ACCRUED EXPENSES AND ROYALTY PAYABLE

3 Months Ended

Sep. 30, 2011

ACCRUED EXPENSES AND ROYALTY PAYABLE

NOTE 6 ACCRUED EXPENSES AND ROYALTY PAYABLE

Included in accrued expenses are fees due to a consultant of $556,861. Amounts due to the consultant are payable on demand, non-interest bearing and unsecured.  In absence of an earlier demand, amounts due are payable on June 30, 2016.

During the three months period ended September 30, 2011, the Company incurred a royalty expense of $52,033 (which was at September 30, 2010, $64,327) for the sale of fishing equipment which is included in cost of sales. The royalty is calculated as 20% of the net selling price of fishing products sold by the Company and any sub licensee. The royalty is payable to Advanced. During the three months ended September 30, 2011, the Company paid $0 (September 30, 2010 - $0) to Advanced.  Royalty payable at September 30, 2011 is $1,616,781 (which was at June 30, 2011, $1,564,748).