----

----

| x      | QUARTERLY      REPORT UNDER SECTION 13 OR 15(d)OF      THE SECURITIES EXCHANGE ACT OF 1934 For      the quarter ended October      31, 2009      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                  |
|  ̈ | TRANSITION      REPORT UNDER SECTION 13 OR 15 (d)OF      THE SECURITIES EXCHANGE ACT OF 1934 For      the transition period from_______to_______ |

| Nevada                               | 88-0448626               |
|--------------------------------------|--------------------------|
| (State      or other jurisdiction of | (IRS      Employer       |
| incorporation      or organization)  | Identification      No.) |

| Large      accelerated filer  ̈ | Accelerated      filer  ̈   |
|-------------------------------------|---------------------------------|
| Non-accelerated      filer  ̈   | Smaller      reporting companyx |

----

|                                                                              |                                                                   | Page   |
|-----------------------------------------------------------------------------------|------------------------------------------------------------------------|--------|
|                                                                              |                                                                   |   |
| Balance      Sheets at October 31, 2009 (unaudited) and December 31,    2008      | F-2                                                                    |
|                                                                              |                                                                   |   |
| Statement      of Operations for the three and nine months ended                  |                                                                   |
|                                                                              | October      31, 2009 and three and nine months ended October 31, 2008 | F-3    |
|                                                                              |                                                                   |   |
| Statement      of Changes in Shareholders' Deficit for the period from            |                                                                   |
|                                                                              | November      11, 2007 through October 31, 2009 (unaudited)            | F-4    |
|                                                                              |                                                                   |   |
| Statement      of Cash Flows for nine months ended October 31, 2009 and           |                                                                   |
|                                                                              | nine      months ended October 31, 2008                                | F-5    |
|                                                                              |                                                                   |   |
| Notes      to Financial Statements                                                | F-6                                                                    |
|                                                                              |                                                                   |
| Item      2. Management’s Discussion and Analysis of Financial    Condition |                                                                   |
|                                                                              | and      Results of Operations                                         | 24     |
|                                                                              |                                                                   |
| Item      3. Quantitative and Qualitative Disclosures About Market    Risk        | 28                                                                     |
|                                                                              |                                                                   |
| Item      4T. Controls and Procedures                                             | 28                                                                     |
|                                                                              |                                                                   |
| Part      II – Other Information                                            | 29                                                                     |
|                                                                              |                                                                   |
| Signatures                                                                        | 31                                                                     |
|                                                                              |                                                                   |

----

|                                                                 |   | October      31, |       |   | December      31, |   |
|----------------------------------------------------------------------|--------|------------------|------------|--------|-------------------|--------|
|                                                                 |   | 2009             |       |   | 2008              |   |
|                                                                 |   | (Unaudited)      |       |   | (Audited)         |   |
| Assets                                                               |   |             |       |   |              |   |
| Cash                                                                 |   | $                | 151,033    |   |              | $      | 292 |   |
| Accounts      receivable                                             |   |             | —    |   |              |   | 20,000 |   |
| Deposits                                                             |   |             | —    |   |              |   | 3,750 |   |
| Prepaid      expenses                                                |   |             | 40,632     |   |              |   | 8,045 |   |
| Notes      receivable (Note 5)                                       |   |             | 467        |   |              |   | 120,750 |   |
| Investment      securities - marked to market (Note 1)               |   |             | 560,000    |   |              |   | 35,000 |   |
| Property      and equipment, less accumulated depreciation           |   |             |       |   |              |   |   |   |
| of      $1076 (October 31) and $268 (December 31)                    |   |             | 8,162      |   |              |   | 2,032 |   |
| Deferred      debt issues costs (Note 4)                             |   |             | 167,030    |   |              |   |   |   |
| Other      assets                                                    |   |             | 19         |   |              |   | 4,948 |   |
|                                                                 |   |             |       |   |              |   |   |   |
| Total      assets                                                    |   | $                | 927,343    |   |              | $      | 194,817 |   |
|                                                                 |   |             |       |   |              |   |   |   |
| Liabilities      and Shareholders’ Deficit                     |   |             |       |   |              |   |   |   |
| Current      liabilities:                                            |   |             |       |   |              |   |   |   |
| Accounts      and notes payable:                                     |   |             |       |   |              |   |   |   |
| Accounts      payable, related party (Note 3)                        |   | $                | 47,001     |   |              | $      | 46,757 |   |
| Accounts      payable, other                                         |   |             | 265,913    |   |              |   | 229,563 |   |
| Derivative      liability, convertible notes payable (Note 4)        |   |             | 357,000    |   |              |   | — |   |
| Notes      payable, related party (Note 3)                           |   |             | 154,842    |   |              |   | 33,292 |   |
| Notes      payable, other (Note 4)                                   |   |             | 35,200     |   |              |   | 75,654 |   |
| Convertible      notes payable (Note 4)                              |   |             | 38,750     |   |              |   | 225,000 |   |
| Payroll      liabilities (Note 7)                                    |   |             | 66,972     |   |              |   | 52,576 |   |
| Accrued      expenses                                                |   |             | 597        |   |              |   | 3,576 |   |
| Accrued      interest payable:                                       |   |             |       |   |              |   |   |   |
| Interest      payable, convertible notes (Note 4)                    |   |             | 2,645      |   |              |   | 21,426 |   |
| Interest      payable, related party notes (Note 3)                  |   |             | 26,446     |   |              |   | 914 |   |
| Interest      payable, notes payable other (Note 4)                  |   |             | 11,936     |   |              |   | 1,156 |   |
|                                                                 |   |             |       |   |              |   |   |   |
| Total      current liabilities                                       |   |             | 1,007,302  |   |              |   | 689,914 |   |
|                                                                 |   |             |       |   |              |   |   |   |
| Commitments      and contingencies                                   |   |             | —    |   |              |   |   |   |
|                                                                 |   |             |       |   |              |   |   |   |
| Shareholders’      deficit: (Notes 1 & 9)                  |   |             |       |   |              |   |   |   |
| Preferred      stock, $.001 par value; 10,000,000 shares authorized, |   |             |       |   |              |   |   |   |
| -0-      (October 31) and 170,800 (December 31) shares               |   |             |       |   |              |   |   |   |
| issued      and outstanding                                          |   |             | —    |   |              |   | 171 |   |
| Common      stock, $.001 par value; 500,000,000 shares authorized,   |   |             |       |   |              |   |   |   |
| 289,936,993      (October 31) and 119,589,047 (December 31) shares   |   |             |       |   |              |   |   |   |
| issued      and outstanding                                          |   |             | 289,937    |   |              |   | 119,589 |   |
| Additional      paid-in capital                                      |   |             | 8,773,537  |   |              |   | 1,517,040 |   |
| Accumulated      deficit                                             |   |             | (9,143,433 | )      |              |   | (2,131,897 | ) |
|                                                                 |   |             |       |   |              |   |   |   |
| Total      shareholders' deficit                                     |   |             | (79,959    | )      |              |   | (495,097 | ) |
|                                                                 |   |             |       |   |              |   |   |   |
| Total      liabilities and shareholders' deficit                     |   | $                | 927,343    |   |              | $      | 194,817 |   |

----

|                                                          |   | Three      months |        |   | Three      months |   |       | Nine      months |   |   | Nine      months |   |
|---------------------------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|------------|------------------|--------|--------|------------------|--------|
|                                                          |   | ended             |        |   | ended             |   |       | ended            |   |   | ended            |   |
|                                                          |   | October      31,  |        |   | October      31,  |   |       | October      31, |   |   | October      31, |   |
|                                                          |   | 2009              |        |   | 2008              |   |       | 2009             |   |   | 2008             |   |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |
| Operating      costs and expenses:                            |   |              |        |   |              |   |       |             |   |   |             |   |
| Product      development expense                              |   | $                 | 4,403       |   |              | $      | 2,611      |             |   | $      | 20,148           |   |   | $ | 16,905 |   |
| Selling,      general and administrative expenses             |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Related      party (Note 3)                                   |   |              | 120,775     |   |              |   | 50,400     |             |   |   | 321,675          |   |   |   | 129,500 |   |
| (Gain)      loss on debt extinguishment (Notes 4 & 10)    |   |              | (169,880    | )      |              |   | -          |             |   |   | 31,094           |   |   |   | - |   |
| Other      (Note 6)                                           |   |              | 259,798     |   |              |   | 223,229    |             |   |   | 800,679          |   |   |   | 521,901 |   |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Total      operating costs and expenses                       |   |              | (215,096    | )      |              |   | (276,240   | )                |   |   | (1,173,596       | )      |   |   | (668,306 | ) |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Other      income (expense)                                   |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Unrealized      gain (loss) on investments (Note 1)           |   |              | 420,000     |   |              |   | (605,563   | )                |   |   | 455,000          |   |   |   | (605,563 | ) |
| Stock-based      compensation (Note 9)                        |   |              | (1,407,044  | )      |              |   | -          |             |   |   | (4,757,367       | )      |   |   | - |   |
| Interest      (expense) income, amortization                  |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| of      convertible note discount (Note 4)                    |   |              | (8,750      | )      |              |   | -          |             |   |   | (16,952          | )      |   |   | - |   |
| Interest      expense (Notes 3 & 4)                       |   |              | (84,638     | )      |              |   | (9,846     | )                |   |   | (97,920          | )      |   |   | (22,283 | ) |
| Fair      value adjustment of derivative liabilities (Note 4) |   |              | (21,466     | )      |              |   | -          |             |   |   | (15,417          | )      |   |   |   |   |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
|                                                          |   |              | (1,101,898  | )      |              |   | (615,409   | )                |   |   | (4,432,656       | )      |   |   | (627,846 | ) |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Loss      before income taxes                                 |   |              | (1,316,994  | )      |              |   | (891,649   | )                |   |   | (5,606,252       | )      |   |   | (1,296,152 | ) |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Income      tax provision (Note 8)                            |   |              | -           |   |              |   |       |             |   |   | -                |   |   |   |   |   |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Net      loss                                                 |   | $                 | (1,316,994  | )      |              | $      | (891,649   | )                |   | $      | (5,606,252       | )      |   | $ | (1,296,152 | ) |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Basic      and diluted loss per common share                  |   | $                 | (0.00       | )      |              | $      | (0.01      | )                |   | $      | (0.02            | )      |   | $ | (0.02 | ) |
|                                                          |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| Weighted      average common shares                           |   |              |        |   |              |   |       |             |   |   |             |   |   |   |   |   |
| outstanding      (Notes 1 & 9)                            |   |              | 283,637,328 |   |              |   | 99,068,528 |             |   |   | 239,754,585      |   |   |   | 74,639,304 |   |

----

|                                                 |                                                                                                                                  | Common      stock                                                                                                                     |    | Preferred      stock                                                                                                      |                                                                                                                      | Additional      paid-in                                                                                                   |                                                                                                                      | Accumulated    |                                                                                                                      | Total      shareholders                                                                                                   |
|------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|----------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                                 |                                                                                                                                  | Shares                                                                                                                                |    | Par      value                                                                                                            |                                                                                                                      | Shares                                                                                                                    |                                                                                                                      | Par      value |                                                                                                                      | Capital                                                                                                                   |   | deficit |   | deficit |
| Balance      at November 11, 2007 Inception Date     |                       - |                                                                                                                                  |  $ |                     - |                                                                                                                      |                     - |                                                                                                                      |  $        |                     - |                                                                                                                      |  $ |                     - |   |  $ |                        - |   |  $ |                      - |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Net      loss                                        |                                                                                                                                  |                       - |    |                                                                                                                      |                     - |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |                     - |   |   |             (24,545) |   |   |           (24,545) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Balance      at January 31, 2008                     |                                                                                                                                  |                       - |    |                                                                                                                      |                     - |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |                     - |   |   |             (24,545) |   |   |           (24,545) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| February      2008 through January 2009,             |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| sale      of common stock (Notes 1 & 9)          | *                                                                                                                                     |    123,780,829                                                                                                         |    |                                                                                                                      |         123,781                                                                   |                                                                                                                      |         131,800                                                                   |           |                                                                                                                      |                 132                       |   |   |      1,513,887 |   |   |                        - |   |   |       1,637,800 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| December      2008, issuance of common               |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| stock      for debt (Notes 1 & 9)                | *                                                                                                                                     |        8,219,178                                                                                   |    |                                                                                                                      |              8,219                                       |                                                                                                                      |            50,000                                                  |           |                                                                                                                      |                    50      |   |   |         141,731 |   |   |                        - |   |   |          150,000 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Net      loss                                        |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |        (2,135,444) |   |   |     (2,135,444) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Balance      at January 31, 2009                     | *                                                                                                                                     |    132,000,007                                                                                                         |    |  $                                                                                                                   |         132,000                                                                   |                                                                                                                      |         181,800                                                                   |           |  $                                                                                                                   |                 182                       |   |   |      1,655,618 |   |  $ |        (2,159,989) |   |  $ |        (372,189) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| February      through May 2009,                      |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| sale      of common stock (Notes 1 & 9)          | *                                                                                                                                     |      11,506,850                                                                                              |    |                                                                                                                      |            11,507                                                  |                                                                                                                      |            58,300                                                  |           |                                                                                                                      |                    58      |   |   |         186,735 |   |   |                        - |   |   |          198,300 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| March      2009, issuance of common                  |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |
| stock      for debt (Notes 1 & 9)                | *                                                                                                                                     |      27,616,440                                                                                              |    |                                                                                                                      |            27,616                                                  |                                                                                                                      |         178,400                                                                   |           |                                                                                                                      |                 179                       |   |   |         486,605 |   |   |                        - |   |   |          514,400 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      2009, reverse acquisition of HPI            |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| Partners,      LLC and subsidiary (Notes 1 & 9)  |      22,825,993                                                                                              |                                                                                                                                  |    |            22,826                                                  |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |         556,215 |   |   |        (1,377,192) |   |   |        (798,151) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      2009, issuance of warrants in               |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |
| HPI      Partners LLC acquisition (Note 9)           |                       - |                                                                                                                                  |    |                     - |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |      1,513,683 |   |   |                        - |   |   |       1,513,683 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      2009, issuance of common stock upon         |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| exercise      of warrants (Note 9)                   |                                                                                                                                  |            265,000                                                             |    |                                                                                                                      |                 265                       |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |              2,385 |   |   |                        - |   |   |               2,650 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      2009, issuance of common stock for          |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| debt      (Notes 4 & 9)                          |                                                                                                                                  |        4,171,940                                                                                   |    |                                                                                                                      |              4,172                                       |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |         204,425 |   |   |                        - |   |   |          208,597 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      2009, issuance of warrants to subsidiary    |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| officers      and consultants (Note 9)               |                       - |                                                                                                                                  |    |                     - |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |      2,064,635 |   |   |                        - |   |   |       2,064,635 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      2009, conversion of Series A preferred      |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| stock      to common stock (Notes 1 & 9)         |      34,397,261                                                                                              |                                                                                                                                  |    |            34,397                                                  |                                                                                                                      |        (418,500)                                                                       |                                                                                                                      |           |                (419)                           |                                                                                                                      |   |          (33,978) |   |   |                        - |   |   |                      - |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| May      through July 2009, issuance of common       |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| stock      in private placements (Note 9)            |      40,087,506                                                                                              |                                                                                                                                  |    |            40,088                                                  |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |         495,133 |   |   |                        - |   |   |          535,221 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| August      through October 2009, issuance of common |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |
| stock      in private placements (Note 9)            |      15,362,500                                                                                              |                                                                                                                                  |    |            15,363                                                  |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |         293,085 |   |   |                        - |   |   |          308,448 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| September      2009, issuance of common stock        |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| for      debt (Notes 1 & 9)                      |                                                                                                                                  |            607,996                                                             |    |                                                                                                                      |                 608                       |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |            82,627 |   |   |                        - |   |   |            83,235 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| September      2009, issuance of convertible note    |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |
| and      warrant (Notes 4 & 9)                   |                                                                                                                                  |                       - |    |                                                                                                                      |                     - |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |            85,050 |   |   |                        - |   |   |            85,050 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| September      2009, issuance of common stock        |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| for      debt offering (Notes 4 & 9)             |                                                                                                                                  |            900,000                                                             |    |                                                                                                                      |                 900                       |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |         116,100 |   |   |                        - |   |   |          117,000 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| October      2009, issuance of stock options to      |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| officers,      directors & consultants (Note 9)  |                       - |                                                                                                                                  |    |                     - |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |      1,040,000 |   |   |                        - |   |   |       1,040,000 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| October      2009, issuance of common stock          |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |
| for      warrant exercises (Notes 3 & 9)         |            195,500                                                             |                                                                                                                                  |    |                 195                       |                                                                                                                      |                     - |                                                                                                                      |           |                     - |                                                                                                                      |   |            25,219 |   |   |                        - |   |   |            25,414 |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Net      loss                                        |                                                                                                                                  |                       - |    |                                                                                                                      |                     - |                                                                                                                      |                     - |           |                                                                                                                      |                     - |   |   |                     - |   |   |        (5,606,252) |   |   |     (5,606,252) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Balance      at October 31, 2009                     |                                                                                                                                  |    289,936,993                                                                                                         |    |  $                                                                                                                   |         289,937                                                                   |                                                                                                                      |                     - |           |  $                                                                                                                   |                     - |   |   |      8,773,537 |   |  $ |        (9,143,433) |   |  $ |           (79,959) |
|                                                 |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |
| *      Restated, see Note 1                          |                                                                                                                                  |                                                                                                                                  |    |                                                                                                                      |                                                                                                                      |                                                                                                                      |                                                                                                                      |           |                                                                                                                      |                                                                                                                      |   |   |   |   |   |   |   |   |   |

----

|                                                             |   | 2009   |       |   | 2008   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                             |   |   |       |   |   |   |
| Cash      flows from operating activities:                       |   |   |       |   |   |   |
|  Net      loss                                              |   | $      | (5,606,252 | )      |   | $      | (1,296,152 | ) |
| Adjustments      to reconcile net loss to net cash               |   |   |       |   |   |   |   |   |
| used      by operating activities:                               |   |   |       |   |   |   |   |   |
| Stock      based compensation (Note 9)                           |   |   | 4,757,367  |   |   |   | — |   |
| Shares      issued for services (Note 4)                         |   |   | 61,000     |   |   |   | — |   |
| Loss      on debt extinguishment (Notes 4 & 10)              |   |   | (181,191   | )      |   |   | — |   |
| Debt      issuance costs (Note 4)                                |   |   | 117,000    |   |   |   | — |   |
| Beneficial      conversion feature                               |   |   | 63,000     |   |   |   | — |   |
| Allowance      for bad debt (Note 5)                             |   |   | 208,445    |   |   |   | — |   |
| Depreciation      and amortization                               |   |   | 6,790      |   |   |   | 153 |   |
| Unrealized      (gain) loss on investments (Note 1)              |   |   | (455,000   | )      |   |   | 605,563 |   |
| (Decrease)      increase in derivative liability (Note 4)        |   |   | 15,417     |   |   |   | — |   |
| Amortization      of discount on debentures payable (Note 4)     |   |   | 16,952     |   |   |   | — |   |
| Changes      in operating assets and liabilities:                |   |   |       |   |   |   | — |   |
| Accounts      and other receivebles                              |   |   | 13,651     |   |   |   | (3,537 | ) |
| Prepaid      expenses and other assets                           |   |   | (29,597    | )      |   |   | (3,750 | ) |
| Accounts      payable and accrued expenses                       |   |   | 41,389     |   |   |   | 38,710 |   |
| Related      party payables (Note 3)                             |   |   | (60,950    | )      |   |   | — |   |
| Interest      payable                                            |   |   | 4,448      |   |   |   | 18,713 |   |
| Net      cash used in operating activities                       |   |   | (1,027,531 | )      |   |   | (640,300 | ) |
|                                                             |   |   |       |   |   |   |   |   |
| Cash      flows from investing activities:                       |   |   |       |   |   |   |   |   |
| Purchase      of equipment                                       |   |   | (6,938     | )      |   |   | (2,300 | ) |
| Purchase      of debt securities                                 |   |   | —    |   |   |   | (781,824 | ) |
| Issuance      of notes receivable (Note 5)                       |   |   | (63,175    | )      |   |   | (92,350 | ) |
| Payments      received on notes receivable (Note 5)              |   |   | 633        |   |   |   | — |   |
| Cash      acquired in reverse acquisition (Note 1)               |   |   | 655        |   |   |   | — |   |
| Net      cash used in investing activities                       |   |   | (68,825    | )      |   |   | (876,474 | ) |
|                                                             |   |   |       |   |   |   |   |   |
| Cash      flows from financing activities:                       |   |   |       |   |   |   |   |   |
| Proceeds      from debentures (Note 4)                           |   |   | 315,000    |   |   |   | — |   |
| Proceeds      from notes payable, related (Note 3)               |   |   | 43,247     |   |   |   | 149,000 |   |
| Proceeds      from convertible promissory note (Note 4)          |   |   | 30,000     |   |   |   | 111,800 |   |
| Proceeds      from notes payable, other (Note 4)                 |   |   | —    |   |   |   | 50,000 |   |
| Proceeds      from sales of common stock (Note 9)                |   |   | 1,096,401  |   |   |   | 1,347,000 |   |
| Proceeds      from exercise of warrants to                       |   |   |       |   |   |   |   |   |
| purchase      common stock (Note 9)                              |   |   | 2,650      |   |   |   | — |   |
| Payments      on notes payable, related (Note 3)                 |   |   | (112,313   | )      |   |   | (123,240 | ) |
| Payments      to placement agents (Note 4)                       |   |   | (173,050   | )      |   |   | — |   |
| Net      cash provided by financing activities                   |   |   | 1,201,935  |   |   |   | 1,534,560 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Net      change in cash and cash equivalents                     |   |   | 105,579    |   |   |   | 17,786 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents:                                  |   |   |       |   |   |   |   |   |
| Beginning      of period                                         |   |   | 45,454     |   |   |   | 14,933 |   |
|                                                             |   |   |       |   |   |   |   |   |
| End      of period                                               |   | $      | 151,033    |   |   | $      | 32,719 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:           |   |   |       |   |   |   |   |   |
| Cash      paid during the period for:                            |   |   |       |   |   |   |   |   |
| Income      taxes                                                |   | $      | —    |   |   | $      | — |   |
| Interest                                                         |   | $      | 27,362     |   |   | $      | 5,680 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Noncash      financing transactions:                             |   |   |       |   |   |   |   |   |
| Accounts      payable converted to stock                         |   | $      | 90,414     |   |   | $      | — |   |
| Notes      and interest payable converted to stock, other        |   | $      | 570,523    |   |   | $      | — |   |
| Notes      and interest payable converted to stock, related      |   | $      | 61,400     |   |   | $      | — |   |
| Stock      issued in exchange for related party accounts payable |   | $      | 22,500     |   |   | $      | — |   |

----

----

| Assets                                                                         |   |   |       |
|--------------------------------------------------------------------------------|--------|--------|------------|
| Cash                                                                           |   | $      | 44,454     |   |
| Accounts      receivable                                                       |   |   | 20,000     |   |
| Deposits                                                                       |   |   | 3,750      |   |
| Prepaid      expenses                                                          |   |   | 7,287      |   |
| Notes      receivable                                                          |   |   | 134,225    |   |
| Investment      securities – marked to market                            |   |   | 105,000    |   |
| Equipment,      less accumulated depreciation of $306                          |   |   | 1,994      |   |
| Other      assets                                                              |   |   | 5,815      |   |
|                                                                           |   | $      | 325,525    |   |
| Liabilities      and Members’ Deficit                                    |   |   |       |   |
| Current      liabilities:                                                      |   |   |       |   |
| Accounts and notes      payable:                                               |   |   |       |   |
| Accounts payable, including      related parties                               |   |   | 271,759    |   |
| Notes payable, including related      parties                                  |   |   | 114,416    |   |
| Convertible notes payable,      including related parties                      |   |   | 225,000    |   |
| Payrollliabilities                                                             |   |   | 52,576     |   |
| Accrued expenses                                                               |   |   | 5,962      |   |
| Accrued interest payable,      including related parties                       |   |   | 4,575      |   |
| Total current      liabilities                                                 |   |   | 21,426     |   |
|                                                                           |   |   |       |   |
| Shareholders’      deficit (restated):                                   |   |   |       |   |
| Preferred stock, $.001 par value,      181,800 shares issued & outstanding |   |   | 182        |   |
| Common stock, $.001 par value      ,132,000,007 shares issued and outstanding  |   |   | 132,000    |   |
| Additional paid in      capital                                                |   |   | 1,655,618  |   |
| Accumulateddeficit                                                             |   |   | (2,159,989 | ) |
| Total members’      deficit                                              |   |   | (372,189   | ) |
| Total liabilities and members’      equity                               |   | $      | 325,525    |   |

----

----

----

| Management      fees payable to officers            |   | $      | 46,989 |   |
|-----------------------------------------------------|--------|--------|--------|--------|
|                                                |   |   |   |   |
| Accrued      expenses payable to subsidiary officer |   |   | 12     |   |
|                                                |   |   |   |   |
| Total      accounts payable, related party          |   | $      | 47,001 |   |

----

----

| Notes      payable to officers; interest at 8% and due on demand                            |   | $      | 35      |   |
|---------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                        |   |   |    |   |
| Notes      payable to affiliates of Company officers; interest at 8% and due on      demand |   |   | 154,807 |   |
|                                                                                        |   |   |    |   |
| Notes      payable, related party                                                           |   |   | 154,842 |   |
|                                                                                        |   |   |    |   |
| Interest      payable related party                                                         |   |   | 26,446  |   |
|                                                                                        |   |   |    |   |
| Total      principal and interest payable, related party                                    |   | $      | 181,288 |   |

----

| Issuance Date     | Fair Value | Term        | Conversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|-------------------|------------|-------------|-----------------------|--------------------------------|----------------------------|--------------------|
| May      2, 2008  | $16,333    | 1      year | $0.09                 | $0.12                          | 101%                       | 2.1%               |
| May      21, 2008 | $13,704    | 1      year | $0.068                | $0.09                          | 101%                       | 2.1%               |

----

----

| Issuance Date | Fair Value | Term         | AssumedConversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|---------------|------------|--------------|------------------------------|--------------------------------|----------------------------|--------------------|
| 9/29/2009     | $207,429   | 3      years | $0.105                       | $0.13                          | 195%                       | 1.38%              |
| 10/15/2009    | $117,800   | 3      years | $0.075                       | $0.12                          | 196%                       | 1.38%              |

----

| Fair Value | Term         | AssumedConversion      Price | Volatility      Percentage | Interest      Rate |
|------------|--------------|------------------------------|----------------------------|--------------------|
| $357,000   | 3      years | $0.075                       | 195%                       | 1.38%              |

----

|                                |   | Three      months ended October 31, 2009 |    |   | Three      months ended October 31, 2008 |   |    | Nine      months ended October 31, 2009 |   |   | Ninemonths      ended October 31, 2008 |   |
|-------------------------------------|--------|------------------------------------------|---------|--------|------------------------------------------|--------|---------|-----------------------------------------|--------|--------|----------------------------------------|--------|
| General      and administrative     |   | $                                        | 43,818  |   |                                     | $      | 40,145  |                                    |   | $      | 129,060                                |   |   | $ | 92,148 |   |
| Salaries      and employee benefits |   |                                     | 89,423  |   |                                     |   | 109,591 |                                    |   |   | 272,913                                |   |   |   | 205,317 |   |
| Legal      and accounting           |   |                                     | 27,870  |   |                                     |   | 10,344  |                                    |   |   | 117,490                                |   |   |   | 48,387 |   |
| Professional      services          |   |                                     | 98,688  |   |                                     |   | 63,149  |                                    |   |   | 281,216                                |   |   |   | 179,549 |   |
|                                |   | $                                        | 259,798 |   |                                     | $      | 223,229 |                                    |   | $      | 800,679                                |   |   | $ | 521,901 |   |

----

| Issuance Date   | Fair Value | Term        | Conversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|-----------------|------------|-------------|-----------------------|--------------------------------|----------------------------|--------------------|
| April      2009 | $23,850    | 1      Year | $0.01                 | $0.10                          | 122%                       | 0.5%               |

----

| Issuance Date      | Fair Value | Term         | Conversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|--------------------|------------|--------------|-----------------------|--------------------------------|----------------------------|--------------------|
| March      4, 2009 | $886,743   | 3      years | $0.12                 | $0.07                          | 195%                       | 1.4%               |

----

| Issuance Date      | Fair Value | Term         | Conversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|--------------------|------------|--------------|-----------------------|--------------------------------|----------------------------|--------------------|
| March      4, 2009 | $216,619   | 3      years | $0.10                 | $0.07                          | 195%                       | 1.4%               |
| March      4, 2009 | $206,857   | 3      years | $0.15                 | $0.07                          | 195%                       | 1.4%               |
| March      4, 2009 | $203,465   | 3      years | $0.18                 | $0.07                          | 195%                       | 1.4%               |

| Issuance Date    | Fair Value | Term         | Conversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|------------------|------------|--------------|-----------------------|--------------------------------|----------------------------|--------------------|
| May      5, 2009 | $1,374,647 | 5      years | $0.13                 | $0.12                          | 225%                       | 1.9%               |
| May      5, 2009 | $1,374,646 | 6      years | $0.13                 | $0.12                          | 225%                       | 2.3%               |
| May      5, 2009 | $1,385,302 | 7      years | $0.13                 | $0.12                          | 225%                       | 2.6%               |

| Issuance Date          | Fair Value | Term         | Conversion      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|------------------------|------------|--------------|-----------------------|--------------------------------|----------------------------|--------------------|
| September      4, 2009 | $22,050    | 3      years | $0.06                 | $0.155                         | 195%                       | 1.38%              |

----

|                                                 |   | Warrants |       |   | Weighted-average      exercise price |   |   | Weighted-average      grant date fair value |   |
|------------------------------------------------------|--------|----------|------------|--------|--------------------------------------|--------|--------|---------------------------------------------|--------|
| Outstanding      and exercisable at January 31, 2009 |   |     | 4,213,719  |   |                                 | $      | 0.39   |                                        |   | $ | 0.10 |   |
|                                                 |   |     |       |   |                                 |   |   |                                        |   |   |   |   |
| Granted                                              |   |     | 56,962,044 |   |                                 |   | 0.13   |                                        |   |   | 0.10 |   |
| Expired                                              |   |     | (250,000   | )      |                                 |   | 0.50   |                                        |   |   | 0.00 |   |
| Exercised                                            |   |     | (460,500   | )      |                                 |   | -      |                                        |   |   | - |   |
|                                                 |   |     |       |   |                                 |   |   |                                        |   |   |   |   |
| Outstanding      and exercisable at October 31, 2009 |   |     | 60,465,263 |   |                                 | $      | 0.15   |                                        |   | $ | 0.10 |   |

| Exercise      price range |   | Number      of options outstanding |   | Weighted-average      exercise price            |   | Weighted-average      remaining life |
|---------------------------|--------|------------------------------------|--------|-------------------------------------------------|--------|--------------------------------------|
|                      |   |                               |   |                                            |   |                                 |
| $0.50                     |   | 2,936,219                          |   | $       0.50 |   | 1.0      years                       |
|                      |   |                               |   |                                            |   |                                 |
| $0.25                     |   | 27,500                             |   |        0.25  |   | 1.5      years                       |
|                      |   |                               |   |                                            |   |                                 |
| $0.10      to $0.18       |   | 56,351,544                         |   | 0.13                                            |   | 4.4      years                       |
|                      |   |                               |   |                                            |   |                                 |
| $0.06                     |   | 1,150,000                          |   |       0.06        |   | 2.4      years                       |
|                      |   |                               |   |                                            |   |                                 |
|                      |   | 60,465,263                         |   | $       0.15 |   | 2.7      years                       |

----

| Issuance Date     | Fair      Value | Term         | Exercise      Price | Market      Price onGrant Date | Volatility      Percentage | Interest      Rate |
|-------------------|-----------------|--------------|---------------------|--------------------------------|----------------------------|--------------------|
| March      2009   | $93,150         | 5      years | $0.07               | $0.07                          | 213%                       | 1.94%              |
| October      2009 | 1,040,000       | 5      years | $0.105              | $0.105                         | 226%                       | 2.38               |

|                                     | Options |   | Weighted-average      exercise price |   | Weighted-average      remaining contractual life (years) |   | Aggregate      intrinsic value |
|------------------------------------------|---------|--------|--------------------------------------|--------|----------------------------------------------------------|--------|--------------------------------|
| Outstanding      at January 31, 2009     | 425,000 |   | $0.35                                |   | 3,4                                                      |   | $0                             |
|                                     |    |   |                                 |   |                                                     |   |                           |
| Options      granted                     | -       |   | -                                    |   | -                                                        |   | -                              |
|                                     |    |   |                                 |   |                                                     |   |                           |
| Outstanding      atOctober      31, 2009 | 425,000 |   | $0.35                                |   | 3.4                                                      |   | $0                             |

|                                     | Options    |   | Weighted-average      exercise price |   | Weighted-average      remaining contractual life (years) |   | Aggregate      intrinsic value |
|------------------------------------------|------------|--------|--------------------------------------|--------|----------------------------------------------------------|--------|--------------------------------|
| Outstanding      at January 31, 2009     | 0          |   | $0.00                                |   | 0                                                        |   | $0                             |
|                                     |       |   |                                 |   |                                                     |   |                           |
| Options      granted                     | 11,350,000 |   | $0.10                                |   | 4.3                                                      |   | $0                             |
|                                     |       |   |                                 |   |                                                     |   |                           |
| Outstanding      atOctober      31, 2009 | 11,350,000 |   | $0.10                                |   | 4.3                                                      |   | $0                             |

----

----

----

----

----

|                                |   | Nine      months endedOctober      31, 2009 |    |   | Nine      months endedOctober      31, 2008 |   |
|-------------------------------------|--------|---------------------------------------------|---------|--------|---------------------------------------------|--------|
| General      and administrative     |   | $                                           | 129,060 |   |                                        | $      | 92,148 |   |
| Salaries      and employee benefits |   |                                        | 272,913 |   |                                        |   | 205,317 |   |
| Legal      and accounting           |   |                                        | 117,490 |   |                                        |   | 48,387 |   |
| Professional      services          |   |                                        | 281,216 |   |                                        |   | 179,549 |   |
|                                |   | $                                           | 800,679 |   |                                        | $      | 521,901 |   |

|                                |   | Three      months endedOctober      31, 2009 |    |   | Three      months endedOctober      31, 2008 |   |
|-------------------------------------|--------|----------------------------------------------|---------|--------|----------------------------------------------|--------|
| General      and administrative     |   | $                                            | 43,818  |   |                                         | $      | 40,145 |   |
| Salaries      and employee benefits |   |                                         | 89,423  |   |                                         |   | 109,591 |   |
| Legal      and accounting           |   |                                         | 27,870  |   |                                         |   | 10,344 |   |
| Professional      services          |   |                                         | 98,688  |   |                                         |   | 63,149 |   |
|                                |   | $                                            | 259,798 |   |                                         | $      | 223,229 |   |

----

| •   | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect our transactions and dispositions of our      assets; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Provide      reasonable assurance our transactions are recorded as necessary to permit      preparation of our financial statements in accordance with GAAP, and that      receipts and expenditures are being made only in accordance with      authorizations of our management and directors;  and |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of our assets that could have      a material effect on the financialstatement. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibits: |                                                                                                                                                                                                                                                                                                                                                            |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1       | Form      of Securities Purchase Agreement by and among AlumiFuel Power Corporation      and the Buyers of up to $700,000 of Convertible debentures dated September      15, 2009.  Incorporated by reference to      the Company's Quarterly Report on Form 10-Q for the period ended July 31,      2009 as filed with the SEC on September 21,2009. |
| 31.1      | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.  Filed      herewith.                                                                                                                                                                                                                                              |
| 32.1      | Certification      pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.  Filed      herewith.                                                                                                                                                                                                                                              |

----

|   | ALUMIFUEL      POWER CORPORATION |
|--------|----------------------------------|
|   | (Registrant)                     |

| Date:      December 21, 2009 | By:      /s/ Henry      Fong                                         |
|------------------------------|----------------------------------------------------------------------|
|                         | Henry      Fong                                                      |
|                         | Principal      Executive Officer andPrincipal      Financial Officer |
|                         |                                                                 |