits
that it expects to generate from the sale of energy operations will not generate sufficient funds to cover these anticipated operating
costs. Accordingly, the company requires external funding to sustain operations and to follow-through on the execution of its
business plan.
F-
25
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 2 – Liquidity and Management's
Plans, continued
As discussed
above, on February 15, 2011, the Company acquired Affordable Energy. Through November 2011, the Company has reduced the Company's
overall headcount in an effort to reduce operating costs and has taken steps that it believes will drive long-term revenue growth
through enhancements in the commission program with its independent energy consultants.
Since inception,
the Company's operations have primarily been funded through private equity and debt financing, and it is expected that the
Company would continue to seek additional funding through these private or public equity and debt financing sources.
However, there
can be no assurance that the Company's plans as discussed above will materialize and/or that the Company will be successful
in funding estimated cash shortfalls through additional debt or equity capital and/or any cash generated by the operations that
the Company acquired in February 2011. Given these conditions, the Company's ability to continue as a going concern is contingent
upon it being able to secure an adequate amount of debt or equity capital to enable it to meet its cash requirements.  In
addition, the Company's ability to continue as a going concern must be considered in light of the problems, expenses and
complications frequently encountered by entrance into established markets, the competitive environment in which the Company operates
and the current capital raising environment. These factors, among others, raise substantial doubt that the Company will be able
to continue as a going concern.
The Company
raised $1,144,985 in 10.0% convertible bridge notes during the period of February through October of 2011 and plans to conduct
a private placement to raise $2,000,000 over the following 24 months through the issuance of units consisting of common stock
and warrants. The funds raised through this private placement will be used to fund the Company's operations, including the
costs that it expects to incur as a public company, and most importantly, to fund the Company's plans to recruit additional
independent energy consultants and sales and marketing personnel to enable it to expand to additional markets and deepen its penetration
into existing markets.   The current level of cash is not enough to cover the existing fixed and variable obligations
of the Company, so increased revenue performance and the addition of more capital are critical to our success. Should the Company
not be able to raise these additional funds through the private placement or some other financing source, the Company would need
to consider implementing any or all of the following steps as counter measures to temporarily conserve cash, including: (i) curtailing
its growth plans by limiting hiring of new personnel, (ii) reducing the salaries of or deferring the payment of compensation to
its employees and (iii) extending the terms of payments to its vendors, advisors and consultants.
Assuming
that the Company is successful in its growth plans and development efforts, the Company believes that it will be able to raise
additional funds through sales of its stock. There is no guarantee that the Company will be able to raise these additional
funds or to do so at an advantageous price.
The Company's
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or the amounts and classification of liabilities that might be necessary should the Company not be unable to continue as a going
concern.
F-
26
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 3 -
Summary of Significant Accounting Policies
Principles
of Consolidation and Basis of Presentation
The consolidated
financial statements include the accounts of Dynastar Ventures, Inc. and its subsidiary and have been prepared in accordance with
accounting principles generally accepted in the United States of America ("GAAP"). All significant inter-company accounts
and transactions have been eliminated in consolidation. Operating results for the nine months ended September 30, 2011 are not
necessarily indicative of the results that may be expected for the year ended December 31, 2011. For further information, refer
to the consolidated financial statements and footnotes thereto for the period May 4, 2010 through December 31, 2010, included
elsewhere in this Current Report.
Use of Estimates
The preparation
of financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Management also utilizes various other estimates, including but not limited to, the allocation of the purchase price consideration
in its business combination, the valuation of the warrants, the value of equity instruments and stock based compensation. Actual
results could differ from those estimates.
Concentration of Credit Risk
Financial instruments
that subject the Company to concentration of credit risk consist primarily of accounts receivable. Amounts receivable from Affordable
Power, a deregulated energy provider, account for 100% of the Company's accounts receivable at September 30, 2011.
Cash
The Company places
its cash deposits with financial institutions. At times, the Company's cash may be uninsured or in deposit accounts that
exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits.
Accounts Receivable
Accounts Receivable
represent balances arising from revenues earned from Affordable Power. The Company has had no occurrences of credit losses and
has therefore determined that an allowance for doubtful accounts is not necessary for the periods presented. Management believes
that all receivables from Affordable Power are fully collectible.
Property
and Equipment
Property and
equipment is stated at cost and is being depreciated using the straight-line method over their estimated useful lives, generally
three to five years. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation of these
assets are removed from the accounts and the resulting gains or losses are reflected in the consolidated results of operations.
Expenditures for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized.
F-
27
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 3 - Summary of Significant
Accounting Policies, continued
Convertible
instruments
The Company accounts
for hybrid contracts that feature conversion options in accordance with applicable generally accepted accounting principles ("GAAP").
Accounting Standards Codification ("ASC") 815 "Derivatives and Hedging Activities," ("ASC 815")
requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative
financial instruments according to certain criteria. The criteria includes circumstances in which (a) the economic characteristics
and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks
of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract
is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value
reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument
would be considered a derivative instrument.
Conversion options
that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity
or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their
bifurcation from the host instrument.
The Company accounts
for convertible instruments, when the Company has determined that the embedded conversion options should not be bifurcated from
their host instruments, in accordance with ASC 470-20 "Debt with Conversion and Other Options" ("ASC 470-20").
Under ASC 470-20 the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options
embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment
date of the note transaction and the effective conversion price embedded in the note. The Company accounts for convertible instruments
(when the Company has determined that the embedded conversion options should be bifurcated from their host instruments) in accordance
with ASC 815.  Under ASC 815, a portion of the proceeds received upon the issuance of the hybrid contract are allocated
to the fair value of the derivative. The derivative is subsequently marked to market at each reporting date based on current fair
value, with the changes in fair value reported in results of operations.
Common
stock purchase warrants and other derivative financial instruments
The Company classifies
as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provides a choice of net-cash
settlement or settlement in the Company's own shares (physical settlement or net-share settlement) providing that such
contracts are indexed to the Company's own stock as defined in ASC 815-40 "Contracts in Entity's Own Equity". The Company
classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash
settle the contract if an event occurs and if that event is outside the Company's control) or (ii) gives the counterparty
a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).  The Company
assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine
whether a change in classification between assets and liabilities or equity is required.
F-
28
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
N
ote 3 - Summary of Significant
Accounting Policies, continued
Common
stock purchase warrants and other derivative financial instruments, continued
The Company's free standing
derivatives consist of warrants to purchase common stock that were issued to debt holders in connection with the 10% Secured Promissory
Notes (See Note 8 – Notes Payable). Accordingly, these instruments have been classified as derivative liabilities in the
accompanying balance sheet as of September 30, 2011. Derivative liabilities are initially recorded at fair value and are then
re-valued at each reporting date, with changes in fair value recognized in earnings during the reporting period.
Fair Value Measurements
Fair value is
defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability
in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions
that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the
inputs in measuring fair value as follows:
•
Level 1. Observable inputs such as quoted prices in active markets;
•
Level 2. Inputs to the valuation methodology include:
°
Quoted prices for similar assets and liabilities in active markets.
°
Quoted prices for identical or similar assets or liabilities in inactive markets.
°
Inputs other than quoted market prices that are observable for the asset liability.
°
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual)
term, the Level 2 input must be observable for substantially the full term of the asset or liability.
•
Level 3. Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets
(Liabilities) Measured at Fair Value on a Recurring Basis
:
Condensed Consolidated
Quoted Prices
in
Active Markets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Balance Sheet
(Level 1)
(Level 2)
(Level 3)
Derivative Liabilities:
September 30, 2011
$
366,788
$
-
$
-
$
366,788
December 31, 2010
$
-
$
-
$
-
$
-
F-
29
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 3 - Summary of Significant
Accounting Policies, continued
Fair Value Measurements, continued
The following table sets forth a
summary of the changes in the fair value of the Company's Level 3 financial liabilities that are measured at fair value
on a recurring basis:
Nine
    Months Ended
September 30,
    2011
Beginning balance
$
-
Aggregate fair value of warrants issued
373,568
Change in fair value of warrants
(6,780
)
Ending balance
$
366,788
The
derivative warrant liabilities are measured at fair value using the lattice pricing model and are classified within Level 3 of
the valuation hierarchy.
The significant
assumptions and valuation methods that the Company used to determine fair value and the change in fair value of the Company's
derivative financial instruments are discussed in Note 8 (disclosure of warrants).
In accordance
with the provisions of ASC 815, the Company presented the warrant liabilities at fair value on its balance sheet, with the corresponding
changes in fair value recorded in the Company's statement of operations for the applicable reporting periods. As disclosed
in Note 8, the Company computed the fair value of the derivative liability at the date of issuance and the reporting date of September
30, 2011 using both the Black-Scholes option pricing and lattice pricing methods. The fair value calculated using the lattice
pricing method is within 1% of the value determined under the Black-Scholes method.
The Company
developed the assumptions that were used as follows: The fair value of the Company's common stock was derived from arm's
length issuances to third parties for cash of securities convertible into shares of the Company's common stock. The term
represents the remaining contractual term of the derivative; the volatility rate was developed based on analysis of the historical
volatility rates of several other similarly situated companies (using a number of observations that was at least equal to or exceeded
the number of observations in the life of the derivative financial instrument at issue); the risk free interest rates were obtained
from publicly available US Treasury yield curve rates; the dividend yield is zero because the Company has not paid dividends and
does not expect to pay dividends in the foreseeable future.
Preferred Stock
The Company accounts
for its preferred stock in accordance with the guidance enumerated in ASC 480 "Distinguishing Liabilities from Equity".
Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value.
Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the
control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control)
are classified as temporary equity. At all other times, preferred shares are classified as stockholders' equity. The Company's
preferred shares feature certain redemption rights that are considered by the Company to be outside of the Company's control.
Accordingly, the Series A Convertible Preferred Stock is presented as temporary equity in the mezzanine section of the Company's
condensed consolidated balance sheets.
F-
30
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 3 - Summary of Significant
Accounting Policies, continued
Revenue Recognition
The Company recognizes
revenue from commissions earned on the sale of energy services by its deregulated energy provider clients. The Company also receives
a customer acquisition bounty ("CAB") when it acquires new residential or commercial energy customers as well as monthly
customer renewal bonuses and customer fees. The company recognizes these revenues when the deregulated energy provider, as the
principal, receives payment for the electricity from the retail customer.
The
Company also recognizes revenues from its independent energy consultants, who pay a flat monthly fee entitling them to the use
of the Company's websites which facilitate their business operations. These revenues are earned and recognized in the month
that they are received.
Revenues for
the nine months ended September 30, 2011 consisted of the following:
kWh commissions
$
607,843
Customer acquisition and renewal bonuses
55,560
Customer fees
71,194
Total commission revenues
734,597
Independent energy consultant fees
114,770
Total revenues
$
849,367
Cost of Sales
The Company recognizes
costs of sales for commissions and CABs earned by its independent energy consultants during the month that the Company recognizes
the corresponding revenue.
Stock-Based
Compensation
The Company accounts
for equity instruments issued to non-employees in accordance with accounting guidance which requires that such equity instruments
are recorded at their fair value on the measurement date, which is typically the date the services are performed. Stock based
compensation for non-employees is reflected within general and administrative expenses.
The Company accounts
for equity instruments issued to employees in accordance with accounting guidance which requires that awards are recorded at their
fair value on the date of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs
over the requisite service period of the award, which is generally the vesting term of the equity instrument issued.
F-
31
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 3 - Summary of Significant
Accounting Policies, continued
Recent
Accounting Pronouncements
In
December 2010, the FASB issued ASU 2010-28, Intangibles – Goodwill and Other (Topic 350), related to the way companies test
for impairment of goodwill. Pursuant to ASU 2010-28, goodwill of the reporting unit is not impaired if the carrying amount of
a reporting unit is greater than zero and its fair value exceeds its carrying amount. In that event, the second step of the impairment
test is not required. However, if the carrying amount of a reporting unit is zero or negative, the second step of the impairment
test is required to be performed to measure the amount of impairment loss, if any, when it is more likely than not that goodwill
impairment exists. In considering whether it is more likely than not that goodwill impairment exists, a company must evaluate
whether there are qualitative factors that could adversely affect goodwill. Consistent with the prior requirements, this test
must be performed annually or, if an event occurs or circumstances exist that indicate that it is more likely than not that goodwill
impairment exists, in the interim. The amendments in this ASU are effective for fiscal years, and interim periods within those
years, beginning after December 15, 2010. This standard is not expected to have a material impact on the Company's reported
results of operations or financial position.
On September
15, 2011, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other, which simplifies how an entity is required to test
goodwill for impairment. This ASU would allow an entity to first assess qualitative factors to determine whether it is necessary
to perform the two step quantitative goodwill impairment test. Under the ASU, an entity would not be required to calculate the
fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not
that its fair value is less than its carrying amount. The ASU includes a number of factors to consider in conducting the qualitative
assessment. The ASU is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December
15, 2011. Early adoption is permitted. This standard is not expected to have a material impact on the Company's reported
results of operations or financial position.
In May
2011, FASB issued Accounting Standards Update ("ASU") No. 2011-04, "Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRS." This pronouncement was issued to provide a consistent definition
of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International
Financial Reporting Standards ("IFRS"). ASU 2011-04 changes certain fair value measurement principles and enhances
the disclosure requirements particularly for Level 3 fair value measurements. This pronouncement is effective for interim and
annual reporting periods beginning on or after December 15, 2011, with early adoption prohibited. The new guidance will
require prospective application. The adoption of this pronouncement is not expected to have a material impact on the Company's
consolidated financial statements.
Subsequent
Events
The Company evaluates
events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation,
the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure
in the financial statements.
F-
32
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 4 -
Acquisition
On December 14,
2010, Dynastar Energy entered into an asset purchase agreement (the "Purchase Agreement") with Affordable Energy,
a Texas Limited Liability Company, to acquire the business and selected assets of Affordable Energy. In accordance with that agreement,
on December 14, 2010, Dynastar Energy paid a deposit to the sellers of Affordable Energy in the amount of $100,000.
On February 15,
2011, pursuant to the Purchase Agreement, the Company completed the acquisition of the assets of Affordable Energy. The aggregate
purchase price for Affordable Energy's assets was $1,200,000, payable (i) $175,000 in cash, including the application of
the deposit described above, (ii) the issuance of a promissory note for $125,000 with a stated interest rate of 10% per annum
due on June 15, 2011 (which was extended to and paid on September 15, 2011 in exchange for an extension fee of $45,000) and (iii)
a non-interest bearing promissory note with a face value $900,000 due on the earlier of November 12, 2011 (which was extended
to February 15, 2012, under the terms of the agreement, in exchange for a 1.5% increase in the Discount Factor, as described below,
for each 30 day period that the note is extended past November 12, 2011), or thirty days after the day on which the Company's
common stock is traded over a nationally recognized stock exchange (the "$900,000 Acquisition Note").
The terms
of the $900,000 Acquisition Note further provide that if the Company's common stock is publicly traded on the due date,
as extended, then repayment shall be made by the delivery of a sufficient number of shares of the common stock of the Company
equal in value to $900,000, where such value is determined on a per share basis, as an amount equal to eighty and one half percent
(80.5%), as adjusted, for a conversion on or after February 10, 2012, of the average closing price of the Company's common
stock during the 22 days of the public trading of the stock (the "Discount Factor"). In the event that the Company's
common stock is not publicly traded by February 15, 2012, then the entire amount of the $900,000 Acquisition Note shall be due
and payable by such date.
The non-interest
bearing note was discounted at a market interest rate of 10% per annum, and recorded at its net present value of $835,229, reflecting
a discount of $64,771, amortized over the term of the note. The embedded conversion option featured in the $900,000 acquisition
Note cannot be exercised unless and until the Company first becomes a public company, files a statement to register its securities
with the SEC and then after that registration statement is deemed to be effective by the SEC. Accordingly, the Company has determined
based upon authoritative guidance that the embedded conversion option is deemed to be a contingent conversion rather than an active
conversion option and that such conversion option did not require accounting recognition upon the issuance of the $900,000 Acquisition
Note.
In
accordance with the acquisition, the Company identified customer relationships as an amortizable intangible asset. This intangible
asset will be amortized over its expected useful life of 3 years (see Note 7).
F-
33
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 4 –
Acquisition, continued
The
following details the preliminary allocation of the purchase price for the acquisition of Affordable Energy:
Property and equipment
$
5,750
Intangible asset - customer relationships
120,000
Goodwill
1,009,479
Total
$
1,135,229
The
following details the summary of the purchase price consideration:
Cash
$
175,000
Promissory note due September 15, 2011
125,000
Promissory note due February 15, 2012
835,229
Total
$
1,135,229
Unaudited
Pro-Forma Financial Information
The following
presents the unaudited pro-forma combined results of operations of the Company with Affordable Energy from the beginning of the
year of acquisition (January 1, 2011) and for the entire fiscal year preceding the acquisition (January 1, 2010, even though this
date precedes the date of the formation of the Company). The acquisition date for Affordable Energy was February 15, 2011.
For the Nine Months Ended
September 30,
2011
2010
Revenues
$
958,590
$
1,213,079
Net (loss) available to common stockholders
$
(1,198,431
)
$
(751,293
)
The pro forma
combined results are not necessarily indicative of the results that actually would have occurred if the acquisition of Affordable
Energy had been completed as of the beginning of 2011 or 2010, nor are they necessarily indicative of future consolidated results.
F-
34
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 5 - Note receivable
On June 22, 2010,
the Company received a note receivable in the amount of $400,000 in exchange for a loan made to an advisor of the Company as a
means of investing unused funds raised in connection with the private placement of its Series A convertible preferred stock described
in Note 10. Pursuant to the terms of the note, all principal was payable 21 days from the date of issuance along with interest
at 6% per annum and a loan origination fee of $24,000. Any amounts unpaid after the 21 day term bear interest at the rate of 18%
per annum from the date of default until paid in full. Through December 31, the borrower repaid $250,000 in principal on the note
receivable, and paid $12,000 of the loan origination fee. During the period from June 22, 2010 through September 30, 2010, the
Company recorded interest income of $48,362 on this note receivable, including the loan origination fee of $24,000. The total
interest and loan origination fee receivable at December 31, 2010 was $36,436, and is included in prepaid expenses and other current
assets on the accompanying condensed consolidated balance sheet. As of December 31, 2010, $150,000 of principal was still outstanding.
The borrower made further payments in 2011 and as of February 15, 2011, the remaining balance of the note receivable as well as
the accrued interest and commitment fee were received in full. The Company recorded interest income of $3,132 and $48,362 on this
note receivable during the nine months ended September 30, 2011 and the period May 4, 2010 (inception) through September 30, 2010,
respectively.
Note 6 - Property and Equipment
Property
and equipment consisted of the following:
As of:
September 30, 2011
December 31, 2010
Computers and equipment
$
58,339
$
20,997
Furniture and fixtures
27,673
26,493
Property and equipment
86,012
47,490
Less: accumulated depreciation
(19,587
)
(2,500
)
Property and equipment, net
$
66,425
$
44,990
Depreciation
expense for the nine months ended September 30, 2011, and the period from May 4, 2010 (inception) through September 30, 2010 was
$17,087 and $0, respectively.
Note
7 – Intangible Assets
Intangible assets
consist of customer relationships purchased in connection with the acquisition of Affordable Energy as follows:
As of:
September 30, 2011
December 31, 2010
Customer relationships
$
120,000
$
-
Less: accumulated amortization
25,000
-
Intangible assets, net
$
95,000
$
-
Amortization
of customer relationships is computed using the straight-line method over the estimated useful life of 3 years. The Company recorded
amortization expense related to the acquired customer relationships of $25,000 during the nine months ended September 30, 2011.
The remaining amortization period as of September 30, 2011 is 2.4 years.
F-
35
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 8 – Notes Payable
On March 25,
2011, the Company received proceeds of $25,000 in exchange for an unsecured promissory note. The note had an interest rate of
8% per annum, and was payable on or before June 25, 2011. On July 18, 2011 the note was converted to a secured convertible promissory
note, bearing an interest rate of 10% per annum, convertible by the holder into shares of the Company's common stock at
$0.40 per share, automatically convertible into shares of the Company's common upon the Securities and Exchange Commission
("SEC") declaring the registration of the underlying stock effective (the "10% Convertible Promissory Notes"),
due on July 18, 2012. The 10% Convertible Promissory Notes are subordinate to the $900,000 Acquisition Note. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was granted a warrant for the purchase of up to 31,250 shares
of the Company's common stock with a term of 5 years, an exercise price of $0.80 per share and certain weighted average
anti-dilution protection provisions which would be triggered if the Company issues shares under certain circumstances at a price
below the $0.80 warrant exercise price (the "10% Convertible Note Warrant").
On March 28,
2011 the Company received proceeds of $20,000 in exchange for an unsecured promissory note. The convertible promissory note had
an interest rate of 8% per annum, and was payable on or before June 28, 2011. On July 18, 2011 the note was converted to a 10%
Convertible Promissory Note due on July 18, 2012. In connection with the issuance of the 10% Convertible Promissory Note, the
holder was awarded a 10% Note Warrant to purchase up to 25,000 shares of the Company's common stock.
On April 8, 2011
the Company received proceeds of $25,000 in exchange for a 10% Convertible Promissory Note due April 7, 2012. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 31,250 shares
of the Company's common stock.
On May 3, 2011
the Company received proceeds of $20,000 in exchange for a 10% Convertible Promissory Note due May 2, 2012. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 25,000 shares
of the Company's common stock.
On June 29, 2011
the Company received proceeds of $250,000 in exchange for a 10% Convertible Promissory Note due June 28, 2012. In connection with
the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 312,500 shares
of the Company's common stock.
On July 19, 2011
the Company issued a 10% Convertible Promissory Note valued at $29,985 to a consultant in exchange for services, due July 18,
2012. In connection with the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase
up to 37,481 shares of the Company's common stock.
On August 24,
2011 the Company received proceeds of $675,000 in exchange for a 10% Convertible Promissory Note due August 23, 2012. In connection
with the issuance of the 10% Convertible Promissory Note, the holder was awarded a 10% Note Warrant to purchase up to 843,750
shares of the Company's common stock.
See Note 13 Subsequent
Events – Issuance of 10% Convertible Promissory Note, for an additional issuance.
The embedded
conversion option featured in the 10% Convertible Promissory Notes cannot be exercised unless and until the Company becomes a
public company and its common stock is able to trade for 22 consecutive days. Accordingly, the Company has determined based upon
authoritative guidance that the embedded conversion option is deemed to be a contingent conversion rather than an active conversion
option and that such conversion option did not require accounting recognition upon the issuances of each of the 10% Convertible
Promissory Notes.
F-
36
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 8 – Notes Payable,
continued
The Company further
determined, based upon authoritative guidance, that the 10% Promissory Note Warrants should be valued separately. Using the fair
value measurements described below, we allocated $373,568 of the proceeds of the 10% Convertible Promissory Notes to the 10% Promissory
Note Warrants. The value of the 10% Promissory Note Warrants was accounted for as a free-standing derivative liability, and a
corresponding discount was recorded on the 10% Convertible Promissory Notes, amortizable under the interest method over the remaining
term of the 10% Convertible Promissory Notes.
The Company calculated
the fair value of the 10% Promissory Note Warrants using the Black-Scholes option pricing model with the following assumptions:
As of
September
    30, 2011
As of the Dates of
    Issuances
Fair value of stock
$
0.40
$
0.40
Exercise price
$
0.80
$
0.80
Weighted average term (years)
4.5
5.0
Dividend yield
0
%
0
%
Expected volatility
111
%
111
%
Weighted average risk-free interest rate
.86
%
1.28
%
Number of warrants
1,431,231
1,431,231
Aggregate fair value
$
366,788
$
373,568
The warrants
issued in connection with issuance of the 10% secured convertible promissory notes have certain anti-dilution and other provisions
that cause them to be a derivative liability. The aggregate fair value of the warrants at their respective dates of issuance amounted
to of $373,568 and was recorded as a debt discount, which is being amortized over the term of the related debt instruments. Amortization
of debt discount related to the 10% secured convertible promissory notes was $55,123 for the nine months ended September 30, 2011.
The derivative liability related to the warrants is revalued at each reporting period. During the nine months ended September
30, 2011, $6,780 representing the decrease in the value fair of the derivative was credited to the statement of operations under
the caption "change in fair value of derivative liabilities".
Notes payable
at September 30, 2011 consist of:
Face Value of Promissory
Note
Unamortized portion debt discount
Note Payable,
net of discount
$900,000 Acquisition Note
$
900,000
$
(11,438
)
$
888,562
10% Convertible Promissory Notes
1,044,985
(318,445
)
726,540
Total
$
1,944,985
$
(329,883
)
$
1,615,102
F-
37
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 9 - Commitments
Lease Agreements
On
November 5, 2010 the Company entered into an agreement to lease 2,142 square feet of office space in Louisville, Kentucky. The
lease commenced on December 1, 2010 and expires on November 30, 2012.
Effective
March 1, 2011, the Company entered into an agreement to lease 2,978 square feet of office space in Houston, Texas. The lease commenced
on March 1, 2011 and expires on February 28, 2014.
Future
minimum lease payments under operating leases are as follows:
For the year ended
September 30,
Amount
2012
$
69,200
2013
41,600
2014
15,000
Total
$
125,800
Rent
expense for the nine months ended September 30, 2011 and the period from May 4, 2010 (inception) through September 30, 2010 was
$46,850 and $0 respectively, and was reflected in operating expenses.
Note 10 – Series A Convertible
Preferred Stock
The Company is
authorized to issue up to 10,000,000 shares of convertible preferred stock, par value of $0.001 per share. It has designated one
series of preferred stock: 5,000,000 shares of Series A convertible preferred stock.
On June 3, 2010,
through a private placement transaction, the Company issued 3,604,425 shares of Series A convertible preferred stock for aggregate
net cash proceeds of $736,574, consisting of gross proceeds of $1,189,400 less cash expenses of $452,826. The Company also issued
450,000 shares of common stock on May 4, 2010, to an advisor for services in connection with the private placement transaction.
Since the redemption rights of the Series A convertible preferred stock were immediately vested, the Company recorded a deemed
dividend of $466,500 to fully accrete the Series A convertible preferred stock to its stated value.
The Series A
convertible preferred stock is subordinate to, and ranks junior to, all of the indebtedness of the Company. The Series A convertible
preferred stock ranks senior to the Company's common stock, and has a liquidation preference of 300% of its stated value
of $0.33 per share.
The
Series A convertible preferred shares feature certain redemption rights that are considered by the Company to be outside of its
control. Accordingly, the Series A convertible preferred stock is required to be classified as mezzanine equity, and is recorded
at its redemption value of $1,189,400.
F-
38
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 10 – Series A Convertible
Preferred Stock, continued
The
Series A convertible preferred stock is convertible into 3,604,425 shares of common stock at any time, at the option of the holder
at a conversion price of $0.33 per share. The conversion price is subject to adjustment for stock splits, stock dividends, recapitalizations,
dilutive issuances and other anti-dilution provisions, including circumstances in which the Company issues equity securities or
convertible instruments with an effective issuance price lower than the conversion price specified in the Series A convertible
preferred stock. Outstanding shares of Series A convertible preferred stock are also automatically convertible into shares of
our common stock, at the then applicable conversion price, upon the closing of a firm commitment underwritten public offering
of shares of our common stock yielding aggregate proceeds of not less than $20,000,000 or under certain other circumstances when
the trading volume and average trading prices of the stock attain certain specified levels.
The
Company determined that the conversion feature was a derivative since the conversion price was not fixed. The Company evaluated
the convertible preferred stock and determined that the host convertible preferred stock instrument had more equity-like characteristics,
since even after considering all conditional redemption features, it was deemed unlikely that its holders could or would expect
to redeem the instrument for cash. As a result, the Company accounted for the conversion option as an embedded conversion feature.
The conversion option did not have any intrinsic value.
In connection
with the private placement, the Company entered into a registration rights agreement with the investors, pursuant to which the
Company agreed to pay liquidated damages to each investor if the Company failed to file a registration statement within 90 days
of the closing date, and if the registration statement is not declared effective with 180 days of the closing date. Under the
registration rights agreement, the Company would be obligated to pay each investor damages equal to 1% of each investor's
purchase price for each 30 day period for each of the failed requirements, provided that such damages will be capped at 10% of
each investor's total purchase price.
As of September
30, 2011, the Company has not yet filed a registration statement. Accordingly, Company has recorded $47,576 and $11,894 in liquidated
damages related to the registration rights for the nine months ended September 30, 2011 and for the period from May 4, 2010 (inception)
to September 30, 2010, respectively. The Maximum damages allowed under the registration rights agreement of $118,940 have been
accrued through September 30, 2011.
Note 11 - Stockholders'
Equity
Common
Stock
The Company
is currently authorized to issue up to 50,000,000 shares of common stock, par value $0.0001 per share. There are 10,050,000 shares
issued and outstanding as of September 30, 2011.
Note 12 – Stock-Based Compensation
On November
4, 2010, the Company granted an option for the purchase for 450,000 shares of its common stock to an officer, in connection with
the execution of his employment agreement. The option has a 10 year term, and vests ratably on the first three anniversaries of
the date of grant. The option has a grant date fair value of $127,027 utilizing the Black-Scholes option pricing model with the
following assumptions used: expected life of 6.5 years, volatility of 111%, dividends of 0%, and a risk free interest rate of
2.53%.
F-
39
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 12 – Stock-Based
Compensation, continued
On December
20, 2010, the Company granted an option for the purchase of 15,000 shares of its common stock to an employee of the Company. The
option has a 10 year term, and vests ratably on the first three anniversaries of the date of grant. In the aggregate, the option
has a grant date fair value of $4,254 utilizing the Black-Sholes option pricing model with the following assumptions used: expected
life of 6.5 years, volatility 111%, dividends of 0%, and a risk free interest rate of 3.36%. This option was forfeited during
the nine months ended September 30, 2011, in connection with the termination of the employee.
The
expected life of stock options granted was calculated using the simplified method set out in the SEC Staff accounting Bulletin
No. 110, which defines the expected life as the average of the contractual term and the vesting period.
Stock
based compensation related to employee stock options was $34,472 and $0 for the nine months ended September 30, 2011 and for the
period from May 4, 2010 (inception) to September 30, 2010, respectively. As of September 30, 2011, the unamortized value of options
held by employees was $88,213. The unamortized portion will be expensed over a period of 2.1 years.
The
following table is a summary of the status of the Company's stock options for the nine months ended September 30, 2011.
Number of Options
Weighted average exercise
price
Weighted average remaining contractual life
Unamortized
value of options
Options outstanding at January 1, 2011
465,000
$
0.33
9.8
                                                       years
$
126,938
Granted
-
Exercised
-
Forfeited
15,000
Options outstanding at September 30, 2011
450,000
$
0.33
9.1
                                                                   years
$
88,213
Exercisable at September 30, 2011
-
Note 13 – Subsequent Events
10% Convertible Promissory
Notes
On
October 7, 2011 the Company received proceeds of $100,000 from Navesink Capital Advisors LLC ("Navesink"),
a consultant to the Company in exchange for a 10% Convertible Promissory Note due October 6, 2012. In connection with the
issuance of the 10% Convertible Promissory Note, Navesink was awarded a 10% Note Warrant to purchase up to 125,000 shares
of the Company's common stock.
F-
40
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 13 – Subsequent Events,
continued
Partial Redemption of Series
A Convertible Preferred Stock
On November 30,
2011, for $25,000, the Company redeemed 75,758 shares of its Series A convertible preferred stock.
Reverse Merger
On
January 17, 2012, the "Closing Date", the Company was merged into Dynastar Acquisition Corp. ("Acquisition Corp"),
a wholly owned subsidiary of Dynastar Holdings, Inc., a public company ("Dynastar Holdings"), pursuant to a merger
agreement of the same date (the "Merger Agreement", with Dynastar remaining as the surviving entity (the "Merger").
As a result of the Merger, Dynastar became a public company.
Immediately
after giving effect to the Merger and the related transactions, there were issued and outstanding securities of the Company on
the Closing Date, explained as follows:
Prior
to the closing of the Merger, holders of the Series A Convertible Preferred Stock agreed (i) that their shares would automatically
convert into shares of Dynastar common stock immediately prior to, and conditional upon, the closing of the Merger at the anti-dilution
adjusted conversion price of $0.20 per share, rather than at the original conversion price of $0.33 per share, and (ii) to waive
certain rights they may have had as preferred stockholders. On the Closing Date, the remaining outstanding shares of the Series
A Convertible Preferred Stock were converted into 5,822,000 shares of Dynastar common stock.
As
a result of the Merger, each share of Dynastar common stock outstanding was cancelled and converted into the right to receive
one (1) share of Dynastar Holdings common stock. On the Closing Date, the stockholders of Dynastar surrendered all of the issued
and outstanding shares of Dynastar's capital stock, including the converted shares of the Series A Convertible Preferred
Stock, and received in exchange an aggregate of 15,872,000 shares of the common stock of Dynastar Holdings.
On
October 6, 2011, Dynastar purchased an aggregate of 271,400,076 shares of Dynastar Holdings' common stock from the previous
owner for a cash consideration of $100,000. In connection with the Merger, the Company surrendered those shares for cancellation.
The pre-merger closing stockholders of Dynastar Holdings retained 16,103,541 shares of their common stock.
Prior
to the closing of the Merger, holders of the 10% Convertible Promissory Notes agreed (i) that their notes would automatically
convert into shares of the Dynastar Holdings common stock upon the closing of the Merger at the anti-dilution adjusted conversion
price of $0.20 per share, rather than at the original conversion price of $0.40 per share, (ii) that the warrants issued in connection
therewith, (the "Dynastar Warrants" (defined below) would automatically convert upon the closing of the Merger into
warrants of Dynastar Holdings and (iii) to waive certain rights they may have had under the terms of the Dynastar Warrants.
On
the Closing Date, the 10% Convertible Promissory Notes were converted, as to their outstanding principal amount, into an aggregate
of 5,724,925 shares of Dynastar Holdings common stock and as to their accrued interest amount, into an aggregate of 258,781 shares
of Dynastar Holdings common stock and the Dynastar Warrants were exchanged into Dynastar Holdings warrants to purchase an aggregate
of 2,862,463 shares of its common stock;
F-
41
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 13 – Subsequent
Events, continued
Reverse Merger, continued
The
Merger was accounted for as a "reverse merger," and Dynastar is deemed to be the acquirer in the reverse merger for
accounting purposes. Consequently, the assets and liabilities and the historical operations of the Company that will be reflected
in the financial statements prior to the Merger will be those of Dynastar, and the consolidated financial statements of the Company
after completion of the Merger will include the assets and liabilities of Dynastar, historical operations of Dynastar and operations
of Dynastar from the Closing Date of the Merger.
Consulting Agreement
Effective upon the closing of the Merger, the Company
entered into an agreement with Navesink pursuant to which Navesink agreed to provide certain professional consulting services
relating to business development and corporate finance. This agreement has a term of six months. As consideration under this agreement,
the Company agreed to issue to Navesink a five year warrant exercisable for two million (2,000,000) shares of its common stock
at an exercise price of $0.20 per share. Shares underlying these warrants are entitled to "piggyback" registration
rights at the Company's discretion. Prior to the merger Closing Date, Navesink assigned to certain third parties its right
to receive warrants exercisable for one million five hundred thousand (1,500,000) shares.
Stock Option Grants
In
connection with the Merger, the Company's Chief Executive Officer received an option exercisable for 1,000,000 shares of
Dynastar Holdings' common stock, with an exercise price of $0.22 to qualify as incentive stock options under the Internal
Revenue Code requirements for 10% stockholders, vesting in three equal annual installments beginning on the first anniversary
of the Closing Date and a term of 10 years. In addition, in connection with the Merger, the Company's Chief Financial Officer,
exchanged an option exercisable for 450,000 Dynastar shares of common stock for an option exercisable for 450,000 shares of Dynastar
Holdings common stock of which 150,000 shares were fully vested as of the Closing Date and the remaining 300,000 shares will vest
in two equal annual installments on November 4, 2012 and November 4, 2013 and received an additional option exercisable for 500,000
shares of Dynastar Holdings common stock, vesting in three equal annual installments beginning on the first anniversary of the
Closing Date, each with an exercise price of $0.20, and a term of ten years. The Company's Chief Executive Officer received
an option exercisable for 1,000,000 shares of Dynastar Holdings' common stock, with an exercise price of $0.22 to qualify
as incentive stock options under the Internal Revenue Code requirements for 10% stockholders, vesting in three equal annual installments
beginning on the first anniversary of the Closing Date and a term of 10 years.
Private Placement
Just
prior to the consummation of the Merger, Dynastar Holdings initiated a private placement offering pursuant to Regulation D and/or
Regulation S under the Securities Act (the "Offering") for a maximum of $2,000,000 (the "Maximum Offering")
through the sale of up to 10,000,000 Units (as defined below) of Dynastar Holdings's securities, at an offering price of
$0.20 per Unit (the "Offering Price"), with each Unit comprised of one (1) share of Dynastar Holdings's common
stock and a warrant to purchase one-half of one (1/2) share of common stock at an exercise price of $0.80 per whole share for
five (5) years (the "Investor Warrants"). Each share of common stock is entitled to one vote per share. Dynastar Holdings
may sell up to an additional 2,500,000 Units for $500,000 (the "Over-Allotment Option") in the event the Offering
is oversubscribed. Upon the consummation of the Merger, Dynastar became the beneficiary of the net funds which will be raised
in this private placement offering.
On
the Closing Date, an investor in the Offering purchased 125,000 units for total cash consideration of $25,000.  The
Offering for the remaining 9,875,000 units will continue after the closing of the Merger.
Dynastar
Holdings paid the placement agent in the Offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from
investors in the offering. In addition, the placement agent received five-year warrants to purchase a number of shares of our
common stock equal to five (5%) of the units sold to investors in the Offering. As a result of the foregoing arrangement, at the
initial closing of the Offering, the placement agent was paid commissions of $2,500 and was issued broker warrants to purchase
6,250 shares of Dynastar Holdings common stock at an exercise price of $0.20 per share.
F-
42
DYNASTAR VENTURES,
INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND
FOR THE PERIOD
FROM MAY 4, 2010 (INCEPTION) THROUGH SEPTEMBER 30, 2010
Note 13 – Subsequent
Events, continued
Investor
Relations Agreement
On
December 20, 2011, Dynastar entered into a consulting agreement with Undiscovered Equities, Inc. ("UEI") pursuant
to which UEI will provide certain public relations and financial communications services to Dynastar and to Dynastar Holdings.
Under the agreement, Dynastar has agree to pay a cash fee of up to $350,000 payable as follows: (i) $200,000 upon Dynastar Holdings
raising a minimum of $500,000 in the Offering; an additional $100,000 upon Dynastar Holdings raising a minimum of $1,000,000 in
the Offering; and an additional $50,000 upon Dynastar Holdings raising a minimum of $1,500,000 in the Offering. Additionally,
subject to Dynastar Holdings raising a minimum of $1,500,000 in the Offering, Dynastar Holdings will issue to UEI, 1,000,000 restricted
shares of Dynastar Holdings common stock (subject to adjustment in the event of any stock split or similar event). This agreement
with UEI will terminate on December 31, 2012 unless terminated earlier in accordance with its provisions.
F-
43
REPORT
OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member
of
My Affordable
Energy, LLC
We
have audited the accompanying balance sheets of My Affordable Energy, LLC (the "Company") as of December 31, 2010
and 2009, and the related statements of operations, member's deficit and cash flows for the years then ended. These financial
statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of My
Affordable Energy, LLC as of December 31, 2010 and 2009, and the results of its operations, and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United States of America.
As
discussed in Note 6 to the financial statements, on February 15, 2011, substantially all of the assets of the Company were acquired
by Dynastar Energy, LLC, a wholly owned subsidiary of Dynastar Ventures, Inc., pursuant to a certain asset purchase agreement
dated December 14, 2010.
/s/
    Marcum LLP
New
    York, New York
January
    5, 2012
F-
44
MY AFFORDABLE ENERGY, LLC
BALANCE SHEETS
December 31,
2010
2009
ASSETS
Current assets:
Cash
$
22,365
$
65,871
Accounts receivable
82,282
170,270
Total current assets
104,647
236,141
Property and equipment, net
57,889
91,978
Total assets
$
162,536
$
328,119
LIABILITIES AND MEMBER'S DEFICIT
Current liabilities:
Accounts payable
$
3,345
$
63,757
Accrued commissions
49,003
55,334
Notes payable - related party
76,188
76,188
Other accrued liabilities
1,803
4,836
Total current liabilities
130,339
200,115
Note payable - related party, non current portion
131,426
207,614
Other liabilities
1,910
153
Total liabilities
263,675
407,882
Commitments
Member's Deficit:
Member's interests - 100 units issued and outstanding
1,000
1,000
Contributed capital due from member
(1,000
)
(1,000
)
Accumulated losses
(101,139
)
(79,763
)
Total member's deficit
(101,139
)
(79,763
)
Total liabilities and member's deficit
$
162,536
$
328,119
See notes to these financial statements
F-
45
MY AFFORDABLE ENERGY, LLC
STATEMENTS OF OPERATIONS
For the Years Ended December 31,
2010
2009
Revenue
$
1,544,865
$
1,392,711
Cost of revenues
862,801
761,282
Gross profit
682,064
631,429
Operating expenses
703,440
514,199
Net (loss) income
$
(21,376
)
$
117,230
See notes to these financial statements
F-
46
MY AFFORDABLE ENERGY, LLC
STATEMENTS OF MEMBER'S DEFICIT
For the Years Ended December 31, 2010 and
2009
Membership Interests
Capital Contribution
Accumulated
Units
Amount
Due from Member
Losses
Total
Balance, January 1, 2009
100
$
1,000
$
(1,000
)
$
(196,993
)
$
(196,993
)
Net income
-
-
-
117,230
117,230
Balance, December 31, 2009
100
1,000
(1,000
)
(79,763
)
(79,763
)
Net loss
-
-
-
(21,376
)
(21,376
)
Balance, December 31, 2010
100
$
1,000
$
(1,000
)
$
(101,139
)
$
(101,139
)
See notes to these financial statements
F-
47
MY AFFORDABLE ENERGY, LLC
STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
2010
2009
Cash flows from operating activities:
Net (loss) income
$
(21,376
)
$
117,230
Adjustments to reconcile net (loss) income to net cash  provided by operating activities:
Depreciation and amortization expense
34,089
4,307
Changes in operating assets and liabilities:
Accounts receivable
87,988
(164,777
)
Accounts payable
(60,412
)
63,757
Accrued commissions
(6,331
)
50,341
Other liabilities
(1,276
)
(2,324
)
Total adjustments
54,058
(48,696
)
Net cash provided by operating activities
32,682
68,534
Cash flows from investing activities:
Purchases of property and equipment
-
(83,490
)
Net cash used in investing activities
-
(83,490
)
Cash flows from financing activities
Proceeds from note payable
-
68,474
Repayment of note payable
(76,188
)
(19,047
)
Net cash (used in) provided by financing activities
(76,188
)
49,427
Net (decrease) increase in cash and cash equivalents
(43,506
)
34,471
Cash and cash equivalents - beginning of year
65,871
31,400
Cash and cash equivalents - end of year
$
22,365
$
65,871
See notes to these financial statements
F-
48
MY AFFORDABLE
ENERGY, LLC
NOTES TO FINANCIAL
STATEMENTS
DECEMBER 31,
2010 AND 2009
Note 1 – Organization
Business Organization
My
Affordable Energy, LLC ("Affordable Energy" or the "Company") is a direct sales marketing company focused
on offering electrical energy to individuals, families and small businesses in Texas. The Company's services feature residential
and small business solutions offered through a network of independent energy consultants. The Company's solutions offer
customers a competitive alternative to the purchase of electricity from the incumbent electrical provider.
Affordable
Energy was formed on February 7, 2008, as a Texas limited liability company to engage in the retail marketing of electricity.
On
February 15, 2011, the business and certain assets of the Company were sold to Dynastar Energy, LLC, a wholly owned subsidiary
of Dynastar Ventures, Inc. Thereupon, the Company's existence was terminated (See Note 6).
Description
of Business
The
Company's business model applies a direct sales approach. The business strategy relies on a market sales force that compensates
independent business owners ("Consultants") not only for sales of the Company's services they generate personally,
but also for the sales of other Consultants whom they have introduced to the Company, creating a sales organization of Consultants
and a hierarchy of levels of compensation. The Company's energy services products are typically marketed directly to residential
and small business customers by means of referrals, national advertising, video promotions, conferences, the Internet, and word-of-mouth
marketing. Consultants become associated with the Company through an independent contractor relationship and receive remuneration
for selling energy services and for expanding their organization of people doing the same by promoting the Company's business
opportunity.
Note 2 - Summary
of Significant Accounting Policies
Basis of
Presentation
The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America ("U.S. GAAP").
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
F-
49
MY AFFORDABLE
ENERGY, LLC
NOTES TO FINANCIAL
STATEMENTS
DECEMBER 31,
2010 AND 2009
Note
2 - Summary of Significant Accounting Policies, continued
Concentration
of Credit Risk
Financial
instruments that subject the Company to concentration of credit risk consist primarily of accounts receivable. Amounts receivable
from Affordable Power account for 100% of the Company's accounts receivable at December 31, 2010 and 2009.
Cash
The
Company places its cash deposits and cash investments with financial institutions. At times, the Company's cash may be uninsured
or in deposit amounts that exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits.
Accounts
Receivable
Accounts
Receivable represent balances arising from revenues earned from Affordable Power. The Company has had no occurrences of credit
losses and has therefore determined that an allowance for doubtful accounts is not necessary for the periods presented. Management
believes that all receivables from Affordable Power are fully collectible.
Property
and Equipment
Property and
equipment is stated at cost and is being depreciated using the straight-line method over their estimated useful lives, generally
three to five years. Leasehold improvements are being amortized over the shorter of the useful life or the remaining lease term.
Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization of these
assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations. Expenditures
for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized.
Membership
Interests
The
Operating Agreement dated as of February 8, 2008 ("LLC Operation Agreement") governs the rights and privileges associated
with the Membership Interest held by its member, distributions to its member, management and oversight of its business and operations
and restrictions on transferability of membership interest.
Revenue
Recognition
The
Company recognizes revenue from commissions earned on the sale of energy services by its independent energy consultants, on behalf
of Affordable Power (See Note 6 – Related Party). The Company also receives a customer acquisition bounty ("CAB")
when it acquires new residential or commercial energy customers, as monthly fees based on customer retention. The Company recognizes
these revenues when Affordable Power, as the principal, receives payment for the electricity from the retail customer.
The
Company also recognizes revenues from its independent energy consultants, who pay a flat monthly fee entitling them to the use
of the Company's websites which facilitate their business operations. These revenues are earned and recognized in the month
that they are received.
F-
50
MY AFFORDABLE
ENERGY, LLC
NOTES TO FINANCIAL
STATEMENTS
DECEMBER 31,
2010 AND 2009
Note 2 - Summary
of Significant Accounting Policies, continued
Cost
of Sales
The
Company recognizes costs of sales for commissions and CABs earned by its independent energy consultants in the same month the
related revenue is recognized.
Advertising
Expense
The
Company expenses advertising costs as incurred. Advertising expense was $134,307 and $80,066 for the years ended December 31,
2010 and 2009, respectively.
Income
Taxes
The
Company is a limited liability company classified as a partnership entity for U.S. federal and state income tax purposes. The
Company is a pass-through entity for income tax purposes, and is not subject to income taxes. Rather, all items of taxable income
and deductions are passed through to its member. The federal tax status as a pass-through is based on its legal status as a partnership.
Accordingly, the partnership is not required to take any tax positions in order to qualify as a pass-through entity. The partnership
is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities, including franchise
tax returns in the state of Texas. Accordingly, these financial statements do no reflect a provision for income taxes and the
Company has no other tax positions which must be considered for disclosure. All of our tax years are open to examination.
For
all open tax years and for all major taxing jurisdictions, the Company has concluded that the partnership is a pass-through entity
and there are no uncertain tax positions that would require recognition in the financial statements.   If the partnership
were to incur an income tax liability in the future, interest on any income tax liability would be reported as interest expense
and penalties on any income tax liability would be reported as income taxes.  No interest expense or penalties have been
recognized as of or for the years ended December 31, 2010 and 2009.  The Company does not expect that its assessment regarding
unrecognized tax benefits will materially change over the next 12 months.  However, the Company's conclusions regarding
uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations
and interpretations thereof.
Recent
Accounting Pronouncements
The
Company does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a
material effect on the Company's financial statements.
F-
51
MY AFFORDABLE
ENERGY, LLC
NOTES TO FINANCIAL
STATEMENTS
DECEMBER 31,
2010 AND 2009
Note
3 - Property and Equipment
Property
and equipment consisted of the following at December 31, 2010 and 2009:
December
    31,
Estimated
Useful
        Life
2010
2009
Computer software
3.0 years
$
10,499
$
10,499
Furniture and fixtures
5.0 years
19,224
19,224
Office equipment
3.0 years
3,335
3,335
Leasehold improvements
2.5 years
63,227
63,227
Property and equipment
96,285
96,285
Less: accumulated depreciation and amortization
(38,396
)
(4,307
)
Property and equipment, net
$
57,889
$
91,978
Depreciation
and amortization expense for the years ended December 31, 2010 and 2009 was $34,089 and $4,307, respectively.
Note 4 - Note
Payable - Related Party
From
inception through September 30, 2009, the Company was financed primarily through cash advances made by and services paid or provided
by Affordable Power (See Note 6 – Related Party). Through September 30, 2009, these advances accumulated to a balance of
$304,753. On September 30, 2009 in connection with these advances, the Company and Affordable Power formalized the Company's
obligation and terms of repayment to Affordable Power through a note payable. The terms of the unsecured note payable provide
for 48 interest free monthly payments of $6,349. The balance of the note was $207,614 and $283,802 as of December 31, 2010 and
2009, respectively (See Note 6 – Related Party).
Future
obligations under the note are as follows:
For the year ended December 31,
Amount
2011
$
76,188
2012
76,188
2013
55,238
Total
$
207,614
F-
52
MY AFFORDABLE
ENERGY, LLC
NOTES TO FINANCIAL
STATEMENTS
DECEMBER 31,
2010 AND 2009
Note 5 - Commitments
On
November 6, 2009 the Company entered into an agreement to lease approximately 3,668 rentable square feet of office space in Houston,
Texas, effective on December 1, 2009. The lease expires on November 30, 2012. Prior to entering into the lease agreement, the
Company rented this space on a month-to-month basis.
Future
minimum lease payments under this lease are as follows:
For the year ended December 31,
Amount
2011
$
57,160
2012
55,479
Total
$
112,639
Rent
expense charged to operations amounted to $52,731 and $20,460 for the years ended December 31, 2010 and 2009, respectively.
The
terms of the Company' lease obligation provides for scheduled escalations in the monthly rent. Non-contingent rent increases
are amortized over the life of the lease on a straight line basis. Deferred rent of $1,910 and $153 represents the unamortized
rent adjustment amount at December 31, 2010 and 2009, respectively, and is reflected in other long-term obligations in the accompanying
balance sheets.
Note 6 –
Related Party
From
the date of the Company's formation through February 15, 2011, 100% of the Company's membership interest was owned
by Malik A. Kheraj who is a principal of Affordable Power LP ("Affordable Power"). Mr. Kheraj was the Company's
President, Secretary, Treasurer, Chief Executive Officer and Chief Financial Officer during such period.
From
the date of its formation, Affordable Energy has operated as an agent solely to Affordable Power for the sales and marketing of
electrical energy. In addition, the Company has a note payable to Affordable Power (see Note 4).
Note
7 - Subsequent Events
Sale
of Company
On
February 15, 2011, substantially all of the assets of the Company were acquired by Dynastar Ventures, Inc., pursuant to a certain
asset purchase agreement dated December 14, 2010. The aggregate purchase price for the Company's assets was $1,200,000,
payable (i) $175,000 in cash at closing, (ii) a promissory note for $125,000 due 120 days after closing on June 15, 2011, and
(iii) a promissory note for $900,000 due 275 days after closing on November 17, 2011. On June 14, the due date of the $125,000
promissory note was extended to September 15, 2011, in exchange for a note extension fee of $20,000. Both promissory notes bear
a stated interest rate of 10% per annum and automatically become due immediately when the stock of Dynastar Ventures, Inc. begins
trading on a nationally recognized exchange.
F-
53
MY AFFORDABLE
ENERGY, LLC
NOTES TO FINANCIAL
STATEMENTS
DECEMBER 31,
2010 AND 2009
Note 7 -
Subsequent Events, continued
The
Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based
upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required
adjustment or disclosure in the financial statements.
-
54
-
DYNASTAR HOLDINGS, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
Introduction to the Unaudited Pro Forma Condensed Combined Financial Statements
On January 17, 2012 (the "Closing
Date"), Dynastar Holdings, Inc. ("Dynastar Holdings") consummated a reverse merger with Dynastar Ventures, Inc.
("Dynastar"). Dynastar was formed on May 4, 2010 and became an operating company upon its acquisition of My Affordable
Energy, LLC ("Affordable Energy") on February 15, 2011. The core Affordable Energy business represented the operations
of Dynastar that became the operations of the Company after the reverse merger. In anticipation of the reverse merger, Dynastar
Holdings commenced a private offering to raise up to $2,000,000 ("Private Placement"). Concurrently with the closing
of the reverse merger, the Company completed an initial closing of this private placement in the amount of $25,000.
The following unaudited pro forma
condensed combined financial statements are derived from our historical combined financial statements and give effect to Dynastar's
acquisition of Affordable Energy, the reverse merger and the initial closing of the private placement. Further possible closings
under the private placement were not included within these pro forma condensed combined financial statements, since there is no
assurance of the amount of funds that might be raised in the private placement in any subsequent closings.
Dynastar
The unaudited pro forma condensed
combined statements of operations for the nine months ended September 30, 2011 and 2010 and for the year ended December 31, 2010
were prepared under the assumption that Dynastar's acquisition of Affordable Energy was consummated on January 1, 2010.
Dynastar's acquisition of
Affordable Energy was completed on February 15, 2011, pursuant to the terms of a certain Asset Purchase Agreement dated December
14, 2010, and from February 15, 2011 its results are reflected in the actual results through September 30, 2011.
Merger with Dynastar
Dynastar Holdings, Dynastar, and
Dynastar Acquisition Corp. entered into a merger agreement on January 17, 2012, and consummated the reverse merger on the same
day. As a result of the merger, Dynastar Holdings became the legal acquirer of the business of Dynastar and Dynastar Holdings will
continue the existing business operations of Dynastar as a wholly owned subsidiary of Dynastar Holdings. Dynastar will remain as
the surviving business. The term, "the Company" refers to Dynastar Holdings and subsidiaries after the effect of the
reverse merger. Dynastar is considered the acquirer for accounting purposes because the management of Dynastar was in control of
the Company after the merger. As a result of the merger, the stockholders of Dynastar received one share of Dynastar Holdings common
stock in exchange for each share of Dynastar stock owned prior to the merger.
Upon the closing of the merger:
(i)
the stockholders of Dynastar surrendered all of the issued and outstanding shares
of Dynastar's capital stock (after the remaining outstanding shares of the Series A Convertible Preferred Stock were converted
into 5,822,000 shares of Dynastar common stock, and received, in exchange for such shares, an aggregate of 15,872,000 shares of
common stock of Dynastar Holdings;
(ii)
Dynastar Holdings' pre merger stockholders retained 16,103,541 shares of the
common stock of Dynastar Holdings;
(iii)
certain Dynastar notes payable (the "Bridge Notes") were converted, as
to their outstanding principal amount of $1,144,985 and interest accrued thereon through the Closing Date of $51,756, into 5,724,925
and 258,781 shares of common stock of Dynastar Holdings, respectively. There were outstanding prior to the merger Dynastar warrants
for the purchase of 1,431,231 shares of Dynastar common stock at an exercise price of $0.80 per share (the "Bridge Note
Warrants") which were converted into warrants of Dynastar Holdings to purchase an aggregate of 2,862,462 shares of Dynastar
Holdings common stock at an exercise price of $0.80 per share;
(iv)
Dynastar surrendered to Dynastar Holdings for cancellation the 271,400,076 shares
of Dynastar Holdings common stock which Dynastar had purchased on October 6, 2011 at a cost of $100,000;
(v)
Robert
                                                                                     R. Mohr, Chief Financial Officer of Dynastar
                                                                                     and Chief Financial Officer of the Company,
                                                                                     exchanged an option exercisable for 450,000
                                                                                     Dynastar shares of common stock at an exercise
                                                                                     price of $0.80 per share for an option under
                                                                                     the Dynastar Holdings equity incentive plan
                                                                                     (the "2011 Plan") exercisable
                                                                                     for 450,000 shares of Dynastar Holdings common
                                                                                     stock at an exercise price of $0.20 per share;
                                                                                     further, Mr. Mohr was granted an option under
                                                                                     the 2011 Plan exercisable for 500,000 shares
                                                                                     of common stock at an exercise price of $0.20
                                                                                     per share; John S. Henderson IV, Chief Executive
                                                                                     Officer of Dynastar and Chief Executive Officer
                                                                                     of the Company received an option exercisable
                                                                                     for 1,000,000 shares of Dynastar Holdings
                                                                                     common stock under the 2011 Plan at an exercise
                                                                                     price of $0.20 per share;  one investor purchased 125,000
units in the offering at $0.20 per unit, of which each unit included one share of Dynastar Holdings common stock and one half
of a warrant to purchase a share of Dynsatar Holdings common stock at an exercise price of $0.80 (the "Units"). In
connection with this initial closing of the Private Placement, the
F-
55
DYNASTAR HOLDINGS,
INC.
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
Introduction to the Unaudited Pro Forma Condensed
Combined Financial Statements, continued
(vi)
placement agent received a cash fee of $2,500 and a warrant to purchase up to 6,250
shares of Dynastar Holdings common stock;
(vii)
Dynastar and Dynastar Holdings entered into a six month agreement with an advisor
to provide business development and corporate finance services. As compensation for these services to be rendered after the merger,
Dynastar Holdings issued to the advisor a warrant for the purchase of 2,000,000 shares of Dynastar Holdings common stock with
terms that included an exercise price of $0.20 per share. The entire warrant was fully vested upon issuance .
The parties have agreed to take
all actions necessary to ensure the merger is treated as a "plan of reorganization" under Section 368(a) of the Internal
Revenue Code of 1986, as amended.
The unaudited pro forma condensed
combined statements of operations for the nine months ended September 30, 2011 and the year ended December 31, 2010 were prepared
under the assumption that the reverse merger with Dynastar and the first closing of the Private Placement were both consummated
on January 1, 2010.
In the preparation of the pro
forma condensed combined balance sheet as of September 30, 2011, it was assumed that the reverse merger with Dynastar and the first
closing of the Private Placement were both consummated on September 30, 2011.
The unaudited pro forma condensed
combined financial statements are based upon information and assumptions available at the time of release of this document. The
pro forma condensed combined financial statements do not purport to represent, and are not necessarily indicative of, what our
actual financial position and results of operations would have been had the various events occurred on the dates indicated.
These unaudited pro forma condensed
combined financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read
in conjunction with, the (i) the Dynastar Holdings audited historical financial statements and the notes thereto for the years
ended December 31, 2010 and 2009 and the Dynastar Holdings unaudited historical condensed financial statements and the notes thereto
for the nine months ended September 30, 2011 and 2010, previously filed pursuant to the Securities and Exchange Act of 1934 and
incorporated herein by reference, (ii) the Dynastar audited financial statements and the notes thereto for the period from May
4, 2011 (Inception) through December 31, 2010 and the Dynastar condensed consolidated financial statements and the notes thereto
for the nine months ended September 30, 2011 and 2010, included within this Current Report starting on page F-1; and the Affordable
Energy, Inc. audited financial statements and the notes thereto for the years ended December 31, 2010 and 2009, included within
this Current Report starting on page F-44.
F-
56
DYNASTAR VENTURES, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET
SEPTEMBER 30, 2011
Dynastar
Dynastar Ventures, Inc.
Pro Forma Reverse Merger Adjustments
Pro forma
Holdings, Inc.
and Subsidiary
Debit
Note
Credit
Note
As Adjusted
Note 1
Note 2
ASSETS
Current assets:
$
100,000
16
25,000
14
4,092
9
100,000
6
10,000
5
Cash and cash equivalents
$
4,092
$
181,462
25,000
3
2,500
4
$
168,962
Accounts receivable
-
107,551
107,551
Prepaid expenses and other current assets
1,055
4,776
321,444
19
1,055
9
326,220
Total current assets
5,147
293,789
446,444
142,647
602,733
Property and equipment, net
-
66,425
66,425
Intangible assets, net
-
95,000
95,000
Goodwill
-
1,009,479
1,009,479
Other assets
-
8,400
8,400
Total assets
$
5,147
$
1,473,093
$
446,444
$
142,647
$
1,782,037
LIABILITIES, REDEEMABLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
-
$
65,233
$
65,233
Accrued registration rights damages
-
118,940
118,940
10
-
Accrued payroll and related benefits
-
38,217
38,217
Accrued independent energy consultant commissions
-
34,891
34,891
Accrued expenses and other current liabilities
-
130,207
16,965
7
-
113,242
64,251
6
Notes payable, net of discount
-
1,615,102
1,144,985
7
354,194
12
888,562
Total current liabilities
-
2,002,590
1,280,890
418,445
1,140,145
1,005
18
7,919
17
Derivative liabilities
-
366,788
39,687
13
35,749
6
371,774
Other liabilities
-
950
950
Total liabilities
-
2,370,328
1,320,577
463,118
1,512,869
Redeemable preferred stock, $0.0001 par value:
1,164,400
15
Series A Convertible Preferred stock
-
1,189,400
25,000
14
-
Commitments
Stockholders' equity:
5,822
15
10,050
8
271,400
16
5,810
7
Common stock, $0.001 par value
287,504
1,005
1,005
8
125
3
37,911
1,005
18
7,919
17
171,400
16
176,808
11
1,617,281
15
5,147
9
321,444
19
9,045
8
118,940
10
10,000
5
1,156,140
7
Additional paid-in capital
(105,549
)
95,783
2,500
4
24,875
3
3,187,890
458,703
15
39,687
13
Accumulated deficit
(176,808
)
(2,183,423
)
354,194
12
176,808
11
(2,956,633
)
Total stockholders' equity
5,147
(2,086,635
)
1,297,726
3,648,382
269,168
Total liabilities, redeemable preferred stock and stockholders' equity
$
5,147
$
1,473,093
$
3,807,703
$
4,111,500
$
1,782,037
See footnotes to unaudited pro forma condensed
combined financial statements
F-
57
DYNASTAR HOLDINGS, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2011
Pro Forma Combination of Dynastar Ventures, Inc. with My Affordable Energy, LLC
Dynastar Ventures,
Inc.
Acquisition of My
Affordable Energy,
LLC
Pro forma as
Pro forma as
Dynastar
Corporation
Business Unit
Pro Forma Adjustments
adjusted before
Pro Forma Reverse Merger Adjustments
adjusted after
Holdings, Inc.
Historical
Historical
Debit
Note
Credit
Note
reverse merger
Debit
Note
Credit
Note
reverse merger
Note A
Note B
Note C
(a)
(b)
(c)
(d)
(d)
(b) + (c) + (d) = (e)
(f)
(f)
(a) + (e) + (f)
Revenues
$
-
$
849,367
$
109,223
$
958,590
$
958,590
Cost of revenues
-
328,462
68,349
396,811
396,811
Gross profit
-
520,905
40,874
561,779
561,779
Operating expenses:
Liquidated damages under registration rights agreement
-
47,576
-
47,576
47,576
Compensation and related expenses
-
580,559
36,828
617,387
27,440
G
644,827
Consulting expenses
33,987
206,716
5,000
211,716
245,703
Acquisition costs
-
455,752
-
455,752
455,752
Amortization of intangibles
-
25,000
-
5,000
D
30,000
30,000
General and administrative expenses
4,565
199,612
22,454
222,066
226,631
Total operating expenses
38,552
1,515,215
64,282
1,584,497
1,650,489
Operating income
(38,552
)
(994,310
)
(23,408
)
(1,022,718
)
(1,088,710
)
Other income (expense), net:
Change in fair value of derivative liabilities
-
6,780
-
-
-
6,780
6,780
Interest income
-
3,132
-
-
-
3,132
3,132
Interest expense
-
(65,166
)
-
1,563
E
-
(66,729
)
20,166
H
(46,563
)
Amortization of debt discount
-
(108,456
)
-
10,440
F
-
(118,896
)
55,123
I
(63,773
)
Other income (expense), net
-
(163,710
)
-
(175,713
)
(100,424
)
Net income
$
(38,552
)
$
(1,158,020
)
$
(23,408
)
$
(1,198,431
)
$
(1,189,134
)
Basic and diluted net loss per share
$
(0.00
)
$
(0.03
)
(271,400,076
)
J
5,822,000
K
(1,293,600
)
L
125,000
M
Weighted average number of common shares outstanding - basic and diluted
287,503,617
10,050,000
5,809,750
N
36,616,691
See footnotes to unaudited pro forma condensed
combined financial statements
F-
58
DYNASTAR HOLDINGS, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2010
Acquisition of My
Affordable Energy, LLC
Dynastar
Business Unit
Pro Forma Adjustments
Pro forma
Ventures, Inc.
Historical
Debit
Note
Credit
Note
As Adjusted
For the Period from
May 4, 2010 through
September 30, 2010
For the Nine Months
Ended September 30, 2010
Note O
Note P
Revenues
$
-
$
1,213,079
$
1,213,079
Cost of revenues
-
761,404
761,404
Gross profit
-
451,675
451,675
Operating expenses:
Liquidated damages under registration rights agreement
11,894
-
11,894
Compensation and related expenses
173,411
161,738
335,149
Consulting expenses
74,290
56,643
130,933
Acquisition costs
-
-
-
Amortization of intangibles
-
-
30,000
Q
30,000
General and administrative expenses
29,257
175,580
204,837
Total operating expenses
288,852
393,961
712,813
Operating income
(288,852
)
57,714
(261,138
)
Other income (expense), net:
Change in fair value of derivative liabilities
-
-
-
Interest income
48,362
-
48,362
Interest expense
-
-
9,375
R
(9,375
)
Amortization of debt discount
-
-
62,642
S
(62,642
)
Other income (expense), net
48,362
-
(23,655
)
Net income
$
(240,490
)
$
57,714
$
(284,793
)
See footnotes to unaudited pro forma condensed
combined financial statements
F-
59
DYNASTAR HOLDINGS, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
YEAR ENDED DECEMBER 31, 2010
Pro Forma Combination of Dynastar Ventures, Inc. with My Affordable Energy, LLC
Dynastar Ventures, Inc.
Acquisition of My
Affordable Energy, LLC
Pro forma as
Pro forma as
Dynastar
Corporation
Business Unit
Pro Forma Adjustments
adjusted before
Pro Forma Reverse Merger Adjustments
adjusted after
Holdings, Inc.
Historical
Historical
Debit
Note
Credit
Note
reverse merger
Debit
Note
Credit
Note
reverse merger
For the Year Ended
December 31, 2010
For the Period from May 4,
2010 through December 31,
2010
For the Year Ended
December 31, 2010
Note T
Note U
Note V
(a)
(b)
(c)
(d)
(d)
(b) + (c) + (d) = (e)
(f)
(f)
(a) + (e) + (f)
Revenues
$
-
$
-
$
1,544,865
$
1,544,865
$
1,544,865
Cost of revenues
-
-
862,801
862,801
862,801
Gross profit
-
-
682,064
682,064
682,064
Operating expenses:
Liquidated damages under registration rights agreement
-
71,364
-
71,364
71,364
Compensation and related expenses
-
349,388
-
349,388
34,375
Z
383,763
Consulting expenses
17,763
102,820
-
102,820
120,583
Acquisition costs
-
-
-
-
-
Amortization of intangibles
-
-
-
-
-
General and administrative expenses
4,732
83,767
703,440
40,000
W
827,207
831,939
Total operating expenses
22,495
607,339
703,440
1,350,779
1,407,649
Operating income
(22,495
)
(607,339
)
(21,376
)
(668,715
)
(725,585)
Other income (expense), net:
Change in fair value of derivative liabilities
-
-
-
-
-
Interest income
-
48,436
-
48,436
48,436
Interest expense
-
-
-
12,500
X
(12,500
)
(12,500)
Amortization of debt discount
-
-
-
83,523
Y
(83,523
)
(83,523)
Other income (expense), net
-
48,436
-
(47,587
)
(47,587)
Net income
$
(22,495
)
$
(558,903
)
$
(21,376
)
$
(716,302
)
$
(773,172)
Basic and diluted net loss per share
$
(0.00
)
$
(0.02)
(271,400,076
)
AA
5,822,000
BB
(1,293,000
)
CC
125,000
DD
Weighted average number of common shares outstanding - basic and diluted
287,503,617
10,050,000
5,890,750
EE
36,698,291
See footnotes to unaudited pro forma condensed
combined financial statements
F-
60
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
I.
Background
Dynastar's
Acquisition of Affordable Energy
On February
15, 2011, pursuant to a certain asset purchase agreement dated December 14, 2010, Dynastar completed the acquisition of the assets
of Affordable Energy. The aggregate purchase price for Affordable Energy's assets was $1,200,000, payable (i) $175,000 in
cash, including the application of a $100,000 deposit, (ii) the issuance of a promissory note for $125,000 with a stated interest
rate of 10% per annum due on June 15, 2011 (which was extended to and paid on September 15, 2011 in exchange for an extension fee
of $45,000, of which $10,000 was paid on June 15, 2011; $15,000 was paid on July 15, 2011 and $20,000 was paid on August 15, 2011),
and (iii) a non-interest bearing promissory note with a face value of $900,000 due on November 12, 2011 (which was extended to
February 15, 2012 under the terms of the agreement in exchange for a 1.5% increase in the discount factor for each 30 day period
that the note is extended past November 12, 2011), or thirty days after the day on which the Company's common stock is traded.
The non-interest bearing note was discounted at a market interest rate of 10% per annum, and recorded at its net present value
of $835,229, reflecting a discount of $64,771.
The terms of the $900,000 promissory note
further provide that if Dynastar's common stock, or the common stock of its successor in a merger, is publicly traded on
the due date, as extended, then repayment shall be made by the delivery of a sufficient number of shares of the common stock of
Dynastar Holdings equal in value to $900,000, where such value is determined on a per share basis, as an amount equal to eighty
and one half percent (80.5%), as adjusted, for a conversion on or after February 10, 2012, of the average closing price of the
Company's common stock during the 22 days of the public trading of the stock (the "Discount Factor"). In the
event that the Company's common stock is not publicly traded by February 15, 2012, then the entire amount of the $900,000
Acquisition Note shall be due and payable by such date.
Merger
with Dynastar
The Company
consummated a reverse merger with Dynastar on January 17, 2012. After the merger, Dynastar became the surviving company for accounting
purposes.
Private
Placement
The Company consummated
an initial closing of the private placement of 125,000 units at $0.20 per unit. Each unit contains one share of common stock and
one half of a warrant to purchase common stock at an exercise price of $0.80 for five years. In addition, Dynastar Holdings paid
the placement agent in the Offering, Gottbetter Capital Markets, LLC, a commission of 10% of the funds raised from investors in
the offering. In addition, the placement agent received five-year warrants to purchase a number of shares of our common stock equal
to five (5%) of the units sold to investors in the Offering. As a result of the foregoing arrangement, at the initial closing of
the Offering, the placement agent was paid commissions of $2,500 and was issued broker warrants to purchase 6,250 shares of Dynastar
Holdings common stock at an exercise price of $0.20 per share.
F-
61
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.
Pro Forma Adjustments
The following pro forma adjustments give effect to these
asset dispositions:
Pro Forma Condensed Combined
Balance Sheet – as of September 30, 2011
Note 1
Derived from the
Dynastar Holdings' unaudited consolidated financial statements as of September 30, 2011, as filed with the Securities and
Exchange Commission ("SEC") on November 14, 2011.
Note 2
Derived from the unaudited
financial statements of Dynastar as of September 30, 2011.
Pro Forma Adjustments
Note 3
To record the private
placement of 125,000 units at an offering price of $0.20 per unit, each unit consisting of one share of the Dynastar Holdings common
stock at a par value of $0.001 per shares and a warrant to purchase one-half of one share of the Dynastar Holdings common stock
at an exercise price of $0.80 per whole share for five years.
Debit
Credit
Cash
$
25,000
Common Stock
$
125
Additional paid-in capital
24,875
Note 4
To record the fees
paid to the broker in connection with the first closing of the Private Placement. Broker fee is computed based upon 10% of the
gross cash proceeds received.
Debit
Credit
Additional paid-in capital
$
2,500
Cash
$
2,500
Note 5
To record the payment
of professional fees in connection with the first closing of the Private Placement.
Debit
Credit
Additional paid-in capital
$
10,000
Cash
$
10,000
F-
62
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.
Pro Forma Adjustments, continued
Note 6
To record the issuance
of a Bridge Note on October 7, 2011 with a face value of $100,000 and a warrant to purchase 125,000 shares of Dynastar common stock.
The embedded conversion option featured in the this note cannot be exercised unless and until the Company becomes a public company
and its common stock is able to trade for 22 consecutive days. Accordingly, it was determined based upon authoritative guidance
that the embedded conversion option is deemed to be a contingent conversion rather than an active conversion option and that such
conversion option did not require accounting recognition upon the issuance of such note. It was further determined, based upon
authoritative guidance, that the warrant should be valued separately. Using the Black-Scholes model, the fair value inputs included:
exercise price of $0.80 per share, fair value per share of $0.40, a term of 5 years, volatility of 111% and a discount rate of
3.5%, it was determined that there would be a discount of $35, 749 representing the value attributable to the value of the free-standing
derivative liability.
Debit
Credit
Cash
$
100,000
Notes payable, net of discount
$
64,251
Derivative liability
35,749
Note 7
To
record the conversion of $1,144,985 of the Bridge Notes, representing $1,044,985 issued through September 30, 2011 and $100,000
issued on October 7, 2011and $16,965 in accrued and unpaid interest through September 30, 2011, at a conversion price of $0.20
per share, converted into 5,809,750 shares of Dynastar Holdings common stock.
Debit
Credit
Notes payable
$
1,144,985
Accrued expenses and other current liabilities
16,965
Common Stock
$
5,810
Additional paid-in capital
1,156,140
Note 8
To
record the exchange of all Dynastar outstanding common stock, par value $0.0001 per share, into 10,050,000 shares of Dynastar
Holdings common stock, par value $0.001 per share.
Debit
Credit
Common Stock (Dynastar)
$
1,005
Additional paid-in capital
9,045
Common Stock
$
10,050
F-
63
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.
Pro Forma Adjustments, continued
Note 9
To
record the split off of the Dynastar Holdings pre merger assets and liabilities.
Debit
Credit
Additional paid-in capital
$
5,147
Cash
$
4,092
Prepaid expenses and other current assets
1,055
Note 10
To
record the reversal of the accrued registration rights penalties on the books of Dynastar as of September 30, 2011, in connection
with the those stockholders waiving their right to these penalties and the subsequent conversion of the Dynastar Series A redeemable
preferred stock.
Debit
Credit
Accrued registration rights penalties
$
118,940
Additional paid-in capital
$
118,940
Note 11
To
record the elimination of Dynastar's historical accumulated deficit pursuant to the merger and plan of recapitalization.
Debit
Credit
Additional paid-in capital
$
176,808
Accumulated deficit
$
176,808
F-
64
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.
Pro Forma Adjustments, continued
Note12
To
expense the aggregate unamortized discount related to Dynastar's Bridge Notes, consisting of $318,445 unamortized at September
30, 2011 for Bridge Notes issued through that date and $35,749 of discount in connection with the Bridge Note issued on October
7, 2011.
Debit
Credit
Accumulated deficit
$
354,194
Notes payable
$
354,194
Note 13
To
adjust the value of the derivative liability recorded for the warrants issued through October 7, 2011 in connection with Dynastar's
Bridge Notes. In connection with the reverse merger, Bridge Note Warrants for the purchase of an aggregate of 1,431,231 shares
of Dynastar's common stock with an exercise price of $0.80 per share were cancelled and exchanged for Dynastar Holdings warrants.
It was determined that both the Dynastar Bridge Note Warrants and the new Dynastar Holdings warrants issued at closing were deemed
to be derivatives, as their terms certain anti-dilution provisions. The pro forma adjustment below was to record the adjustment
to fair value for these warrants as of the pro forma balance sheet date of September 30, 2011. In the adjustment below, the warrant
derivative liability is adjusted to a fair value of $362,850, from a value of $402,357.
Debit
Credit
Derivative liabilities
$
39,687
Additional paid-in capital
$
39,687
Note 14
To
record the redemption of $25,000 of Dynastar's Series A redeemable preferred stock by a certain shareholder prior to the
Merger.
Debit
Credit
Redeemable preferred stock
$
25,000
Cash
$
25,000
Note 15
To
record the conversion of Dynastar Series A redeemable preferred stock ($1,164,400 redemption value) into 5,822,000 shares of
Dynastar common stock, which in turn, upon the Closing Date, were converted into shares of Dynastar Holdings common stock,
$0.001 par value and to record a deemed divided in connection with the induced conversion of these shares.
Debit
Credit
Redeemable preferred stock
$
1,164,400
Accumulated deficit
458,703
Common stock
$
5,822
Additional paid-in capital
1,617,281
F-
65
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.
Pro Forma Adjustments, continued
Note 16
To
record the acquisition of 271,400,036 shares of Dynastar Holdings common stock by Dynastar for $100,000 and the subsequent surrender
and cancellation of those shares.
Debit
Credit
Common stock
$
271,400
Cash
$
100,000
Additional paid-in capital
171,400
Note 17
In
connection with the initial closing of the Private Placement, to record the derivative liability related to (i) the warrant for
the purchase of 62,500 shares of Dynastar Holdings common stock issued as part of units sold. This warrant has certain anti-dilution
and other provisions that causes it be a derivative liability. It was further determined, based upon authoritative guidance, that
the warrant should be valued separately. Using the Black-Scholes model, the fair value inputs included: exercise price of $0.80
per share, fair value per share of $0.20, a term of 5 years, volatility of 111% and a discount rate of 3.5%, to determine the value
of $7,919.
Debit
Credit
Additional paid-in capital
$
7,919
Derivative liabilities
$
7,919
Note 18
In
connection with the initial closing of the Private Placement, to record the derivative liability related to the warrant for the
purchase of 6,250 shares of Dynastar Holdings common stock issued to the broker. This warrant has certain anti-dilution and other
provisions that causes it to be a derivative liability. It was further determined, based upon authoritative guidance, that the
warrant should be valued separately. Using the Black-Scholes model, the fair value inputs included: exercise price of $0.20 per
share, fair value per share of $0.20, a term of 5 years, volatility of 111% and a discount rate of 3.5%, to determine a value of
$1,005.
Debit
Credit
Additional paid-in capital
$
1,005
Derivative liabilities
$
1,005
F-
66
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.
Pro Forma Adjustments, continued
Note 19
To
record the prepaid expense and charge to additional paid in capital for the warrant to purchase 2,000,000 shares of Dynastar Holdings
common stock issued to Navesink in consideration for advisory services to be provided over the six months following the Closing
Date of the merger. This warrant was fully vested upon issuance. Using the Black-Scholes model, the fair value inputs included:
exercise price of $0.20 per share, fair value per share of $0.20, a term of 5 years, volatility of 111% and a discount rate of
3.5%, to determine a value of $321,444. Since no services had been provided as of the pro forma balance sheet date, the full value
was recorded as a prepaid asset.
Debit
Credit
Prepaid expenses
$
321,444
Additional paid-in capital
$
321,444
F-
67
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
Pro Forma Adjustments, continued
Pro Forma Condensed Combined
Statement of Operations - For the Nine Months Ended September 30, 2011
Note A
Derived from the Dynastar unaudited financial statements for the nine months ended
September 30, 2011 as filed with the SEC on November 14, 2011, and included herewith.
Note B
Derived from the unaudited financial statements of Dynastar for the nine months ended
September 30, 2011, as included herewith.
Note C
Derived from the unaudited financial information of Affordable Energy for the period
from January 1, 2011 through February 15, 2011.
Pro Forma Adjustments to arrive at the pro forma
combined financial statements of Dynastar assuming the purchase of Affordable Energy (but before the merger and private placement):
Note D
To record the amortization of the customer relationships acquired in the acquisition
of Affordable Energy for January 1, 2011 through February 15, 2011.
Note E
To record interest expense for the $125,000 note issued in connection with the acquisition
of Affordable Energy.
Note F
To
record the amortization of the debt discount related to the $900,000 note
issued in connection with the acquisition of Affordable Energy.
Pro Forma adjustments to arrive at the pro forma
combined financial statements of Dynastar Holdings, Inc. assuming the consummation of the reverse merger and the simultaneous closing
of the private placement:
Note G
To
record stock based compensation for stock options granted to the Company's
two executive officers in connection with the merger. On the Closing Date, an option for the purchase of 1,000,000 shares of Dynastar
Holdings common stock was granted to the Company's Chief Executive Officer. On the same date, options for the purchase of
an aggregate of 950,000 shares of Dynastar Holdings common stock at an exercise price of $0.20 per share were issued to the Company's
Chief Financial Officer. In connection with this award, the Company's Chief Financial Officer surrendered an option for
the purchase of 450,000 shares of Dynastar common stock at an exercise of price of $0.80 per share that had been issued to him
by Dynastar in 2010. The options were valued using the Black-Scholes model, with fair value inputs of: exercise price of $0.20
per share, fair value per share of $0.20, a expected term of approximately 6.5 years, volatility of 111% and a discount rate of
3.96%, to determine fair values of the new options of $147,600 and $163,800 for each of the Company's Chief Executive Officer
and Chief Financial Officer, respectively.
Note H
To adjust interest expense for the effect of the Bridge Notes conversion into the
common stock of Dynastar Holdings.
Note I
To adjust amortization of debt discount for the effect of the Bridge Notes conversion
into the common stock of Dynastar Holdings.
Note J
To record the cancellation of 27,400,076 shares of Dynastar Holdings common stock
in connection with the merger.
Note K
To record the conversion of Dynastar Series A redeemable preferred shares initially
into 5,822,000 shares of Dynastar common stock and then on the Closing Date, into the common stock of Dynastar Holdings.
Note L
To record the effect of 1,293,600 shares held in escrow at closing and deemed to be
forfeitable.
Note M
To record the issuance of 125,000 shares of Dynastar common stock in connection with
the Private Placement.
Note N
To record the issuance of 5,809,750 shares of Dynastar common stock in connection
with the conversion of the Bridge Notes with a face value of $1,144,985 and interest of $16,965 accrued through September 30,
2011.
F-
68
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
II.	Pro Forma Adjustments, continued
Pro Forma Condensed Combined Statement
of Operations - For the Nine Months Ended September 30, 2010
This statement was prepared in order to
support the supplemental Management's Discussion and Analysis.
Note O
Derived from the unaudited financial statements of Dynastar for the nine months ended
September 30, 2010 as included herewith.
Note P
Derived from the unaudited financial information of Affordable Energy for the nine
months ended September 30, 2010.
Pro Forma Adjustments to arrive at the pro forma
combined financial statements of Dynastar assuming the purchase of Affordable Energy (not including our merger with Dynastar):
Note Q
To record the amortization of the customer relationships acquired in the acquisition
of Affordable Energy.
Note R
To record interest expense for the $125,000 note issued in connection with the acquisition
of Affordable Energy.
Note S
To
record the amortization of the debt discount related to the $900,000 note
issued in connection with the acquisition of Affordable Energy.
Pro Forma Condensed Combined Statement of Operations
- For the Year Ended December 31, 2010
Note T
Derived from the Dynastar Holdings audited financial statements for the year ended
December 31, 2010 as filed with the SEC on March 31, 2011.
Note U
Derived from the audited financial statements of Dynastar for the year ended December
31, 2010 as included herewith.
Note V
Derived from the audited financial statements of Affordable Energy for the year ended
December 31, 2010 as included herewith.
Pro Forma Adjustments to arrive
at the pro forma combined financial statements of Dynastar assuming the purchase of My Affordable Energy (but before the merger
with Dynastar Holdings):
Note W
To record the amortization of the customer relationships acquired in the acquisition
of Affordable Energy.
Note X
To record interest expense for the $125,000 note issued in connection with the acquisition
of Affordable Energy.
Note Y
To
record the amortization of the debt discount related to the $900,000 note
issued in connection with the acquisition of Affordable Energy.
F-
69
DYNASTAR HOLDINGS, INC.
Notes to Unaudited Pro Forma Condensed Combined
Financial Statements
Pro Forma adjustments to arrive at the pro forma
combined financial statements of Dynastar Holdings, Inc. assuming the consummation of the reverse merger and the simultaneous closing
of the private placement:
Note   Z
To
record stock based compensation for stock options granted to the Company's
two executive officers in connection with the merger. On the Closing Date, an option for the purchase of 1,000,000 shares of Dynastar
Holdings common stock was granted to the Company's Chief Executive Officer. On the same date, options for the purchase of
an aggregate of 950,000 shares of Dynastar Holdings common stock at an exercise price of $0.20 per share were issued to the Company's
Chief Financial Officer. In connection with this award, the Company's Chief Financial Officer surrendered an option for
the purchase of 450,000 shares of Dynastar common stock at an exercise of price of $0.80 per share that had been issued to him
by Dynastar in 2010. The options were valued using the Black-Scholes model, with fair value inputs of: exercise price of $0.20
per share, fair value per share of $0.20, a expected term of approximately 6.5 years, volatility of 111% and a discount rate of
3.96%, to determine fair values of the new options of $148,100 and $163,700 for each of the Company's Chief Executive Officer
and Chief Financial Officer, respectively.
Note AA
To record the cancellation of 27,400,076 shares of Dynastar Holdings common stock
in connection with the merger.
Note BB
To record the conversion of Dynastar Series A redeemable preferred shares initially
into 5,822,000 shares of Dynastar common stock and then, on the Closing Date, into the common stock of Dynastar Holdings
Note CC
To record the effect of 1,293,600 shares held in escrow at closing and deemed to be
forfeitable.
Note DD
To record the issuance of 125,000 shares of Dynastar common stock in connection with
the Private Placement.
Note EE
To record the issuance of 5,890,750 shares of Dynastar Holdings common stock in connection
with the conversion of the Bridge Notes, with a face value of $1,144,985 and interest of $16,965 accrued through September 30,
2011.
F-
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