# U.S. SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549

# FORM 10-KSB

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|----- | ------------------------------------------------------------------------------------
|[ X ] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|      |                                                                                     

| |                                                    
| | ---------------------------------------------------
| | For the fiscal year ended
        December 31, 2004
| |                                                    

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|------- | ------------------------------------------------------------------------------------------------
|[     ] | 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:
000-32921

VENTURES-UNITED, INC.(Exact name of
Registrant as specified in its Charter)

|                                                                       |  |                                  
|---------------------------------------------------------------------- |  | ---------------------------------
|Utah                                                                   |  | 87-0365131                       
|(State or Other Jurisdiction of
        Incorporation or Organization) |  | (IRS Employer Identification No.)

620 East 3945 South,
Salt Lake City, UT 84107(Address of Principal
Executive Offices) (Zip Code)

Registrants Telephone Number
including Area Code: (801) 268-9237

Former name, former address and
former fiscal year, if changed since last report:  Not Applicable

Securities registered under Section
12(b) of the Act:  None

Securities registered under Section
12(g) of the Act:  Common Stock, par Value $0.001

Check whether the issuer (1) filed all
reports required to be filed by sections 13 or 15(d) of the Exchange Act during the past
12 months (or such shorter period that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Check if there is no disclosure of
delinquent filers in response to Item 405 of Regulation S-B in this form,and no
disclosure will be contained, to the best of registrants knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [  ]

The Registrant's revenues for its
most recent fiscal year:  $0.

The aggregate market value of voting
stock held by non-affiliates: As of the date this report is filed there is no public
market for the common stock of the issuer, so the aggregate market value of such stock is
$0.

As of January 31, 2005, the
Registrant had outstanding 32,472,000 shares of Common Stock, par value $0.001.

Documents incorporated by
reference: None.

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TABLE OF CONTENTS

|                        |  |     
|----------------------- |  | ----
|ITEM NUMBER AND CAPTION |  | Page

|Part I     |                                                                    |   
|---------- | ------------------------------------------------------------------ | --
|           |                                                                    |   
|1.         | Description of Business                                            | 3 
|           |                                                                    |   
|2.         | Description of Property                                            | 7 
|           |                                                                    |   
|3.         | Legal Proceedings                                                  | 7 
|           |                                                                    |   
|4.         | Submission of Matters to a Vote of Security Holders                | 7 
|           |                                                                    |   
|Part II    |                                                                    |   
|           |                                                                    |   
|5.         | Market for Common Equity, Related Stockholder Matters, and         | 7 
|           | Small Business Issuer Purchases of Equity Securities               |   
|           |                                                                    |   
|6.         | Management's Discussion and Analysis or Plan of Operation          | 8 
|           |                                                                    |   
|7.         | Financial Statements                                               | 10
|           |                                                                    |   
|8          | Changes in and Disagreements with Accountants                      | 10
|           | on Accounting and Financial Disclosure                             |   
|           |                                                                    |   
|8.A        | Controls and Procedures                                            | 10
|           |                                                                    |   
|8.B        | Other Information                                                  | 11
|           |                                                                    |   
|Part III   |                                                                    |   
|           |                                                                    |   
|9.         | Directors and Executive Officers of the Registrant                 | 11
|           |                                                                    |   
|10.        | Executive Compensation                                             | 12
|           |                                                                    |   
|11.        | Security Ownership of Certain Beneficial Owners and Management and | 12
|           | Related Stockholder Matters                                        |   
|           |                                                                    |   
|12.        | Certain Relationships and Related Transactions                     | 14
|           |                                                                    |   
|13.        | Exhibits                                                           | 15
|           |                                                                    |   
|14.        | Principal Accountant Fees and Expenses                             | 16
|           |                                                                    |   
|Signatures |                                                                    | 17

2

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# PART I

# ITEM 1. DESCRIPTION OF
BUSINESS

# History

| | Ventures-United,
Inc. (the Company) was organized as a Utah corporation on February 13, 1986,
for the purpose of seeking a favorable business opportunity. Immediately following
organization of the Company, it sold a total of 5,000,000 shares of its common stock, for
an aggregate of $5,000 or $0.001 per share. In order to provide the Company with
additional capital to seek to acquire or enter into a favorable business opportunity, in
1986 the Company completed a blind pool public offering pursuant to a
registration statement on Form S-18, which resulted in the sale of 2,000,000 shares of
common stock at an offering price of $0.05 per share, or a total gross offering of
$100,000.
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| | In
1987, the Company completed a number of transactions for the purpose of being actively
engaged in business operations, which were not successful and ultimately resulted in
accumulated losses of approximately $1,200,000 and discontinued operations. In April
1987, the Company acquired certain manufacturing and marketing rights from Universal
Sales Enterprises for the purpose of becoming engaged in the production of hearing
products. On that same date the Company acquired certain manufacturing equipment from
Hi-Tech Systems, Inc. for the sum of $98,841. These assets, tangible and intangible, were
acquired for the total sum of $548,841, which was paid through the issuance of restricted
stock at $0.75 per share, or a total of 731,788 shares of restricted common stock. In a
separate transaction in April 1987, the Company acquired from an officer, Richard Olson,
a 50% interest in the manufacturing and marketing rights to an invention of David A.
Graen, who held the remaining 50% interest in such rights, for the sum of $500,250,
payable through the issuance of a total of 667,000 shares of restricted common stock of
the Company. In May 1987, the Company issued a total of 200,000 shares of restricted
common stock to acquire American Financial Systems, a financial services firm. The
Company attempted to operate these businesses for a short time, but was unsuccessful, and
by the end of 1988, operations were substantially curtailed. The Company has been
inactive for over ten years. As a result of the discontinuation of the businesses
described above, in September 2000, the shares received by Richard R. Olson (667,000),
Universal Sales Enterprises (600,000 shares) and Hi-Tech Systems, Inc. (131,788), were
delivered back to the Company for cancellation, and Sonos Corporation received a total of
127,000 shares of restricted stock for negotiating and closing the return of such shares.
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| | The
Company is seeking a business venture in which to participate. The selection of a
business opportunity in which to participate is complex and extremely risky and will be
made by management in the exercise of its business judgment. There is no assurance that
the Company will be able to identify and acquire any business opportunity that will
ultimately prove to be beneficial to the Company and its shareholders.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
activities of the Company are subject to several significant risks that arise primarily
as a result of the fact that the Company has no specific business and may acquire or
participate in a business opportunity based on the decision of management which will, in
all probability, act without the consent, vote, or approval of the Companys
shareholders.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Selection of a Business

| | The
Company anticipates that businesses for possible acquisition will be referred by various
sources, including its officers and directors, professional advisors, securities
broker-dealers, venture capitalists, members of the financial community, and others who
may present unsolicited proposals. The Company will not engage in any general
solicitation or advertising for a business opportunity, and will rely on personal
contacts of its officers and directors and their affiliates, as well as indirect
associations between them and other business and professional people. By relying on word
of mouth, the Company may be limited in the number of potential acquisitions it can
identify.
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3

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| | The
Companys efforts to locate a business venture have not been fruitful. For that
reason, the Company engaged the services of Tryant, LLC in January 2005. Under the
agreement, Tryant will assist the Company with structuring and presenting itself in a
favorable light to attract a prospective business venture, and assist the Company with
entering into and closing a transaction with a new business venture. For these services,
Tryant will receive $150,000 plus 50 percent of all cash paid at closing, and securities
representing 50 percent of the amount of securities the pre-transaction shareholders  of
the Company retain following the transaction. Should this relationship with Tryant
terminate in the future before a transaction with a business venture, the Company may
engage the services of another firm to provide similar services for compensation that may
take various forms, including one-time cash payments, payments based on a percentage of
revenues or product sales volume, payments involving issuance of securities (including
those of the Company), or any combination of these or other compensation arrangements.
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| | The
Company will not restrict its search to any particular business, industry, or
geographical location, and management reserves the right to evaluate and enter into any
type of business in any location. The Company may participate in a newly organized
business venture or a more established company entering a new phase of growth or in need
of additional capital to overcome existing financial problems. Participation in a new
business venture entails greater risks since in many instances management of such a
venture will not have proved its ability, the eventual market of such ventures
product or services will likely not be established, and the profitability of the venture
will be unproved and cannot be predicted accurately. If the Company participates in a
more established firm with existing financial problems, it may be subjected to risk
because the financial resources of the Company may not be adequate to eliminate or
reverse the circumstances leading to such financial problems.
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| | In
seeking a business venture, the decision of management will not be controlled by an
attempt to capitalize on any anticipated or perceived appeal of a specific industry,
management group, product, or industry, but will be based on the business objective of
seeking long-term capital appreciation in the real value of the Company.
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| | The
analysis of new businesses will be undertaken by or under the supervision of the officers
and directors, with the assistance of any consultants engaged for that purpose. In
analyzing prospective businesses, management will consider, to the extent applicable, the
available technical, financial, and managerial resources; working capital and other
prospects for the future; the nature of present and expected competition; the quality and
experience of management services which may be available and the depth of that
management; the potential for further research, development, or exploration; the
potential for growth and expansion; the potential for profit; the perceived public
recognition or acceptance of products, services, or trade or service marks; name
identification; and other relevant factors.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
decision to participate in a specific business may be based on managements analysis
of the quality of the other firms management and personnel, the anticipated
acceptability of new products or marketing concepts, the merit of technological changes,
and other factors which are difficult, if not impossible, to analyze through any
objective criteria. It is anticipated that the results of operations of a specific firm
may not necessarily be indicative of the potential for the future because of the
requirement to substantially shift marketing approaches, expand significantly, change
product emphasis, change or substantially augment management, and other factors.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company will analyze all available factors and make a determination based on a composite
of available facts, without reliance on any single factor. The period within which the
Company may participate in a business cannot be predicted and will depend on
circumstances beyond the Companys control, including the availability of
businesses, the time required for the Company to complete its investigation and analysis
of prospective businesses, the time required to prepare appropriate documents and
agreements providing for the Companys participation, and other circumstances.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Acquisition of a Business

| | In
implementing a structure for a particular business acquisition, the Company may become a
party to a merger, consolidation, or other reorganization with another corporation or
entity; joint venture; license; purchase and sale of assets; or purchase and sale of
stock, the exact nature of which cannot now be predicted. Notwithstanding the above, the
Company does not intend to participate in a business through the purchase of minority
stock positions. On the consummation of a transaction, it is likely that the present
management and shareholders of the Company will not be in
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4

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| | control of the Company. In
addition, a majority or all of the Companys directors may, as part of the terms of
the acquisition transaction, resign and be replaced by new directors without a vote of
the Companys shareholders.
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| | In
connection with the Companys acquisition of a business, the present shareholders of
the Company, including officers and directors, may, as a negotiated element of the
acquisition, sell a portion or all of the Companys common stock held by them at a
significant premium over their original investment in the Company. It is not unusual for
affiliates of the entity participating in the reorganization to negotiate to purchase
shares held by the present shareholders in order to reduce the number of restricted
securities held by persons no longer affiliated with the Company and thereby reduce
the potential adverse impact on the public market in the Companys common stock that
could result from substantial sales of such shares after the restrictions no longer
apply. As a result of such sales, affiliates of the entity participating in the business
reorganization with the Company would acquire a higher percentage of equity ownership in
the Company. Public investors will not receive any portion of the premium that may be
paid in the foregoing circumstances. Furthermore, the Companys shareholders may not
be afforded an opportunity to approve or consent to any particular stock buy-out
transaction.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
the event sales of shares by present shareholders of the Company, including officers and
directors, is a negotiated element of a future acquisition, a conflict of interest may
arise because directors will be negotiating for the acquisition on behalf of the Company
and for sale of their shares for their own respective accounts. Where a business
opportunity is well suited for acquisition by the Company, but affiliates of the business
opportunity impose a condition that management sell their shares at a price, which is
unacceptable to them, management may not sacrifice their financial interest for the
Company to complete the transaction. Where the business opportunity is not well suited,
but the price offered management for their shares is high, management will be tempted to
effect the acquisition to realize a substantial gain on their shares in the Company.
Management has not adopted any policy for resolving the foregoing potential conflicts,
should they arise, and does not intend to obtain an independent appraisal to determine
whether any price that may be offered for their shares is fair. Stockholders must rely,
instead, on the obligation of management to fulfill its fiduciary duty under state law to
act in the best interests of the Company and its stockholders.
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| | It
is anticipated that any securities issued in any such reorganization would be issued in
reliance on exemptions from registration under applicable federal and state securities
laws. In some circumstances, however, as a negotiated element of the transaction, the
Company may agree to register such securities either at the time the transaction is
consummated, under certain conditions, or at specified times thereafter. Although the
terms of such registration rights and the number of securities, if any, which may be
registered cannot be predicted, it may be expected that registration of securities by the
Company in these circumstances would entail substantial expense to the Company. The
issuance of substantial additional securities and their potential sale into any trading
market that may develop in the Companys securities may have a depressive effect on
such market.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | While
the actual terms of a transaction to which the Company may be a party cannot be
predicted, it may be expected that the parties to the business transaction will find it
desirable to structure the acquisition as a so-called tax-free event under
sections 351 or 368(a) of the Internal Revenue Code of 1986, (the Code). In
order to obtain tax-free treatment under section 351 of the Code, it would be necessary
for the owners of the acquired business to own 80 percent or more of the voting stock of
the surviving entity. In such event, the shareholders of the Company would retain less
than 20 percent of the issued and outstanding shares of the surviving entity. Section
368(a)(1) of the Code provides for tax-free treatment of certain business reorganizations
between corporate entities where one corporation is merged with or acquires the
securities or assets of another corporation. Generally, the Company will be the acquiring
corporation in such a business reorganization, and the tax-free status of the transaction
will not depend on the issuance of any specific amount of the Companys voting
securities. It is not uncommon, however, that as a negotiated element of a transaction
completed in reliance on section 368, the acquiring corporation issue securities in such
an amount that the shareholders of the acquired corporation hold 50 percent or more of
the voting stock of the surviving entity. Consequently, there is a substantial
possibility that the shareholders of the Company immediately prior to the transaction
would retain less than 50 percent of the issued and outstanding shares of the surviving
entity. Therefore, regardless of the form of the business acquisition, it may be
anticipated that stockholders immediately prior to the transaction will experience a
significant reduction in their percentage of ownership in the Company.
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5

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| | Notwithstanding
the fact that the Company is technically the acquiring entity in the foregoing
circumstances, generally accepted accounting principles ordinarily require that such a
transaction be accounted for as if the Company had been acquired by the other entity
owning the business and, therefore, will not permit a write-up in the carrying value of
the assets of the other company.
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| | The
manner in which the Company participates in a business will depend on the nature of the
business, the respective needs and desires of the Company and other parties, the
management of the business, and the relative negotiating strength of the Company and such
other management.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company will participate in a business only after the negotiation and execution of
appropriate written agreements. Although the terms of such agreements cannot be
predicted, generally such agreements will require specific representations and warranties
by all of the parties thereto, will specify certain events of default, will detail the
terms of closing and the conditions that must be satisfied by each of the parties prior
to such closing, will outline the manner of bearing costs if the transaction is not
closed, will set forth remedies on default, and will include miscellaneous other terms.
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# Operation of Business
After Acquisition

| | The
Companys operation following its acquisition of a business is dependent on the
nature of the business and the interest acquired. The Companys present management
may or may not have experience in the nature of the acquired business and is unable to
predict whether the Company will be in control of the acquired business or whether the
acquired business will be in control of the Company. It may be additionally expected that
the acquired business will present and be subject to various risks like governmental
regulation, competition and other risks that cannot be predicted at the present time.
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# Governmental Regulation

| | It
is impossible to predict the government regulation, if any, to which the Company may be
subject until it has acquired an interest in a business. The use of assets and/or conduct
of businesses that the Company may acquire could subject it to environmental, public
health and safety, land use, trade, or other governmental regulations and state or local
taxation. In selecting a business in which to acquire an interest, management will
endeavor to ascertain, to the extent of the limited resources of the Company, the effects
of such government regulation on the prospective business of the Company. In certain
circumstances, however, such as the acquisition of an interest in a new or start-up
business activity, it may not be possible to predict with any degree of accuracy the
impact of government regulation. The inability to ascertain the effect of government
regulation on a prospective business activity will make the acquisition of an interest in
such business a higher risk.
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# Competition

| | The
Company will be involved in intense competition with other business entities, many of
which will have a competitive edge over the Company by virtue of their stronger financial
resources and prior experience in business. There is no assurance that the Company will
be successful in obtaining suitable investments.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Employees

| | The
Company is a development stage company and currently has no employees. Executive officers
will devote only such time to the affairs of the Company as they deem appropriate.
Management of the Company expects to use consultants, attorneys, and accountants as
necessary, and does not anticipate a need to engage any full-time employees so long as it
is seeking and evaluating businesses. The need for employees and their availability will
be addressed in connection with a decision whether or not to acquire or participate in a
specific business industry.
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6

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# ITEM 2. DESCRIPTION OF
PROPERTY

| | The
Company utilizes office space at 620 East 3945 South, Salt Lake City, UT 84107, provided
by Robert C. Taylor, an officer and director of the Company. The Company does not pay
rent for this office space. The Company intends to reimburse Mr. Taylor for clerical and
office expenses, such as telephone charges, copy charges, overnight courier service,
travel expenses, and similar costs incurred on Company matters.
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# ITEM 3. LEGAL
PROCEEDINGS

| | The
Company is not a party to any material pending legal proceedings, and to the best of its
knowledge, no such proceedings by or against the Company have been threatened.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ITEM 4. SUBMISSION OF
MATTERS TO A VOTE OF SECURITY HOLDERS

| | No
matter was submitted to a vote of security holders, through the solicitation of proxies
or otherwise, during the fiscal year covered by this report.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

# PART II

# ITEM 5. MARKET FOR
COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER
PURCHASES OF EQUITY SECURITIES

| | There
is no established trading market for the common stock, and there has not been a trading
market in the Companys common stock for several years.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | Since
its inception, no dividends have been paid on the Companys common stock. The
Company intends to retain any earnings for use in its business activities, and does not
expect to declare any dividends on the common stock in the foreseeable future.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
of December 31, 2004, there were approximately 124 holders of record of the Companys
Common Stock.
| | ------------------------------------------------------------------------------------------------------

| | In
November 2004, the Company issued for cash a convertible note in the principal amount of
$1,000 to HTS Leasing Company, a company controlled by officers and directors of the
Company, Robert C. Taylor and Jacque Taylor, that was effective in April 2004 and is due
April 15, 2006. The convertible notes accrues interest at 6% per annum and is convertible
to common stock at the rate of one share for each $0.001 of principal and accrued
interest. Based on the original principal of $1,000, the number of common shares issuable
on conversion is 1,000,000. The convertible note was issued in reliance on the exemption
from registration set forth in Section 4(2) of the Securities Act of 1933, and no
commission or other remuneration was paid to any person in connection with effecting the
transaction.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
December 2004, the Company issued for cash a convertible note in the principal amount of
$1,000 to Blaine Taylor that is due December 28, 2006. The convertible notes accrues
interest at 6% per annum and is convertible to common stock at the rate of one share for
each $0.001 of principal and accrued interest. Based on the original principal of $1,000,
the number of common shares issuable on conversion is 1,000,000. The convertible note was
issued in reliance on the exemption from registration set forth in Section 4(2) of the
Securities Act of 1933, and no commission or other remuneration was paid to any person in
connection with effecting the transaction.
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7

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| | On
January 17, 2005, the Company issued to M. Gary Crandall, a director, 25,000 shares of
common stock as compensation for services rendered as a director and officer of the
Company. The shares were issued in reliance on the exemption from registration set forth
in Section 4(2) of the Securities Act of 1933, and no commission or other remuneration
was paid to any person in connection with effecting the transaction.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ITEM 6.
MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

# Plan of Operation

| | The
Company had no operations and generated no revenue for the years ended December 31, 2004
and 2003. The Companys plan is to seek a business venture in which to participate.
The selection of a business opportunity in which to participate is complex and extremely
risky and will be made by management in the exercise of its business judgment. There is
no assurance that the Company will be able to identify and acquire any business
opportunity that will ultimately prove to be beneficial to the Company and its
shareholders.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company is pursuing its search for a business opportunity primarily through its officers
and directors, although other sources, such as professional advisors, securities
broker-dealers, venture capitalists, members of the financial community, and others, may
present unsolicited proposals. The Companys efforts to locate a business venture
have not been fruitful. For that reason, the Company engaged the services of Tryant, LLC
in January 2005. Under the agreement, Tryant will assist the Company with structuring and
presenting itself in a favorable light to attract a prospective business venture, and
assist the Company with entering into and closing a transaction with a new business
venture. For these services, Tryant will receive $150,000 plus 50 percent of all cash
paid at closing, and securities representing 50 percent of the amount of securities the
pre-transaction shareholders of the Company retain following the transaction. Should this
relationship with Tryant terminate in the future before a transaction with a business
venture, the Company may engage the services of another firm to provide similar services
for compensation that may take various forms, including one-time cash payments, payments
based on a percentage of revenues or product sales volume, payments involving issuance of
securities (including those of the Company), or any combination of these or other
compensation arrangements.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
activities of the Company are subject to several significant risks that arise primarily
as a result of the fact that the Company has no specific business and may acquire or
participate in a business opportunity based on the decision of management which will, in
all probability, act without the consent, vote, or approval of the Companys
shareholders. A description of the manner in which the Company will pursue the search for
and participation in a business venture is described under Item 1. Business,above.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Although
the Company has no operations, it does incur expenses in connection with complying with
reporting requirements under the Securities Exchange Act of 1934. General and
administrative expenses for the years ended December 31, 2004 and 2003 were $8,118 and
$7,885, respectively. These expenses consisted of professional fees and expenses incurred
to prepare financial statements and periodic reports filed by the Company with the
Securities and Exchange Commission. Funds required to pay these expenses were obtained
through loans from various sources.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
2004, 2003, and 2002 the Company issued the following convertible notes for loans and
advances received to fund its expenses:
| | --------------------------------------------------------------------------------------------------------------------------------

| |  |                                                                                                                                                                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the principal amount of $10,000 in June 2002 to Seaport Management Group, a private company controlled by Sylvia Neuman a
         shareholder of the Company, that was due June 30, 2004 and is now in default;                                
| |  |                                                                                                                                                                                                                                                    
| |  | In the principal amount of $5,000 in September 2002 to HTS Leasing Company, a company controlled by Robert C. Taylor and
         Jacque Taylor, both officers and directors of the Company that was due September 24, 2004, and is now in default;
| |  |                                                                                                                                                                                                                                                    
| |  | In the principal amount of $2,500 in April 2003 to HTS Leasing Company that is due April 24, 2005;                                                                                                                                                 
| |  |                                                                                                                                                                                                                                                    

8

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| |  |                                                                                                                                                           
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                                                                                                           
| |  | In the principal amount of $2,500 in August 2003 to Seaport Management Group that is due August 1, 2005;                                                  
| |  |                                                                                                                                                           
| |  | In the principal amount of $2,631 in October 2003 to Gary R. Littler, a former officer and director of the Company, that is
         due October 29, 2005;
| |  |                                                                                                                                                           
| |  | In the principal amount of $5,000 in November 2003 to Sixway, Inc., a private company controlled by Blaine Taylor that is
         due November 4, 2005;  
| |  |                                                                                                                                                           
| |  | In the principal amount of $1,000 in November 2004, effective April 15, 2004, to HTS Leasing Company that is due April 15,
         2006; and             
| |  |                                                                                                                                                           
| |  | In the principal amount of $1,000 in December 2004 to Blaine Taylor that is due December 28, 2006.                                                        

| | Each
of the foregoing convertible notes accrues interest at 6% per annum and is convertible to
common stock at the rate of one share for each $0.001 of principal and accrued interest.
Of these notes, $15,000 in principal amount is in default and $12,631 in principal amount
is due within one year. During the years ended December 31, 2004 and 2003 the Company
accrued interest on these loans in the amount of $1,705 and $1,138, respectively. All of
this interest is payable to persons who are shareholders and/ or officers and directors
of the Company or their relatives.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Due
to the lack of revenue and ongoing expenses described above, the Company realized a net
loss of $9,823 for the year ended December 31, 2004, compared to a net loss of $9,023 for
the year ended December 31, 2003. The Company does not expect to generate any meaningful
revenue unless and until it acquires an interest in an operating business.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company does not have sufficient cash to pay its past due notes, pay notes coming due in
the next year, or meet operational needs for the next twelve months. Management intends
to seek extensions of its outstanding notes. Further, management will attempt to raise
capital for its current operational needs through loans from related parties, debt
financing, equity financing or a combination of financing options. However, there are no
existing understandings, commitments or agreements for extension of outstanding notes or
an infusion of capital, and there are no assurances to that effect. Moreover, the Companys
need for capital may change dramatically if and during that period, it acquires an
interest in a business opportunity. Unless the Company can obtain additional financing,
its ability to continue as a going concern is doubtful.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Forward-Looking
Statements

| | When
used in this report, the words may, will, expect,anticipate, continue, estimate, project,intend, and
similar expressions are intended to identify forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 regarding events, conditions, and financial trends that may affect
the Companys future plans of operations, business strategy, operating results, and
financial position. Persons reviewing this report are cautioned that any forward-looking
statements are not guarantees of future performance and are subject to risks and
uncertainties and that actual results may differ materially from those included within
the forward-looking statements as a result of various factors. Such factors are discussed
under the headings Item 1. Description of Business, and Item 6.
Managements Discussion and Analysis of Financial Condition and Results of
Operations, and also include general economic factors and conditions that may
directly or indirectly impact the Companys financial condition or results of
operations.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---



# ITEM 7. FINANCIAL
STATEMENTS

| | The
following financial statements of the Company appear at the end of this report beginning
with the Index to Financial Statements on page 18.
| | -----------------------------------------------------------------------------------------------------------------------------------------------

# ITEM 8. CHANGES IN AND
DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

| | There
are no reportable changes in or disagreements with accountants.
| | ---------------------------------------------------------------------

# ITEM 8A. CONTROLS AND
PROCEDURES

| | With
the participation of management, the Companys chief executive officer and chief
financial officer evaluated the Companys disclosure controls and procedures on
December 31, 2004. Based on this evaluation, the chief executive officer and the chief
financial officer concluded that the disclosure controls and procedures are effective in
connection with the Companys filing of its annual report on Form 10-KSB for the
year ended December 31, 2004.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subsequent
to December 31, 2004, through the date of this filing of Form 10-KSB for the year ended
December 31, 2004, there have been no significant changes in the Companys internal
controls or in other factors that could significantly affect these controls, and no
significant deficiencies or material weaknesses of internal controls that would require
corrective action were identified during that period.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---



# ITEM 8B. OTHER
INFORMATION

| | In
January 2005 Jacque Taylor was elected by the directors to the position of director of
the Company. The information pertaining to Jacque Taylor required by this item of Form
8-K is presented below under Part III.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PART III

# ITEM 9. DIRECTORS AND
EXECUTIVE OFFICERS OF THE REGISTRANT

# Directors and Officers

| | The
following table gives sets forth the names, ages, and positions of each officer and
director of the Company.
| | ----------------------------------------------------------------------------------------------------------------

|Name             | Age | Positions                         | Since       
|---------------- | --- | --------------------------------- | ------------
|                
|Robert C. Taylor | 71  | President and Director            | January 2002
|                
|M. Gary Crandall | 73  | Vice President and Director       | January 2002
|                
|Jacque Taylor    | 60  | Secretary/ Treasurer and Director | January 2005

| | All
Directors hold their positions for one year or until their successors are duly elected
and qualified. Officers hold their positions at the discretion of the Board of Directors.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
following is information on the business experience of each officer and director.
| | -------------------------------------------------------------------------------------

| | Robert
C. Taylor has served for the past five years as the President and Chief Executive Officer
of HTS Leasing Company, a privately held equipment leasing company based in Salt Lake
City, Utah. He served as secretary and treasurer of the Company from January 2002 to May
2003, when he became president of the Company.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | M. Gary
Crandall has been semi-retired since 1996 and is employed part time as a sales
person with Diamond Auto, a car dealership in Salt Lake City, Utah.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | Jacque
Taylor, the spouse of Robert C. Taylor, has served for the past five years as an officer
and director of HTS Leasing Company. Ms. Taylor is also employed as a medical
transcriber.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Board and Committee
Meetings

| | In
the fiscal year ended December 31, 2004, the board of directors of the Company did not
meet, but acted through written consents of the board. There are no standing committees
of the board of directors. Due to the fact the Company has no active operations and its
assets consist entirely of a nominal amount of cash, the board of directors determined
that it is not necessary or practical for the Company to establish an audit committee,
recruit a financial expert to serve on the board, or adopt a code of ethics applicable to
its chief executive and financial officers.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 16(a) Filing
Compliance

| | Section
16(a) of the Securities Exchange Act of 1934 requires officers and directors of the
Company and persons who own more than ten percent of a registered class of its equity
securities to file reports of ownership and changes in their ownership on Forms 3, 4, and
5 with the Securities and Exchange Commission, and forward copies of such filings to the
Company. Based on the copies of filings received by the Company during the most recent
fiscal year the directors, officers, and beneficial owners of more than ten percent of
the equity securities of the Company registered pursuant to Section 12 of the Exchange
Act have filed on a timely basis all required Forms 3, 4, and 5 and any amendments
thereto,
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---



| | except for: Robert C. Taylor who has yet to file a Form 4 or 5 with respect to
the convertible note issued to HTS Leasing in 2003; Seaport Management Group that has yet
to file a Form 4 or 5 with respect to the convertible note issued to it in 2003; Sixway,
Inc. that has yet to file a Form 3 with respect to the convertible note issued to it in
2003; and Gary R. Littler who has yet to file a Form 4 or 5 with respect to the
convertible note issued to him in 2003.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Other Shell Company
Activities

| | The
possibility exists that one or more of the officers and directors of the Company could
become officers and/or directors of other shell companies, although they have no
intention of doing so at the present time. There are certain conflicts of interest
inherent with the officers and directors participating in other shell companies, which
may be difficult or impossible to resolve in the best interests of the Company. Failure
by management to conduct the Companys business in the best interest of the
shareholders may result in liability of management of the Company to its shareholders.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ITEM 10. EXECUTIVE
COMPENSATION

| | During
the fiscal years ended December 31, 2004, 2003, and 2002, no officer or director received
any direct or indirect compensation for services rendered on behalf of the Company. The
Company has no agreement or understanding, express or implied, with any officer,
director, or principal stockholder, or their affiliates or associates, regarding
employment with the Company or compensation for services.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ITEM 11. SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERSAND MANAGEMENT

| | The
following table sets forth as of January 31, 2005, the number and percentage of the
32,472,000 shares of outstanding common stock which, according to the information
supplied to the Company, were beneficially owned by (i) each person who is currently an
officer and director appointee, (ii) all current officers and director appointees as a
group, and (iii) each person who, to the knowledge of the Company, is the beneficial
owner of more than 5% of the outstanding common stock. Except as otherwise indicated, the
persons named in the table have sole voting and dispositive power with respect to all
shares beneficially owned, subject to community property laws where applicable.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---



|Name and Address                                                      | CommonShares(1) | Percentof Class(1)
|--------------------------------------------------------------------- | --------------- | ------------------
|                                                                     
|Seaport Management Group (2)                                          | 15,716,990      | 33.66             
|17927 Highway 30Hagerman, ID 83332                                    |                 |                   
|                                                                     
|Sixway, Inc. (2)                                                      | 6,346,520       | 16.35             
|Blaine Taylor534 S. Hidden Circle
        North Salt Lake, UT 84054   |                 |                   
|                                                                     
|Estate of Gary R. Littler (2)                                         | 22,816,220      | 64.66             
|506 Santa Monica Blvd., Ste. 327
        Santa Monica, CA 90401       |                 |                   
|                                                                     
|Robert C. Taylor (3)(4)                                               | 10,976,850      | 26.17             
|and Jacque Taylor
        620 East 3945 SouthSalt Lake City, UT 84107 |                 |                   
|                                                                     
|M. Gary Crandall (4)                                                  | 25,000          | 0.08              
|5912 South 1490 EastSalt Lake
        City, UT 8412                   |                 |                   
|                                                                     
|All officers and directors                                            | 11,001,850      | 26.23             
|as a Group (3 persons)                                               

| |  | 
| |  | 
| |  | 

|(1) | The figure for the number of common shares
represents the total number of shares                     issuable on conversion of the
notes, and the figure for percent of class owned                     is determined
assuming each note has been converted.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Seaport Management Group, a private company controlled by Sylvia Neuman, holds
                    convertible notes that are convertible to a total of 14,216,990
shares of common                     stock. Blaine Taylor and Sixway, Inc., a private
company controlled by Blaine                     Taylor, hold convertible notes that are
convertible to a total of 6,346,520                     shares of common stock. The
estate of Gary R. Littler holds a convertible note                     that is
convertible to 2,816,220 shares of common stock.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | HTS Leasing Company, a company controlled by Robert C. Taylor and Jacque Taylor,
                    both officers and directors, holds convertible notes convertible to a
total of                     9,476,850 shares of common stock. Furthermore, Robert C.
Taylor and Jacque                     Taylor are husband and wife, so they may be deemed
to share voting and                     investment control with respect to the share of
common stock owned by Mr.                     Taylor.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | These persons are the officers or directors of the Company.
|--- | -----------------------------------------------------------

13

---



# ITEM 12. CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS

| | In
2004, 2003, and 2002 the Company issued the following convertible notes for loans and
advances received to fund its expenses:
| | --------------------------------------------------------------------------------------------------------------------------------

| |  |                                                                                                                                                                                                                              
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the principal amount of $10,000 in June 2002 to Seaport Management Group, a private company controlled by Sylvia Neuman a
         shareholder of the Company, that was due June 30, 2004 and is now in default;          
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $5,000 in September 2002 to HTS Leasing Company, a company controlled by Robert C. Taylor, an
         officer and director of the Company that was due September 24, 2004, and is now in default;
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $2,500 in April 2003 to HTS Leasing Company that is due April 24, 2005;                                                                                                                           
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $2,500 in August 2003 to Seaport Management Group that is due August 1, 2005;                                                                                                                     
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $2,631 in October 2003 to Gary R. Littler, a former officer and director of the Company, that is
         due October 29, 2005;                                                                   
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $5,000 in November 2003 to Sixway, Inc., a private company controlled by Blaine Taylor that is
         due November 4, 2005;                                                                     
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $1,000 in November 2004, effective April 15, 2004, to HTS Leasing Company that is due April 15
         2006; and                                                                                 
| |  |                                                                                                                                                                                                                              
| |  | In the principal amount of $1,000 in December 2004 to Blaine Taylor that is due December 28, 2006.                                                                                                                           

| | Each
of the foregoing convertible notes accrues interest at 6% per annum and is convertible to
common stock at the rate of one share for each $0.001 of principal and accrued interest.
Of these notes, $15,000 in principal amount is in default and $12,631 in principal amount
is due within one year. During the years ended December 31, 2004 and 2003 the Company
accrued interest on these loans in the amount of $1,705 and $1,138, respectively. All of
this interest is payable to persons who are shareholders and/ or officers and directors
of the Company or their relatives.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company utilizes office space at 620 East 3945 South, Salt Lake City, UT 84107, provided
by Robert C. Taylor, an officer and director of the Company. It does not pay rent for
this office space. The Company intends to reimburse Mr. Taylor for clerical and office
expenses, such as telephone charges, copy charges, overnight courier service, travel
expenses, and similar costs incurred on Company matters.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

---



# ITEM 13. EXHIBITS

|Exhibit No. | Title of Document
|----------- | -----------------

|     |                                                                                      
|---- | -------------------------------------------------------------------------------------
|3.1  | Articles of Incorporation (1)                                                        
|     |                                                                                      
|3.2  | Bylaws (1)                                                                           
|     |                                                                                      
|10.1 | Convertible Promissory Note dated June 30, 2002 (2)                                  
|     |                                                                                      
|10.2 | Convertible Promissory Note dated September 25, 2002 (3)                             
|     |                                                                                      
|10.3 | Form of Convertible Promissory Note issued in 2003 and 2004 (4)                      
|     |                                                                                      
|31.1 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 
|     | Section 302 of the Sarbanes-Oxley Act of 2002                                        
|     |                                                                                      
|32.1 | Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to
|     | Section 906 of the Sarbanes-Oxley Act of 2002                                        

| | (1) | Filed
on February 23, 2001, with the SEC as an exhibit to the Companys           annual
report on Form 10-KSB for the fiscal year ended December 31, 1999, and
          incorporated herein by this reference.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Filed
on August 14, 2002, with the SEC as an exhibit to the Companys           quarterly
report on Form 10QSB for the quarter year ended June 30, 2002 and           incorporated
herein by this reference.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Filed
on November 14, 2002, with the SEC as an exhibit to the Companys
          quarterly report on Form 10QSB for the quarter year ended September 30, 2002,
          and incorporated herein by this reference.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | In
2003 and 2004 the Company issued convertible promissory notes for cash and to
          settle advances made for the benefit of the Company. The form of convertible
          note used is identical for all of the notes issued, except for the holder,
          principal amount, and maturity date. The form of convertible promissory note
was           filed with the SEC as an exhibit to the Companys annual report on
Form           10-KSB for the fiscal year ended December 31, 2003, and is incorporated
herein           by this reference. The holder, principal amount, and maturity date of
each note           issued are:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Name                     | Principal Amount | Maturity Date    
|------------------------ | ---------------- | -----------------
|                        
|HTS Leasing Company      | $2,500           | April 24, 2005   
|                        
|Seaport Management Group | $2,500           | August 1, 2005   
|                        
|Gary R. Littler          | $2,631           | October 29, 2005 
|                        
|Sixway, Inc.             | $5,000           | November 4, 2005 
|                        
|HTS Leasing Company      | $1,000           | April 15, 2006   
|                        
|Blaine Taylor            | $1,000           | December 28, 2006

15

---



# ITEM 14. PRINCIPAL
ACCOUNTANT FEES AND SERVICES

| | The aggregate fees billed by our principal
        accounting firm, Pritchett, Siler & Hardy, P.C. for fees billed for fiscal years ended December 31, 2004 and 2003 are as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                   |  |  | 2004   |  |  | 2003   |  | 
|------------------ |  |  | ------ |  |  | ------ |  | 
|                  
|Audit fees         |  |  | $3,050 |  |  | $2,730 |  | 
|Audit related fees |  |  | $-0-   |  |  | $-0-   |  | 
|Tax fees           |  |  | $  250 |  |  | $  250 |  | 
|All other fees     |  |  | $-0-   |  |  | $-0-   |  | 

| | The
Companys board of directors approved each of the permitted non-audit services.
Since the Company has no active business operations and its assets consist entirely of
cash, the board has determined it is not necessary or practical for the Company to
establish an audit committee or adopt an audit committee charter, so that the board
performs the functions of an audit committee.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

---



# SIGNATURES

| | In
accordance with Section 12 of the Securities Exchange Act of 1934, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                      
| | ---------------------
| | VENTURES-UNITED, INC.

|                       |  |     |                                                                                   
|---------------------- |  | --- | ----------------------------------------------------------------------------------
|Dated:  April 12, 2005 |  | By: | /s/ Robert C. Taylor                                                              
|                       |  |     | Robert C. Taylor, PresidentChief Executive Officer
        Chief Financial Officer

| | In accordance with the Exchange Act, this report has been signed by the following persons on
behalf of the registrant and in the capacities and on the dates indicated.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                       |  |                           
|---------------------- |  | --------------------------
|Dated:  April 12, 2005 |  | /s/ Robert C. Taylor      
|                       |  | Robert C. Taylor, Director

|                       |  |                           
|---------------------- |  | --------------------------
|Dated:  April 12, 2005 |  | /s/ M. Gary Crandall      
|                       |  | M. Gary Crandall, Director

|                       |  |                        
|---------------------- |  | -----------------------
|Dated:  April 12, 2005 |  | /s/ Jacque Taylor      
|                       |  | Jacque Taylor, Director

17

---



# INDEX TO FINANCIAL
STATEMENTS

VENTURES-UNITED, INC.
        [A Development Stage Company]

# CONTENTS

|                                                        | PAGE
|------------------------------------------------------- | ----
|                                                       
|Report of Independent Registered Public Accounting Firm | 19  
|                                                       
|Balance Sheet, December 31, 2004                        | 20  
|                                                       
|Statements of Operations, for the years ended           | 21  
|December 31, 2004 and 2003 and from                    
|inception on February 10,1986 through                  
|December 31, 2004                                      
|                                                       
|Statement of Stockholders' Equity, from                 | 22  
|inception on February 10, 1986 through                 
|December 31, 2004                                      
|                                                       
|Statements of Cash Flows, for the years ended           | 24  
|December 31, 2004 and 2003 and from inception          
|on February 10, 1986 through December 31, 2004         
|                                                       
|Notes to Financial Statements                           | 25  

18

---



REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM

Board of DirectorsVENTURES-UNITED, INC.Salt Lake City, Utah

We have audited the accompanying
balance sheet of Ventures-United, Inc. [a development stage company] as of December
31, 2004 and the related statements of operations, stockholders equity (deficit) and
cash flows for the years ended December 31, 2004 and 2003 and for the period from
inception on February 10, 1986 through December 31, 2004. These financial statements are
the responsibility of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial statements of
Ventures-United, Inc. as of and for the year ended December 31, 1999 were audited by other
auditors whose report, dated October 19, 2000, expressed an unqualified opinion on these
financial statements and included an explanatory paragraph expressing concern about the
Companys ability to continue as a going concern. The financial statements as of
December 31, 1999 reflect an accumulated deficit of $1,398,397. The other auditors
report has been furnished to us, and our opinion, insofar as it relates to the amounts
included for such prior periods, is based solely on the report of the other auditors.

We conducted our audit in accordance
with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
opinion.

In our opinion, based on our audit
and the report of the other auditors, the financial statements referred to above present
fairly, in all material respects, the financial position of Ventures-United, Inc. [a
development stage company] as of December 31, 2004 and the results of its operations
and its cash flows for the years ended December 31, 2004 and 2003 and for the period from
inception on February 10, 1986 through December 31, 2004, in conformity with accounting
principles generally accepted in the United States of America.

The accompanying financial statements
have been prepared assuming the Company will continue as a going concern. As discussed in
Note 6 to the financial statements, the Company has incurred losses since its inception
and has no on-going operations. Further, the Company has current liabilities in excess of
current assets. These factors raise substantial doubt about the ability of the Company to
continue as a going concern. Managements plans in regards to these matters are also
described in Note 6. The financial statements do not include any adjustments that might
result from the outcome of these uncertainties.

/s/ Pritchett, Siler
& Hardy, P.C.

# PRITCHETT, SILER &
HARDY, P.C.

Salt Lake City, UtahMarch
31, 2005

19



VENTURES-UNITED, INC.[A Development Stage Company]

# BALANCE SHEET

# ASSETS

|                                                | December 31,2004
|----------------------------------------------- | ----------------
|CURRENT ASSETS:                                 |                 
|Cash                                            |                 
|                                               
|Total Current Assets                            |                 
|                                               
|                                                |                 
|                                               
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 
|                                               
|CURRENT LIABILITIES:                            |                 
|Accounts payable                                |                 
|Accrued interest - related party                |                 
|Current portion of convertible                  |                 
|notes payable - related party                   |                 
|                                               
|Total Current Liabilities                       |                 
|                                               
|CONVERTIBLE NOTES PAYABLE - RELATED PARTY, less |                 
|current portion                                 |                 
|                                               
|Total Liabilities                               |                 
|                                               
|STOCKHOLDERS' EQUITY (DEFICIT):                 |                 
|Common stock, $.001 par value,                  |                 
|500,000,000 shares authorized,                  |                 
|32,447,000 shares issued and                    |                 
|outstanding                                     |                 
|Capital in excess of par value                  |                 
|Deficit accumulated during the                  |                 
|development stage                               |                 
|                                               
|Total Stockholders' Equity (Deficit)            |                 
|                                               
|                                                |                 
|                                               

The
accompanying notes are an integral part of this financial statement.

20

---



VENTURES-UNITED, INC.[A Development Stage Company]

# STATEMENTS OF
OPERATIONS

|                                   | For theYear EndedDecember 31, | FromInception onFebruary 10,
        1986 ThroughDecember 31,
|---------------------------------- | ----------------------------- | -------------------------------------------------------------
|
|REVENUE                            |                               |                                                              
|                                  
|COST OF SALES                      |                               |                                                              
|                                  
|GROSS PROFIT                       |                               |                                                              
|                                  
|EXPENSES:                          |                               |                                                              
|General and administrative         |                               |                                                              
|                                  
|LOSS BEFORE OTHER INCOME (EXPENSE) |                               |                                                              
|                                  
|OTHER INCOME (EXPENSE)             |                               |                                                              
|Interest expense - related party   |                               |                                                              
|Other income                       |                               |                                                              
|                                  
|Total Other Income                 |                               |                                                              
|                                  
|LOSS FROM OPERATIONS               |                               |                                                              
|BEFORE INCOME TAXES                |                               |                                                              
|                                  
|CURRENT TAX EXPENSE                |                               |                                                              
|                                  
|DEFERRED TAX EXPENSE               |                               |                                                              
|                                  
|NET LOSS                           |                               |                                                              
|                                  
|LOSS PER COMMON SHARE              |                               |                                                              
|                                  

The
accompanying notes are an integral part of these financial statements.

21

---



VENTURES-UNITED, INC.[A Development Stage
Company]

# STATEMENT OF
STOCKHOLDERS EQUITY (DEFICIT)FROM THE DATE OF
INCEPTION ON FEBRUARY 10, 1986 THROUGH DECEMBER 31,
2004

|                                              | Common Stock | DeficitCapital inExcess of | AccumulatedDuring theDevelopment
|--------------------------------------------- | ------------ | -------------------------- | --------------------------------
|
|BALANCE, February 10, 1986                    |              |                            |                                 
|                                             
|Issuance of common stock for cash             |              |                           
|at $.015 per share                            |              |                            |                                 
|                                             
|Issuance of common stock for services         |              |                           
|rendered at $.10 per share                    |              |                            |                                 
|                                             
|Issuance of common stock from conversion      |              |                           
|of warrants at $.10 per share                 |              |                            |                                 
|                                             
|Issuance of common stock for marketing and    |              |                           
|manufacturing rights at $.75 per share        |              |                            |                                 
|                                             
|Issuance of common stock for equipment        |              |                           
|at $.75 per share                             |              |                            |                                 
|                                             
|Issuance of common stock to acquire American  |              |                           
|Financial Systems at $.75 per share           |              |                            |                                 
|                                             
|Stock offering costs                          |              |                            |                                 
|                                             
|Net loss from inception on February 10, 1986  |              |                           
|through December 31, 1996                     |              |                            |                                 
|                                             
|BALANCE, December 31, 1996                    |              |                            |                                 
|                                             
|Contributed capital for expenses              |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 1997 |              |                            |                                 
|                                             
|BALANCE, December 31, 1997                    |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 1998 |              |                            |                                 
|                                             
|BALANCE, December 31, 1998                    |              |                            |                                 
|                                             
|Issuance of common stock for cash at          |              |                           
|$.001 per share                               |              |                            |                                 
|                                             
|Canceled shares of common stock at            |              |                           
|$.001 per share                               |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 1999 |              |                            |                                 
|                                             

[Continued]

22

---



VENTURES-UNITED, INC.[A Development Stage
Company]

# STATEMENT OF
STOCKHOLDERS EQUITY (DEFICIT)FROM THE DATE OF
INCEPTION ON FEBRUARY 10, 1986THROUGH DECEMBER 31,
2004[Continued]

|                                              | Common Stock | DeficitCapital inExcess of | AccumulatedDuring theDevelopment
|--------------------------------------------- | ------------ | -------------------------- | --------------------------------
|
|                                              |              |                            |                                 
|BALANCE, December 31, 1999                    |              |                            |                                 
|                                             
|Canceled shares of common stock at            |              |                           
|$.002 per share in January 2000               |              |                            |                                 
|                                             
|Issuance of common stock for services         |              |                           
|rendered at $.001 per share in September 2000 |              |                            |                                 
|                                             
|Issuance of common stock for cash at $.001    |              |                           
|per share in December 2000                    |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 2000 |              |                            |                                 
|                                             
|BALANCE, December 31, 2000                    |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 2001 |              |                            |                                 
|                                             
|BALANCE, December 31, 2001                    |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 2002 |              |                            |                                 
|                                             
|BALANCE, December 31, 2002                    |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 2003 |              |                            |                                 
|                                             
|BALANCE, December 31, 2003                    |              |                            |                                 
|                                             
|Net loss for the year ended December 31, 2004 |              |                            |                                 
|                                             
|BALANCE, December 31, 2004                    |              |                            |                                 
|                                             

The
accompanying notes are an integral part of this financial statement.

23

---



|                                                                        
|------------------------------------------------------------------------
|VENTURES-UNITED, INC.[A Development Stage
Company]                      
|                                                                        
|STATEMENTS OF CASH FLOWSINCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS

|                                                        | For theYear EndedDecember 31, | FromInception onFebruary 10,
        1986 ThroughDecember 31,
|------------------------------------------------------- | ----------------------------- | -------------------------------------------------------------
|
|Cash Flows From Operating Activities:                   |                               |                                                              
|Net loss                                                |                               |                                                              
|Adjustments to reconcile net loss to                    |                               |                                                              
|net cash used by operating activities:                  |                               |                                                              
|Non-cash expenses paid by stock issuance                |                               |                                                              
|Changes in assets and liabilities:                      |                               |                                                              
|(Increase) decrease in prepaid assets                   |                               |                                                              
|Increase in accounts payable                            |                               |                                                              
|Increase in accrued interest - related party            |                               |                                                              
|                                                       
|Net Cash (Used) by Operating Activities                 |                               |                                                              
|                                                       
|Cash Flows From Investing Activities                    |                               |                                                              
|                                                       
|Net Cash Provided (Used) by Investing Activities        |                               |                                                              
|                                                       
|Cash Flows From Financing Activities:                   |                               |                                                              
|Advances from a related party                           |                               |                                                              
|Contributed capital for expenses                        |                               |                                                              
|Proceeds from convertible notes payable - related party |                               |                                                              
|Purchase and cancellation of shares                     |                               |                                                              
|Proceeds from issuance of common stock                  |                               |                                                              
|Stock offering costs                                    |                               |                                                              
|                                                       
|Net Cash Provided by Financing Activities               |                               |                                                              
|                                                       
|Net Increase (Decrease) in Cash                         |                               |                                                              
|                                                       
|Cash at Beginning of Period                             |                               |                                                              
|                                                       
|Cash at End of Period                                   |                               |                                                              
|                                                       
|Supplemental Disclosures of Cash Flow Information:      |                               |                                                              
|                                                       
|Cash paid during the period for:                        |                               |                                                              
|Interest                                                |                               |                                                              
|Income taxes                                            |                               |                                                              

|                                                                          
|--------------------------------------------------------------------------
|Supplemental Schedule of Noncash
Investing and Financing Activities:      
|                                                                          
|For
the year ended December 31, 2004:                                     
|                                                                          
|None.                                                                     
|                                                                          
|For the
year ended December 31, 2003:                                     
|                                                                          
|None.                                                                     
|                                                                          
|The
accompanying notes are an integral part of these financial statements.
|                                                                          
|24                                                                        

VENTURES-UNITED, INC.[A Development Stage
Company]

# NOTES TO FINANCIAL STATEMENTS

# NOTE 1  SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES

| | Organization
 Ventures-United, Inc. (the Company) was organized under the laws
of the State of Utah on February 10, 1986 for the purpose of seeking a favorable business
opportunity. The Company currently has no on-going operations and is considered a
development stage company as defined in Statement of Financial Accounting Standards No.
7. The Company is currently seeking business opportunities or potential business
acquisitions.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cash
and Cash Equivalents  The Company considers all highly liquid debt investments
purchased with a maturity of three months or less to be cash equivalents.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Income
Taxes  The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109, Accounting for Income Taxes[See
Note 5].
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Loss
Per Share  The computation of loss per share of common stock is based on the
weighted average number of shares outstanding during the periods presented, in accordance
with Statement of Financial Accounting Standards No. 128, Earnings Per Share[See
Note 7].
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Accounting
Estimates The preparation of financial statements in conformity with
generally accepted accounting principles in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets
and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amount of revenues and expenses during the reported
period. Actual results could differ from those estimated.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Recently
Enacted Accounting Standards Statement of Financial Accounting Standards (SFAS)
No. 151, Inventory Costs  an amendment of ARB No. 43, Chapter 4", SFAS
No. 152, Accounting for Real Estate Time-Sharing Transactions  an amendment
of FASB Statements No. 66 and 67", SFAS No. 153, Exchanges of Nonmonetary
Assets  an amendment of APB Opinion No. 29", and SFAS No. 123 (revised 2004),
Share-Based Payment, were recently issued. SFAS No. 151, 152, 153 and 123
(revised 2004) have no current applicability to the Company or their effect on the
financial statements would not have been significant.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Reclassification
The financial statements for periods prior to December 31, 2004 have been
reclassified to conform to the headings and classifications used in the December 31, 2004
financial statements.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOTE 2 
CONVERTIBLE NOTES PAYABLE  RELATED PARTY

| | In
June 2002, the Company signed a $10,000 convertible note payable to an entity controlled
by a shareholder of the Company. The note was due in June 2004, accrues interest at 6%
per annum and is convertible to common stock at $.001 per share. The note is currently in
default. At December 31, 2004, accrued interest amounted to $1,504.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

---



VENTURES-UNITED, INC.[A Development Stage
Company]

# NOTES TO FINANCIAL STATEMENTS

NOTE
2  CONVERTIBLE NOTES PAYABLE  RELATED PARTY [Continued]

| | In
September 2002, the Company signed a $5,000 convertible note payable to an entity
controlled by a shareholder of the Company. The note was due in September 2004, accrues
interest at 6% per annum and is convertible to common stock at $.001 per share. The note
is currently in default. At December 31, 2004, accrued interest amounted to $680.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
April 2003, the Company signed a $2,500 convertible note payable to an entity controlled
by a shareholder of the Company. The note is due in April 2005, accrues interest at 6%
per annum and is convertible to common stock at $.001 per share. At December 31, 2004,
accrued interest amounted to $254.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
August 2003, the Company signed a $2,500 convertible note payable to an entity controlled
by a shareholder of the Company. The note is due in August 2005, accrues interest at 6%
per annum and is convertible to common stock at $.001 per share. At December 31, 2004,
accrued interest amounted to $213.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
October 2003, the Company converted a $2,631 related party account payable into a $2,631
convertible note payable to the individual. The note is due in October 2005, accrues
interest at 6% per annum and is convertible to common stock at $.001 per share. At
December 31, 2004, accrued interest amounted to $185.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
November 2003, the Company signed a $5,000 convertible note payable to an entity
controlled by a relative of a shareholder of the Company. The note is due in November
2005, accrues interest at 6% per annum and is convertible to common stock at $.001 per
share. At December 31, 2004, accrued interest amounted to $346.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
November 2004 the Company signed a $1,000 convertible note payable, effective April 15,
2004, to an entity controlled by a shareholder of the Company. The note accrues interest
at 6% per annum and is convertible to common stock at $.001 per share. The note is due in
April 2006. At December 31, 2004 accrued interest amounted to $43.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
December 2004 the Company signed a $1,000 convertible note payable to a relative of a
shareholder of the Company. The note is due in December 2006, accrues interest at 6% per
annum and is convertible to common stock at $.001 per share. At December 31, 2004,
accrued interest amounted to $0.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
convertible notes payable mature as follows for the twelve-month periods ended:
| | -----------------------------------------------------------------------------------

|December 31, |  |  |  |  |  |  | Principal Due   |  |  |  | 
|------------ |  |  |  |  |  |  | --------------- |  |  |  | 
|2005         |  |  |  |  |  |  | $        27,631 |  |  |  | 
|2006         |  |  |  |  |  |  | 2,000           |  |  |  | 
|2007         |  |  |  |  |  |  | --              |  |  |  | 
|2008         |  |  |  |  |  |  | --              |  |  |  | 
|2009         |  |  |  |  |  |  | --              |  |  |  | 
|            
|             |  |  |  |  |  |  | $        29,631 |  |  |  | 
|            

26

---



VENTURES-UNITED, INC.[A Development Stage
Company]

# NOTES TO FINANCIAL STATEMENTS

# NOTE 3  COMMON
STOCK

| | Common
Stock The Company has authorized 500,000,000 shares of common stock with a par
value of $.001. At December 31, 2004, the Company had 32,447,000 shares of common stock
issued and outstanding.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Recent
Stock Issuances In December 2000, the Company issued 5,000,000 shares of its
previously authorized but unissued common stock for cash of $5,000 (or $.001 per share).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
September 2000, the Company issued 127,000 shares of its previously authorized but
unissued common stock for services rendered, valued at $127, (or $.001 per share).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Stock
Cancellation In January 2000, the Company canceled 1,398,788 shares of common
stock valued at $2,798 (or $.002 per share).
| | ---------------------------------------------------------------------------------------------------------------------------------

# NOTE 4  RELATED
PARTY TRANSACTIONS

| | Management
Compensation During the years ended December 31, 2004 and 2003 the Company did
not pay any compensation to any officer/directors of the Company.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Office
Space  The Company does not have a need to rent office space. An
officer/shareholder of the Company is allowing the Company to use his home as a mailing
address, as needed, at no cost to the Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Advances
 A shareholder had advanced cash to the Company to pay certain expenses. The
amount of these advances was shown as advances from a related party. In October 2003, the
Company converted the $2,631 related party account payable into a $2,631 convertible note
payable to the individual [See Note 2].
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Convertible
Notes Payable The Company has entered into various convertible notes
payable with related parties [See Note 2].
| | ----------------------------------------------------------------------------------------------------------------------------

# NOTE 5  INCOME
TAXES

| | The
Company accounts for income taxes in accordance with Statement of Financial Accounting
Standards No. 109, Accounting for Income Taxes. SFAS No. 109 requires the
Company to provide a net deferred tax asset/liability equal to the expected future tax
benefit/expense of temporary reporting differences between book and tax accounting
methods and any available operating loss or tax credit carryforwards. At December 31,
2004, the Company has available unused operating loss carryforwards of approximately
$52,000, which may be applied against future taxable income and which expire in various
years through 2024.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
amount of and ultimate realization of the benefits from the operating loss carryforwards
for income tax purposes is dependent, in part, upon the tax laws in effect, the future
earnings of the Company, and other future events, the effects of which cannot be
determined. Because of the uncertainty surrounding the realization of the loss
carryforwards, the Company has established a valuation allowance equal to the tax effect
of the loss carryforwards and, therefore, no deferred tax asset has been recognized for
the loss carryforwards. The net deferred tax assets are approximately $17,700 and $15,500
as of December 31, 2004 and 2003, respectively, with an offsetting valuation allowance of
the same amount resulting in a change in the valuation allowance of approximately $2,200
during the year ended December 31, 2004.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

27

---



VENTURES-UNITED, INC.[A Development Stage
Company]

# NOTES TO FINANCIAL STATEMENTS

# NOTE 6  GOING
CONCERN

| | The
accompanying financial statements have been prepared in conformity with generally
accepted accounting principles in the United States of America, which contemplate
continuation of the Company as a going concern. However, the Company has incurred losses
since its inception and has no on-going operations. Further, the Company has current
liabilities in excess of current assets. These factors raise substantial doubt about the
ability of the Company to continue as a going concern. In this regard, management is
seeking potential business opportunities and is proposing to raise any necessary
additional funds not provided by operations through loans and/or through additional sales
of its common stock or through the acquisition of another Company. There is no assurance
that the Company will be successful in raising additional capital or in achieving
profitable operations. The financial statements do not include any adjustments that might
result from the outcome of these uncertainties.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOTE 7  LOSS PER SHARE

| | The
following data show the amounts used in computing loss per share for the periods
presented:
| | -----------------------------------------------------------------------------------------------

|                                          | For theYear EndedDecember 31, | FromInception onFebruary 10,
        1986, ThroughDecember 31,
|----------------------------------------- | ----------------------------- | --------------------------------------------------------------
|
|Loss from continuing operations available |                               |                                                               
|to common stockholders (numerator)        |                               |                                                               
|                                         
|Weighted average number of common         |                               |                                                               
|shares outstanding used in loss per share |                               |                                                               
|during the period (denominator)           |                               |                                                               
|                                         

| | At December 31, 2004, the Company had notes
payable convertible to 32,856,090 shares of common stock which were not used in the computation of
loss per share because their
effect would be anti-dilutive. At December 31, 2003, the Company had notes payable
convertible to 29,151,270 shares of common stock which were not used in the computation
of loss per share because their effect would be anti-dilutive. Dilutive loss per share
was not presented, as the Company had no common equivalent shares for all periods
presented that would effect the computation of diluted loss per share.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOTE 8  PROPOSED
ACQUISITION

| | In
November 2003, the Company entered into a non-binding letter of intent to acquire Impact
Diagnostics, Inc. The Company has subsequently abandoned this planned acquisition.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

---



VENTURES-UNITED, INC.[A Development Stage
Company]

# NOTES TO FINANCIAL STATEMENTS

# NOTE 9  SUBSEQUENT
EVENTS

| | In
January 2005, the Company issued 25,000 shares to a director of the Company for services
rendered as an officer and director of the Company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------

| | In
January 2005, the Company engaged Tryant, LLC to locate a possible business venture.
Under the agreement, the Company will pay Tryant, LLC $150,000 from the cash proceeds
received by the Company upon closing an acquisition plus 50% of any other cash payments
related to an acquisition. The Company will also issue to Tryant, LLC 50% of the Companys
post-reorganization equity participation at the closing of an acquisition.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
March 2005, an entity controlled by a shareholder of the Company loaned an additional
$2,000 to the Company.
| | ---------------------------------------------------------------------------------------------------------------

29

---