NOTE 3 – PREPAIDS AND OTHER CURRENT ASSETS

Other assets consists of the following:

In June 2011, the Company issued 7,215,365 shares of common stock to a third party consultant for services.  The shares were valued at $1.50 per share (based on a contemporaneous cash sales price and anticipated offering price).  The $10,823,048 was recorded as a prepaid expense and is being amortized over the one-year term of the agreement.  The Company recognized $645,107 of amortization related to this agreement through June 30, 2011.  The Company recognized an additional $5,640,097 of amortization related to this agreement during the six months ended December 31, 2011.  The total prepaid balance related to common stock issued for services, as of December 31, 2011, is $4,796,735 (after giving effect to the foreign currency translation).