All American Pet Company Inc (AAPT)

[Scupi]

During the three months ended September 30, 2013, we completed a sales transaction to a third party customer in the aggregate amount of $140,049 for 35,100 units of our Pawtizer product. The terms of the sales transaction agreed upon were 60-day payment and free on board shipping (i.e. buyer pays for shipping). The customer maintains a US satellite office and warehouse and after receiving the product shipped it oversees for sale. As of March 2014, we have not yet received payment for the product, and thus have not recognized the $140,049 as revenue. The customer has indicated that they intend to make payment. In the future, if payment is received or conditions change to better indicate the likelihood of collectability, we will recognize as revenue the $140,049.