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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
        DC 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
        TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
        1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DATE
        OF REPORT (DATE OF EARLIEST EVENT REPORTED): July 31, 2005</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>friendlyway
        Corporation</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(NAME
        OF REGISTRANT AS SPECIFIED IN ITS CHARTER)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Nevada</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(STATE
        OR OTHER JURISDICTION OF</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INCORPORATION
        OR ORGANIZATION)</strong></font></div>
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      <div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="40%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>0-20317</u></strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMISSION
                  FILE NUMBER</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>1255
                  Battery Street, Suite 200, San Francisco,
                  California</u></strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(ADDRESS
                  OF PRINCIPAL EXECUTIVE OFFICES)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="40%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>88-0270266</u></strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(I.R.S.
                  EMPLOYER</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>IDENTIFICATION
                  NUMBER)</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>94111</u></strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(ZIP
                  CODE)</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ISSUER&#8217;S
        TELEPHONE NUMBER:</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>
        (415) 288-3333</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(FORMER
        NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div><br>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        1.01
</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Entry
        into a Material Definitive Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant entered into that certain Assignment
        and
        Assumption Agreement (the &#8220;Assignment&#8221;) with friendlyway Technologies, Inc.
        (&#8220;FTI&#8221;), its wholly-owned subsidiary, pursuant to which FTI assigned and
        transferred to the Registrant, FTI&#8217;s rights, duties, liabilities, and
        obligations under the following promissory notes: (a) Unsecured Convertible
        Promissory Note held by John Jameson (&#8220;Jameson&#8221;) dated effective July 16, 2004
        in the principal amount of $180,000 (the &#8220;Jameson Note&#8221;); and (b) Promissory
        Note held by Alexander von Welczeck (&#8220;AVW&#8221;) dated effective August 20, 2004 in
        the principal amount of $367,500 (the &#8220;AVW Note&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant and Jameson entered into a certain note
        conversion and subscription agreement pursuant to which Jameson agreed to
        cancel
        and subscribe the outstanding principal and accrued interest under the Jameson
        Note, in consideration for the issuance of shares of the Registrant&#8217;s common
        stock as more particularly described in Item 3.02 below. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant and AVW entered into a certain subscription
        agreement pursuant to which AVW agreed to cancel and subscribe Two Hundred
        Thousand Dollars of the outstanding principal under the AVW Note, in
        consideration for the issuance of shares of the Registrant&#8217;s common stock as
        more particularly described in Item 3.02 below. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, Registrant executed and delivered a Promissory Note
        (the
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>New
        AVW Note</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
        in the
        principal amount of One Hundred Ninety-Four Thousand One Hundred Thirteen
        Dollars ($194,113) to AVW for the remaining principal under the AVW Note
        and the
        interest accrued through July 31, 205 thereunder. AVW beneficially owns
        approximately 28.2% of Registrant&#8217;s outstanding common stock and was one of the
        selling stockholders of the shares of FTI to Registrant in the share exchange
        transaction that closed on December 10, 2004 and is described in Registrant&#8217;s
        Annual Report Form 10-KSB for the year ended October 31, 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        New
        AVW Note bears interest at the compounded interest rate of six (6) percent
        per
        annum, is payable on or before June 30, 2008; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>provided</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>however</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        the New
        AVW Note will mature and the entire principal and accrued interest thereunder
        will become due and payable within ten (10) days of closing on or before
        December 31, 2005 of a transaction or series of transactions in which the
        Registrant issues and sells shares of capital stock, or securities convertible,
        exercisable or exchangeable into its capital stock, and raises gross proceeds
        of
        at least Three Million Dollars ($3,000,000) in the aggregate. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant and friendlyway AG (&#8220;FWAG&#8221;) entered into a
        certain subscription agreement pursuant to which FWAG agreed to cancel and
        subscribe the outstanding principal and accrued interest under the following
        promissory notes in consideration for the issuance of shares of the Registrant&#8217;s
        commons stock as more particularly described in Item 3.02 below: (a) Unsecured
        Promissory Note dated effective July 7, 2005 in the principal amount of
        $100,000; (b) Unsecured Promissory Note dated effective July 15, 2005 in
        the
        principal amount of $100,000; and (c) Unsecured Promissory Note dated effective
        July 26, 2005 in the principal amount of $100,000 (collectively, the &#8220;July AG
        Notes&#8221;).</font></div>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        August
        19, 2005, Registrant borrowed $100,000 from FWAG and executed and delivered
        an
        Unsecured Promissory Note (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>August
        19 Note</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
        in
        that principal amount to FWAG. FWAG beneficially owns approximately 29.6%
        of
        Registrant&#8217;s outstanding common stock and was one of the selling stockholders of
        the shares of FTI to Registrant in the share exchange transaction that closed
        on
        December 10, 2004 and is described in Registrant&#8217;s Annual Report Form 10-KSB for
        the year ended October 31, 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        August 19 Note bears interest at the compounded interest rate of 6 percent
        per
        annum, is payable in equal quarterly installments of principal and accrued
        interest beginning on the last day of the first calendar quarter immediately
        following August 19, 2006 and on the last day of each calendar quarter
        thereafter, with the final payment due on or before March 31, 2008.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of September 2, 2005, the Registrant and FWAG entered into a certain
        subscription agreement pursuant to which FWAG agreed to cancel and subscribe
        the
        outstanding principal and accrued interest under the following promissory
        notes
        in consideration for the issuance of shares of the Registrant&#8217;s commons stock as
        more particularly described in Item 3.02 below: (a) Unsecured Promissory
        Note
        dated effective August 19, 2005 in the principal amount of $100,000; and
        (b)
        Unsecured Promissory Note dated effective September 2, 2005 in the principal
        amount of $200,000 (collectively, the &#8220;Aug-Sept AG Notes&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        1.02</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Termination
        of Material Definitive Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant and Jameson entered into certain
        subscription agreement pursuant to which Jameson agreed to cancel and subscribe
        the outstanding principal and accrued interest under the Jameson Note, in
        consideration for the issuance of shares of the Registrant&#8217;s common stock.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant and AVW entered into a certain subscription
        agreement pursuant to which AVW agreed to cancel and subscribe Two Hundred
        Thousand Dollars of the outstanding principal under the AVW Note, in
        consideration for the issuance of shares of the Registrant&#8217;s common stock. AVW
        is a stockholder of the Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of July 31, 2005, the Registrant and FWAG entered into a certain subscription
        agreement pursuant to which FWAG agreed to cancel and subscribe the outstanding
        principal and accrued interest under the July AG Notes in consideration for
        the
        issuance of shares of the Registrant&#8217;s commons stock. FWAG is a stockholder of
        the Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of September 2, 2005, the Registrant and FWAG entered into a certain
        subscription agreement pursuant to which FWAG agreed to cancel and subscribe
        the
        outstanding principal and accrued interest under the Aug-Sept AG Notes in
        consideration for the issuance of shares of the Registrant&#8217;s commons stock. FWAG
        is a stockholder of the Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        2.03</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Creation
        of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
        Arrangement of a Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        more
        particularly described in Items 1.01 above, effective as of July 31, 2005,
        the
        Registrant entered into the Assignment with FTI pursuant to which FTI assigned
        and transferred to the Registrant, FTI&#8217;s rights, duties, liabilities, and
        obligations under the Jameson Note and AVW Note. As described in Item 1.02
        above, however, effective as of July 31, 2005, the Registrant and Jameson
        entered into a certain subscription agreement pursuant to Jameson agreed
        to
        cancel and subscribe the outstanding principal and accrued interest under
        the
        Jameson Note in consideration for the issuance of shares of the Registrant&#8217;s
        common stock. Moreover, effective as of July 31, 2005, the Registrant and
        AVW
        entered into a certain subscription agreement pursuant to which AVW agreed
        to
        cancel and subscribe Two Hundred Thousand Dollars of the outstanding principal
        under the AVW Note, in consideration for the issuance of shares of the
        Registrant&#8217;s common stock. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        July
        31, 2005, Registrant became obligated on a direct financial obligation pursuant
        to the New AVW Note. The amount of the obligation, including the terms of
        payment and other material terms of the obligations, are described above
        under
        Item 1.01 Entry into a Material Definitive Agreement. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        August
        19, 2005, Registrant became obligated on a direct financial obligation pursuant
        to the August 19 Note. The amount of the obligation, including the terms
        of
        payment and other material terms of the obligations, are described above
        under
        Item 1.01 Entry into a Material Definitive Agreement. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        3.02
</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unregistered
        Sales of Equity Securities. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to certain subscription agreements dated effective as of July 31, 2005 entered
        into by and between the Registrant and the holders of the Jameson Note and
        the
        AVW Note, (a) the Jameson Note was cancelled and Jameson subscribed the
        outstanding principal and accrued interest thereunder in consideration for
        the
        Registrant&#8217;s issuance of 1,100,000 shares of common stock; and (b) the AVW Note
        was cancelled and AVW subscribed Two Hundred Thousand Dollars of outstanding
        principal thereunder in consideration for the Registrant&#8217;s issuance of 454,545
        shares of common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the subscription agreement dated effective as of July 31, 2005 entered
        into
        by and between the Registrant and FWAG, the July AG Notes were cancelled
        and
        FWAG subscribed the outstanding principal and accrued interest thereunder
        in
        consideration for the Registrant&#8217;s issuance of 1,250,000 shares of common
        stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the subscription agreement dated effective as of September 2, 2005 entered
        into by and between the Registrant and FWAG, the Aug-Sept AG Notes were
        cancelled and FWAG subscribed the outstanding principal and accrued interest
        thereunder in consideration for the Registrant&#8217;s issuance of 1,250,000 shares of
        common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
        respect to each of the issuances described in the foregoing paragraphs in
        this
        Item 3.02, exemption from registration requirements is claimed under the
        Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;) in reliance on Section
        4(2) of the Securities Act or Regulation D promulgated thereunder. The
        purchasers represented their intention to acquire the Registrant&#8217;s shares 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
        evidencing the shares in such transaction. The purchasers had acquired access
        to
        information about the Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
        <div>&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, Registrant has
        duly
        caused this Report to be signed on its behalf by the undersigned, thereunto
        duly
        authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                  September 20, 2005</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td width="49%">&#160;</td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">friendlyway
                Corporation</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>&#160;</td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Michael
                Urban</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%"><font size="2">Dr.
                Michael Urban</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President/Chief
                  Executive Officer</font></div>
              </td>
            </tr>

        </table>
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{"company-data": {"conformed-name": "BIOFARM INC", "cik": "0000888702", "assigned-sic": "9995", "irs-number": "880270266", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-20317", "film-number": "051093871"}, "business-address": {"street1": "1244 MAIN STREET", "city": "LINFIELD", "state": "PA", "zip": "19498", "phone": "6104958413"}, "mail-address": {"street1": "1244 MAIN STREET", "city": "LINFIELD", "state": "PA", "zip": "19468"}, "former-company": {"former-conformed-name": "GLOBAL SPILL MANAGEMENT INC /NV/", "date-changed": "19930328"}}
SECURITIES
        AND EXCHANGE COMMISSION
WASHINGTON,
        DC 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): July 31, 2005
friendlyway
        Corporation
(NAME
        OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Nevada
(STATE
        OR OTHER JURISDICTION OF
INCORPORATION
        OR ORGANIZATION)
0-20317
COMMISSION
                  FILE NUMBER
1255
                  Battery Street, Suite 200, San Francisco,
                  California
(ADDRESS
                  OF PRINCIPAL EXECUTIVE OFFICES)
88-0270266
(I.R.S.
                  EMPLOYER
IDENTIFICATION
                  NUMBER)
94111
(ZIP
                  CODE)
ISSUER'S
        TELEPHONE NUMBER:
(415) 288-3333
(FORMER
        NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
Item
        1.01
Entry
        into a Material Definitive Agreement.
Effective
        as of July 31, 2005, the Registrant entered into that certain Assignment
        and
        Assumption Agreement (the "Assignment") with friendlyway Technologies, Inc.
        ("FTI"), its wholly-owned subsidiary, pursuant to which FTI assigned and
        transferred to the Registrant, FTI's rights, duties, liabilities, and
        obligations under the following promissory notes: (a) Unsecured Convertible
        Promissory Note held by John Jameson ("Jameson") dated effective July 16, 2004
        in the principal amount of $180,000 (the "Jameson Note"); and (b) Promissory
        Note held by Alexander von Welczeck ("AVW") dated effective August 20, 2004 in
        the principal amount of $367,500 (the "AVW Note").
Effective
        as of July 31, 2005, the Registrant and Jameson entered into a certain note
        conversion and subscription agreement pursuant to which Jameson agreed to
        cancel
        and subscribe the outstanding principal and accrued interest under the Jameson
        Note, in consideration for the issuance of shares of the Registrant's common
        stock as more particularly described in Item 3.02 below.
Effective
        as of July 31, 2005, the Registrant and AVW entered into a certain subscription
        agreement pursuant to which AVW agreed to cancel and subscribe Two Hundred
        Thousand Dollars of the outstanding principal under the AVW Note, in
        consideration for the issuance of shares of the Registrant's common stock as
        more particularly described in Item 3.02 below.
Effective
        as of July 31, 2005, Registrant executed and delivered a Promissory Note
        (the
"
New
        AVW Note
")
        in the
        principal amount of One Hundred Ninety-Four Thousand One Hundred Thirteen
        Dollars ($194,113) to AVW for the remaining principal under the AVW Note
        and the
        interest accrued through July 31, 205 thereunder. AVW beneficially owns
        approximately 28.2% of Registrant's outstanding common stock and was one of the
        selling stockholders of the shares of FTI to Registrant in the share exchange
        transaction that closed on December 10, 2004 and is described in Registrant's
        Annual Report Form 10-KSB for the year ended October 31, 2004.
The
        New
        AVW Note bears interest at the compounded interest rate of six (6) percent
        per
        annum, is payable on or before June 30, 2008;
provided
,
however
,
        the New
        AVW Note will mature and the entire principal and accrued interest thereunder
        will become due and payable within ten (10) days of closing on or before
        December 31, 2005 of a transaction or series of transactions in which the
        Registrant issues and sells shares of capital stock, or securities convertible,
        exercisable or exchangeable into its capital stock, and raises gross proceeds
        of
        at least Three Million Dollars ($3,000,000) in the aggregate.
Effective
        as of July 31, 2005, the Registrant and friendlyway AG ("FWAG") entered into a
        certain subscription agreement pursuant to which FWAG agreed to cancel and
        subscribe the outstanding principal and accrued interest under the following
        promissory notes in consideration for the issuance of shares of the Registrant's
        commons stock as more particularly described in Item 3.02 below: (a) Unsecured
        Promissory Note dated effective July 7, 2005 in the principal amount of
        $100,000; (b) Unsecured Promissory Note dated effective July 15, 2005 in
        the
        principal amount of $100,000; and (c) Unsecured Promissory Note dated effective
        July 26, 2005 in the principal amount of $100,000 (collectively, the "July AG
        Notes").
On
        August
        19, 2005, Registrant borrowed $100,000 from FWAG and executed and delivered
        an
        Unsecured Promissory Note (the "
August
        19 Note
")
        in
        that principal amount to FWAG. FWAG beneficially owns approximately 29.6%
        of
        Registrant's outstanding common stock and was one of the selling stockholders of
        the shares of FTI to Registrant in the share exchange transaction that closed
        on
        December 10, 2004 and is described in Registrant's Annual Report Form 10-KSB for
        the year ended October 31, 2004.
The
        August 19 Note bears interest at the compounded interest rate of 6 percent
        per
        annum, is payable in equal quarterly installments of principal and accrued
        interest beginning on the last day of the first calendar quarter immediately
        following August 19, 2006 and on the last day of each calendar quarter
        thereafter, with the final payment due on or before March 31, 2008.
Effective
        as of September 2, 2005, the Registrant and FWAG entered into a certain
        subscription agreement pursuant to which FWAG agreed to cancel and subscribe
        the
        outstanding principal and accrued interest under the following promissory
        notes
        in consideration for the issuance of shares of the Registrant's commons stock as
        more particularly described in Item 3.02 below: (a) Unsecured Promissory
        Note
        dated effective August 19, 2005 in the principal amount of $100,000; and
        (b)
        Unsecured Promissory Note dated effective September 2, 2005 in the principal
        amount of $200,000 (collectively, the "Aug-Sept AG Notes").
Item
        1.02
Termination
        of Material Definitive Agreement.
Effective
        as of July 31, 2005, the Registrant and Jameson entered into certain
        subscription agreement pursuant to which Jameson agreed to cancel and subscribe
        the outstanding principal and accrued interest under the Jameson Note, in
        consideration for the issuance of shares of the Registrant's common stock.
Effective
        as of July 31, 2005, the Registrant and AVW entered into a certain subscription
        agreement pursuant to which AVW agreed to cancel and subscribe Two Hundred
        Thousand Dollars of the outstanding principal under the AVW Note, in
        consideration for the issuance of shares of the Registrant's common stock. AVW
        is a stockholder of the Registrant.
Effective
        as of July 31, 2005, the Registrant and FWAG entered into a certain subscription
        agreement pursuant to which FWAG agreed to cancel and subscribe the outstanding
        principal and accrued interest under the July AG Notes in consideration for
        the
        issuance of shares of the Registrant's commons stock. FWAG is a stockholder of
        the Registrant.
Effective
        as of September 2, 2005, the Registrant and FWAG entered into a certain
        subscription agreement pursuant to which FWAG agreed to cancel and subscribe
        the
        outstanding principal and accrued interest under the Aug-Sept AG Notes in
        consideration for the issuance of shares of the Registrant's commons stock. FWAG
        is a stockholder of the Registrant.
Item
        2.03
Creation
        of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
        Arrangement of a Registrant.
As
        more
        particularly described in Items 1.01 above, effective as of July 31, 2005,
        the
        Registrant entered into the Assignment with FTI pursuant to which FTI assigned
        and transferred to the Registrant, FTI's rights, duties, liabilities, and
        obligations under the Jameson Note and AVW Note. As described in Item 1.02
        above, however, effective as of July 31, 2005, the Registrant and Jameson
        entered into a certain subscription agreement pursuant to Jameson agreed
        to
        cancel and subscribe the outstanding principal and accrued interest under
        the
        Jameson Note in consideration for the issuance of shares of the Registrant's
        common stock. Moreover, effective as of July 31, 2005, the Registrant and
        AVW
        entered into a certain subscription agreement pursuant to which AVW agreed
        to
        cancel and subscribe Two Hundred Thousand Dollars of the outstanding principal
        under the AVW Note, in consideration for the issuance of shares of the
        Registrant's common stock.
On
        July
        31, 2005, Registrant became obligated on a direct financial obligation pursuant
        to the New AVW Note. The amount of the obligation, including the terms of
        payment and other material terms of the obligations, are described above
        under
        Item 1.01 Entry into a Material Definitive Agreement.
On
        August
        19, 2005, Registrant became obligated on a direct financial obligation pursuant
        to the August 19 Note. The amount of the obligation, including the terms
        of
        payment and other material terms of the obligations, are described above
        under
        Item 1.01 Entry into a Material Definitive Agreement.
Item
        3.02
Unregistered
        Sales of Equity Securities.
Pursuant
        to certain subscription agreements dated effective as of July 31, 2005 entered
        into by and between the Registrant and the holders of the Jameson Note and
        the
        AVW Note, (a) the Jameson Note was cancelled and Jameson subscribed the
        outstanding principal and accrued interest thereunder in consideration for
        the
        Registrant's issuance of 1,100,000 shares of common stock; and (b) the AVW Note
        was cancelled and AVW subscribed Two Hundred Thousand Dollars of outstanding
        principal thereunder in consideration for the Registrant's issuance of 454,545
        shares of common stock.
Pursuant
        to the subscription agreement dated effective as of July 31, 2005 entered
        into
        by and between the Registrant and FWAG, the July AG Notes were cancelled
        and
        FWAG subscribed the outstanding principal and accrued interest thereunder
        in
        consideration for the Registrant's issuance of 1,250,000 shares of common
        stock.
Pursuant
        to the subscription agreement dated effective as of September 2, 2005 entered
        into by and between the Registrant and FWAG, the Aug-Sept AG Notes were
        cancelled and FWAG subscribed the outstanding principal and accrued interest
        thereunder in consideration for the Registrant's issuance of 1,250,000 shares of
        common stock.
With
        respect to each of the issuances described in the foregoing paragraphs in
        this
        Item 3.02, exemption from registration requirements is claimed under the
        Securities Act of 1933, as amended (the "Securities Act") in reliance on Section
        4(2) of the Securities Act or Regulation D promulgated thereunder. The
        purchasers represented their intention to acquire the Registrant's shares 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
        evidencing the shares in such transaction. The purchasers had acquired access
        to
        information about the Registrant.
SIGNATURE
Pursuant
        to the requirements of the Securities Exchange Act of 1934, Registrant has
        duly
        caused this Report to be signed on its behalf by the undersigned, thereunto
        duly
        authorized.
Date:
                  September 20, 2005
friendlyway
                Corporation
By:
/s/ Michael
                Urban
Dr.
                Michael Urban
President/Chief
                  Executive Officer