During the year ended June 30, 2011, the Company issued 86,000,000 shares to several parties. The Company believes those shares were improperly issued by former management and is subject to rescission. Shares that are subject to rescission or redemption requirements that are outside of the control of the Company are classified outside of permanent equity until they are no longer subject to rescission or redemption. Accordingly, the Company has reclassified $985,100 as common stock subject to rescission. The $985,100 was calculated at the trading price on the date those shares were issued.