Prepaid expenses and other assets consists of the following:

In February 2012, the Company issued 100,000 shares of common stock to a third party for services to be performed over the contract term.  The shares were valued at $0.65 (based on contemporaneous cash sales prices) with a total value of $65,000.  The Company has amortized approximately eight months of the prepaid shares issued for services leaving a balance of $21,677 as of September 30, 2012.