----

----

| S | QUARTERLY REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------------|

| £ | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|

|   | SYNTHENOL      INC.                                         |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact      name of registrant as specified in its charter) |   |

| Florida                                                             |   | 000-29219                     |   | 98-0199508                             |
|---------------------------------------------------------------------|--------|-------------------------------|--------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (Commission      File Number) |   | (IRS      Employer Identification No.) |

| Suite      206 – 388 Drake Street       |   |            |
|-----------------------------------------------|--------|-----------------|
| Vancouver,      British Columbia, Canada      |   | V6B      6A8    |
| (Address      of principal executive offices) |   | (Zip      Code) |

| Issuer’s      telephone number |   | (604)      648-2090 |
|--------------------------------------|--------|---------------------|

|                                                                                         |   |            |
|----------------------------------------------------------------------------------------------|--------|-----------------|
| (Former      name, former address and former fiscal year, if changed since last      report) |   | (Zip      Code) |

----

----

----

| Large      Accelerated Filer      £            | Accelerated      Filer                         £ |
|------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non      Accelerated Filer         £ | Smaller      Reporting Company     S                                                                                             |

----

SYNTHENOL INC.

|                                                                                                                         |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I – FINANCIALS      INFORMATION                                                                                   | 4      |
|                                                                                                                         |   |
| ITEM      1. FINANCIAL      STATEMENTS                                                                                  | 4      |
| CONSOLIDATED BALANCE      SHEETS                                                                                             | 5      |
| CONSOLIDATED STATEMENTS OF      OPERATIONS                                                                                   | 6      |
| CONSOLIDATED STATEMENTS OF      CASH FLOWS                                                                                   | 7      |
| CONSOLIDATED STATEMENT OF      STOCKHOLDERS’ DEFICIENCY                                                                | 8      |
| NOTES TO CONSOLIDATED FINANCIAL      STATEMENTS                                                                              | 11     |
|                                                                                                                         |   |
| ITEM      2. MANAGEMENT’S DISCUSSION      AND ANALYSIS OF FINANCIAL CONDITION      AND RESULTS OF      OPERATIONS | 15     |
|                                                                                                                         |   |
| ITEM 3. QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK                                                 | 16     |
|                                                                                                                         |   |
| ITEM 4. CONTROLS      AND PROCEDURES                                                                                         | 17     |
|                                                                                                                         |   |
| PART II--OTHER      INFORMATION                                                                                              | 17     |
|                                                                                                                         |   |
| ITEM 1. LEGAL      PROCEEDINGS                                                                                               | 17     |
|                                                                                                                         |   |
| ITEM 1A. RISK      FACTORS                                                                                                   | 17     |
|                                                                                                                         |   |
| ITEM 2. UNREGISTERED SALES OF      EQUITY SECURITIES AND USE OF PROCEEDS.                                                    | 17     |
|                                                                                                                         |   |
| ITEM 3. DEFAULTS UPON SENIOR      SECURITIES                                                                                 | 18     |
|                                                                                                                         |   |
| ITEM 4. SUBMISSION OF MATTERS TO A      VOTE OF SECURITY HOLDERS                                                             | 18     |
|                                                                                                                         |   |
| ITEM 5. OTHER      INFORMATION                                                                                               | 18     |
|                                                                                                                         |   |
| ITEM 6.      EXHIBITS                                                                                                        | 18     |

----

Table of Contents

PART 
FINANCIALS 

FINANCIAL 

----

Table of Contents

BALANCE 

|                                                                                                                                     |   | March      31, |       |    | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|---------|-------------------|--------|
| ASSETS                                                                                                                                   |   | 2008           |       |    | 2007              |   |
|                                                                                                                                     |   | Unaudited      |       |    |              |   |
| Current                                                                                                                                  |   |           |       |    |              |   |
| Cash                                                                                                                                     |   | $              | 38,585     |    |              | $      | 66,273 |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   | $              | 38,585     |    |              | $      | 66,273 |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
| LIABILITIES AND      STOCKHOLDERS’ DEFICIENCY                                                                                      |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
| Current                                                                                                                                  |   |           |       |    |              |   |   |   |
| Accounts      payable and accrued liabilities (Note 4)                                                                                   |   | $              | 139,562    |    |              | $      | 133,508 |   |
| Notes      payable (Note 3)                                                                                                              |   |           | 315,981    |    |              |   | 309,079 |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   |           | 455,543    |    |              |   | 442,587 |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
| Capital      stock                                                                                                                       |   |           |       |    |              |   |   |   |
| Preferred      stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or      outstanding                                 |   |           |       |    |              |   |   |   |
| Common stock, $0.01      par value, 100,000,000 shares authorized731,522 (December 31, 2007:      731,522) shares issued and outstanding |   |           | 7,315      |    |              |   | 7,315 |   |
| Treasury      stock, at cost, 540 shares (December 31, 2007: 540)                                                                   |   |           | (270       | )  |              |   | (270 | ) |
| Additional      paid-in capital                                                                                                          |   |           | 1,974,187  |    |              |   | 1,974,187 |   |
| Accumulated      other comprehensive income                                                                                              |   |           | 4,591      |    |              |   | 5,213 |   |
| Deficit                                                                                                                                  |   |           | (1,305,454 | )  |              |   | (1,305,454 | ) |
| Deficit      accumulated during the development stage                                                                                    |   |           | (1,097,327 | )  |              |   | (1,057,305 | ) |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   |           | (416,958   | )  |              |   | (376,314 | ) |
|                                                                                                                                     |   |           |       |    |              |   |   |   |
|                                                                                                                                     |   | $              | 38,585     |    |              | $      | 66,273 |   |

----

Table of Contents

OPERATIONS

|                                                                                  |   |                    |    |   | January 1, 2004                       |   |
|---------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------------------------------|--------|
|                                                                                  |   | Three      months ended |    |   | (Date of Inception of the Development Stage) to |   |
|                                                                                  |   | March 31,          |    |   | March 31,                                  |   |
|                                                                                  |   | 2008                    |    |   | 2007                                            |   |   | 2008 |   |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |
| General      and administrative expenses                                              |   |                    |    |   |                                            |   |   |   |   |
| Amortization                                                                          |   | $                       | -       |   |                                            | $      | - |   |   | $ | 27,077 |   |
| Bad      debt                                                                         |   |                    | -       |   |                                            |   | - |   |   |   | 525 |   |
| Corporate      promotion                                                              |   |                    | -       |   |                                            |   | - |   |   |   | 13,920 |   |
| Finance      charges                                                                  |   |                    | 4,051   |   |                                            |   | - |   |   |   | 15,336 |   |
| Insurance                                                                             |   |                    | -       |   |                                            |   | - |   |   |   | 15,901 |   |
| Interest      on notes payable                                                        |   |                    | 4,907   |   |                                            |   | - |   |   |   | 28,335 |   |
| Management      and consultant fees (Note 4)                                          |   |                    | 24,356  |   |                                            |   | 22,757 |   |   |   | 248,955 |   |
| Office      supplies and services                                                     |   |                    | 709     |   |                                            |   | 4,215 |   |   |   | 47,126 |   |
| Professional      fees                                                                |   |                    | 6,000   |   |                                            |   | 14,130 |   |   |   | 241,207 |   |
| Rent                                                                                  |   |                    | -       |   |                                            |   | - |   |   |   | 16,311 |   |
| Wages                                                                                 |   |                    | -       |   |                                            |   | - |   |   |   | 84,258 |   |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Loss      before other items                                                          |   |                    | (40,022 | )      |                                            |   | (41,102 | ) |   |   | (738,951 | ) |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Other      items                                                                      |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Loss      on disposition of equipment                                                 |   |                    | -       |   |                                            |   | - |   |   |   | (15,028 | ) |
| Write-down      of intangible assets                                                  |   |                    | -       |   |                                            |   | - |   |   |   | (50,001 | ) |
| Write-off      of notes payable                                                       |   |                    | -       |   |                                            |   | - |   |   |   | 14,823 |   |
| Gain      on settlement of lawsuit                                                    |   |                    | -       |   |                                            |   | - |   |   |   | 44,445 |   |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                  |   |                    | (40,022 | )      |                                            |   | (41,102 | ) |   |   | (744,712 | ) |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Operating      loss from discontinued operations                                      |   |                    | -       |   |                                            |   | - |   |   |   | (382,299 | ) |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Gain      on sale of discontinued operations                                          |   |                    | -       |   |                                            |   | - |   |   |   | 29,684 |   |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Net      loss                                                                         |   | $                       | (40,022 | )      |                                            | $      | (41,102 | ) |   | $ | (1,097,327 | ) |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Basic      and diluted loss per common share                                          |   | $                       | (0.05   | )      |                                            | $      | (0.06 | ) |   |   |   |   |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Weighted      average number of common share outstanding – basic and    diluted |   |                    | 731,522 |   |                                            |   | 731,522 |   |   |   |   |   |
|                                                                                  |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Comprehensive      loss                                                               |   |                    |    |   |                                            |   |   |   |   |   |   |   |
| Net      loss                                                                         |   | $                       | (40,022 | )      |                                            | $      | (41,102 | ) |   | $ | (1,097,327 | ) |
| Foreign      currency translation adjustment                                          |   |                    | (622    | )      |                                            |   | (13 | ) |   |   | 4,591 |   |
| Total      comprehensive loss                                                         |   | $                       | (40,644 | )      |                                            | $      | (41,115 | ) |   | $ | (1,092,736 | ) |

----

Table of Contents

FLOWS

|                                                                                  |   |                    |    |   | January 1,      2004                            |   |
|---------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------------------------------------|--------|
|                                                                                  |   | Three      months ended |    |   | (Date      of Inception of the Development Stage) to |   |
|                                                                                  |   | March 31,          |    |   | March 31,                                       |   |
|                                                                                  |   | 2008                    |    |   | 2007                                                 |   |   | 2008 |   |
| Cash      flows from operating activities                                             |   |                    |    |   |                                                 |   |   |   |   |
| Net      loss from continuing operations                                              |   | $                       | (40,022 | )      |                                                 | $      | (41,102 | ) |   | $ | (744,712 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Finance      charges                                                                  |   |                    | 4,051   |   |                                                 |   | - |   |   |   | 15,336 |   |
| Accrued      interest on notes payable                                                |   |                    | 4,907   |   |                                                 |   | 691 |   |   |   | 28,335 |   |
| Amortization                                                                          |   |                    | -       |   |                                                 |   | - |   |   |   | 27,077 |   |
| Foreign      exchange effect on notes payable                                         |   |                    | (2,056  | )      |                                                 |   | - |   |   |   | 6,045 |   |
| Issuance      of common stock for services                                            |   |                    | -       |   |                                                 |   | - |   |   |   | 1,000 |   |
| Stock-based      compensation                                                         |   |                    | -       |   |                                                 |   | - |   |   |   | 4,460 |   |
| Loss      on disposition of equipment                                                 |   |                    | -       |   |                                                 |   | - |   |   |   | 225,184 |   |
| Write-down      of intangible assets                                                  |   |                    | -       |   |                                                 |   | - |   |   |   | 360,001 |   |
| Write-off      of notes payable                                                       |   |                    | -       |   |                                                 |   | - |   |   |   | (18,729 | ) |
| Gain      on settlement of lawsuit                                                    |   |                    | -       |   |                                                 |   | - |   |   |   | (44,445 | ) |
| Changes      in non-cash working capital items:                                       |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                         |   |                    | 6,054   |   |                                                 |   |  (5,131 | ) |   |   |  139,562 |   |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Cash      used in continuing operations                                               |   |                    | (27,066 | )      |                                                 |   | (45,542 | ) |   |   | (886 | ) |
| Discontinued      operations                                                          |   |                    | -       |   |                                                 |   | - |   |   |   | (553,150 | ) |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Net      cash used in operating activities                                            |   |                    | (27,066 | )      |                                                 |   | (45,542 | ) |   |   | (554,036 | ) |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Cash      flows from investing activities                                             |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Proceeds      from sale of subsidiary                                                 |   |                    | -       |   |                                                 |   | - |   |   |   | 1 |   |
| Proceeds      from assets disposition                                                 |   |                    | -       |   |                                                 |   | - |   |   |   | 5,458 |   |
| Purchase      of equipment                                                            |   |                    | -       |   |                                                 |   | - |   |   |   | (5,808 | ) |
| Net      cash used in investing activities                                            |   |                    | -       |   |                                                 |   | - |   |   |   | (349 | ) |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Cash      flows from financing activities                                             |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Proceeds      from notes payable                                                      |   |                    | -       |   |                                                 |   | 35,000 |   |   |   | 398,614 |   |
| Proceeds      from issuance of common stock                                           |   |                    | -       |   |                                                 |   | - |   |   |   | 1,000 |   |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Net      cash provided by financing activities                                        |   |                    | -       |   |                                                 |   | 35,000 |   |   |   | 399,614 |   |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash                                          |   |                    | (622    | )      |                                                 |   | (13 | ) |   |   | (16,161 | ) |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Change      in cash from continuing operations                                        |   |                    | (27,688 | )      |                                                 |   | (10,555 | ) |   |   | (170,932 | ) |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Cash,      beginning                                                                  |   |                    | 66,273  |   |                                                 |   | 13,462 |   |   |   | 209,517 |   |
|                                                                                  |   |                    |    |   |                                                 |   |   |   |   |   |   |   |
| Cash,      ending                                                                     |   | $                       | 38,585  |   |                                                 | $      | 2,907 |   |   | $ | 38,585 |   |

----

Table of Contents

DEFICIENCY

|                                                              |   | Common      Shares |    |   | Treasury |   |   | Additional      Paid-in |   |   | Subscriptions |   |   | Accumulated      Other Comprehensive |      |   |   |   |   | Deficit      Accumulated During the Development |   |   |    |   |
|-------------------------------------------------------------------|--------|--------------------|---------|--------|----------|--------|--------|-------------------------|--------|--------|---------------|--------|--------|--------------------------------------|-----------|--------|--------|--------|--------|-------------------------------------------------|--------|--------|---------|--------|
|                                                              |   | Number             |    |   | Amount   |   |   | Stock                   |   |   | Capital       |   |   | Received                             |      |   | Income |   |   | Deficit                                         |   |   | Stage   |   |   | Total |   |
| May 3,      1989 ( Inception) through December 31, 1997 |   |               | 60,022  |   |     | $      | 600    |                    |   | $      | -             |   |   | $                                    | 9,400     |   |   | $      | -      |                                            |   | $      | -       |   |   | $ | (10,000 | ) |   | $ | - |   |   | $ | - |   |
| Net      loss                                                     |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | -       |   |   |   | (148,931 | ) |   |   | - |   |   |   | (148,931 | ) |
| Shares      issued for cash                                       |   |               | 180,000 |   |     |   | 1,800  |                    |   |   | -             |   |   |                                 | 148,200   |   |   |   | 2,000  |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 152,000 |   |
| Balance      at December 31, 1998                            |   |               | 240,022 |   |     |   | 2,400  |                    |   |   | -             |   |   |                                 | 157,600   |   |   |   | 2,000  |                                            |   |   | -       |   |   |   | (158,931 | ) |   |   | - |   |   |   | 3,069 |   |
| Net      loss                                                     |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | -       |   |   |   | (511,587 | ) |   |   | - |   |   |   | (511,587 | ) |
| Foreign      currency translation adjustment                      |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | (14,130 | )      |   |   | - |   |   |   | - |   |   |   | (14,130 | ) |
| Share      issued for services                                    |   |               | 15,000  |   |     |   | 150    |                    |   |   | -             |   |   |                                 | 124,850   |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 125,000 |   |
| Subscription      receivable                                      |   |               | 12,000  |   |     |   | 120    |                    |   |   | -             |   |   |                                 | 99,880    |   |   |   | 8,000  |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 108,000 |   |
| Share      issued for intangible assets                           |   |               | 15,000  |   |     |   | 150    |                    |   |   | -             |   |   |                                 | 124,850   |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 125,000 |   |
| Balance      at December 31, 1999                            |   |               | 282,022 |   |     |   | 2,820  |                    |   |   | -             |   |   |                                 | 507,180   |   |   |   | 10,000 |                                            |   |   | (14,130 | )      |   |   | (670,518 | ) |   |   | - |   |   |   | (164,648 | ) |
| Net      loss                                                     |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | -       |   |   |   | (339,063 | ) |   |   | - |   |   |   | (339,063 | ) |
| Foreign      currency translation adjustment                      |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | 18,885  |   |   |   | - |   |   |   | - |   |   |   | 18,885 |   |
| Shares      issued for cash                                       |   |               | 21,600  |   |     |   | 216    |                    |   |   | -             |   |   |                                 | 259,784   |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 260,000 |   |
| Shares      issued for settlement of debt                         |   |               | 4,500   |   |     |   | 45     |                    |   |   | -             |   |   |                                 | 174,955   |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 175,000 |   |
| Subscription      receivable                                      |   |               | 600     |   |     |   | 6      |                    |   |   | -             |   |   |                                 | 9,994     |   |   |   | (200   | )                                               |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 9,800 |   |
| Subscription      received                                        |   |               | 30,000  |   |     |   | 300    |                    |   |   | -             |   |   |                                 | 499,700   |   |   |   | (9,350 | )                                               |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 490,650 |   |
| Stock      option benefit                                         |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | 14,235    |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 14,235 |   |
| Balance      at December 31, 2000                            |   |               | 338,722 |   |     |   | 3,387  |                    |   |   | -             |   |   |                                 | 1,465,848 |   |   |   | 450    |                                            |   |   | 4,755   |   |   |   | (1,009,581 | ) |   |   | - |   |   |   | 464,859 |   |
| Net      loss                                                     |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | -       |   |   |   | 375,621 |   |   |   | - |   |   |   | 375,621 |   |
| Foreign      currency translation adjustment                      |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | 13,629  |   |   |   | - |   |   |   | - |   |   |   | 13,629 |   |
| Shares      issued for cash                                       |   |               | 300     |   |     |   | 3      |                    |   |   | -             |   |   |                                 | 2,247     |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 2,250 |   |
| Subscription      received                                        |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | 200    |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 200 |   |
| Stock      option benefit                                         |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | 118,920   |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 118,920 |   |
| Repurchase      of common stock for treasury                      |   |               | -       |   |     |   | -      |                    |   |   | (270          | )      |   |                                 | (6,611    | )      |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | (6,881 | ) |
| Balance      at December 31, 2001                            |   |               | 339,022 |   |     |   | 3,390  |                    |   |   | (270          | )      |   |                                 | 1,580,404 |   |   |   | 650    |                                            |   |   | 18,384  |   |   |   | (633,960 | ) |   |   | - |   |   |   | 968,598 |   |
| Net      loss                                                     |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   |    |   |   |   | (63,864 | ) |   |   | - |   |   |   | (63,864 | ) |
| Foreign      currency translation adjustment                      |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   |   |                                            |   |   | (1,155  | )      |   |   |   |   |   |   | - |   |   |   | (1,155 | ) |
| Shares      issued for cash                                       |   |               | 4,500   |   |     |   | 45     |                    |   |   | -             |   |   |                                 | 33,705    |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 33,750 |   |
| Balance      at December 31, 2002                            |   |               | 343,522 |   |     | $      | 3,435  |                    |   | $      | (270          | )      |   | $                                    | 1,614,109 |   |   | $      | 650    |                                            |   | $      | 17,229  |   |   | $ | (697,824 | ) |   | $ | - |   |   | $ | 937,329 |   |

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Table of Contents

|                                                |   |               |    |   |     |   |   | Additional |   |   |          |   |   | Accumulated      Other |      |   |   |   |   | Deficit      Accumulated During the |   |   |   |   |
|-----------------------------------------------------|--------|--------------------|---------|--------|----------|--------|--------|------------|--------|--------|---------------|--------|--------|------------------------|-----------|--------|--------|--------|--------|-------------------------------------|--------|--------|--------|--------|
|                                                |   | Common      Shares |    |   | Treasury |   |   | Paid-in    |   |   | Subscriptions |   |   | Comprehensive          |      |   |   |   |   | Development                         |   |   |   |   |
|                                                |   | Number             |    |   | Amount   |   |   | Stock      |   |   | Capital       |   |   | Received               |      |   | Income |   |   | Deficit                             |   |   | Stage  |   |   | Total |   |
| Balance      at December 31, 2002              |   |               | 343,521 |   |     |   | 3,435  |       |   |   | (270          | )      |   |                   | 1,614,109 |   |   |   | 650    |                                |   |   | 17,229 |   |   |   | (697,824 | ) |   |   | - |   |   |   | 937,329 |   |
| Net      loss                                       |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | -      |   |   |   | (607,630 | ) |   |   | - |   |   |   | (607,630 | ) |
| Foreign      currency translation adjustment        |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | 1,752  |   |   |   | - |   |   |   | - |   |   |   | 1,752 |   |
| Stock      option benefit                           |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | 11,800    |   |   |   |   |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 11,800 |   |
| Cancellation      of agreement                      |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   |      |   |   |   | (650   | )                                   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | (650 | ) |
| Share      issues for cash on exercise of options   |   |               | 12,000  |   |     |   | 120    |       |   |   | -             |   |   |                   | 11,880    |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 12,000 |   |
| Share      issues for consulting services           |   |               | 45,000  |   |     |   | 450    |       |   |   | -             |   |   |                   | 49,675    |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 50,125 |   |
| Share      issues for intangible assets             |   |               | 60,000  |   |     |   | 600    |       |   |   | -             |   |   |                   | 104,400   |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 105,000 |   |
| Share      issued for software                      |   |               | 60,000  |   |     |   | 600    |       |   |   | -             |   |   |                   | 53,400    |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 54,000 |   |
| Balance      at December 31, 2003              |   |               | 520,521 |   |     |   | 5,205  |       |   |   | (270          | )      |   |                   | 1,845,264 |   |   |   | -      |                                |   |   | 18,981 |   |   |   | (1,305,454 | ) |   |   | - |   |   |   | 563,726 |   |
| Net      loss                                       |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | (795,364 | ) |   |   | (795,364 | ) |
| Foreign      currency translation adjustment        |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | (238   | )      |   |   | - |   |   |   | - |   |   |   | (238 | ) |
| Stock-based      compensation                       |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | 4,460     |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 4,460 |   |
| Shares      issued for cash on exercise of options  |   |               | 1,000   |   |     |   | 10     |       |   |   | -             |   |   |                   | 990       |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Share      issued for debt                          |   |               | 140,000 |   |     |   | 1,400  |       |   |   | -             |   |   |                   | 68,600    |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Share      issued for consulting      services |   |               | 2,000   |   |     |   | 20     |       |   |   | -             |   |   |                   | 980       |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Balance      at December 31, 2004              |   |               | 663,522 |   |     |   | 6,635  |       |   |   | (270          | )      |   |                   | 1,920,294 |   |   |   | -      |                                |   |   | 18,743 |   |   |   | (1,305,454 | ) |   |   | (795,364 | ) |   |   | (155,416 | ) |
| Net      loss                                       |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | (54,416 | ) |   |   | (54,416 | ) |
| Foreign      currency translation adjustment        |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | (702   | )      |   |   | - |   |   |   | - |   |   |   | (702 | ) |
| Share      issues for consulting services           |   |               | 18,000  |   |     |   | 180    |       |   |   | -             |   |   |                   | 8,820     |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Balance      at December 31, 2005              |   |               | 681,522 |   |     |   | 6,815  |       |   |   | (270          | )      |   |                   | 1,929,114 |   |   |   | -      |                                |   |   | 18,041 |   |   |   | (1,305,454 | ) |   |   | (849,780 | ) |   |   | (201,534 | ) |
| Net      loss                                       |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | (36,575 | ) |   |   | (36,575 | ) |
| Foreign      currency translation adjustment        |   |               | -       |   |     |   | -      |       |   |   | -             |   |   |                   | -         |   |   |   | -      |                                |   |   | 563    |   |   |   | - |   |   |   | - |   |   |   | 563 |   |
| Share      issues for debt                          |   |               | 50,000  |   |     |   | 500    |       |   |   | -             |   |   |                   | 24,500    |   |   |   | -      |                                |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 25,000 |   |
| Balance      at December 31, 2006              |   |               | 731,522 |   |     | $      | 7,315  |       |   | $      | (270          | )      |   | $                      | 1,953,614 |   |   | $      | -      |                                |   | $      | 18,604 |   |   | $ | (1,305,454 | ) |   | $ | (886,355 | ) |   | $ | (212,546 | ) |

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Table of Contents

STOCKHOLDERS’ 

|                                            |   | Common      Shares |    |   | Treasury |   |   | Additional      Paid-in |   |   | Subscriptions |   |   | Accumulated      Other Comprehensive |      |   |   |   |   | Deficit      Accumulated During the Development |   |   |    |   |
|-------------------------------------------------|--------|--------------------|---------|--------|----------|--------|--------|-------------------------|--------|--------|---------------|--------|--------|--------------------------------------|-----------|--------|--------|--------|--------|-------------------------------------------------|--------|--------|---------|--------|
|                                            |   | Number             |    |   | Amount   |   |   | Stock                   |   |   | Capital       |   |   | Received                             |      |   | Income |   |   | Deficit                                         |   |   | Stage   |   |   | Total |   |
| Balance      at December 31, 2006          |   |               | 731,522 |   |     | $      | 7,315  |                    |   | $      | (270          | )      |   | $                                    | 1,953,614 |   |   | $      | -      |                                            |   | $      | 18,604  |   |   | $ | (1,305,454 | ) |   | $ | (886,355 | ) |   | $ | (212,546 | ) |
| Net      loss                                   |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | (170,950 | ) |   |   | (170,950 | ) |
| Discount      on notes payable                  |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | 20,573    |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | 20,573 |   |
| Foreign      currency translation adjustment    |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | (13,391 | )      |   |   | - |   |   |   | - |   |   |   | (13,391 | ) |
| Balance      at December 31, 2007          |   |               | 731,522 |   |     |   | 7,315  |                    |   |   | (270          | )      |   |                                 | 1,974,187 |   |   |   | -      |                                            |   |   | 5,213   |   |   |   | (1,305,454 | ) |   |   | (1,057,305 | ) |   |   | (376,314 | ) |
| Net      loss                                   |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | -       |   |   |   | - |   |   |   | (40,022 | ) |   |   | (40,022 | ) |
| Foreign      currency translation adjustment    |   |               | -       |   |     |   | -      |                    |   |   | -             |   |   |                                 | -         |   |   |   | -      |                                            |   |   | (622    | )      |   |   | - |   |   |   | - |   |   |   | (622 | ) |
| Balance      at March 31, 2008 (Unaudited) |   |               | 731,522 |   |     | $      | 7,315  |                    |   | $      | (270          | )      |   | $                                    | 1,974,187 |   |   | $      | -      |                                            |   | $      | 4,591   |   |   | $ | (1,305,454 | ) |   | $ | (1,097,327 | ) |   | $ | (416,958 | ) |

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Table of Contents

NOTES 

| Note      1 | Interim Financial      Statements |
|-------------|-----------------------------------|

| Note      2 | Nature and Continuance      of Operations |
|-------------|-------------------------------------------|

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| Note      3 | Notes      Payable |
|-------------|--------------------|

|   | a) | A      loan of $25,735 (December 31, 2007 - $26,649) (CAD$26,417) from Ubiquity      Management Inc., a company controlled by a former director of the Company,      is unsecured, bears interest at 5% per annum and is due on demand.      Interest accrued as of March 31, 2008 is $4,319 (December 31, 2007 -      $3,998). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | A      promissory note of $32,149 (December 31, 2007 - $33,290) (CAD$33,000)      payable to Pannell Kerr Forster, Chartered Accountants, is unsecured,      bears interest at the Bank of Canada prime rate (6.50% as of March 31,      2008) and due on demand. Interest accrued as of March 31, 2008 is $7,299      (December 31, 2007 - $6,777). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | On      April 6, 2006, the Company received $10,000 from Hokley. The promissory      note is unsecured and bears interest at 5% per annum. The principal and      accrued interest is payable by the Company on June 30,    2008. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On      July 31, 2006, the Company received $25,000 from Hokley. The promissory      note is unsecured and bears interest at 5% per annum. The principal and      accrued interest is payable by the Company on June 30,    2008. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On      December 15, 2006, the Company received $15,000 from Hokley. The      promissory note is unsecured and bears interest at 5% per annum. The      principal and accrued interest is payable by the Company on June 30,      2008. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | On      February 26, 2007, the Company received $35,000 from Hokley. The      promissory note is unsecured and bears interest at 5% per annum. The      principal and accrued interest is payable by the Company on August 31,      2008. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | On      May 15, 2007, the Company received $30,000 from Hokley. The promissory      note is unsecured and bears interest at 5% per annum. The principal and      accrued interest is payable by the Company on May 15,  2008. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 3 | Notes      Payable – cont’d |
|--------|-----------------------------------------|

|   | f) | On      July 18, 2007, the Company received $30,000 from Hokley. The promissory      note is unsecured and bears interest at 5% per annum. The principal and      accrued interest is payable by the Company on July 18,    2008. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | On      October 3, 2007, the Company received $30,000 from Hokley. The promissory      note is unsecured and bears interest at 10% per annum. The principal and      accrued interest is payable by the Company on October 3,    2008. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | On      December 7, 2007, the Company received $60,000 from Hokley. The promissory      note is unsecured and bears interest at 10% per annum. The principal and      accrued interest is payable by the Company on December 7,      2008. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      4 | Related Party      Transactions |
|-------------|---------------------------------|

|                                |   |                   |   |   | January 1,      2004                                  |   |
|-------------------------------------|--------|------------------------|--------|--------|------------------------------------------------------------|--------|
|                                |   | Three      month ended |   |   |  (Date      of Inception of the Development Stage) to |   |
|                                |   | March 31,         |   |   | March 31,                                             |   |
|                                |   | 2008                   |   |   | 2007                                                       |   |   | 2008 |   |
|                                |   |                   |   |   |                                                       |   |   |   |   |
| Management      and consulting fees |   | $                      | 1,500  |   |                                                       | $      | 1,500 |   |   | $ | 96,178 |   |
| Wages                               |   |                   | -      |   |                                                       |   | - |   |   |   | 1,000 |   |
|                                |   |                   |   |   |                                                       |   |   |   |   |   |   |   |
|                                |   | $                      | 1,500  |   |                                                       | $      | 1,500 |   |   | $ | 97,178 |   |

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| Note      5 | Supplemental Cash Flow      Information |
|-------------|-----------------------------------------|

|                                              |   |                    |   |   |                                                    |   |   | January 1,      2004 |   |
|---------------------------------------------------|--------|-------------------------|--------|--------|---------------------------------------------------------|--------|--------|---------------------------|--------|
|                                              |   | Three      months ended |   |   | (Dateof      Inception of theDevelopment      Stage) to |   |
|                                              |   | March      31,          |   |   | March      31,                                          |   |
|                                              |   | 2008                    |   |   | 2007                                                    |   |   | 2008                      |   |
|                                              |   |                    |   |   |                                                    |   |   |                      |   |
| Cash      paid for:                               |   |                    |   |   |                                                    |   |   |                      |   |
| Interest                                          |   | $                       | -      |   |                                                    | $      | -      |                      |   | $ | - |   |
| Income      taxes (recovery)                      |   | $                       | -      |   |                                                    | $      | -      |                      |   | $ | (3,934 | ) |
|                                              |   |                    |   |   |                                                    |   |   |                      |   |   |   |   |
| Common      shares issued to settle notes payable |   | $                       | -      |   |                                                    | $      | 25,000 |                      |   | $ | 25,000 |   |

| Note      6 | Subsequent      event |
|-------------|-----------------------|

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MANAGEMENT’S 

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Table of Contents

QUANTITATIVE 

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Table of Contents

PROCEDURES

PART 

LEGAL 

RISK 

UNREGISTERED 

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DEFAULTS 

SUBMISSION 

INFORMATION

EXHIBITS

| Exhibit      Number          |   | Description                                                                                                     |
|------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|
| 2.1*                         |   | Resolution      of the Board of Directors regarding transfer of subsidiaries (8-K on April      7, 2008)        |
| 2.2*                         |   | Agreement      for the sale  of shares (8-K on April 7,2008)                                          |
| 31.1     |   | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive    Officer.                                      |
| 31.2     |   | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial    Officer                                       |
| 32.1     |   | Certificate      of Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350 |

| /s/      Cecil Morris     |   | Date:      May 14, 2008 |
|---------------------------|--------|-------------------------|
| Cecil      Morris         |   |                    |
| Director,      President  |   |                    |
|                      |   |                    |
|                      |   |                    |
| /s/      John Page        |   | Date:      May 14, 2008 |
| John      Page            |   |                    |
| Director      / Treasurer |   |                    |

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