----

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| Delaware                                                      |   | 74-3191757                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer Identification No.) |

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|                                                                                                                     |   | Page      |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|
| PART I. FINANCIAL INFORMATION                                                                                            |   |      |   |
|                                                                                                                     |   |      |   |
| Item 1. Financial Statements                                                                                             |   |   1  |   |
| Condensed Consolidated Balance Sheets as of September 30, 2011 (unaudited) and June 30, 2011 (audited)                   |   |   2  |   |
| Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2011 and 2010 (unaudited): |   |   3  |   |
| Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2011 and 2010 (unaudited): |   |   4  |   |
| Notes to Unaudited Condensed Consolidated Financial Statements:                                                          |   |   5  |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                      |   |   10 |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                       |   |   12 |   |
| Item 4  Controls and Procedures                                                                                |   |   13 |   |
|                                                                                                                     |   |      |   |
| PART II. OTHER INFORMATION                                                                                               |   |      |   |
|                                                                                                                     |   |      |   |
| Item 1. Legal Proceedings                                                                                                |   |   13 |   |
| Item 1A Risk Factors                                                                                                     |   |   13 |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                      |   |   13 |   |
| Item 3. Defaults upon Senior Securities                                                                                  |   |   13 |   |
| Item 4. (Removed and Reserved)                                                                                           |   |   13 |   |
| Item 5. Other Information                                                                                                |   |   13 |   |
| Item 6. Exhibits                                                                                                         |   |   13 |   |
|                                                                                                                     |   |      |   |
| Signatures                                                                                                               |   |   14 |   |
|                                                                                                                     |   |      |   |

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|                                                                                                                                                                                                      |   | September 30,2011(Unaudited) |       |   | June 30, 2011(Audited) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
| ASSETS                                                                                                                                                                                                    |   |                         |       |   |                        |   |
| Current Assets                                                                                                                                                                                            |   |                         |       |   |                        |   |
| Accounts receivable, net                                                                                                                                                                                  |   | $                            | 1,242,102  |   |                        | $      | 1,559,741 |   |
| Inventory, net                                                                                                                                                                                            |   |                         | 2,059,562  |   |                        |   | 2,212,629 |   |
| Prepaid and sundry assets                                                                                                                                                                                 |   |                         | 5,501      |   |                        |   | 5,926 |   |
| Advances to related party                                                                                                                                                                                 |   |                         | 239,611    |   |                        |   | 103,700 |   |
|   Total Current Assets                                                                                                                                                                               |   |                         | 3,546,776  |   |                        |   | 3,881,996 |   |
| Long Term Assets                                                                                                                                                                                          |   |                         |       |   |                        |   |   |   |
| Property and equipment, net                                                                                                                                                                               |   |                         | 308,558    |   |                        |   | 350,578 |   |
| Deferred income taxes                                                                                                                                                                                     |   |                         | 69,259     |   |                        |   | 70,252 |   |
|   Total Long Term Assets                                                                                                                                                                             |   |                         | 377,817    |   |                        |   | 420,830 |   |
|   Total Assets                                                                                                                                                                                       |   | $                            | 3,924,593  |   |                        | $      | 4,302,826 |   |
|                                                                                                                                                                                                      |   |                         |       |   |                        |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                                     |   |                         |       |   |                        |   |   |   |
|                                                                                                                                                                                                      |   |                         |       |   |                        |   |   |   |
| Current Liabilities                                                                                                                                                                                       |   |                         |       |   |                        |   |   |   |
| Bank indebtedness                                                                                                                                                                                         |   | $                            | 880,352    |   |                        | $      | 1,239,331 |   |
| Accounts payable and accrued liabilities                                                                                                                                                                  |   |                         | 3,165,785  |   |                        |   | 2,950,727 |   |
| Loan payable                                                                                                                                                                                              |   |                         | 101,725    |   |                        |   | 96,029 |   |
| Long term debt - current portion                                                                                                                                                                          |   |                         | 114,538    |   |                        |   | 141,213 |   |
| Obligations under capital lease - current portion                                                                                                                                                         |   |                         | 92,576     |   |                        |   | 60,723 |   |
|   Total Current Liabilities                                                                                                                                                                          |   |                         | 4,354,976  |   |                        |   | 4,488,023 |   |
|                                                                                                                                                                                                      |   |                         |       |   |                        |   |   |   |
| Long Term Liabilities                                                                                                                                                                                     |   |                         |       |   |                        |   |   |   |
| Long term debt                                                                                                                                                                                            |   |                         | -          |   |                        |   | - |   |
| Obligations under capital lease                                                                                                                                                                           |   |                         | 100,437    |   |                        |   | 27,025 |   |
| Advances from stockholders                                                                                                                                                                                |   |                         | 31,856     |   |                        |   | 39,222 |   |
| Advances from related parties                                                                                                                                                                             |   |                         | 1,346,826  |   |                        |   | 1,435,581 |   |
|   Total Long Term Liabilities                                                                                                                                                                        |   |                         | 1,479,119  |   |                        |   | 1,501,828 |   |
|                                                                                                                                                                                                      |   |                         |       |   |                        |   |   |   |
| Commitments, Contingencies and Guarantee                                                                                                                                                             |   |                         |       |   |                        |   |   |   |
| Stockholders' Deficit                                                                                                                                                                                |   |                         |       |   |                        |   |   |   |
| Preferred stock - no par value, non-cumulative, non-voting, redeemable at amount paid thereon, unlimited shares authorized, none issued and outstanding(June 30, 2011 - none issued and outstanding) |   |                         | -          |   |                        |   | - |   |
| Common stock - no par value, unlimited shares authorized, 52,350,809 issued and outstanding (June 30, 2011 - 52,350,809 issued and outstanding)                                                           |   |                         | 52,351     |   |                        |   | 52,351 |   |
| Additional paid-in capital                                                                                                                                                                                |   |                         | 554,088    |   |                        |   | 554,088 |   |
| Accumulated other comprehensive loss                                                                                                                                                                      |   |                         | (178,654   | )      |                        |   | (281,129 | ) |
| Accumulated deficit                                                                                                                                                                                       |   |                         | (2,337,287 | )      |                        |   | (2,012,335 | ) |
|                                                                                                                                                                                                      |   |                         |       |   |                        |   |   |   |
|   Total Stockholders' Deficit                                                                                                                                                                        |   |                         | (1,909,502 | )      |                        |   | (1,687,025 | ) |
|                                                                                                                                                                                                      |   |                         |       |   |                        |   |   |   |
|   Total Liabilities and Stockholders' Deficit                                                                                                                                                        |   | $                            | 3,924,593  |   |                        | $      | 4,302,826 |   |

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|                                                                                 |   | 2011   |       |   | 2010   |   |
|--------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| SALES                                                                                |   | $      | 3,401,296  |   |   | $      | 3,745,164 |   |
| COST OF GOODS SOLD                                                                   |   |   | 2,907,808  |   |   |   | 2,746,249 |   |
|   GROSS PROFIT                                                                  |   |   | 493,488    |   |   |   | 998,915 |   |
| EXPENSES                                                                             |   |   |       |   |   |   |   |   |
| General and administrative                                                           |   |   | 597,702    |   |   |   | 590,817 |   |
| Selling and delivery                                                                 |   |   | 170,170    |   |   |   | 162,944 |   |
| Interest and financing charges                                                       |   |   | 54,859     |   |   |   | 52,664 |   |
| TOTAL EXPENSES                                                                       |   |   | 822,731    |   |   |   | 806,425 |   |
|   (LOSS) EARNINGS BEFORE TAXES                                                  |   |   | (329,243   | )      |   |   | 192,490 |   |
| Current income taxes                                                                 |   |   | -          |   |   |   | 13,574 |   |
| Deferred income tax recovery                                                         |   |   | (4,291     | )      |   |   | - |   |
|   NET (LOSS) EARNINGS                                                           |   | $      | (324,952   | )      |   | $      | 178,916 |   |
|   OTHER COMPREHENSIVE LOSS                                                      |   |   |       |   |   |   |   |   |
| Foreign currency translation                                                         |   |   | 88,542     |   |   |   | (27,678 | ) |
| Unrealized gain (loss) on foreign exchange                                           |   |   | 13,931     |   |   |   | (35,420 | ) |
|   COMPREHENSIVE (LOSS) INCOME                                                   |   |   | (222,479   | )      |   |   | 115,818 |   |
|   (LOSS) EARNINGS PER WEIGHTED NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED |   | $      | (0.01      | )      |   | $      | 0.00 |   |
|   WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED             |   |   | 52,350,809 |   |   |   | 52,350,809 |   |

----

|                                           |   | 2011   |     |   | 2011   |   |
|------------------------------------------------|--------|--------|----------|--------|--------|--------|
|   CASH FLOWS FROM OPERATING ACTIVITIES    |   |   |     |   |   |   |
| Net (loss) earnings                            |   | $      | (324,952 | )      |   | $      | 178,916 |   |
| Items not requiring an outlay of cash:         |   |   |     |   |   |   |   |   |
| Depreciation                                   |   |   | 21,700   |   |   |   | 25,152 |   |
| Accrued interest                               |   |   | 4,923    |   |   |   | 3,021 |   |
| Deferred income tax recovery                   |   |   | (4,291   | )      |   |   | - |   |
| Stock-based compensation                       |   |   | -        |   |   |   | 31,250 |   |
| Changes in non-cash working capital:           |   |   |     |   |   |   |   |   |
| Accounts receivable                            |   |   | 215,645  |   |   |   | (193,440 | ) |
| Inventory                                      |   |   | (6,015   | )      |   |   | (603,763 | ) |
| Prepaid and sundry assets                      |   |   | -        |   |   |   | 93,653 |   |
| Accounts payable and accrued liabilities       |   |   | 450,127  |   |   |   | 585,359 |   |
| Income taxes payable                           |   |   | -        |   |   |   | 14,903 |   |
|   CASH PROVIDED BY OPERATING ACTIVITIES   |   |   | 357,137  |   |   |   | 135,051 |   |
|   CASH FLOWS FROM FINANCING ACTIVITIES    |   |   |     |   |   |   |   |   |
| (Repayment of) proceeds from bank indebtedness |   |   | (285,642 | )      |   |   | 32,874 |   |
| Repayment of loan payable                      |   |   | -        |   |   |   | (20,004 | ) |
| (Repayment of) proceeds from long-term debt    |   |   | (17,538  | )      |   |   | 72,335 |   |
| Advances to related party                      |   |   | (168,395 | )      |   |   | (148,728 | ) |
| Obligations under capital lease                |   |   | 118,258  |   |   |   | (27,418 | ) |
|   CASH USED IN FINANCING ACTIVITIES       |   |   | (353,316 | )      |   |   | (90,941 | ) |
|   CASH FLOWS FROM INVESTING ACTIVITIES    |   |   |     |   |   |   |   |   |
| Acquisition of property and equipment          |   |   | (3,820   | )      |   |   | (44,110 | ) |
|   CASH USED IN INVESTING ACTIVITIES       |   |   | (3,820   | )      |   |   | (44,110 | ) |
|   NET CHANGE IN CASH                      |   |   | -        |   |   |   | - |   |
|   CASH, BEGINNING OF PERIOD               |   |   | -        |   |   |   | - |   |
|   CASH, END OF PERIOD                     |   | $      | -        |   |   | $      | - |   |

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| 1. | ORGANIZATION AND NATURE OF OPERATIONS |
|----|---------------------------------------|

| 2. | BASIS OF PRESENTATION |
|----|-----------------------|

| 3. | PROPERTY AND EQUIPMENT |
|----|------------------------|

|                   |   | Cost   |      |   | Depreciation |   |      | NetSeptember 30,2011(Unaudited) |   |   | NetJune 30,2011(Audited) |   |
|------------------------|--------|--------|-----------|--------|--------------|--------|-----------|---------------------------------|--------|--------|--------------------------|--------|
|                   |   |   |      |   |         |   |      |                            |   |   |                     |   |
| Equipment              |   | $      | 519,781   |   |         | $      | 364,546   |                            |   | $      | 155,235                  |   |   | $ | 176,035 |   |
| Furniture and fixtures |   |   | 262,550   |   |         |   | 185,397   |                            |   |   | 77,153                   |   |   |   | 85,905 |   |
| Vehicles               |   |   | 62,455    |   |         |   | 25,645    |                            |   |   | 36,810                   |   |   |   | 42,870 |   |
| Computer hardware      |   |   | 88,614    |   |         |   | 57,938    |                            |   |   | 30,676                   |   |   |   | 33,295 |   |
| Leasehold improvements |   |   | 765,092   |   |         |   | 756,408   |                            |   |   | 8,684                    |   |   |   | 12,473 |   |
|                   |   | $      | 1,698,492 |   |         | $      | 1,389,934 |                            |   | $      | 308,558                  |   |   | $ | 350,578 |   |

| 4. | ADVANCES TO RELATED PARTY |
|----|---------------------------|

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| 5. | BANK INDEBTEDNESS |
|----|-------------------|

| 6. | LOAN PAYABLE |
|----|--------------|

| 7. | LONG TERM DEBT |
|----|----------------|

|                                                                                                                                                                          |   | September 30,2011(Unaudited) |    |   | June 30,2011(Audited) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                          |   |                         |    |   |                  |   |
| Term loan bearing interest at the BDC daily floating base rate plus 1.5%, repayable monthly by principal payments of $2,150 CAD plus interest maturing on February 23, 2013.  |   | $                            | 35,183  |   |                  | $      | 44,590 |   |
| Term loan bearing interest at the BDC daily floating base rate plus 4.0%, repayable monthly by principal payments of $1,825 CAD plus interest maturing on September 23, 2011. |   |                         | -       |   |                  |   | 5,678 |   |
| Term loan bearing interest at the BDC daily floating base rate plus 1.5%, repayable monthly by principal payments of $1,754 CAD plus interest maturing on August 23, 2015.    |   |                         | 79,355  |   |                  |   | 90,945 |   |
|                                                                                                                                                                          |   |                         | 114,538 |   |                  |   | 141,213 |   |
| Less: current portion                                                                                                                                                         |   |                         | 114,538 |   |                  |   | 141,213 |   |
|                                                                                                                                                                          |   | $                            | -       |   |                  | $      | - |   |

| 2012 (Nine months) |   | $      | 33,821  |   |
|--------------------|--------|--------|---------|--------|
| 2013               |   |   | 36,818  |   |
| 2014               |   |   | 20,261  |   |
| 2015               |   |   | 20,261  |   |
| 2016               |   |   | 3,377   |   |
|               |   |   | -       |   |
|               |   | $      | 114,538 |   |

| 8. | OBLIGATIONS UNDER CAPITAL LEASE |
|----|---------------------------------|

----

| 2012 (Nine months)     |   | $      | 89,447  |   |
|------------------------|--------|--------|---------|--------|
| 2013                   |   |   | 86,065  |   |
| 2014                   |   |   | 53,679  |   |
| 2015                   |   |   | 13,420  |   |
|                   |   |   | 242,611 |   |
| Less: imputed interest |   |   | (49,599 | )      |
|                   |   |   | 193,012 |   |
| Less: current portion  |   |   | (92,576 | )      |
|                   |   | $      | 100,437 |   |

| 9. | ADVANCES FROM STOCKHOLDERS |
|----|----------------------------|

| 10. | ADVANCES FROM RELATED PARTIES |
|-----|-------------------------------|

|                                |   | September 30,2011(Unaudited) |      |   | June 30,2011(Audited) |   |
|-------------------------------------|--------|------------------------------|-----------|--------|-----------------------|--------|
|                                |   |                         |      |   |                  |   |
| Coastal Water Seafoods Ltd. - (i)   |   | $                            | 241,447   |   |                  | $      | 260,109 |   |
| Canadian Triloon Corporation - (ii) |   |                         | 281,450   |   |                  |   | 294,050 |   |
| Yael Ender - (iii)                  |   |                         | 493,170   |   |                  |   | 526,649 |   |
| Triloon Corporation - (iv)          |   |                         | 329,319   |   |                  |   | 354,773 |   |
|                                |   | $                            | 1,345,386 |   |                  | $      | 1,435,581 |   |

| 11. | COMMITMENTS, CONTINGENCIES AND GUARANTEE |
|-----|------------------------------------------|

| 2012 (Nine months) |   | $      | 423,519   |   |
|--------------------|--------|--------|-----------|--------|
| 2013               |   |   | 517,634   |   |
| 2014               |   |   | 474,456   |   |
| 2015               |   |   | 497,314   |   |
| 2016               |   |   | 497,314   |   |
| Thereafter         |   |   | 2,063,864 |   |
|               |   | $      | 4,474,101 |   |

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|   | 1) This amount is payable one day following a restriction period of one year from the date the Company's shares of common stock begin to trade publicly. The funds will be raised by issuing new shares of common stock in a private placement. As security for this transaction, 3,000 of the shares were to be placed in escrow with a law firm, however to date no shares have been placed in escrow. $200,000 was accrued for this as severance expense during the fiscal year ended June 30, 2008. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) Within five business days of the Company receiving funds totaling $3,500,000 from a private placement, the Company will pay a total of $50,000 in final settlement of all obligations owed to the former stockholder. If the Company does not receive the funds from a private placement before the end of the restriction period stated in #1 above, interest at a rate of 5% per annum will accrue on the outstanding balance from the end of the restriction period. Additionally, if the Company does not receive the funds from a private placement before the end of the restriction period stated in #1 above, an amount of the shares held in escrow valued at $50,000 shall be delivered to the former stockholder. As indicated above, to date no shares have been place in escrow, therefore $50,000 of accrued management fees remains payable in relation to this. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12. RELATED PARTY TRANSACTIONS |
|--------|--------------------------------|

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| ·   | Accounts payable, subject to normal trade terms, of $331,008 as of 30 September 2011 (30 June 2010 - $1,035,012) |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | Rental payments received of $3,046 for the three months ended 30 September 2011 (three months ended 30 September 2010 - $2,887). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Management fees received of $42,367 for the three months ended 30 September 2011 (three months ended 30 September 2010 - $48,987) |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Purchases made of $396,849 for the three months ended 30 September 2011 (three months ended 30 September 2010 - $248,801). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

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| · | The loss of one significant supplier, as mentioned above. The products provided from this supplier generally had higher profit margins than other products we are currently selling, resulting in a decrease in gross profit margin. We expect our margins to increase in the future as we introduce and establish new product lines. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | We also sold off excess inventories at a discount to recover monies invested, resulting in lower margin sales.                                                                                                                                                                                                                             |

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| Signature        | Title                                                                                                 | Date              |
|------------------|-------------------------------------------------------------------------------------------------------|-------------------|
|             |                                                                                                  |              |
| /s/ Henry Ender  | President  and Chief Executive Officer (Duly Authorized Officer and Principal Executive Officer) | November 21, 2011 |
| Henry Ender      |                                                                                                  |              |
|             |                                                                                                  |              |
| /s/ Fred Farnden | Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)                     | November 21, 2011 |
| Fred Farnden     |                                                                                                  |              |
|             |                                                                                                  |              |
|             |                                                                                                  |              |

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