CORRECTION OF AN ERROR

6 Months Ended

Feb. 29, 2012

NOTE 7 – CORRECTION OF AN ERROR

During the six months ended February 28, 2011 the Company recorded revenue of $4,290 and cost of sales in the amount of $880. These amounts are shown in the Company’s previously filed financial statements as of February 28, 2011. Subsequent to this date the Company determined that the transaction did not adequately meet the Company’s revenue recognition criteria; consequently, the transaction was reversed. Therefore, the statements of operations for the three and six month periods ended February 28, 2011 have been restated so as to reflect this correction. The effects of this correction on the Company’s financial statements are as follows:


		February 28, 2011		February 28, 2011
		(As Originally Stated)		(As Corrected)		Difference

Cash	$	14,492	$	14,492	$	-
Accounts receivable		4,290		-		(4,290)
Total Current Assets		18,782		14,492		(4,290)
TOTAL ASSETS		18,782		14,492		(4,290)

TOTAL LIABILITIES		1,239,561		1,239,561		-

Deficit accumulated during the development stage		(5,621,346)		(5,625,636)		(4,290)

TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(1,220,779)		(1,225,069)		(4,290)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	18,7882	$	14,492	$	(4,290)


		For the Six		For the Six
		Months Ended		Months Ended
		February 28, 2011		February 28, 2011
		(As Originally Stated)		(As Corrected)		Difference

Revenue	$	4,290	$	-	$	(4,290)
Cost of Sales		880		-		(880)
GROSS PROFIT		3,410		-		(3,410)

General and administrative expenses		61,458		62,338		880
Professional fees		3,909,672		3,909,672		-
Total Operating Expenses		3,971,130		3,972,010		880

LOSS FROM OPERATIONS		(3,967,720)		(3,972,010)		(3,410)

Other Expenses		(1,146,014)		(1,146,014)		-

NET LOSS	$	(5,113,734)	$	(5,118,024)	$	(3,410)

Basic and Diluted Loss Per Share	$	(0.05)	$	(0.05)	$	-

Flameret, Inc. 10-Q/A