| X                                                                                                                |  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                                                                             |                                                                                      |
| For the quarterly period ended: September 30, 2009                                                               |
| 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 |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 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 wasrequired 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 29,687,975 shares of common stock outstanding at November 20, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

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|                                                                                                                                   | Pages       |
|----------------------------------------------------------------------------------------------------------------------------------------|-------------|
| Condensed Consolidated Balance Sheets as of September 30, 2009 (unaudited) and December 31, 2008 (audited)                             |   4    |
|                                                                                                                                   |        |
| Condensed Consolidated Statements of Operations for the nine  and three months ended September 30, 2009 and 2008 (unaudited) |   5    |
|                                                                                                                                   |        |
| Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2009 and 2008 (unaudited)                       |   6    |
|                                                                                                                                   |        |
| Notes to Condensed Consolidated Financial Statements                                                                                   |   7-26 |

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| TRANSFER TECHNOLOGY INTERNATIONAL CORPORATION AND SUBSIDIARIES                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                               |   |
|                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   | Restated |   |
|                                                                                                                                |   | September 30, |   |   | December 31, |   |
|                                                                                                                                |   | 2009 |   |   | 2008 |   |
| ASSETS                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |
| CURRENT ASSETS                                                                                                                      |   |   |   |   |   |   |
|   Cash                                                                                                                    |   | $ | 3,683 |   |   | $ | 144,641 |   |
|   Accounts receivable - net                                                                                               |   |   | - |   |   |   | - |   |
|   Other assets                                                                                                            |   |   | 2,191 |   |   |   | 2,191 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|           Total current assets                                                    |   |   | 5,874 |   |   |   | 146,832 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Fixed Assets                                                                                                                        |   |   |   |   |   |   |   |   |
|   Equipment ( net of accumulated depreciation of $1,108 at September 30, 2009 and                                         |   |   |   |   |   |   |   |   |
|   $403 at December 31, 2008)                                                                                              |   |   | 1,811 |   |   |   | 2,416 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                        |   | $ | 7,685 |   |   | $ | 149,248 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                 |   |   |   |   |   |   |   |   |
|    Accounts Payable                                                                                                  |   | $ | 127,701 |   |   | $ | 118,765 |   |
|    Other Current Liabilities                                                                                         |   |   | 574,205 |   |   |   | 209,863 |   |
|    Liability for Stock to be issued                                                                                  |   |   | - |   |   |   | 3,015 |   |
|    Notes Payable                                                                                                     |   |   | 882,500 |   |   |   | 130,000 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|           Total current liabilities                                               |   |   | 1,584,405 |   |   |   | 461,643 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                                                   |   |   | 1,584,405 |   |   |   | 461,643 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'  (DEFICIT)                                                                                                  |   |   |   |   |   |   |   |   |
|    Common stock, par value $.001 per share; 250,000,000 shares authorized in 2009 and 2008                           |   |   |   |   |   |   |   |   |
|     and 30,136,286  and 22,798,024 shares issued and  29,687,975 and 22,598,413 outstanding |   |   |   |   |   |   |   |   |
|    at September 30, 2009 and December 31, 2008 respectively.                                                         |   |   | 30,136 |   |   |   | 22,798 |   |
|    Additional paid-in capital                                                                                        |   |   | 45,285,847 |   |   |   | 44,119,969 |   |
|    (Accumulated deficit)                                                                                             |   |   | (46,805,532 | ) |   |   | (44,417,324 | ) |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   | (1,489,549 | ) |   |   | (274,557 | ) |
|    Less: Cost of treasury stock, 448,311 shares at June 30, 2009                                                     |   |   |   |   |   |   |   |   |
|    and 199,611 shares at December 31, 2008                                                                           |   |   | (87,172 | ) |   |   | (37,838 | ) |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|            Total stockholders'  (deficit)                          |   |   | (1,576,721 | ) |   |   | (312,395 | ) |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                |   | $ | 7,685 |   |   | $ | 149,248 |   |

----

|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|--------|-----------------------------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |
|                                                                                        |   | FOR THE NINE MONTHS ENDEDSEPTEMBER 30, |       |   | FOR THE THREE MONTHS ENDEDSEPTEMBER 30, |   |
|                                                                                        |   |                                   |       |   |  Restated                          |   |       |   |   |   |       |   |
|                                                                                        |   | 2009                                   |       |   | 2008                                    |   |       | 2009   |   |   | 2008       |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |
| REVENUES                                                                                    |   |                                   |       |   |                                    |   |       |   |   |   |       |   |
|      Net sales                                                     |   | $                                      | 84,407     |   |                                    | $      | -          |   |   | $      | 1,430      |   |   | $ | - |   |
|      Cost of Sales                                                 |   |                                   | -          |   |                                    |   | -          |   |   |   | -          |   |   |   | - |   |
|             Gross Income             |   |                                   | 84,407     |   |                                    |   | -          |   |   |   | 1,430      |   |   |   | - |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| COSTS AND EXPENSES                                                                          |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
|     Selling, general and administrative                                 |   |                                   | 2,302,751  |   |                                    |   | 1,395,212  |   |   |   | 634,411    |   |   |   | 573,648 |   |
|     Reserve for doubtful account                                        |   |                                   | 20,000     |   |                                    |   | -          |   |   |   | -          |   |   |   | - |   |
|             Total costs and expenses |   |                                   | 2,322,751  |   |                                    |   | 1,395,212  |   |   |   | 634,411    |   |   |   | 573,648 |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| (LOSS) INCOME BEFORE OTHER INCOME (LOSS)                                                    |   |                                   | (2,238,344 | )      |                                    |   | (1,395,212 | )      |   |   | (632,982   | )      |   |   | (573,648 | ) |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| OTHER INCOME (LOSS)                                                                         |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
|     Interest income                                                     |   |                                   | 2          |   |                                    |   | -          |   |   |   | -          |   |   |   | - |   |
|     Interest expense                                                    |   |                                   | (97,288    | )      |                                    |   | (817,552   | )      |   |   | (19,861    | )      |   |   | (3,742 | ) |
|     Other income                                                        |   |                                   | -          |   |                                    |   | -          |   |   |   | -          |   |   |   | - |   |
|     Other expense - shares issued for lock up                           |   |                                   | (52,578    | )      |                                    |   | -          |   |   |   | -          |   |   |   | - |   |
|         Total other Income (Loss)                   |   |                                   | (149,863   | )      |                                    |   | (817,552   | )      |   |   | (19,861    | )      |   |   | (3,742 | ) |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| (LOSS) BEFORE PROVISION FOR INCOME TAX                                                      |   | $                                      | (2,388,208 | )      |                                    | $      | (2,212,764 | )      |   | $      | (652,843   | )      |   | $ | (577,390 | ) |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| PROVISION FOR INCOME TAXES                                                                  |   |                                   | -          |   |                                    |   | -          |   |   |   | -          |   |   |   | - |   |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| NET (LOSS)                                                                                  |   | $                                      | (2,388,208 | )      |                                    | $      | (2,212,764 | )      |   | $      | (652,843   | )      |   | $ | (577,390 | ) |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| NET( LOSS) PER COMMON SHARE - BASIC AND DILUTED                                             |   | $                                      | (0.09      | )      |                                    | $      | (0.18      | )      |   | $      | (0.02      | )      |   | $ | (0.04 | ) |
|                                                                                        |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| WEIGHTED AVERAGE OUTSTANDING SHARES                                                         |   |                                   |       |   |                                    |   |       |   |   |   |       |   |   |   |   |   |
| OF COMMON STOCK - BASIC AND DILUTED                                                         |   |                                   | 26,296,434 |   |                                    |   | 12,533,853 |   |   |   | 28,717,649 |   |   |   | 15,337,774 |   |

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| TRANSFER TECHNOLOGY INTERNATIONAL CORPORATION AND SUBSIDIARIES                                              |   |
|------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                                                 |   |
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008                                                            |   |
|                                                                                                             |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |  Restated |   |
|                                                                                                             |   | 2009 |   |   | 2008 |   |
|                                                                                                             |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                            |   |   |   |   |   |   |
|   Net (Loss)                                                                                           |   | $ | (2,388,208 | ) |   | $ | (2,212,764 | ) |
| Adjustments to reconcile net (loss) to                                                                           |   |   |   |   |   |   |   |   |
| net cash provided by (used in) operating activities:                                                             |   |   |   |   |   |   |   |   |
|  Depreciation and amortization                                                                              |   |   | 605 |   |   |   | 202 |   |
|  Stock issued to directors and executives for compensation                                                  |   |   | 843,541 |   |   |   | 343,500 |   |
|  Stock issued to employees for compensation                                                                 |   |   | 21,200 |   |   |   | - |   |
|  Stock issued to consultants                                                                                |   |   | 472,652 |   |   |   | 237,408 |   |
|  Stock issued to shareholders as inducement for lock up agreement                                           |   |   | 52,578 |   |   |   | - |   |
|  Interest resulting from beneficial conversion  feature of notes payable                          |   |   | (293,533 | ) |   |   | 737,110 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
|  Changes in Certain Assets and Liabilities                                                                  |   |   |   |   |   |   |   |   |
| (Increase) in accounts receivable - other                                                                        |   |   | (20,000 | ) |   |   | - |   |
| Increase in reserve for doubtful accounts receivable - other                                                     |   |   | 20,000 |   |   |   | - |   |
| (Increase) Decrease in other current assets                                                                      |   |   | - |   |   |   | (671 | ) |
| Increase (Decrease) in accounts payable                                                                          |   |   | 8,935 |   |   |   | 54,024 |   |
| (Decrease) in liability for stock to be issued                                                                   |   |   | (3,015 | ) |   |   | - |   |
| Increase (Decrease) accrued expenses                                                                             |   |   | 364,336 |   |   |   | (107,320 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |
|           Net cash (used in) operating activities              |   |   | (920,909 | ) |   |   | (948,511 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                             |   |   |   |   |   |   |   |   |
| Purchase of property and equioment                                                                               |   |   | - |   |   |   | (2,819 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |
|           Net cash (used in) investing activities              |   |   | - |   |   |   | (2,819 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                             |   |   |   |   |   |   |   |   |
| Proceeds from issuing stock                                                                                      |   |   | 80,000 |   |   |   | 868,007 |   |
| Treasury stock and other                                                                                         |   |   | (52,549 | ) |   |   | - |   |
| Proceeds from convertible notes payable                                                                          |   |   | 652,500 |   |   |   | 311,062 |   |
| Proceeds from Promissory notes                                                                                   |   |   | 70,000 |   |   |   | - |   |
| Payment of notes payables                                                                                        |   |   | - |   |   |   | (75,215 | ) |
| Proceeds from bridge loan                                                                                        |   |   | 30,000 |   |   |   | 98,000 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
|           Net cash provided by  financing activities |   |   | 779,951 |   |   |   | 1,201,854 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                                                                  |   |   | (140,958 | ) |   |   | 250,524 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                                                  |   |   | 144,641 |   |   |   | 1,915 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                                        |   | $ | 3,683 |   |   | $ | 252,439 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                                                 |   |   |   |   |   |   |   |   |
| Issuance of Common Stock for:                                                                                    |   |   |   |   |   |   |   |   |
| Stock issued to directors and executives for compensation                                                        |   | $ | 843,541 |   |   | $ | 343,500 |   |
| Stock issued to employees for compensation                                                                       |   | $ | 21,200 |   |   | $ | - |   |
| Stock issued to consultants                                                                                      |   | $ | 472,652 |   |   | $ | 237,408 |   |
| Stock issued to convert notes payable                                                                            |   | $ | - |   |   | $ | 429,400 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| CASH PAID DURING THE YEAR:                                                                                       |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                 |   | $ | - |   |   | $ | 7,877 |   |

----

|   | Note 1 – Restatement of Financial Statements |
|--------|----------------------------------------------------|

----

|  TRANSFER TECHNOLOGY INTERNATIONAL CORP.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - RESTATEDFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                       |   | Previously   |        |   |   |   |     |     |   |
|------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------|--------|----------|----------|--------|
|                                                                                                       |   | Reported     |        |   |   |   |     |     |   |
|                                                                                                       |   | December 31, |        |   | Net    |   |     |     |   |
|                                                                                                       |   | 2008         |        |   | Change |   |     | Restated |   |
| ASSETS                                                                                                     |   |         |        |   |   |   |     |     |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |
| CURRENT ASSETS                                                                                             |   |         |        |   |   |   |     |     |   |
|   Cash                                                                                           |   | $            | 144,641     |   |   | $      | -        |     |   | $ | 144,641 |   |
|   Accounts receivable - net                                                                      |   |         | -           |   |   |   | -        |     |   |   | - |   |
|   Other assets                                                                                   |   |         | 2,191       |   |   |   | -        |     |   |   | 2,191 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|           Total current assets                           |   |         | 146,832     |   |   |   | -        |     |   |   | 146,832 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| Fixed Assets                                                                                               |   |         |        |   |   |   |     |     |   |   |   |   |
| Equipment ( net of accumulated depreciation of $1,108 at September 30, 2009 and                            |   |         |        |   |   |   |     |     |
|   $403 at December 31, 2008)                                                                     |   |         | 2,416       |   |   |   | -        |     |   |   | 2,416 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| TOTAL ASSETS                                                                                               |   | $            | 149,248     |   |   | $      | -        |     |   | $ | 149,248 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                             |   |         |        |   |   |   |     |     |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| CURRENT LIABILITIES                                                                                        |   |         |        |   |   |   |     |     |   |   |   |   |
|    Accounts Payable                                                                         |   | $            | 118,765     |   |   | $      | -        |     |   | $ | 118,765 |   |
|    Other Current Liabilities                                                                |   |         | 209,863     |   |   |   | -        |     |   |   | 209,863 |   |
|    Liability for Stock to be issued                                                         |   |         | 3,015       |   |   |   | -        |     |   |   | 3,015 |   |
|    Notes Payable                                                                            |   |         | 130,000     |   |   |   | -        |     |   |   | 130,000 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|           Total current liabilities                      |   |         | 461,643     |   |   |   | -        |     |   |   | 461,643 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| TOTAL LIABILITIES                                                                                          |   |         | 461,643     |   |   |   | -        |     |   |   | 461,643 |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| STOCKHOLDERS'  (DEFICIT)                                                                         |   |         |        |   |   |   |     |     |   |   |   |   |
| Common stock, par value $.001 per share; 250,000,000 shares authorized in 2008                             |   |         |        |   |   |   |     |     |
| and 22,798,024 shares issued and 22,598,413 outstanding                                                    |   |         |        |   |   |   |     |     |   |
|    at December 31, 2008 respectively.                                                       |   |         | 22,798      |   |   |   | -        |     |   |   | 22,798 |   |
|    Additional paid-in capital                                                               |   |         | 44,599,969  |   |   |   | 480,000  |     |   |   | 44,119,969 |   |
|    (Accumulated deficit)                                                                    |   |         | (44,897,324 | )      |   |   | (480,000 | )        |   |   | (44,417,324 | ) |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|                                                                                                       |   |         | (274,557    | )      |   |   |     |     |   |   | (274,557 | ) |
| Less: Cost of treasury stock, 448,311 shares at June 30, 2009                                              |   |         |        |   |   |   |     |     |   |
|    and 199,611 shares at December 31, 2008                                                  |   |         | (37,838     | )      |   |   | -        |     |   |   | (37,838 | ) |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|            Total stockholders'  (deficit) |   |         | (312,395    | )      |   |   | -        |     |   |   | (312,395 | ) |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
|                                                                                                       |   |         |        |   |   |   |     |     |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                       |   | $            | 149,248     |   |   | $      | -        |     |   | $ | 149,248 |   |

----

|   |   |
|--------|--------|

|                                                                                        |   |                      |       |   |         |   |     |           |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------|------------|--------|--------------|--------|----------|----------------|--------|
|                                                                                        |   |                      |       |   |         |   |     |           |   |
|                                                                                        |   |  Previously Reported |       |   |  Change |   |     |  Restated |   |
| REVENUES                                                                                    |   |                      |       |   |         |   |     |           |   |
|      Net sales                                                     |   | $                         | -          |   |         | $      | -        |           |   | $ | - |   |
|      Cost of Sales                                                 |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|             Gross Income             |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|                                                                                        |   |                      |       |   |         |   |     |           |   |   |   |   |
| COSTS AND EXPENSES                                                                          |   |                      |       |   |         |   |     |           |   |   |   |   |
|     Selling, general and administrative                                 |   |                      | 1,395,212  |   |         |   | -        |           |   |   | 1,395,212 |   |
|     Reserve for doubtful account                                        |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|             Total costs and expenses |   |                      | 1,395,212  |   |         |   | -        |           |   |   | 1,395,212 |   |
|                                                                                        |   |                      |       |   |         |   | -        |           |   |   |   |   |
| (LOSS) INCOME BEFORE OTHER INCOME (LOSS)                                                    |   |                      | (1,395,212 | )      |         |   | -        |           |   |   | (1,395,212 | ) |
|                                                                                        |   |                      |       |   |         |   |     |           |   |   |   |   |
| OTHER INCOME (LOSS)                                                                         |   |                      |       |   |         |   |     |           |   |   |   |   |
|     Interest income                                                     |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|     Interest expense                                                    |   |                      | (1,297,552 | )      |         |   | (480,000 | )              |   |   | (817,552 | ) |
|     Other income                                                        |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|     Other expense - shares issued for lock up                           |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|         Total other Income (Loss)                   |   |                      | (1,297,552 | )      |         |   | (480,000 | )              |   |   | (817,552 | ) |
|                                                                                        |   |                      |       |   |         |   | -        |           |   |   |   |   |
|                                                                                        |   |                      |       |   |         |   | -        |           |   |   |   |   |
| (LOSS) BEFORE PROVISION FOR INCOME TAX                                                      |   | $                         | (2,692,764 | )      |         | $      | (480,000 | )              |   | $ | (2,212,764 | ) |
|                                                                                        |   |                      |       |   |         |   |     |           |   |   |   |   |
| PROVISION FOR INCOME TAXES                                                                  |   |                      | -          |   |         |   | -        |           |   |   | - |   |
|                                                                                        |   |                      |       |   |         |   |     |           |   |   |   |   |
| NET (LOSS)                                                                                  |   | $                         | (2,692,764 | )      |         | $      | (480,000 | )              |   | $ | (2,212,764 | ) |
|                                                                                        |   |                      |       |   |         |   |     |           |   |   |   |   |
| NET( LOSS) PER COMMON SHARE - BASIC AND DILUTED                                             |   | $                         | (0.21      | )      |         | $      | -        |           |   | $ | (0.18 | ) |
|                                                                                        |   |                      |       |   |         |   |     |           |   |   |   |   |
| WEIGHTED AVERAGE OUTSTANDING SHARES                                                         |   |                      |       |   |         |   |     |           |   |   |   |   |
| OF COMMON STOCK - BASIC AND DILUTED                                                         |   |                      | 12,533,853 |   |         |   | -        |           |   |   | 12,533,853 |   |

----

| TRANSFER TECHNOLOGY INTERNATIONAL CORPORATION AND SUBSIDIARIES                                              |   |
|------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                                                 |   |
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008                                                                |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |  Previously Reported |   |   |  Change |   |   |  Restated |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |
|   Net (Loss)                                                                                           |   | $ | (2,692,764 | ) |   | $ | 480,000 |   |   | $ | (2,212,764 | ) |
| Adjustments to reconcile net (loss) to                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| net cash provided by (used in) operating activities:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Depreciation and amortization                                                                              |   |   | 202 |   |   |   | - |   |   |   | 202 |   |
|  Stock issued to directors and executives for compensation                                                  |   |   | 343,500 |   |   |   | - |   |   |   | 343,500 |   |
|  Stock issued to employees for compensation                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |
|  Stock issued to consultants                                                                                |   |   | 237,408 |   |   |   | - |   |   |   | 237,408 |   |
| Stock issued to shareholders as inducement for lock up agreement                                                 |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest resulting from beneficial conversion feature of notes payable                                      |   |   | 1,217,110 |   |   |   | (480,000 | ) |   |   | 737,110 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Changes in Certain Assets and Liabilities                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase) in accounts receivable - other                                                                        |   |   | - |   |   |   | - |   |   |   | - |   |
| Increase in reserve for doubtful accounts receivable - other                                                     |   |   | - |   |   |   | - |   |   |   | - |   |
| (Increase) Decrease in other current assets                                                                      |   |   | (671 | ) |   |   | - |   |   |   | (671 | ) |
| Increase (Decrease) in accounts payable                                                                          |   |   | 54,024 |   |   |   | - |   |   |   | 54,024 |   |
| (Decrease) in liability for stock to be issued                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |
| Increase (Decrease) accrued expenses                                                                             |   |   | (107,320 | ) |   |   | - |   |   |   | (107,320 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|           Net cash (used in) operating activities              |   |   | (948,511 | ) |   |   | - |   |   |   | (948,511 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of property and equioment                                                                               |   |   | (2,819 | ) |   |   | - |   |   |   | (2,819 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|           Net cash (used in) investing activities              |   |   | (2,819 | ) |   |   | - |   |   |   | (2,819 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from issuing stock                                                                                      |   |   | 868,007 |   |   |   | - |   |   |   | 868,007 |   |
| Proceeds from convertible notes payable                                                                          |   |   | 311,062 |   |   |   | - |   |   |   | 311,062 |   |
| Payment of notes payables                                                                                        |   |   | (75,215 | ) |   |   | - |   |   |   | (75,215 | ) |
| Proceeds from bridge loan                                                                                        |   |   | 98,000 |   |   |   | - |   |   |   | 98,000 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|           Net cash provided by  financing activities |   |   | 1,201,854 |   |   |   | - |   |   |   | 1,201,854 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                                                                  |   |   | 250,524 |   |   |   | - |   |   |   | 250,524 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                                                  |   |   | 1,915 |   |   |   | - |   |   |   | 1,915 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                                        |   | $ | 252,439 |   |   | $ | - |   |   | $ | 252,439 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock for:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock issued to directors and executives for compensation                                                        |   | $ | 343,500 |   |   | $ | - |   |   | $ | 343,500 |   |
| Stock issued to consultants                                                                                      |   | $ | 237,408 |   |   | $ | - |   |   | $ | 237,408 |   |
| Stock issued to convert notes payable                                                                            |   | $ | 429,400 |   |   | $ | - |   |   | $ | 429,400 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH PAID DURING THE YEAR:                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                 |   | $ | 7,877 |   |   | $ | - |   |   | $ | 7,877 |   |

----

|   | Note 2 - Organization |
|--------|-----------------------|

|   | Note 3 - Basis of Presentation – Going Concern |
|--------|------------------------------------------------------|

----

|   | Note 4 - Summary of Significant Accounting Policies |
|--------|-----------------------------------------------------|

|   |   |
|--------|--------|

----

|   | Note 4 - Summary of Significant Accounting Policies (CONTINUED) |
|--------|-----------------------------------------------------------------|

----

|                                      |   |          |       |   | Restated      |   |
|-------------------------------------------|--------|---------------|------------|--------|---------------|--------|
|                                      |   | September 30, |       |   | September 30, |   |
|                                      |   | 2009          |       |   | 2008          |   |
|  NET  LOSS                 |   | $             | (2,388,208 | )      |          | $      | (2,212,764 | ) |
|                                      |   |          |       |   |          |   |   |   |
|  WEIGHTED AVERAGE OUTSTANDING SHARES |   |          |       |   |          |   |   |   |
|  OF COMMON STOCK - BASIC AND DILUTED |   |          | 26,296,434 |   |          |   | 12,533,853 |   |

 all of the resulting securities and classifies them as either available-for-sale ortrading securities in accordance with SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities” and an acquisition or assumption of an obligation to service a financial asset that does not relate to financial assets of the servicer or its consolidated affiliates. Additionally, SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, permits an entity to choose the use of an amortization or fairvalue method for subsequent measurements, permits at initial adoption a one-time reclassification of available-for-sale securities to trading securities by entities 

----

----

|   | Note 4 - Summary of Significant Accounting Policies (CONTINUED) |
|--------|-----------------------------------------------------------------|

|                                      |   | September 30, 2009 |   |   | September 30, 2008 |
|-------------------------------------------|--------|--------------------|--------|--------|--------------------|
| Computers and equipment                   |   | $                  | 2,819  |   |               | $ | 2,819 |   |
| Less:  accumulated depreciation |   |               | 1,108  |   |               |   | 202 |   |
| Computers and equipment - Net             |   | $                  | 1,811  |   |               | $ | 2,617 |   |

----

|                                                                                                                                                                                                  |   | Amount |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| October 2008 – Unsecured convertible note payable for $ 20,000 including interest at a fixed rate of 13%. The maturity date is October 2009 at which time all principle and interestare due.    |   | $      | 20,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| November 2008 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is November 2009 at which time all principle and interestare due.  |   |   | 10,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| November 2008 – Unsecured convertible note payable for $ 200,000 including interest at a fixed rate of 13%. The maturity date is November 2009 at which time all principle and interestare due. |   |   | 20,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| December 2008 – Unsecured convertible note payable for $ 5,000 including interest at a fixed rate of 13%. The maturity date is December 2009 at which time all principle and interestare due.   |   |   | 5,000  |   |
|                                                                                                                                                                                                  |   |   |   |   |
| December 2008 – Unsecured convertible note payable for $ 50,000 including interest at a fixed rate of 13%. The maturity date is December 2009 at which time all principle and interestare due.  |   |   | 50,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| December 2008 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is December 2009 at which time all principle and interestare due.  |   |   | 25,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| January 2009 – Unsecured convertible note payable for $ 4,500 including interest at a fixed rate of 13%. The maturity date is January 2010 at which time all principle and interestare due.     |   |   | 4,500  |   |
|                                                                                                                                                                                                  |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 40,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 40,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 30,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 30,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 10,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 14,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 14,000 |   |
|                                                                                                                                                                                                  |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 40,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 40,000 |   |

----

|   | Note 7 - Promissory and Convertible Notes Payable (CONTINUED) |
|--------|---------------------------------------------------------------|

| February 2009 – Unsecured convertible note payable for $ 7,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 7,000  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                 |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 5,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due.  |   |   | 5,000  |   |
|                                                                                                                                                                                                 |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 75,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due. |   |   | 75,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| February 2009 – Unsecured convertible note payable for $ 45,000 including interest at a fixed rate of 13%. The maturity date is February 2010 at which time all principle and interestare due. |   |   | 45,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 2,500 including interest at afixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.         |   |   | 2,500  |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $9,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.         |   |   | 9,000  |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.       |   |   | 10,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 25,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.       |   |   | 25,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 12,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.       |   |   | 12,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 15,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.       |   |   | 15,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 40,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.       |   |   | 40,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 6,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.        |   |   | 6,000  |   |
|                                                                                                                                                                                                 |   |   |   |   |
| March 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.       |   |   | 10,000 |   |
|                                                                                                                                                                                                 |   |   |   |   |
|                                                                                                                                                                                                 |   |   |   |   |

----

|   | Note 7 - Promissory and Convertible Notes Payable (CONTINUED) |
|--------|---------------------------------------------------------------|

| March 2009 – Unsecured convertible note payable for $ 20,000 including interest at a fixed rate of 13%. The maturity date is March 2010 at which time all principle and interestare due.                                                                  |   |   | 20,000  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                            |   |   |    |   |
| April 2009 – Unsecured convertible note payable for $ 4,500 including interest at a fixed rate of 13%. The maturity date is April 2010 at which time all principle and interestare due.                                                                   |   |   | 4,500   |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| April 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is April 2010 at which time all principle and interestare due.                                                                  |   |   | 10,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| April 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is April 2010 at which time all principle and interestare due.                                                                  |   |   | 10,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| May 2009 – Unsecured promissory note payable for $ 50,000 including interest at a fixed rate of 1%. The maturity date is August 2009 at which time all principle and interestare due or note may be extended for an additional 90 days on the same terms. |   |   | 50,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| June 2009 – Unsecured promissory note payable for $ 30,000 including interest at a fixed rate of 20%. The maturity date is October 2009 at which time all principle and interestare due.                                                                  |   |   | 30,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| June 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is June 2010 at which time all principle and interestare due.                                                                    |   |   | 10,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| July 2009 – Unsecured convertible note payable for $ 8,000 including interest at a fixed rate of 13%. The maturity date is June 2010 at which time all principle and interestare due.                                                                     |   |   | 8,000   |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| July 2009 – Unsecured convertible note payable for $ 10,000 including interest at a fixed rate of 13%. The maturity date is June 2010 at which time all principle and interestare due.                                                                    |   |   | 10,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| July 2009 – Unsecured convertible note payable for $ 15,000 including interest at a fixed rate of 13%. The maturity date is June 2010 at which time all principle and interestare due.                                                                    |   |   | 15,000  |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| August 2009 – Unsecured convertible note payable for $ 180,000 including interest at a fixed rate of 13%. The maturity date is July 2010 at which time all principle and interestare due.                                                                 |   |   | 180,000 |   |
|                                                                                                                                                                                                                                                            |   |   |    |   |
| September 2009 – Unsecured convertible note payable for $ 5,000 including interest at a fixed rate of 13%. The maturity date is June 2010 at which time all principle and interestare due.                                                                |   |   | 5,000   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Notes payable are summarized as follows as of September 30, 2008:                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Amount |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |
| March 2007 - Unsecured promissory note payable to for $22,037 including interest at a fixed rate of 10%. The maturity date is March 2008 at which time all principal and interest are due. Although the note is past maturity and is in default, the Company is accruing interest.                                                                                                                                                                                               |   |   | 6,815  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |
| May 2008 - Unsecured convertible note payable to for $50,000 including interest at a rate of 5% plus prime adjusted monthly. The maturity date is November 2008 at which time all principal and interest are due.                                                                                                                                                                                                                                                           |   |   | 50,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |
| Total notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 56,815 |   |
|   The Company has the option at any time to convert a note into the number of common shares equal to the quotient obtained by dividing the principal amount of the note by the conversion price.  The conversion price is one half (1⁄2) of the average closing price of the stock for the prior 10 days or $0.25, whichever is greater.  Theholder of the note has the same conversion right after six months from the date of the issuance of the note. |   |   |   |   |

----

|                |   | September 30, 2009 |       |   | September 30, 2008 |   |
|---------------------|--------|--------------------|------------|--------|--------------------|--------|
| Deferred tax assets |   | $                  | 2,079,834  |   |               | $      | 1,468,458 |   |
| Less: valuation     |   |               | (2,079,834 | )      |               |   | (1,468,458 | ) |
| Totals              |   | $                  | -          |   |               | $      | - |   |

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|                       |                       |   |           |       |   |           |   |            |
|----------------------------|----------------------------|--------|----------------|------------|--------|----------------|--------|-----------------|
| Year                       | Warrant Type               |   | Warrant Shares |       |   | Exercise Price |   | Expiration Date |
|                       |                       |   |           |       |   |           |   |            |
| 2004                       | Notes payable warrants     |   |           | 50,000     |   |           |   | 0.92            |   | None |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Broker warrants            |   |           | 300,000    |   |           |   | 0.045           |   | Apr. 2011 |
| 2006                       | Warrant exercise           |   |           | (300,000   | )      |           |   | 0.045           |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Broker warrants            |   |           | 294,118    |   |           |   | 0.085           |   | May 2011 |
| 2006                       | Warrant exercise           |   |           | (294,118   | )      |           |   | 0.085           |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Class A warrants           |   |           | 2,941,177  |   |           |   | 0.085           |   | May 2011 |
| 2007                       | Class A warrants cancelled |   |           | (2,941,177 | )      |           |   | 0.085           |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Class B warrants           |   |           | 2,941,177  |   |           |   | 0.50            |   | May 2011 |
| 2007                       | Class B warrants cancelled |   |           | (2,941,177 | )      |           |   | 0.50            |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2008                       | Class A warrants           |   |           | 5,169,538  |   |           |   | 1.25            |   | Various 2010 |
| 2008                       | Class B warrants           |   |           | 5,169,538  |   |           |   | 1.25            |   | Various 2011 |
|                       |                       |   |           | 10,339,076 |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2009                       | Class A warrants           |   |           | 236,500    |   |           |   | 1.25            |   | Various 2010 |
| 2009                       | Class B warrants           |   |           | 236,500    |   |           |   | 1.25            |   | Various 2011 |
|                       |                       |   |           | 473,000    |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| Total warrants outstanding |                       |   | 10,862,076     |       |   |           |   |            |   |

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| Year                       | Warrant Type               |   | Warrant Shares |       |   | Exercise Price |   | Expiration Date |
|----------------------------|----------------------------|--------|----------------|------------|--------|----------------|--------|-----------------|
|                       |                       |   |           |       |   |           |   |            |
| 2005                       | Broker warrants            |   |           | 50,000     |   |           |   | 0.50            |   | Dec. 2008 |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Broker warrants            |   |           | 50,000     |   |           |   | 0.50            |   | Mar. 2009 |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Broker warrants            |   |           | 300,000    |   |           |   | 0.045           |   | Apr. 2011 |
| 2006                       | Warrant exercise           |   |           | (300,000   | )      |           |   | 0.045           |   |   |
|                       |                       |   |           | 100,000    |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Broker warrants            |   |           | 294,118    |   |           |   | 0.085           |   | May 2011 |
| 2006                       | Warrant exercise           |   |           | (294,118   | )      |           |   | 0.085           |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Class A warrants           |   |           | 2,941,177  |   |           |   | 0.085           |   | May 2011 |
| 2007                       | Class A warrants cancelled |   |           | (2,941,177 | )      |           |   | 0.085           |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2006                       | Class B warrants           |   |           | 2,941,177  |   |           |   | 0.50            |   | May 2011 |
| 2007                       | Class B warrants cancelled |   |           | (2,941,177 | )      |           |   | 0.50            |   |   |
|                       |                       |   |           | 0          |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| 2008                       | Class A warrants           |   |           | 1,767,038  |   |           |   | 1.25            |   | Various 2010 |
| 2008                       | Class B warrants           |   |           | 1,767,038  |   |           |   | 1.25            |   | Various 2011 |
|                       |                       |   |           | 3,534,076  |   |           |   |            |   |   |
|                       |                       |   |           |       |   |           |   |            |   |   |
| Total warrants outstanding |                       |   | 3,634,076      |       |   |           |   |            |   |

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

| Item 4T. | Controls and Procedures. We identified a material weakness in our internal control over financial reporting with respect to accounting for the acquisition of an asset from a related party in exchange for stock, namely, that we did not have adequately designed procedures to review the journal entries. Solely as a result of this material weakness,we concluded that our disclosure controls and procedures were not effective as of September 30, 2009.  As of October 20, 2009, we began evaluating the journal entries and remediated the related internal control weakness. We have evaluated the effectiveness of our disclosure controls and procedures and internal controls over financial reporting as of September 30, 2009, including the remedial actions discussed above.  Thisevaluation was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer.  Based on this evaluation, these officers have concluded that our disclosure controls and procedures are effective.  Except for the aforementioned asset acquisition journal entries controls and procedures, there were no significant changes to our internal controls during the last fiscal quarter ended September 30, 2009.  Disclosurecontrols and procedures and internal controls over financial reporting are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under theExchange Act is accumulated and communicated to our management, including principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Management’s Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting.  The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financialstatements for external purposes in accordance with U.S. generally accepted accounting principles. As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures. In designing and evaluating our disclosure controls and procedures, we and our management recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgmentin evaluating and implementing possible controls and procedures.  The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundnessof our systems, the possibility of human error, and the risk of fraud.  Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time.  Because of these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reportingwill be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management. Based on our assessment, management has concluded that our internal control over financial reporting was ineffective as of the end of the fiscal quarter to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordancewith U.S. generally accepted accounting principles as a result of the material weaknesses in internal control as described and defined below. We reviewed the results of management’s assessment with our Board of Directors. In addition, on a quarterly basis we will evaluate any changes to our internal control over financial reporting to determine if a material changed occurred. Material Weaknesses in Internal Controls During a review of our accounting entries, Bagell, Josephs, Levine & Company, L.L.C. (“Bagell”) identified a material weakness in how we made certain journal entries in connection with the acquisition of certain assets from a related party and have advised our board of directors that the following materialweakness existed at September 30, 2009. As defined by the Public Company Accounting Oversight Board Auditing Standard No. 5, a material weakness is a deficiency or a combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness exists in the internal control over financial reporting withrespect to accounting for the acquisition of assets by a related party, namely, that we did not have adequately designed procedures to review the journal entries. Solely as a result of this material weakness, we concluded that our disclosure controls and procedures were not effective as of September 30, 2009.   In light of this material weakness and the requirements enacted by the Sarbanes-Oxley act of 2002, and the related rules and regulations adopted by the SEC, our Chief Executive Officer and Chief Accounting Officer concluded that, as of September 30, 2009, our controls and procedures needed improvement and were not effectiveat a reasonable assurance level. Since the discovery of the material weaknesses, we began evaluating the tax provision and remediated the related internal control weakness. We have evaluated our disclosure controls and procedures as currently in effect, including the remedial actions discussed above, and we have concluded that, as of this date, our disclosurecontrols and procedures are effective. We have discussed our corrective actions and future plans with our board of directors and Bagell as of the date of this quarterly report, and believe the planned actions should serve to correct the above listed material weaknesses in our internal controls. However, we cannot provide assurance that either we or our independentauditors will not in the future identify further material weaknesses or significant deficiencies in our internal control over financial reporting that we have not discovered to date. Inherent Limitations of the Effectiveness of Internal Control. A control deficiency exists when the design or operation of a control does not allow management or employees, in the ordinary course of performing their assigned functions, to prevent or detect misstatements on a timely basis.  A significant deficiency is a control deficiency, or combination of control deficiencies,that adversely affects the Company’s ability to initiate, authorize, record, process, or report external financial data reliably in accordance with GAAP, such that there is a more than remote likelihood that a misstatement of the Company’s annual or interim financial statements that is more than inconsequential will not be prevented or detected.  |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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. |
|---------|------------------------------------------------------|

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

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

| 31.1   | Certification of CEO 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                      |
| 31.2   | Certification of 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 pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley act of 2002.                            |
|   |                                                                                                                                                      |
| 32.2   | Certification of 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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