Current Valuation

The valuation method calls upon a combination of factors, including conservative projected sales, intellectual property assets and their defensibility, cost of capital, probability and predictability of a successful IPO in a US marketplace, duration and risk factors in the sales cycle, potential for government assistance, early customer interest, diversity of revenue streams, staff size, and an assessment of the competitive threat. For a complete review of the method of assessment, the work of Glenn Desmond or Shannon Pratt will serve as an excellent reference point. As a consulting group, we have used this method in the recent past to the satisfaction of numerous clients.

For the purposes of this plan and our next round of funding, we are currently valued at USD $1.0 million.

Expenditures to Date - 01/2007 through 10/2007

	Q1	Q2	Q3
Salaries	$ 30,000	$ 30,000	$ 30,000
Administrative	$ 2,500	$ 2,500	$ 2,800
R & D	$ 8,200	$ 10,800	$ 17,600
Expense Totals	$ 50,700	$ 53,300	$ 60,400
Total Spent in Stage 1			$ 164,400

Total stock holdings

At this time 100% of the stock is held privately by the founder, Dan Cohen. Non-voting stock is available for sale against the current valuation in increments of USD $25,000.

Liquidity

No relevant information is available at this time.

Debt Structure

The project has a debt to the seed investor of approximately $60,000 CDN.