Significant Transactions

9 Months Ended

Jun. 30, 2011

Note 2 – Significant Transactions

Collaboration agreement

On March 10, 2011 the Company entered into an NDA (Non-disclosure Agreement) with a large Farm and Fleet distributor to enter into discussions concerning certain Company technologies, technology development, and other potential collaborative efforts relating to business matters and or technologies of mutual interest. The sole purpose of these discussions is for the evaluation of these Company technologies for use in commercial and companion retail markets preliminary to possible subsequent proposals and or agreements of mutual interest under terms to be established. As of the time of this document, no purchase orders have been placed.

Notes Payable – Related Party

Advances by the CEO to the Company of $20,192 during quarter ending June 30, 2011 have been added to an outstanding promissory note. As of June 30, 2011 total principal owed on the note was $277,345 and accrued interest owed was $18,264.

Equity Transactions

On May 1, 2010 the Company commenced a private stock offering, whereby it authorized the issuance of 5,000,000 shares of its common stock for total proceeds of $500,000. As of June 30, 2011 $107,005 of the $500,000 was raised and 1,070,050 shares of common stock were issued.

Stock Options

The Company has determined the estimated value of the stock options granted by using the Black-Scholes pricing model with the following assumptions: expected life of 4 or 10 years, a risk free interest rate of 2.38%, a dividend yield of 0% and volatility 205% in the current quarter.

During the quarter ended June 30, 2011 2,000 options were granted. Total outstanding common stock options as of June 30, 2011 were 2,339,145. Total exercisable were 2,133,983 at a weighted average exercise price of $0.45.

Stock Option Expense is included in the Statements of Operations as follows:

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2011		2010		2011		2010

Payroll and Compensation Expense	$	34,562	$	31,913	$	103,686	$	87,291
Legal and Accounting		33,658		32,686		100,676		97,791
	$	68,220	$	64,599	$	204,362	$	185,082

Organic Sales & Marketing Inc 10-Q/A