NOTE 2 - GOING CONCERN

As reflected in the accompanying financial statements, the Company had a net operating loss and cash used in operations for the year ended December 31, 2012 of $864,995 and $169,750. The working capital deficit, stockholders' deficit and accumulated deficit as of December 31, 2012 was $633,856, $754,726 and $4,703,719, respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern.

The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan and raise capital. During 2012 the company began a number of initiatives to put the company back on the path toward revenue growth and profitability. During 2011, the company under the direction of its Chief Operating Officer put in place a number of programs to develop the Company's software offerings and increase its sales reach. Ultimately, these programs were not successful and resulted in a decline in revenues in conjunction with a large increase in expenses. After the departure of the COO in late 2011, the Board under the direction of the CEO asked an existing board member, Adrian Goldfarb, who has considerable turnaround experience with small private and public companies to oversee the direction and management of the company. Operating as President and interim-CFO, the following plans and actions were taken:

Our business strategy is to focus on growing our software and customer services businesses. Our target market is expected to grow to more than $1.7 billion by 2016. We will focus on growing at the same rate as the market and expanding our customer base both in numbers of customers and average revenue per customer as our offerings deliver greater value. In particular, our strategy is comprised of the following key components: Enterprise Software Licensing, Professional Services & Customer Support.

Management believes that the actions presently being taken provide the opportunity for the Company to continue as a going concern. Ultimately, the continuation of the Company as a going concern is dependent upon the ability of the Company to generate sufficient revenue and to attain profitable operations. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.