Deltron Inc (DTRO)

[TJG]

For those interested in knowing the exact manner in which Deltron aquired a debt total of $7+ million dollars the year end Q read the passage from page 19 of that document.

Its laid all out there and perhaps this can help some, I know it wont help everyone.

Other expense

For the year ended September 30, 2011 we incurred other expenses of $7,678,178 which
consisted of: interest expense of $255,467, non-cash derivative expense of $7,159,130 and an impairment
charge to intangible assets of $266,250. For the nine months ended September 30, 2010, we incurred
other expenses of $169,458, which consisted primarily of $96,167 amortization of note discount related to
the beneficial conversion feature embedded in the $175,500 convertible notes, and total interest of
$53,397 paid and accrued on the $125,000 line of credit, $1,095,110 long term promissory notes, and
$175,500 convertible notes due to certain shareholders and officer.

Net Loss

The increase in net loss of $7,894,159 for the year ended September 30, 2011, compared to the
nine months ended September 30, 2010, was a net result of: an increase in our professional fees, an
increase in gross profit due to efficiencies relating to increased sales, an increase in interest expense due
to the addition of the $3,150,000 note recorded in 2011 and an increase of derivative expense of
$7,159,130 and an impairment charge on the intangible asset of $266,250 in 2011.