On January 5, 2012, the Company acquired

On January 5, 2012, the Company acquired all of the outstanding shares of Proxima-RF Technology Holding Company Ltd. “(Proxima)” for 6,500,000 shares of Preferred Series C stock of the Company. The Company agreed with Proxima to use its best efforts to repurchase and retire the Preferred Series C shares during 2012. Proxima produces a versatile and leading-edge portfolio of RFID readers, tags, sensor tags, sensor probes, and RFID-enabled data logging tags based on the ISO 15693 standard of high frequency (13.56 Mhz) RFID. HF RFID is ideally suited for applications requiring a secure 1- to-1 device write and read, sensor tag and data logging products based on the ISO 15693 standard of high frequency (13.56Mhz) RFID. These key markets include: food safety, cold chain logistics and healthcare/pharmaceutical as well as factory and field maintenance applications.

Proxima RF products are currently being deployed in several national grocery retail stores and restaurants, as well as state utility commissions. In another key market, the Company is engaged with a Value Added Reseller in providing RFID readers, sensor tags and data loggers to the United States Army Blood Services Program in a demonstration project. Through this ongoing trial program, the US Army is anticipated to implement RFID data logging of its critical blood supply shipments worldwide. The Company is also engaged in promising early discussions with Panasonic regarding the use of ProximaRF’s mobile data logging solutions in its medical supply division.