| X                                                                                                                |  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                                                                             |                                                                                           |
| For the quarterly period ended: March 31, 2011                                                                   |
| or                                                                                                               |
|                                                                                                             |                                                                                           |
|                                                                                                             |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                             |                                                                                           |
| For the transition period from: _____________ to _____________ Commission File Number:  000-27131 |

| DELAWARE                     |   | 88-0381258                |
|------------------------------|--------|---------------------------|
| (State or Other Jurisdiction |   | (I.R.S. Employer          |
| of Incorporation)            |   | Identification No.)  |

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | X | Yes |   | No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):   N/A since the registrant is neither required nor permitted to post Interactive Data Files.        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer., or a smaller reporting company. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   | Accelerated filer |   |   |
| Non-accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   | Smaller reporting company | X |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |  Yes | X |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| The registrant has ________________________ shares of common stock outstanding at June 8, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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|                                                                                                           | Page                |
|----------------------------------------------------------------------------------------------------------------|---------------------|
| Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010 (unaudited)                   |   3            |
|                                                                                                           |                |
| Condensed Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010 (unaudited) |   4            |
|                                                                                                           |                |
| Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2011 and 2010 (unaudited)  |   5            |
|                                                                                                           |                |
| Notes to Condensed Consolidated Financial Statements                                                           |   6 through 16 |

----

| TRANSFER TECHNOLOGY INTERNATIONAL CORPORATION AND SUBSIDIARIES                                                            |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                          |   |
|                                                                                                                           |   |   |   |   |   |   |
|                                                                                                                           |   |   |   |   |   |   |
| ASSETS                                                                                                                         |   |
|                                                                                                                           |   | March 31, |   |   | December 31, |   |
|                                                                                                                           |   | 2011 |   |   | 2010 |   |
|                                                                                                                           |   | (Unaudited) |   |   |   |   |
| CURRENT ASSETS                                                                                                                 |   |   |   |   |   |   |
|   Cash                                                                                                               |   | $ | 3,064 |   |   | $ | 1,189 |   |
|   Other assets                                                                                                       |   |   | 2,191 |   |   |   | 2,191 |   |
|                                                                                                                           |   |   | 5,255 |   |   |   | 3,380 |   |
| FIXED ASSETS                                                                                                                   |   |   |   |   |   |   |   |   |
|   Equipment, net of accumulated depreciation of $2,217 and $2,016 respectively                                       |   |   | 602 |   |   |   | 803 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                   |   | $ | 5,857 |   |   | $ | 4,183 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                     |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                            |   |   |   |   |   |   |   |   |
|    Accounts payable                                                                                             |   | $ | 69,552 |   |   | $ | 56,769 |   |
|    Accrued expenses                                                                                             |   |   | 1,227,254 |   |   |   | 1,126,233 |   |
|    Derivative Liability                                                                                         |   |   | 413,289 |   |   |   | 292,480 |   |
|    Convertible notes and notes payable                                                                          |   |   | 540,800 |   |   |   | 468,333 |   |
|    Related party loans                                                                                          |   |   | 101,100 |   |   |   | 102,600 |   |
|           Total current liabilities                                          |   |   | 2,351,995 |   |   |   | 2,046,415 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'  DEFICIT                                                                                               |   |   |   |   |   |   |   |   |
|    Common stock, par value $.001 per share;                                                                     |   |   |   |   |   |   |   |   |
|        250,000,000 shares authorized  in  2011 and 2010 and 116,163,748 |   |   |   |   |   |   |   |   |
|       outstanding at March 31, 2011 and December 31, 2010                                        |   |   | 116,164 |   |   |   | 116,164 |   |
|    Additional paid-in capital                                                                                   |   |   | 45,775,161 |   |   |   | 45,775,161 |   |
|    Accumulated deficit                                                                                          |   |   | (48,237,463 | ) |   |   | (47,933,557 | ) |
|            Total stockholders' deficit                                  |   |   | (2,346,138 | ) |   |   | (2,042,232 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS'  DEFICIT                                                                         |   | $ | 5,857 |   |   | $ | 4,183 |   |

----

| TRANSFER TECHNOLOGY INTERNATIONAL CORPORATION AND SUBSIDIARIES |   |
|----------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                |   |
| FOR THE PERIOD ENDED MARCH 31, 2011 AND 2010                   |   |
| (Unaudited)                                                    |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   | 2011 |   |   | 2010 |   |
|                                                           |   |   |   |   | (Restated) |   |
| REVENUES                                                       |   |   |   |   |   |   |
|     Net sales                              |   | $ | 3,833 |   |   | $ | 4,056 |   |
|     Cost of sales                          |   |   | 2,248 |   |   |   | 1,766 |   |
| Gross Profit                                                   |   |   | 1,585 |   |   |   | 2,290 |   |
|                                                           |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES                                             |   |   |   |   |   |   |   |   |
|     Selling, general and administrative    |   |   | 159,279 |   |   |   | 231,362 |   |
| Total costs and expenses                                       |   |   | 159,279 |   |   |   | 231,362 |   |
|                                                           |   |   |   |   |   |   |   |   |
| LOSS BEFORE OTHER INCOME (LOSS)                                |   |   | (157,694 | ) |   |   | (229,072 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| OTHER INCOME (LOSS)                                            |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |
|     Interest expense                       |   |   | (146,212 | ) |   |   | (32,042 | ) |
|  Other expense                                            |   |   | - |   |   |   | (120,000 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Total other income (loss)                                      |   |   | (146,212 | ) |   |   | (152,042 | ) |
|                                                           |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |
| (LOSS) BEFORE PROVISON FOR INCOME TAX                          |   |   | (303,906 | ) |   |   | (381,114 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| PROVISION FOR INCOME TAX                                       |   |   | - |   |   |   | - |   |
|                                                           |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |
| NET  LOSS                                            |   | $ | (303,906 | ) |   | $ | (381,114 | ) |
|                                                           |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |
| NET  LOSS PER COMMON SHARE - BASIC                   |   | $ | (0.00 | ) |   | $ | (0.01 | ) |
|                                                           |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE OUTSTANDING SHARES                            |   |   |   |   |   |   |   |   |
| OF COMMON STOCK - BASIC                                        |   |   | 116,163,748 |   |   |   | 30,737,231 |   |

----

| TRANSFER TECHNOLOGY INTERNATIONAL CORPORATION AND SUBSIDIARIES      |   |
|---------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                     |   |
| FOR THE PERIOD ENDED MARCH 31, 2011 AND 2010                        |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |
|                                                                |   | 2011 |   |   | 2010 |   |
|                                                                |   |   |   |   | (Restated) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                               |   |   |   |   |   |   |
|   Net loss                                                |   |   | (303,906 | ) |   |   | (381,114 | ) |
| Adjustments to reconcile net loss to                                |   |   |   |   |   |   |   |   |
| net cash used in operating activities:                              |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                       |   |   | 202 |   |   |   | 202 |   |
| Accretion of debt discount                                          |   |   | 333 |   |   |   | - |   |
| Stock issued for services                                           |   |   | - |   |   |   | 36,150 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Changes in Certain Assets and Liabilities                           |   |   |   |   |   |   |   |   |
| Increase (Decrease) accounts payable                                |   |   | 12,782 |   |   |   | 192,056 |   |
| Increase (Decrease) in stock payable                                |   |   | 23,724 |   |   |   | - |   |
| Increase in accrued expenses                                        |   |   | 77,297 |   |   |   | (39,746 | ) |
| Increase (decrease) in Derivative Liability                         |   |   | 120,809 |   |   |   | - |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Net cash  (used in)  operating activities |   |   | (68,759 | ) |   |   | (192,452 | ) |
|                                                                |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                |   |   | - |   |   |   | - |   |
|                                                                |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                |   |   |   |   |   |   |   |   |
| Proceeds from officer loans                                         |   |   | - |   |   |   | 13,600 |   |
| Payments on officer loans                                           |   |   | (1,500 | ) |   |   | - |   |
| Proceeds from convertible and promissory notes payable              |   |   | 72,134 |   |   |   | 180,000 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Net cash provided by financing activities                           |   |   | 70,634 |   |   |   | 193,600 |   |
|                                                                |   |   |   |   |   |   |   |   |
| NET INCREASE IN CASH                                                |   |   | 1,875 |   |   |   | 1,148 |   |
|                                                                |   |   |   |   |   |   |   |   |
| CASH  - BEGINNING OF PERIOD                               |   |   | 1,189 |   |   |   | 962 |   |
|                                                                |   |   |   |   |   |   |   |   |
| CASH - END OF PERIOD                                                |   | $ | 3,064 |   |   | $ | 2,110 |   |
|                                                                |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                    |   |   |   |   |   |   |   |   |
|   Cash Paid during the Year:                              |   |   |   |   |   |   |   |   |
|    Interest Expense                                  |   | $ | - |   |   | $ | - |   |
|    Income Taxes                                      |   | $ | - |   |   | $ | - |   |

----

----

----

|                                      |   | March 31, |        |   | March 31, |   |
|-------------------------------------------|--------|-----------|-------------|--------|-----------|--------|
|                                      |   | 2011      |        |   | 2010      |   |
|  NET  LOSS                 |   | $         | 303,906     |   |      | $      | 381,114 |   |
|                                      |   |      |        |   |      |   |   |   |
| WEIGHTED AVERAGE OUTSTANDING SHARES       |   |      |        |   |      |
|  OF COMMON STOCK - BASIC AND DILUTED |   |      | 116,163,748 |   |      |   | 30,737,231 |   |

----

|                                                                                                                                             |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
| Various unsecured convertible note payables, with varying  interest  rates between 10% - 18%, due on demand and in default.  |   | $                   | 280,800 |   |                   | $      | 228,333 |   |
|                                                                                                                                             |   |                |    |   |                   |   |   |   |
| Various unsecured convertible note payable, 10% interest rate, due on January 2011.                                                              |   |                | 200,000 |   |                   |   | 180,000 |   |
|                                                                                                                                             |   |                |    |   |                   |   |   |   |
| Various unsecured promisory notes, with varying  interest  rates between 10% - 12%, due on June and  October 2010. |   |                | 60,000  |   |                   |   | 60,000 |   |
|                                                                                                                                             |   |                |    |   |                   |   |   |   |
| Total Convertible Notes and Notes Payable                                                                                                        |   | $                   | 540,800 |   |                   | $      | 468,333 |   |

|                                                                                                                                                                                              |   | March 31, 2011 |    |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                              |   |           |    |   |              |   |
| May 2009 – Unsecured promissory note payable for $ 50,000, bearing interest at a fixed rate of 8%. The maturity date is past and all principal and interest is due on demand.               |   | $              | 50,000  |   |              | $      | 50,000 |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
| July 2009 – Unsecured promissory note payable for $ 15,000, bearing interest at a fixed rate of 10%. The maturity date is past and all principal and interest is due on demand.             |   |           | 15,000  |   |              |   | 15,000 |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
| September 2009 – Unsecured promissory note payable for $ 5,000, bearing interest at a fixed rate of 10%. The maturity date is past and all principal and interest is due on demand.         |   |           | 5,000   |   |              |   | 5,000 |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
| March 2010 – Unsecured Promissory note payable for $ 3,600, non interest bearing  note. The maturity date is March 2011 at which time all principal and interest are due.         |   |           | 3,600   |   |              |   | 3,600 |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
| March 2010 – Unsecured convertible note payable for $30,000 bearing interest at a fixed rate of 10%. The maturity date is March 2011 at which time all principal and interest are due. |   |           | 26,500  |   |              |   | 28,000 |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
| May 2010 – Unsecured Promissory note payable for $ 1,000, non interest bearing  note. The maturity date is May 2011 at which time all principal and interest are due.             |   |           | 1,000   |   |              |   | 1,000 |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
|                                                                                                                                                                                              |   |           |    |   |              |   |   |   |
| Total Related Party Loans                                                                                                                                                                         |   | $              | 101,100 |   |              | $      | 102,600 |   |

----

----

----

| Year Of Issuance           | Warrant Type |             | Warrant Shares | Exercise Price              | Expiration Date |
|----------------------------|--------------|------------------|----------------|-----------------------------|-----------------|
|                       |         |             |           |                        |            |   |   |   |
| 2009                       |         | Class B warrants |           | 226,500                     |            | (B) |   | Various 2011 |
|                       |         |             |           |                        |            |   |   |   |
| 2010                       |         | Class A warrants |           |  250,000               |            |  0.02 |   | April 24, 2011 |
|                       |         |             |           |                        |            |   |   |   |
|                       |         |             |           |                        |            |   |   |   |
|                       |         |             |           | 1,000,0001,250,0001,000,000 |            | 0.020.020.03 |   | Oct. 14, 2011April 24, 2012Sep. 29, 2012 |
|                       |         |             |           |                        |            |   |   |   |
|                       |         | Class B warrants |           |  1,000,000             |            |  0.06 |   |  Sep. 29, 2013 |
| Total warrants outstanding |         | 4,726,500        |           |                        |            |   |

----

| CONSOLIDATED BALANCE SHEETS                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |
| ASSETS                                                                                                           |   |
|                                                                                                             |   | Previously |   |   |   |   |   |   |   |
|                                                                                                             |   | Reported |   |   |   |   |   | Restated |   |
|                                                                                                             |   | March 31, 2010 |   |   | Change |   |   | March 31, 2010 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |
| CURRENT ASSETS                                                                                                   |   |   |   |   |   |   |   |   |   |
|   Cash                                                                                                 |   | $ | 2,110 |   |   | $ | - |   |   | $ | 2,110 |   |
|   Other assets                                                                                         |   |   | 2,191 |   |   |   | - |   |   |   | 2,191 |   |
|                                                                                                             |   |   | 4,301 |   |   |   | - |   |   |   | 4,301 |   |
| FIXED ASSETS                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment, net of accumulated depreciation of $1,814 and $1,209 respectively                                     |   |   | 1,408 |   |   |   | - |   |   |   | 1,408 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                     |   | $ | 5,709 |   |   | $ | - |   |   | $ | 5,709 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'  DEFICIT                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|    Accounts payable                                                                               |   | $ | 125,094 |   |   |   | - |   |   | $ | 125,094 |   |
|    Accrued expenses                                                                               |   |   | 657,875 |   |   |   | 168,702 |   |   |   | 826,577 |   |
|    Convertible notes and notes payable                                                            |   |   | 1,049,142 |   |   |   | 25 |   |   |   | 1,049,167 |   |
|    Settlement liabilities                                                                         |   |   | 386,857 |   |   |   | (386,857 | ) |   |   | - |   |
|    Related party loans                                                                            |   |   | 88,800 |   |   |   | - |   |   |   | 88,800 |   |
|           Total current liabilities                            |   |   | 2,307,768 |   |   |   | (218,130 | ) |   |   | 2,089,638 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'  DEFICIT                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Common stock, par value $.001 per share;                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|        250,000,000 shares authorized  in 2010 and 2009 respectively |   |   | 30,911 |   |   |   | - |   |   |   | 30,911 |   |
| Treasury stock, 448,311 shares and 199,611 shares at December 31, 2009                                           |   |   | (51,172 | ) |   |   | 51,172 |   |   |   | - |   |
|    Additional paid-in capital                                                                     |   |   | 44,829,223 |   |   |   | (161,533 | ) |   |   | 44,667,690 |   |
|    Accumulated deficit                                                                            |   |   | (47,111,021 | ) |   |   | 328,491 |   |   |   | (46,782,530 | ) |
|            Total stockholders' deficit                    |   |   | (2,302,059 | ) |   |   | 218,130 |   |   |   | (2,083,929 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS'  DEFICIT                                                           |   | $ | 5,709 |   |   | $ | - |   |   | $ | 5,709 |   |

----

| CONSOLIDATED STATEMENTS OF OPERATIONS                    |   |
|----------------------------------------------------------|--------|
|                                                     |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |
|                                                     |   | Previously |   |   |   |   |   |   |   |
|                                                     |   | Reported |   |   |   |   |   | Restated |   |
|                                                     |   | March 31, 2010 |   |   | Change |   |   | March 31, 2010 |   |
| REVENUES                                                 |   |   |   |   |   |   |   |   |   |
|     Net sales                        |   | $ | 3,665 |   |   |   | 391 |   |   | $ | 4,056 |   |
|     Cost of sales                    |   |   | 1,375 |   |   |   | 391 |   |   |   | 1,766 |   |
| Gross Profit  (Loss)                           |   |   | 2,290 |   |   |   | - |   |   |   | 2,290 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                      |   |   | 175,640 |   |   |   | 55,722 |   |   |   | 231,362 |   |
| Total costs and expenses                                 |   |   | 175,640 |   |   |   | 55,722 |   |   |   | 231,362 |   |
|                                                     |   |   |   |   |   |   | - |   |   |   |   |   |
| LOSS BEFORE OTHER INCOME (LOSS)                          |   |   | (173,350 | ) |   |   | (55,722 | ) |   |   | (229,072 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (LOSS)                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                         |   |   | (33,438 | ) |   |   | 1,396 |   |   |   | (32,042 | ) |
| Other                                                    |   |   | (120,000 | ) |   |   | - |   |   |   | (120,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (loss)                                |   |   | (153,438 | ) |   |   | 1,396 |   |   |   | (152,042 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS) BEFORE PROVISON FOR INCOME TAX                    |   |   | (326,788 | ) |   |   | (54,326 | ) |   |   | (381,114 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION FOR INCOME TAX                                 |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| NET  LOSS                                      |   | $ | (326,788 | ) |   | $ | (54,326 | ) |   | $ | (381,114 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| NET  LOSS PER COMMON SHARE - BASIC AND DILUTED |   | $ | (0.01 | ) |   | $ | 0.13 |   |   | $ | (0.01 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE OUTSTANDING SHARES                      |   |   |   |   |   |   |   |   |   |   |   |   |
| OF COMMON STOCK - BASIC AND DILUTED                      |   |   | 31,162,453 |   |   |   | (425,222 | ) |   |   | 30,737,231 |   |

----

| ·   | Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   |    |    |   |      |   |   |      |   |   |      |   |
|------------------------------------------|--------|---------|---------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
|                                     |   | Total   |    |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                     |   |    |    |   |      |   |   |      |   |   |      |   |
| Assets                                   |   |    | -       |   |      |   | -      |      |   |   | -         |   |   |   | - |   |
|                                     |   |    |    |   |      |   |   |      |   |   |      |   |   |   |   |   |
| Total assets measured at fair value      |   |    | -       |   |      |   | -      |      |   |   | -         |   |   |   | - |   |
|                                     |   |    |    |   |      |   |   |      |   |   |      |   |   |   |   |   |
| Derivative Liability                     |   |  $ | 413,289 |   |      |   | -      |      |   |   | -         |   |   |  $ | 413,289 |   |
|                                     |   |    |    |   |      |   |   |      |   |   |      |   |   |   |   |   |
| Total liabilities measured at fair value |   |  $ | 413,289 |   |      |   | -      |      |   |   | -         |   |   |  $ | 413,289 |   |

----

|                                                                 |   | Derivative Valuation Liability |     |
|----------------------------------------------------------------------|--------|--------------------------------|----------|
| Balance at December 31, 2010                                         |   |                           | (292,480 | ) |
|                                                                 |   |                           |     |   |
| Total gains or losses (realized and unrealized) Included in net loss |   |                           | -        |   |
|                                                                 |   |                           |     |   |
| Valuation adjustment                                                 |   |                           | -        |   |
|                                                                 |   |                           |     |   |
| Purchases, issuances, and settlements, net                           |   |                           | (120,809 | ) |
|                                                                 |   |                           |     |   |
| Transfers to Level 3                                                 |   |                           | -        |   |
|                                                                 |   |                           |     |   |
| Balance at December 31, 2010                                         |   |                           | (413,289 | ) |

----

----

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
|---------|-------------------------------------------------------------|

| Item 4. | Controls and Procedures. |
|---------|--------------------------|

----

| Item 1. | Legal Proceedings. |
|---------|--------------------|

----

| Item 1A. | Risk Factors. |
|----------|---------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| Item 4. | Submission of Matters to a Vote of Security Holders. |
|---------|------------------------------------------------------|

----

| Item 5. | Other Information. |
|---------|--------------------|

| Item 6. | Exhibits. |
|---------|-----------|

| 31.1   | Certification of CEO and CFO pursuant to Securities Exchange Act rules 13a-15 and 15d-15(c) as adopted pursuant to section 302 of the Sarbanes-Oxley act of 2002. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                              |
|   |                                                                                                                                                              |
| 32.1   | Certification of CEO and CFO pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley act of 2002.                            |
|   |                                                                                                                                                              |

----

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