As part of the Company’s strategy to evaluate each of its business segments as separate entities, management noted that the direct sales business segment had incurred operating losses and declining revenues and did not fit with the Company’s change in strategic direction. Accordingly, in March 2011, the Company made the strategic decision to discontinue its direct sales business and product offerings. Prior financial statements have been restated to present the direct sales business segment as a discontinued operation.

The direct sales business segment accounted for no net revenues for both the three and nine months ended June 30, 2012 and $105,293 and $1,341,430 of net revenues for the three and nine months ended June 30, 2011, respectively. These revenues are included as part of income from discontinued operations, in the accompanying unaudited interim condensed consolidated statements of operations.