Annual report pursuant to Section 13 and 15(d)

PATENT COSTS

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PATENT COSTS
 12 Months Ended
Sep. 30, 2012
Patent Costs  
PATENT COSTS
NOTE 3 – PATENT COSTS
 
Patent costs represent the capitalized purchase price of assets acquired in the secured party sale as part of the Company’s strategy to acquire  undervalued biotechnology companies and assets. As of September 30, 2012, the Company had purchased $800,000 worth of biotechnology patents and other intellectual property. In these acquisitions, the Company used approximately $300,000 in cash and issued a $500,000 convertible debenture for the remainder of the cost, which has been paid in full.
 
The Company amortizes its patents over the life of each patent. During the year ended September 30, 2012 and 2011, the Company recognized $78,273 and $78,480 in amortization expense on the patents, respectively. The amortization expense has been included in research and development expense.