Commitments and Contingencies	9 Months Ended
Sep. 30, 2011
Commitments And Contingencies
Commitments and Contingencies	NOTE 12 Commitments and Contingencies Employment Agreement On April 23, 2010, the Company entered into an Employment Agreement (the “Agreement”) with Darren Dunckel (“Executive”) whereby the Company will employ Executive as its Chief Executive Officer for a term of two years (the “Term”). Executive does not have any family relationship with any director, executive officer or person nominated or chosen by the Company to become a director or executive officer In addition, Executive has been appointed as a member of the Board of Directors of the Company. For his services during the Term as Chief Executive Officer, the Company will pay Executive a salary of $120,000 to be paid on a monthly basis at a rate of $10,000 per month. Executive will also be granted a signing bonus consisting of 4,000,000 shares of common stock of the Company upon signing the Agreement. Additionally, if the Company generates net income of at least $1,000,000 during any fiscal year during the Term, the Company will pay the Executive an annual bonus in the amount of $100,000. Executive will also receive during the Term such medical, health and disability insurance as the Company provides to its executive officers, two weeks of vacation in each calendar year and eligibility to participate in such pension, profit-sharing, retirement and other benefits as are available to executive officers of the Company. On July 29, 2010, Stewart Reich was elected as a member of the Board of Directors of the Company. Mr. Reich was initially to receive on an annual basis at the commencement of each term shares of common stock of the Company registered on a Form S-8 Registration Statement equal to $6,000 divided by the Company’s market price discounted by 25%. On August 5, 2010, Mr. William Glass was elected as members of the Board of Directors of the Company, which such appointment was accepted by Mr. Glass on August 9, 2010. Mr. Glass was initially to receive, on an annual basis at the commencement of each term, shares of common stock of the Company registered on a Form S-8 Registration Statement equal to $6,000 divided by the Company’s market price discounted by 25%. On March 4, 2011, the Company amended the Director Agreements by and between the Company and William Glass and Stewart Reich whereby Mr. Glass and Mr. Reich will each receive shares of common stock of the Company equal to $12,000 divided by the Company’s market price discounted by 25% on an annual basis. The shares of common stock will be restricted as required under the Securities Act of 1933, as amended. On January 18, 2011, Mrs. Liat Franco was appointed by the Company to serve as the Secretary of the Company. On March 4, 2011, the Company entered into an Employment Agreement (the “Employment Agreement”) with Liat Franco whereby the Company will employ Ms. Franco as its Secretary for a term of one year (the “Term”). For her services during the Term as Secretary, the Company will issue Ms. Franco 15,000 shares of common stock of the Company, which will have a restrictive legend under the Securities Act of 1933, as amended. In the event that the Term of the Employment Agreement is extended, then the number of shares of common stock will be determined by dividing $6,000 by the market price on the first trading day of the Term. Websites The Company and its affiliates have four websites. All websites are currently under evaluation and further construction, and as such modifications may apply. Lease Agreement The Company’s headquarters located at Moria 30 Avenue, Haifa, Israel 34572. The Company leased two (2) virtual offices in Las Vegas NV and in Dallas TX, paying about $250 per month for each virtual office. Investor’s Conference Calls On May 25, 2011, the Company hosted a conference call after the close of the market to discuss its first quarter financials for fiscal 2011 as well as the Company’s business outlook for the remainder of the year. The call was open to all shareholders and interested parties. A copy of the presentation by Darren Dunckel, CEO of the Company, was filed as Exhibit to the form 8K that was filed by the Company. The Company hosted a second conference call to discuss its second quarter financials for fiscal 2011, as well as the Company’s business outlook for the remainder of the year. The call took place after the close of the market on Tuesday August 30, 2011 and was open to all shareholders and interested parties. Though the Company announce twice about said conference call, only about 15 people participate on said call. Due to the fact that the Company can no longer consolidating the results of VI (per FIN46R) starting this third fiscal quarter, the Company may not be having further earnings calls through the end of fiscal 2011. Acquisition of interests of VI The Company acquired just under a 50% interest of Operation Unit in a series of transactions. In connection with the Asset acquisition, on November 17, 2010, the Company entered into a Share Exchange Agreement (the “APH Agreement”) with APH pursuant to which the Company agreed to issue 36,000,000 shares of common stock of the Company as well as a 6% Convertible Note in the principal amount of $1,200,000 due February 15, 2011 (the “APH Note”). On December 30, 2010, the Company and APH entered into an amendment to the APH Agreement whereby the number of shares to be delivered by the Company was reduced from 36,000,000 to 25,000,000. Further, on December 30, 2010, in order to expedite the transaction and avoid further dilution of the existing shareholders, Medirad and Rasel, both shareholders of the Company, have agreed to return an aggregate of 70,000,000 shares of common stock to the Company for cancellation upon closing of the APH Agreement. The above transaction closed on December 30, 2010. In connection with the acquisition of just under 50% of Asset, the Company owes APH on a short-term note payable in the principal amount of $1,000,000, and $52,110 in accrued interest, and owes HAM on a short-term note payable in the principal amount of $600,000, and $17,458 in accrued interest. The notes and accrued interest are thus classified as short-term liabilities on the financial statements included herein reflecting the anticipated extension of maturity (both Notes mature on June 30, 2011 and the Company is in default). The Notes both carry 6% annual interest, and are convertible to common shares. The Company has since defaulted on its notes payable to APH and HAM in connection with the acquisition of the VI. These notes were amended and extended to mature in June 30, 2011. As of the date of these financial statements contained herein, the Company is in default on these Notes. The Company been notified by APH and HAM that they have transferred their notes to third parties. The Company is in negotiations with APH and HAM (for the benefit of the third parties) to resolve the default. There is no guarantee that a settlement will be reached in this matter. Nexus LOI On February 7, 2011, the Company entered into a Letter of Intent ("LOI") to acquire up to 40.1% equity interest in a U.K. regulated investment advisory firm. On March 30, 2011, the LOI was terminated by the Parties. Pending Transactions and Outstanding Letters of Intent As a development stage company, the Company pursues acquisitions and joint ventures from time to time, and has a number of Letters of Intent (“LOI”) outstanding for various transactions. At the LOI stage, the Company attempts to determine if the two companies may be integrated and to assess the synergies of the companies. If the synergies that may result from the transaction are not acceptable, the LOI is cancelled. On May 24, 2011, the Company countersigned a Letter of Intent dated May 17, 2011 (the “LOI”) with a foreign corporation (“Paragon”) pursuant to which Paragon agreed to sell and the Company agreed to purchase a 51% interest in Paragon in consideration of $17,595,000 to be paid by the Company in cash and shares of common stock. Paragon is a provider of advanced Forex trading platform for the online Forex industry, it committed to pioneering the next generation of comprehensive, added-value solutions for Forex operators based on intimate industry experience and cutting-edge technologies. A portion of the consideration shall be paid to the shareholders of Paragon. The Parties have not yet determined how the consideration will be allocated. Except for various miscellaneous provisions, this LOI is non-binding. Final closing is subject to certain procedures including satisfactory due diligence, and approval of the final definitive agreements by the Boards of Directors of the Company and Paragon, among others. There is no guarantee that the parties will reach a final agreement, that the Company will be able to raise the required funds to close the transaction. or that the transaction will close on the terms set forth as agreed in the LOI. To date the Company has not concluded its due diligence, and the Paragon LOI has expired without any action of either side. Broker Dealer – Forex was formed with the express intent of providing online trading services to retail customers giving them access to online foreign currency trading. The Company’s Board believes that Broker Dealer (“BD”) business would complement its existing business, notwithstanding new regulations under the Dodd-Frank Act. The Company has identified and made offers to acquire minority interests with regulated BDs which have not yet matured to the LOI stage. The Company is still actively pursuing these opportunities, which if they become closed transactions will require the Company to reassess the domicile of its core Forex investment, as BDs are a highly regulated business, whereas the exiting platform is an offshore, relatively unregulated business. Gold trading project - During the third quarter of 2011, the Company entered negotiation with a domestic party (“DP”) to potentially joint venture on trading actual gold. In essence, DP holds a license from a South American country to trade gold. DP is willing to sign a contract with the Miner Association located in this country to purchase up to 520kg of placer gold per month from private individuals miners, which are members of the Miner Association. The concept is that Placer gold will be collected from private individuals’ miners and purchase the gold will be under the following conditions: (1) Price of Purchase will be changed daily and will be approximately 9% off from London gold market. (2) Purchase will be made after placer gold will be melted, weighted and certified to be done in one place. (3) Payment to the individual miners will be made in cash. Per the contract with DP, the Miner Association guarantees to provide the following terms and conditions: (a) License (including export license) to purchase and sell gold. (b) Supply placer gold with a minimum amount of 520kg based on monthly purchase. (c) Support to open a private bank for banking operations such as Saving Accounts, Loans, Mortgages, ATM and Debit Card Services to provide payments to private miners. The Company is in the process of conducting due diligence, as well as evaluating the creation of an internet trading platform specialized in gold. There is no guarantee that the negotiation will be finalized or that we will enter into a definitive agreement. Investment Agreements On June 27, 2011, the Company entered into an investment agreement (the "Investment Agreement") with Centurion Private Equity, LLC ("Centurion") pursuant to which the Company may issue registered, tradable shares of its common stock, par value $0.00001 per share (the "Common Stock"), up to $10,000,000 over a 36-month period. Pursuant to that certain Registration Rights Agreement (the "Registration Rights Agreement"), the Company agreed to register the shares issuable under the Investment Agreement. Any use of this funding mechanism will be entirely at the Company's discretion. Subject to an effective registration statement, the Company may submit a notice to Centurion from time to time, as and when the Company deems appropriate in accordance with the terms and conditions of the Investment Agreement. The maximum amount that the Company is entitled to put in any one notice is such number of shares of common stock as equals $250,000 subject to certain volume limitations. The put price of the securities to Centurion will equal the lesser of: (i) 98% of the average of the lowest three daily volume weighted average price, or "VWAPs," of our common stock during the fifteen trading day period beginning on the trading day immediately following the date Centurion receives our put notice (the "Market Price") or (ii) the Market Price minus $0.01. The Investment Agreement provides that the Company must deliver an advance put notice to Centurion at least five business days but no more than ten business days prior to any intended put date. The advance put notice must provide the number of shares included in the put and the put date. Pursuant to the terms of, and in consideration for Centurion entering into, the Investment Agreement, the Company issued 1,214,224 shares of Common Stock to Centurion as a commitment fee in connection with the Investment Agreement (the "Commitment Shares") and 86,730 shares of the Common Stock representing fees incurred by Centurion in connection with the Investment Agreement (the "Fee Shares"), in each case based upon a deemed valuation per share equal to 100% of the volume-weighted average price of the Company's Common Stock for the 5 trading days immediately preceding the date of the Investment Agreement. The Company may terminate the facility at any time for any reason during an Extended Put Period (as defined in the Investment Agreement), provided that such termination shall have no effect on the parties' other rights and obligations under the Investment Agreement and the Registration Rights Agreement. The Investment Agreement contains customary representations and warranties of each of the Company and Centurion. There are circumstances under which we will not be entitled to put shares to Centurion in accordance with the terms and conditions of the Investment Agreement. In addition, the Company executed a Registration Rights Agreement with Centurion whereby the Company agreed to register a number of shares of its Common Stock equal to the Commitment Shares, the Fee Shares, any shares of Common Stock to be issued in connection with a put and any shares resulting from a dividend, stock split, exchange, reclassification or similar distribution. The Company agreed to file a registration statement with the Securities and Exchange Statement to register such shares within 60 days and to have such registration be effective within 120-150 days and to keep such registration statement, or additional registration statements if necessary, remain effective until either all of the registered shares are sold or the shares may be sold in accordance with Rule 144 of the Securities Act of 1933, as amended. In connection with the Investment Agreement, we issued the Commitment Shares and the Fee Shares to Centurion. These securities were issued in reliance on Section 4(2) of the Securities Act of 1933, as amended. The issuance did not involve any general solicitation or advertising by us. Centurion acknowledged the existence of transfer restrictions applicable to the securities sold by us. Certificates representing the securities sold contain a legend stating the restrictions on transfer to which such securities are subject. The commitment fee for the transaction has been capitalized under Other Assets. On July 12, 2011, Forex Sub a wholly owned subsidiary of Forex International Trading Corp. (the “Company”), entered into a Joint Venture Agreement with a third party (the “Partner”) whereby the joint venture shall seek to develop a forex trading platform using the platform licensed to the Company pursuant to the Software Licensing Agreement with VI dated April 12, 2010. In accordance with the joint venture, the Partner shall be responsible for all marketing operations. Forex Sub and the Partner shall split all profit evenly. The term of the joint venture is six months. In August, 2011 Forex Sub and Partner decided not to continue with this Joint Venture, as such the Joint Venture was cancelled. Adversarial relationship with Asset As disclosed (in footnote 2 and 6) - Go-forward accounting treatment – No consolidation per FIN46R, barring the acquisition of an additional interest in Asset Due to the fact that Mr. Offer was removed unilaterally from the Board of Directors of Asset Subsidiary by the Directors of Asset, on or around June 30, 2011, and the fact that the Company holds a minority stake in VI, the Company is forced to take the decision to discontinue consolidating the financial statements of VI into its results in the third fiscal quarter of 2011. On or around August 30, 2011, the Company via its attorney issued a formal letter to Asset and to the Trustee holding Asset Subsidiary’s shares putting them on notice about the position of the Company with the legality of removal the Company’s sole director with Asset Subsidiary. Said detailed letter that put Asset and the substitute directors as well as the Trustee on notice with liability for future consequences was not responded to by Directors of Asset. Moreover, on or around November 10, 2011, the Company issued an additional letter to the current Directors of Asset Subsidiary – see subsequent events. Legal Proceedings From time to time, we may be a party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are involved currently in any legal proceeding that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. On or about June 13, 2011 the Company initiated a complaint against an individual and website for defamation, intentional interference with prospective economic advantage, negligent and violations of business and professions code. The Complaint was filled with the Superior Court of the State of California - For the County of San Diego and its case number is 37-2011-00092840-CU-DF-CTL. On or about September 14, 2011, the Company withdrew its complaint. On or about August 16, 2011, one of the defendants filed a notice of motion and motion to strike the complaint under the anti-slapp statute. On or about November 3, 2011, the Company’s agent for service was served with the motion in which the defendant is seeking approximately $20,988 in legal fees.

On April 23, 2010, the Company entered into an Employment Agreement (the “Agreement”) with Darren Dunckel (“Executive”) whereby the Company will employ Executive as its Chief Executive Officer for a term of two years (the “Term”). Executive does not have any family relationship with any director, executive officer or person nominated or chosen by the Company to become a director or executive officer In addition, Executive has been appointed as a member of the Board of Directors of the Company. For his services during the Term as Chief Executive Officer, the Company will pay Executive a salary of $120,000 to be paid on a monthly basis at a rate of $10,000 per month. Executive will also be granted a signing bonus consisting of 4,000,000 shares of common stock of the Company upon signing the Agreement. Additionally, if the Company generates net income of at least $1,000,000 during any fiscal year during the Term, the Company will pay the Executive an annual bonus in the amount of $100,000. Executive will also receive during the Term such medical, health and disability insurance as the Company provides to its executive officers, two weeks of vacation in each calendar year and eligibility to participate in such pension, profit-sharing, retirement and other benefits as are available to executive officers of the Company.

On July 29, 2010, Stewart Reich was elected as a member of the Board of Directors of the Company. Mr. Reich was initially to receive on an annual basis at the commencement of each term shares of common stock of the Company registered on a Form S-8 Registration Statement equal to $6,000 divided by the Company’s market price discounted by 25%. On August 5, 2010, Mr. William Glass was elected as members of the Board of Directors of the Company, which such appointment was accepted by Mr. Glass on August 9, 2010. Mr. Glass was initially to receive, on an annual basis at the commencement of each term, shares of common stock of the Company registered on a Form S-8 Registration Statement equal to $6,000 divided by the Company’s market price discounted by 25%. On March 4, 2011, the Company amended the Director Agreements by and between the Company and William Glass and Stewart Reich whereby Mr. Glass and Mr. Reich will each receive shares of common stock of the Company equal to $12,000 divided by the Company’s market price discounted by 25% on an annual basis. The shares of common stock will be restricted as required under the Securities Act of 1933, as amended.

On January 18, 2011, Mrs. Liat Franco was appointed by the Company to serve as the Secretary of the Company. On March 4, 2011, the Company entered into an Employment Agreement (the “Employment Agreement”) with Liat Franco whereby the Company will employ Ms. Franco as its Secretary for a term of one year (the “Term”). For her services during the Term as Secretary, the Company will issue Ms. Franco 15,000 shares of common stock of the Company, which will have a restrictive legend under the Securities Act of 1933, as amended. In the event that the Term of the Employment Agreement is extended, then the number of shares of common stock will be determined by dividing $6,000 by the market price on the first trading day of the Term.

On May 25, 2011, the Company hosted a conference call after the close of the market to discuss its first quarter financials for fiscal 2011 as well as the Company’s business outlook for the remainder of the year. The call was open to all shareholders and interested parties. A copy of the presentation by Darren Dunckel, CEO of the Company, was filed as Exhibit to the form 8K that was filed by the Company.

The Company hosted a second conference call to discuss its second quarter financials for fiscal 2011, as well as the Company’s business outlook for the remainder of the year. The call took place after the close of the market on Tuesday August 30, 2011 and was open to all shareholders and interested parties. Though the Company announce twice about said conference call, only about 15 people participate on said call.

The Company acquired just under a 50% interest of Operation Unit in a series of transactions. In connection with the Asset acquisition, on November 17, 2010, the Company entered into a Share Exchange Agreement (the “APH Agreement”) with APH pursuant to which the Company agreed to issue 36,000,000 shares of common stock of the Company as well as a 6% Convertible Note in the principal amount of $1,200,000 due February 15, 2011 (the “APH Note”). On December 30, 2010, the Company and APH entered into an amendment to the APH Agreement whereby the number of shares to be delivered by the Company was reduced from 36,000,000 to 25,000,000. Further, on December 30, 2010, in order to expedite the transaction and avoid further dilution of the existing shareholders, Medirad and Rasel, both shareholders of the Company, have agreed to return an aggregate of 70,000,000 shares of common stock to the Company for cancellation upon closing of the APH Agreement. The above transaction closed on December 30, 2010.

In connection with the acquisition of just under 50% of Asset, the Company owes APH on a short-term note payable in the principal amount of $1,000,000, and $52,110 in accrued interest, and owes HAM on a short-term note payable in the principal amount of $600,000, and $17,458 in accrued interest. The notes and accrued interest are thus classified as short-term liabilities on the financial statements included herein reflecting the anticipated extension of maturity (both Notes mature on June 30, 2011 and the Company is in default). The Notes both carry 6% annual interest, and are convertible to common shares.

The Company has since defaulted on its notes payable to APH and HAM in connection with the acquisition of the VI. These notes were amended and extended to mature in June 30, 2011. As of the date of these financial statements contained herein, the Company is in default on these Notes. The Company been notified by APH and HAM that they have transferred their notes to third parties. The Company is in negotiations with APH and HAM (for the benefit of the third parties) to resolve the default. There is no guarantee that a settlement will be reached in this matter.

As a development stage company, the Company pursues acquisitions and joint ventures from time to time, and has a number of Letters of Intent (“LOI”) outstanding for various transactions. At the LOI stage, the Company attempts to determine if the two companies may be integrated and to assess the synergies of the companies. If the synergies that may result from the transaction are not acceptable, the LOI is cancelled.

On May 24, 2011, the Company countersigned a Letter of Intent dated May 17, 2011 (the “LOI”) with a foreign corporation (“Paragon”) pursuant to which Paragon agreed to sell and the Company agreed to purchase a 51% interest in Paragon in consideration of $17,595,000 to be paid by the Company in cash and shares of common stock. Paragon is a provider of advanced Forex trading platform for the online Forex industry, it committed to pioneering the next generation of comprehensive, added-value solutions for Forex operators based on intimate industry experience and cutting-edge technologies. A portion of the consideration shall be paid to the shareholders of Paragon. The Parties have not yet determined how the consideration will be allocated. Except for various miscellaneous provisions, this LOI is non-binding. Final closing is subject to certain procedures including satisfactory due diligence, and approval of the final definitive agreements by the Boards of Directors of the Company and Paragon, among others. There is no guarantee that the parties will reach a final agreement, that the Company will be able to raise the required funds to close the transaction. or that the transaction will close on the terms set forth as agreed in the LOI. To date the Company has not concluded its due diligence, and the Paragon LOI has expired without any action of either side.

Broker Dealer – Forex was formed with the express intent of providing online trading services to retail customers giving them access to online foreign currency trading. The Company’s Board believes that Broker Dealer (“BD”) business would complement its existing business, notwithstanding new regulations under the Dodd-Frank Act. The Company has identified and made offers to acquire minority interests with regulated BDs which have not yet matured to the LOI stage. The Company is still actively pursuing these opportunities, which if they become closed transactions will require the Company to reassess the domicile of its core Forex investment, as BDs are a highly regulated business, whereas the exiting platform is an offshore, relatively unregulated business.

Gold trading project - During the third quarter of 2011, the Company entered negotiation with a domestic party (“DP”) to potentially joint venture on trading actual gold. In essence, DP holds a license from a South American country to trade gold. DP is willing to sign a contract with the Miner Association located in this country to purchase up to 520kg of placer gold per month from private individuals miners, which are members of the Miner Association. The concept is that Placer gold will be collected from private individuals’ miners and purchase the gold will be under the following conditions: (1) Price of Purchase will be changed daily and will be approximately 9% off from London gold market. (2) Purchase will be made after placer gold will be melted, weighted and certified to be done in one place. (3) Payment to the individual miners will be made in cash.

Per the contract with DP, the Miner Association guarantees to provide the following terms and conditions: (a) License (including export license) to purchase and sell gold. (b) Supply placer gold with a minimum amount of 520kg based on monthly purchase. (c) Support to open a private bank for banking operations such as Saving Accounts, Loans, Mortgages, ATM and Debit Card Services to provide payments to private miners.

On June 27, 2011, the Company entered into an investment agreement (the "Investment Agreement") with Centurion Private Equity, LLC ("Centurion") pursuant to which the Company may issue registered, tradable shares of its common stock, par value $0.00001 per share (the "Common Stock"), up to $10,000,000 over a 36-month period. Pursuant to that certain Registration Rights Agreement (the "Registration Rights Agreement"), the Company agreed to register the shares issuable under the Investment Agreement. Any use of this funding mechanism will be entirely at the Company's discretion.

Subject to an effective registration statement, the Company may submit a notice to Centurion from time to time, as and when the Company deems appropriate in accordance with the terms and conditions of the Investment Agreement. The maximum amount that the Company is entitled to put in any one notice is such number of shares of common stock as equals $250,000 subject to certain volume limitations. The put price of the securities to Centurion will equal the lesser of: (i) 98% of the average of the lowest three daily volume weighted average price, or "VWAPs," of our common stock during the fifteen trading day period beginning on the trading day immediately following the date Centurion receives our put notice (the "Market Price") or (ii) the Market Price minus $0.01. The Investment Agreement provides that the Company must deliver an advance put notice to Centurion at least five business days but no more than ten business days prior to any intended put date. The advance put notice must provide the number of shares included in the put and the put date.

Pursuant to the terms of, and in consideration for Centurion entering into, the Investment Agreement, the Company issued 1,214,224 shares of Common Stock to Centurion as a commitment fee in connection with the Investment Agreement (the "Commitment Shares") and 86,730 shares of the Common Stock representing fees incurred by Centurion in connection with the Investment Agreement (the "Fee Shares"), in each case based upon a deemed valuation per share equal to 100% of the volume-weighted average price of the Company's Common Stock for the 5 trading days immediately preceding the date of the Investment Agreement.

The Company may terminate the facility at any time for any reason during an Extended Put Period (as defined in the Investment Agreement), provided that such termination shall have no effect on the parties' other rights and obligations under the Investment Agreement and the Registration Rights Agreement. The Investment Agreement contains customary representations and warranties of each of the Company and Centurion. There are circumstances under which we will not be entitled to put shares to Centurion in accordance with the terms and conditions of the Investment Agreement.

In addition, the Company executed a Registration Rights Agreement with Centurion whereby the Company agreed to register a number of shares of its Common Stock equal to the Commitment Shares, the Fee Shares, any shares of Common Stock to be issued in connection with a put and any shares resulting from a dividend, stock split, exchange, reclassification or similar distribution. The Company agreed to file a registration statement with the Securities and Exchange Statement to register such shares within 60 days and to have such registration be effective within 120-150 days and to keep such registration statement, or additional registration statements if necessary, remain effective until either all of the registered shares are sold or the shares may be sold in accordance with Rule 144 of the Securities Act of 1933, as amended.

In connection with the Investment Agreement, we issued the Commitment Shares and the Fee Shares to Centurion. These securities were issued in reliance on Section 4(2) of the Securities Act of 1933, as amended. The issuance did not involve any general solicitation or advertising by us. Centurion acknowledged the existence of transfer restrictions applicable to the securities sold by us. Certificates representing the securities sold contain a legend stating the restrictions on transfer to which such securities are subject. The commitment fee for the transaction has been capitalized under Other Assets.

On July 12, 2011, Forex Sub a wholly owned subsidiary of Forex International Trading Corp. (the “Company”), entered into a Joint Venture Agreement with a third party (the “Partner”) whereby the joint venture shall seek to develop a forex trading platform using the platform licensed to the Company pursuant to the Software Licensing Agreement with VI dated April 12, 2010. In accordance with the joint venture, the Partner shall be responsible for all marketing operations. Forex Sub and the Partner shall split all profit evenly. The term of the joint venture is six months. In August, 2011 Forex Sub and Partner decided not to continue with this Joint Venture, as such the Joint Venture was cancelled.

As disclosed (in footnote 2 and 6) - Go-forward accounting treatment – No consolidation per FIN46R, barring the acquisition of an additional interest in Asset Due to the fact that Mr. Offer was removed unilaterally from the Board of Directors of Asset Subsidiary by the Directors of Asset, on or around June 30, 2011, and the fact that the Company holds a minority stake in VI, the Company is forced to take the decision to discontinue consolidating the financial statements of VI into its results in the third fiscal quarter of 2011. On or around August 30, 2011, the Company via its attorney issued a formal letter to Asset and to the Trustee holding Asset Subsidiary’s shares putting them on notice about the position of the Company with the legality of removal the Company’s sole director with Asset Subsidiary. Said detailed letter that put Asset and the substitute directors as well as the Trustee on notice with liability for future consequences was not responded to by Directors of Asset. Moreover, on or around November 10, 2011, the Company issued an additional letter to the current Directors of Asset Subsidiary – see subsequent events.

From time to time, we may be a party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are involved currently in any legal proceeding that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. On or about June 13, 2011 the Company initiated a complaint against an individual and website for defamation, intentional interference with prospective economic advantage, negligent and violations of business and professions code. The Complaint was filled with the Superior Court of the State of California - For the County of San Diego and its case number is 37-2011-00092840-CU-DF-CTL. On or about September 14, 2011, the Company withdrew its complaint. On or about August 16, 2011, one of the defendants filed a notice of motion and motion to strike the complaint under the anti-slapp statute. On or about November 3, 2011, the Company’s agent for service was served with the motion in which the defendant is seeking approximately $20,988 in legal fees.