NOTE 5 – OTHER ASSETS

On October 29, 2010 the Company was awarded a grant under the IRS Qualifying Therapeutic Discovery Project (QTDP) program.  The total amount of the grant of $244,480 was to be paid to the Company at the end of its fiscal years 2010 and 2011. The initial grant payment of $65,122 was in relation to research and development expenses incurred during the fiscal year ended September 30, 2010. This amount was recorded as a grant receivable on September 30, 2010 and was received during in October 2010. The remaining grant amount of $179,358 was in relation to research and development expenses incurred during the fiscal year ended September 30, 2011. This amount was recorded as a grant receivable on September 30, 2011 and was received during October 2011. The grant amounts were recorded as reductions to research and development expenses.

During the year ended September 30, 2011, the Company sold certain non-core assets for $87,500. The assets sold were acquired as part of a purchase of a larger portfolio of patents. The assets were not part of the targeted biotechnology sector strategy and management did not expect to be able to use or sell these assets during their useful lives and thus assigned an initial value of $-0- to these assets. As part of the transaction, the Company incurred a broker’s fee of $17,000. Accordingly, the Company recognized a gain on the sale of assets of $70,500.