All American Pet Company Inc (AAPT)

[Mr. Smith]

Our independent registered public accountants included an explanatory paragraph in their audit report in connection with our 2010 financial statements stating that because we have incurred a net loss of $7,439,775 and a negative cash flow from operations of $2,116,774 for the year ended December 31, 2010 and had a working capital deficiency of $3,154,575 and a stockholders' deficiency of $3,365,717 at December 31, 2010, there is substantial doubt about our ability to continue as a going concern. These factors, along with others, may indicate that we will be unable to continue as a going concern for a period of twelve months or less.