**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
  **Form
        10-KSB**
  **x** **ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
        1934**
  **For
        the fiscal year ended December 31, 2007**
  **o** **TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
        OF
        1934**
  **Commission
        file number: 000-49634**
  **RENOVO
        HOLDINGS**
 
 *(Name
        of small business issuer in its charter)*
  **Nevada**
              
              **90-0224622***(State
                  or other jurisdiction of incorporation or
                  organization)*
              
              *(I.R.S.
                  Employer Identification No.)*
  **1375
                  Semoran Blvd.****Casselberry,
                  Florida**
              
              **32707***(Address
                  of principal executive offices)*
              
              *(Zip
                  Code)*
  Issuer's
        telephone number: **(407)
        599-2886**
  Securities
        registered under Section 12(b) of the Exchange Act: **None.**
  Securities
        registered under Section 12(g) of the Exchange Act:
  **Common
        Stock, $0.001 par value**
 (Title
        if
        Class)
  Check
        whether the issuer (1) filed all reports required to be filed by Section
        13 or
        15(d) of the Exchange Act during the past 12 months (or for such shorter
        period
        that the registrant was required to file such reports), and (2) has been
        subject
        to such filing requirements for the past 90 days. Yes x No o
  Check
        if
        there is no disclosure of delinquent filers in response to Item 405 of
        Regulation S-B contained 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. o
  Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act). Yes x No o
  The
        issuer’s revenues for its most recent fiscal year ended December 31, 2007.
        $-0-.
  The
        aggregate market value of the voting and non-voting common equity held by
        non-affiliates computed by reference to the price at which the common equity
        was
        sold, or the average bid and asked price of such common equity, as of February
        29, 2008 was $854,008.75 based on a share value of $0.0001.
  The
        number of shares of Common Stock, $0.001 par value, outstanding on February
        29,
        2008 was 854,087,549 shares.
  Transitional
        Small Business Disclosure Format (Check one): Yes o No x
 
  RENOVO
        HOLDINGS
 (A
        Development Stage Company)
  **FORM
        10-KSB**
  For
        The
        Fiscal Year Ended December 31, 2007
  **INDEX**
  PagePART
                    I
                
                1Item
                    1.
                Description
                    of Business
                1Item
                    2.
                Description
                    of Property
                4Item
                    3.
                Legal
                    Proceedings
                4Item
                    4.
                Submission
                    of Matters to a Vote of Security Holders
                4PART
                    II
                
                5Item
                    5.
                Market
                    for Common Equity and Related Stockholder Matters and Small Business
                    Issuer Purchases of Equity Securities
                5Item
                    6.
                Plan
                    of Operation
                6Item
                    7.
                Financial
                    Statements
                11Item
                    8.
                Changes
                    in and Disagreements With Accountants on Accounting and Financial
                    Disclosure
                12Item
                    8A.
                Controls
                    and Procedures
                12Item
                    8B.
                Other
                    Information
                12PART
                    III
                
                12Item
                    9.
                Directors,
                    Executive Officers, Promoters, Control Persons and Corporate
                    Governance;
                    Compliance with Section 16(a) of the Exchange Act
                12Item
                    10.
                Executive
                    Compensation
                15Item
                    11.
                Security
                    Ownership of Certain Beneficial Owners and Management and Related
                    Stockholder Matters
                16Item
                    12.
                Certain
                    Relationships and Related Transactions, and Director
                    Independence
                16Item
                    13.
                Exhibits
                17Item
                    14.
                Principal
                    Accountant Fees and Services
                19
 
  FORWARD-LOOKING
          STATEMENTS
  This
          document contains “forward-looking statements” within the meaning of the Private
          Securities Litigation Reform Act of 1995. All statements other than statements
          of historical fact are “forward-looking statements” for purposes of federal and
          state securities laws, including, but not limited to, any projections of
          earnings, revenue or other financial items; any statements of the plans,
          strategies and objections of management for future operations; any statements
          concerning proposed new services or developments; any statements regarding
          future economic conditions or performance; any statements or belief; and
          any
          statements of assumptions underlying any of the foregoing.
  Forward-looking
          statements may include the words “may,” “could,” “estimate,” “intend,”
“continue,” “believe,” “expect” or “anticipate” or other similar words. These
          forward-looking statements present our estimates and assumptions only as
          of the
          date of this report. Except for our ongoing securities laws, we do not
          intend,
          and undertake no obligation, to update any forward-looking
          statement.
  Although
          we believe that the expectations reflected in any of our forward-looking
          statements are reasonable, actual results could differ materially from
          those
          projected or assumed in any of our forward-looking statements. Our future
          financial condition and results of operations, as well as any forward-looking
          statements, are subject to change and inherent risks and uncertainties.
          The
          factors impacting these risks and uncertainties include, but are not limited
          to:
 
 o
                increases
                    in interest rates or our cost of borrowing or a default under
                    any material
                    debt agreements;
 o
                the
                    unavailability of funds for capital
                    expenditures;
 o
                the
                    ability to locate potential merger or acquisition
                    candidates.
  For
          a
          detailed description of these and other factors that could cause actual
          results
          to differ materially from those expressed in any forward-looking statement,
          please see “Factors That May Affect Our Plan of Operation” in this
          document.
  In
          this
          filing references to “Company,” “we,” “our,” and/or “us,” refers to Renovo
          Holdings.
  **PART
          I**
  **ITEM
                    1.**
                **DESCRIPTION
                    OF BUSINESS.**
  **(a)
          General Business Development**
  Renovo
          Holdings is a development stage company, originally incorporated in the
          State of
          Nevada on October 18, 2000 under the name First Impressions. On July 14,
          2003,
          we amended our Articles of Incorporation changing our name from First
          Impressions to Fortis Enterprises. We also increased the total amount of
          authorized common stock from 50,000,000 shares to 100,000,000 shares.
 
 On
          July
          15, 2003, our board of directors approved the cancellation of 60,000,000
          (post
          split) shares of common stock held by three of our major stockholders.
          Concurrently, we issued 45,000,000 (post split) shares of common stock
          to Mr.
          Stephen W. Carnes as consideration for his business expertise and his business
          concept of establishing a national network of commercial and residential
          restoration service companies, his serving on the Board of Directors, and
          assuming the liability of being an officer and director of a publicly trading
          and reporting Company.
  Prior
          to
          the cancellations and issuances, we had a total of 80,000,000 (post split)
          shares of common stock issued and outstanding. The canceling stockholders
          held
          approximately 75% of the issued and outstanding common stock. The cancellations
          and issuance resulted in 65,000,000 (post split) shares of common stock
          to be
          issued and outstanding with approximately 69% of those shares being held
          by Mr.
          Carnes. Mr. Carnes’ percentage ownership of the Company’s common stock and his
          position as sole director of the Company allows him to exercise control
          of the
          Company.
  1
  On
          June
          14, 2004, we changed our name from Fortis Enterprises to Renovo Holdings.
          We
          also increased our total authorized shares of common stock from 100,000,000
          shares to 500,000,000 shares.
 
 On
          September 10, 2007 we increased our total authorized shares of common stock
          from
          500,000,000 to 4,900,000,000. We have 5,000,000 shares of preferred stock
          at
          $0.001 par value per share.
  For
          the
          year ending December 31, 2007, we incurred a net loss of $300,660. For
          the years
          ended December 31, 2007 and December 31, 2006, we incurred net losses of
          $300,600 and $421,223 respectively. Our accumulated deficit at the end
          of
          December 31, 2007 was $2,600,705. As a result of our losses, our audited
          financial statements for the year ended December 31, 2007, indicate that
          there
          is substantial doubt about our ability to continue as a going concern.
  **(b)
          Our Business**
  Initially,
          we were seeking to establish Renovo in the Florida restoration market,
          with the
          ability to expedite the recovery process, with eventual capability of responding
          to loss and restoration across the United States. However, as a result
          of our
          lack of revenue generation, we have not been satisfied with our business
          plan,
          and we are aggressively seeking other business opportunities in an effort
          to
          substantiate stockholder value, including mergers with or the acquisition
          of
          private companies. We have not focused on any one market.
  Management
          believes that there are perceived benefits to being a reporting company
          with a
          class of publicly-registered securities. These are commonly thought to
          include
          (1) the ability to use registered securities to make acquisition of assets
          or
          businesses; (2) increased visibility in the financial community; (3) the
          facilitation of borrowing from financial institutions; (4) improved trading
          efficiency; (5) stockholder liquidity; (6) greater ease in subsequently
          raising
          capital; (7) compensation of key employees through stock options; (8) enhanced
          corporate image; and (9) a presence in the United States capital
          market.
  A
          business entity, if any, which may be interested in a business combination
          with
          us may include (1) a company for which a primary purpose of becoming public
          is
          the use of its securities for the acquisition of assets or businesses;
          (2) a
          company which is unable to find an underwriter of its securities or is
          unable to
          find an underwriter of securities on terms acceptable to it; (3) a company
          which
          wishes to become public with less dilution of its common stock than would
          occur
          normally upon an underwriting; (4) a company which believes that it will
          be able
          to obtain investment capital on more favorable terms after it has become
          public;
          (5) a foreign company which may wish to gain an initial entry into the
          United
          States securities market; (6) a special situation company, such as a company
          seeking a public market to satisfy redemption requirements under a qualified
          Employee Stock Option Plan; or (7) a company seeking one or more of the
          other
          perceived benefits of becoming a public company.
  Management
          is seeking a qualified company as a candidate for a business combination.
          We are
          authorized to enter into a definitive agreement with a wide variety of
          businesses without limitation as to their industry or revenues. It is not
          possible at this time to predict with which company, if any, we will enter
          into
          a definitive agreement or what will be the industry, operating history,
          revenues, future prospects or other characteristics of that
          company.
  We
          may
          seek a business opportunity with entities which have recently commenced
          operations, or which wish to utilize the public marketplace in order to
          raise
          additional capital in order to expand into new products or markets, to
          develop a
          new product or service, or for other corporate purposes. We may acquire
          assets
          and establish wholly-owned subsidiaries in various businesses or acquire
          existing businesses as subsidiaries.
  Our
          management, which in all likelihood will not be experienced in matters
          relating
          to the business of a target business, will rely upon its own efforts in
          accomplishing our business purposes. Outside consultants or advisors may
          be
          utilized by us to assist in the search for qualified target companies.
          If we do
          retain such an outside consultant or advisor, any cash fee earned by such
          person
          will need to be assumed by the target business, as we have no cash assets
          with
          which to pay such obligation.
  2
  The
          analysis of new business opportunities will be undertaken by, or under
          the
          supervision of our officer and director, who is not a professional business
          analyst. In analyzing prospective business opportunities, management may
          consider such matters as:
  **•**
                the
                    available technical, financial and managerial
                    resources;
 **•**
                working
                    capital and other financial
                    requirements;
 **•**
                history
                    of operations, if any;
 **•**
                prospects
                    for the future;
 **•**
                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;
 **•**
                specific
                    risk factors not now foreseeable but which then may be anticipated
                    to
                    impact our proposed activities;
 **•**
                the
                    potential for growth or expansion;
 **•**
                the
                    potential for profit;
 **•**
                the
                    perceived public recognition or acceptance of products, services,
                    or
                    trades; name identification; and
 **•**
                other
                    relevant factors.
  Management
          does not have the capacity to conduct as extensive an investigation of
          a target
          business as might be undertaken by a venture capital fund or similar
          institution. As a result, management may elect to merge with a target business
          which has one or more undiscovered shortcomings and may, if given the choice
          to
          select among target businesses, fail to enter into an agreement with the
          most
          investment-worthy target business.
  Following
          a business combination we may benefit from the services of others in regard
          to
          accounting, legal services, underwritings and corporate public relations.
          If
          requested by a target business, management may recommend one or more
          underwriters, financial advisors, accountants, public relations firms or
          other
          consultants to provide such services.
  A
          potential target business may have an agreement with a consultant or advisor,
          providing that services of the consultant or advisor be continued after
          any
          business combination. Additionally, a target business may be presented
          to us
          only on the condition that the services of a consultant or advisor be continued
          after a merger or acquisition. Such preexisting agreements of target businesses
          for the continuation of the services of attorneys, accountants, advisors
          or
          consultants could be a factor in the selection of a target
          business.
  In
          implementing a structure for a particular business acquisition, we may
          become a
          party to a merger, consolidation, reorganization, joint venture, or licensing
          agreement with another corporation or entity. We may also acquire stock
          or
          assets of an existing business. On the consummation of a transaction, it
          is
          likely that our present management and stockholder will no longer be in
          control.
          In addition, it is likely that our officer and director will, as part of
          the
          terms of the acquisition transaction, resign and be replaced by one or
          more new
          officers and directors.
  It
          is
          anticipated that any securities issued in any such reorganization would
          be
          issued in reliance upon exemption from registration under applicable federal
          and
          state securities laws. In some circumstances however, as a negotiated element
          of
          its transaction, we may agree to register all or a part of such securities
          immediately after the transaction is consummated or at specified times
          thereafter. If such registration occurs, of which there can be no assurance,
          it
          will be undertaken by the surviving entity after we have entered into an
          agreement for a business combination or have consummated a business combination
          and we are no longer considered a blank check company. The issuance of
          additional securities and their potential sale into any trading market
          which may
          develop in our securities may depress the market value of our securities
          in the
          future if such a market develops, of which there is no assurance.
  While
          the
          terms of a business transaction to which we may be a party cannot be predicted,
          it is expected that the parties to the business transaction will desire
          to avoid
          the creation of a taxable event and thereby structure the acquisition in
          a
          tax-free reorganization under Sections 351 or 368 of the Internal Revenue
          Code
          of 1986, as amended.
  3
  With
          respect to any merger or acquisition negotiations with a target business,
          management expects to focus on the percentage of the Company which target
          business stockholder would acquire in exchange for their shareholdings
          in the
          target business. Depending upon, among other things, the target business's
          assets and liabilities, our stockholder will in all likelihood hold a
          substantially lesser percentage ownership interest in the Company following
          any
          merger or acquisition. Any merger or acquisition effected by us can be
          expected
          to have a significant dilutive effect on the percentage of shares held
          by our
          stockholder at such time.
  No
          assurances can be given that we will be able to enter into a business
          combination, as to the terms of a business combination, or as to the nature
          of
          the target business.
  As
          of the
          date hereof, management has not made any final decision concerning or entered
          into any written agreements for a business combination. When any such agreement
          is reached or other material fact occurs, we will file notice of such agreement
          or fact with the Securities and Exchange Commission on Form 8-K. Persons
          reading
          this Form 10-KSB are advised to determine if we have subsequently filed
          a Form
          8-K.
  We
          anticipate that the selection of a business opportunity in which to participate
          will be complex and without certainty of success. Management believes (but
          has
          not conducted any research to confirm) that there are numerous firms seeking
          the
          perceived benefits of a publicly registered corporation. Such perceived
          benefits
          may include facilitating or improving the terms on which additional equity
          financing may be sought, providing liquidity for incentive stock options
          or
          similar benefits to key employees, increasing the opportunity to use securities
          for acquisitions, and providing liquidity for our stockholder and other
          factors.
          Business opportunities may be available in many different industries and
          at
          various stages of development, all of which will make the task of comparative
          investigation and analysis of such business opportunities extremely difficult
          and complex.
  **Employees**
  As
          of
          December 31, 2007, we had one employee, Stephen W. Carnes.
  AVAILABLE
          INFORMATION
  We
          file
          annual, quarterly and special reports and other information with the SEC
          that
          can be inspected and copied at the public reference facility maintained
          by the
          SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549-0405. Information
          regarding the public reference facilities may be obtained from the SEC
          by
          telephoning 1-800-SEC-0330. The Company's filings are also available through
          the
          SEC's Electronic Data Gathering Analysis and Retrieval System which is
          publicly
          available through the SEC's website (www.sec.gov). Copies of such materials
          may
          also be obtained by mail from the public reference section of the SEC at
          100 F
          Street, N.E., Room 1580, Washington, D.C. 20549-0405 at prescribed
          rates.
  **ITEM
                    2.**
                **DESCRIPTION
                    OF PROPERTY.**
  We
          do not
          lease or rent any property. In January 8, 2007, we relocated our executive
          office to 1375 Semoran Blvd., Casselberry, FL 32707. Office space and related
          services are provided at no charge by our sole officer and director.
  **ITEM
                    3.**
                **LEGAL
                    PROCEEDINGS.**
  We
          are
          not a party to any material legal proceedings.
   **ITEM
                    4.**
                **SUBMISSION
                    OF MATTERS TO A VOTE OF SECURITY
                    HOLDERS.**
  We
          did
          not submit any matters to vote of our stockholders during the fourth quarter
          of
          2007.
  4
  **PART
          II**
  **ITEM
                    5.**
                **MARKET
                    FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS
                    ISSUER PURCHASES OF EQUITY
                    SECURITIES.**
  **(a)
          Market Information**
  Our
          Common Stock is traded in the over-the-counter securities market through
          the
          National Association of Securities Dealers Automated Quotation Bulletin
          Board
          System, under the symbol “RNVO”. We have been eligible to participate in the OTC
          Bulletin Board since April 23, 2003. The following table sets forth the
          quarterly high and low bid prices for our Common Stock during our last
          two
          fiscal years, as reported by a Quarterly Trade and Quote Summary Report
          of the
          OTC Bulletin Board. The quotations reflect inter-dealer prices, without
          retail
          mark-up, markdown or commission, and may not necessarily represent actual
          transactions.
  2007
                2006High
                Low
                High
                Low1stQuarter
                0.0009
                0.0005
                0.0036
                0.00042ndQuarter
                0.0018
                0.0005
                0.0018
                0.00023rdQuarter
                0.0037
                0.0004
                0.0026
                0.00034thQuarter
                0.0018
                0.0002
                0.0019
                0.0015
  **(b)
          Holders of Common Stock**
  As
          of
          February 29, 2008, we had approximately 46 stockholders of record of the
          854,087,549 shares outstanding.
  **(c)
          Dividends**
  The
          Board
          of Directors has not declared any dividends due to the following
          reasons:
  1.
                  The
                      Company has not yet adopted a policy regarding payment of
                      dividends;
 2.
                      The
                          Company does not have any money to pay dividends at this
                          time;
 3.
                  The
                      declaration of a cash dividend would result in an impairment
                      of future
                      working capital; and
 4.
                  The
                      Board of Directors will not approve the issuance of a stock
                      dividend.
  **(d)
          Securities Authorized for Issuance under Equity Compensation
          Plans**
  **Employee
          and Consultant Stock Compensation Plans**
  Effective
          August 26, 2003, we adopted an Employee and Consultant Stock Compensation
          Plan.
          The maximum number of shares that may be issued pursuant to the plan is
          3,000,000 shares. As of December 31, 2006, 2,564,493 shares have been granted
          under this plan.
  Effective
          May 11, 2004, we adopted another Employee and Consultant Stock Compensation
          Plan. The maximum number of shares that may be issued pursuant to the plan
          is
          15,000,000 shares. As of December 31, 2007, 3,508,207 shares have been
          issued
          under this plan.
  **Equity
          Compensation Plans Information**
  We
          currently maintain equity compensation plans to allow the Company to compensate
          employees, directors, consultants and certain other persons providing bona
          fide
          services to the Company or to compensate officers, directors and employees
          for
          accrual of salary, through the award of our common stock. The following
          table
          sets forth information as of December 31, 2007 regarding outstanding shares
          granted under the plans, warrants issued to consultants and options reserved
          for
          future grant under the plans.
  5
  Plan
                    Category
                
                Number
                  of
                    shares to be issued upon exercise of outstanding options, warrants
                    and
                    rights
                  (a)
                
                Weighted-average
                    exercise price of outstanding options, warrants and rights
                  (b)
                
                Number
                    of shares remaining available for future issuance under equity
                    compensation plans (excluding shares reflected in column (a))
                  (c)Equity
                    compensation plans approved by stockholders
                
                
                --
                
                $
                --
                
                
                --Equity
                    compensation plans not approved by stockholders
                
                
                0
                
                $
                0
                
                
                11,927,300
                    (1
                )Total
                
                
                0
                
                $
                0
                
                
                11,927,300
  (1)
          Includes: 435,507 shares available for issuance under the 2003 plan and
          11,491,793 shares available under the 2004 plan.
  These
          plans are intended to encourage directors, officers, employees and consultants
          to acquire ownership of common stock. The opportunity so provided is intended
          to
          foster in participants a strong incentive to put forth maximum effort for
          its
          success and growth, to aid in retaining individuals who put forth such
          effort,
          and to assist in attracting the best available individuals to the Company
          in the
          future.
  **Recent
          Sales of Unregistered Securities**
  We
          did
          not sell or issue any securities in the fourth quarter of 2007 or as of
          the date
          of this filing.
  **ITEM
                    6.**
                **PLAN
                    OF OPERATION.**
  **Overview**
  Renovo
          Holdings is a Development Stage Company that intended to capitalize upon
          the
          niche market opportunities within the commercial and residential restoration
          service markets.
  As
          a
          company in an early development stage, our ability to proceed with our
          plan of
          operation has continuously been a function of our ability to raise sufficient
          capital to continue our operations. At the end of the fiscal year 2007
          we did
          not have any cash available.
  We
          have
          continuously incurred losses since inception. For the year ended December
          31,
          2007 we had a net loss of $300,660 as compared to a net loss of $421,223
          for the
          year ended December 31, 2006.
  **Plan
          of Operation**
  Our
          original plan of operation was to position Renovo to provide complete loss
          management and restoration services to residential, commercial, industrial,
          and
          institutional properties. Initially, we were seeking to establish Renovo
          in the
          Florida market, with the ability to expedite the recovery process, with
          the
          eventual capability of responding to loss and restoration across the United
          States. However, as a result of our lack of revenue generation, we have
          not been
          satisfied with our business plan or original plan of operation. Therefore,
          we
          re-assessed our business plan, and we are aggressively seeking out other
          business opportunities in an effort to substantiate stockholder value.
  6
  We
          will
          attempt to locate and negotiate with other business entities for the merger
          of a
          target business into the Company. In certain instances, a target business
          may
          wish to become a subsidiary of the Company or may wish to contribute assets
          to
          the Company rather than merge. No assurances can be given that we will
          be
          successful in locating or negotiating with any target business.
  We
          are
          currently seeking to engage in a merger with or acquisition of an unidentified
          foreign or domestic company which desires to become a reporting (“public”)
          company whose securities are qualified for trading in the United States
          secondary market. We meet the definition of a “blank check” company contained in
          Section (7)(b)(3) of the Securities Act of 1933, as amended. We have been
          in the
          developmental stage since inception and have no operations to date. Other
          than
          issuing shares to our sole stockholder, we have not commenced any operational
          activities.
  We
          will
          not acquire or merge with any entity which does not intend to provide audited
          financial statements at or within a reasonable period of time after closing
          of
          the proposed transaction. We are subject to all the reporting requirements
          included in the Exchange Act. Included in these requirements is our duty
          to file
          audited financial statements as part of our Form 8-K to be filed with the
          Securities and Exchange Commission upon consummation of a merger or acquisition,
          as well as our audited financial statements included in our annual report
          on
          10-KSB. If such audited financial statements are not available at closing,
          or
          within time parameters necessary to insure our compliance with the requirements
          of the Exchange Act, or if the audited financial statements provided do
          not
          conform to the representations made by the target business, the closing
          documents may provide that the proposed transaction will be voidable at
          the
          discretion of our present management.
  We
          will
          not restrict our search for any specific kind of businesses, but may acquire
          a
          business which is in its preliminary or development stage, which is already
          in
          operation, or in essentially any stage of its business life. It is impossible
          to
          predict at this time the status of any business in which we may become
          engaged,
          in that such business may need to seek additional capital, may desire to
          have
          its shares publicly traded, or may seek other perceived advantages which
          we may
          offer.
  A
          business combination with a target business will normally involve the transfer
          to the target business of the majority of our common stock, and the substitution
          by the target business of its own management and board of
          directors.
  We
          have,
          and will continue to have, no capital with which to provide the owners
          of
          business opportunities with any cash or other assets. However, management
          believes we will be able to offer owners of acquisition candidates the
          opportunity to acquire a controlling ownership interest in a company with
          securities registered pursuant to Rule 12(g) of the Exchange Act. Our officer
          and director has not conducted market research and is not aware of statistical
          data to support the perceived benefits of a merger or acquisition transaction
          for the owners of a business opportunity.
  Our
          audit
          reflects the fact that we have no current source of income. Further, that
          without realization of additional capital, it would be unlikely for the
          Company
          to continue as a going concern.
  Our
          sole
          officer and director has agreed that he will advance any additional funds
          which
          we need for operating capital and for costs in connection with searching
          for or
          completing an acquisition or merger. Such advances have historically been
          converted to equity. There is no minimum or maximum amount the Officer
          and
          Director will advance to us. We will not borrow any funds for the purpose
          of
          repaying advances made by such Officer and Director, and we will not borrow
          any
          funds to make any payments to our promoters, management or their affiliates
          or
          associates.
  The
          Board
          of Directors has passed a resolution which contains a policy that we will
          not
          seek an acquisition or merger with any entity in which our officer, director,
          stockholder or his affiliates or associates serve as officer or director
          or hold
          more than a 10% ownership interest.
  7
 
 ***Satisfaction
          of our cash obligation for the next 12 months.***
  We
          plan
          on satisfying our cash obligations over the next twelve months through
          additional equity and/or third party financing. We do not anticipate generating
          revenues within the next twelve months, unless we successfully complete
          a merger
          or acquisition with a company generating revenues from operations.
  A
          critical component of our operating plan impacting our continued existence
          is
          the ability to obtain additional capital through additional equity and/or
          debt
          financing. We do not anticipate enough positive internal operating cash
          flow
          until such time as we complete the acquisition and can generate substantial
          revenues, which may take the next few years to fully realize, if ever.
          In the
          event we cannot obtain the necessary capital to pursue our strategic plan,
          we
          may have to cease or significantly curtail our operations. This would materially
          impact our ability to continue operations.
  **Liquidity
          and Capital Resources**
  During
          April 2006, we executed three Notes to Stephen W. Carnes for a total amount
          of
          $9,731.31 for expenses paid by Mr. Carnes on our behalf. The notes were
          to be
          paid in full on or before July 15, 2006. The delay of payment beyond July
          15,
          2006 resulted in interest beginning to accrue at a rate of 12% interest.
          We did
          not issue any additional shares to Mr. Carnes in 2007.
  Over
          the
          next twelve months we believe that existing capital and anticipated funds
          from
          operations will not be sufficient to sustain our operations. As a result,
          we
          will be required to seek additional capital to fund our operations through
          additional equity or debt financing or credit facilities. No assurance
          can be
          made that such financing would be available, and if available it may take
          either
          the form of debt or equity. In either case, the financing could have a
          negative
          impact on our financial condition and our Stockholders.
  We
          anticipate incurring operating losses over the next twelve months. Our
          lack of
          operating history makes predictions of future operating results difficult
          to
          ascertain. Our prospects must be considered in light of the risks, expenses
          and
          difficulties frequently encountered by companies in their early stage of
          development. To address these risks we must, among other things, locate
          suitable
          acquisition targets, obtain a customer base, implement and successfully
          execute
          a business and marketing strategy, respond to competitive developments,
          and
          attract, retain and motivate qualified personnel. There can be no assurance
          that
          we will be successful in addressing such risks, and the failure to do so
          can
          have a material adverse effect on our business prospects, financial condition
          and results of operations.
  **Going
          Concern**
  The
          consolidated financial statements included in this filing have been prepared
          in
          conformity with generally accepted accounting principles that contemplate
          the
          continuance of the Company as a going concern. The Company’s cash position is
          inadequate to pay all of the costs associated with its intended business
          plan.
          Management intends to use borrowings and security sales to mitigate the
          effects
          of its cash position, however no assurance can be given that debt or equity
          financing, if and when required will be available. The financial statements
          do
          not include any adjustments relating to the recoverability and classification
          of
          recorded assets and classification of liabilities that might be necessary
          should
          the Company be unable to continue existence.
  ***Summary
          of any product and development that we will perform for the term of the
          plan.***
  We
          do not
          anticipate performing any significant product research and development
          under our
          plan of operation until such time as we complete an acquisition.
  8
  ***Expected
          purchase or sale of plant and significant equipment.***
  We
          do not
          anticipate the purchase or sale of any plant or significant equipment,
          as such
          items are not required by us at this time or anticipated to be needed in
          the
          next twelve months.
  ***Significant
          changes in the number of employees.***
  As
          of
          December 31, 2007, we had 1 part-time employee. We are dependent upon Stephen
          W.
          Carnes our sole officer and director. We will need to hire full time operational
          staff if and when we complete anticipated acquisitions.
  **Off-Balance
          Sheet Arrangements**
  We
          do not
          have any off-balance sheet arrangements that have or are reasonably likely
          to
          have a current or future effect on our financial condition, changes in
          financial
          condition, revenues or expenses, results of operations, liquidity, capital
          expenditures or capital resources that is material to investors.
  **FACTORS
          THAT MAY AFFECT OUR PLAN OF OPERATION**
  ***Renovo
          has historically lost money and losses may continue in the future, which
          may
          cause us to curtail operations.***
  Since
          our
          inception we have not been profitable and have lost money on both a cash
          and
          non-cash basis. For the years ended December 31, 2007 and December 31,
          2006 we
          incurred net losses of $300,660 and $421,223 respectively. Our accumulated
          deficit at the end of December 31, 2006 was $2,600,705. Future losses are
          likely
          to occur, as we are dependent on spending money to pay for our operations.
          No
          assurances can be given that we will be successful in reaching or maintaining
          profitable operations. Accordingly, we may experience liquidity and cash
          flow
          problems. If our losses continue, our ability to operate may be severely
          impacted.
  ***We
          have not accounted for the withholding of federal or state taxes upon the
          issuance of common stock for services rendered by our officer, employees
          and
          consultants, which may subject us to substantial tax liabilities, including
          penalties and interest.***
  In
          2007,
          the Company did not recognize withholding tax liabilities on the issuance
          of
          shares of common stock to our sole officer and director. Further, over
          the past
          several years we have issued several million dollars worth of stock
          compensation, to consultants who may be deemed to be employees, without
          withholding potential federal or state income tax liabilities.
  The
          Company has based its decision not to withhold taxes on the belief such
          shares
          of common stock were issued in connection with the performance of services
          by
          true consultants and not by employees, and, as such, are not subject to
          tax
          withholding requirements. There can be no assurance, however, that the
          IRS or
          state taxing authorities will agree with the Company’s position and will not
          assert that the Company is liable for the failure to withhold income and
          employment taxes with respect to the issuance of common stock services.
          If the
          Company became liable for the failure to withhold taxes on the issuances,
          the
          aggregate potential liability, exclusive of any interest or penalties,
          would
          have a material impact on the Company and its results of
          operations.
  The
          Company has not recognized accruals for the potential withholding taxes,
          penalties and/or interest that may be imposed with respect to the withholding
          tax issues. If taxing authorities assert such issues and prevail related
          to
          these withholding tax issues and other related contingencies, including
          penalties, the liability that could be imposed by taxing authorities would
          be
          substantial.
  ***Renovo
          will need to raise additional capital or debt funding to sustain
          operations.***
  We
          will
          require additional capital to sustain operations and we may need access
          to
          additional capital or additional debt financing to establish revenues.
          In
          addition, to the extent that we have a working capital deficit and cannot
          offset
          the deficit from profitable sales we may have to raise capital to repay
          the
          deficit and provide more working capital to permit growth in revenues.
          We cannot
          be assured that financing, whether from external sources or related parties,
          will be available if needed or on favorable terms. Our inability to obtain
          adequate financing will result in the need to reduce the pace of business
          operations and the search for acquisition candidates. Any of these events
          could
          be materially harmful to our business and may result in a lower stock
          price.
  9
  ***We
          have been the subject of a going concern opinion for the years ended December
          31, 2007 and December 31, 2006 from our independent auditors, which means
          that
          we may not be able to continue operations unless we can become profitable
          or
          obtain additional funding.***
  Our
          independent auditors have added an explanatory paragraph to their audit
          opinions
          issued in connection with our financial statements for the years ended
          December
          31, 2007 and December 31, 2006, which states that the financial statements
          raise
          substantial doubt as to our ability to continue as a going concern. Our
          ability
          to make operations profitable or obtain additional funding will determine
          our
          ability to continue as a going concern. Our financial statements do not
          include
          any adjustments that might result from the outcome of this uncertainty.
          We do
          not have sufficient cash on hand to continue operations for the next twelve
          months. In order to be able to continue operations for the next twelve
          months we
          will need to obtain funding through equity or debt financing.
  ***We
          are subject to a working capital deficit, which means that our current
          assets on
          December 31, 2007, were not sufficient to satisfy our current liabilities
          and,
          therefore, our ability to continue operations is at
          risk.***
  We
          had a
          working capital deficit for the year ended December 31, 2007, which means
          that
          our current liabilities exceeded our current assets on December 31, 2007
          by
          $1,333,995. Current assets are assets that are expected to be converted
          to cash
          within one year and, therefore, may be used to pay current liabilities
          as they
          become due. Our working capital deficit means that our current assets on
          December 31, 2007 were not sufficient to satisfy all of our current liabilities
          on those dates. If our ongoing operations do not begin to provide sufficient
          profitability to offset the working capital deficit, we may have to raise
          capital or debt to fund the deficit or curtail future operations.
  ***Our
          common stock may be affected by limited trading volume and may fluctuate
          significantly, which may affect our stockholders’ ability to sell shares of our
          common stock.***
  There
          has
          been a limited public market for our common stock and there can be no assurance
          that a more active trading market for our common stock will develop. An
          absence
          of an active trading market could adversely affect our stockholders' ability
          to
          sell our common stock in short time periods, or possibly at all. Our common
          stock has experienced, and is likely to experience in the future, significant
          price and volume fluctuations, which could adversely affect the market
          price of
          our common stock without regard to our operating performance. In addition,
          we
          believe that factors such as quarterly fluctuations in our financial results
          and
          changes in the overall economy or the condition of the financial markets
          could
          cause the price of our common stock to fluctuate substantially. These
          fluctuations may also cause short sellers to enter the market from time
          to time
          in the belief that we will have poor results in the future. We cannot predict
          the actions of market participants and, therefore, can offer no assurances
          that
          the market for our stock will be stable or appreciate over time. These
          factors
          may negatively impact our stockholders' ability to sell shares of our common
          stock.
  ***Our
          common stock is deemed to be a low priced “Penny Stock,” which may make it more
          difficult for investors to sell their shares due to suitability
          requirements.***
  Our
          common stock is deemed to be a "penny stock" as that term is defined in
          Rule
          3a51-1 promulgated under the Securities Exchange Act of 1934. These requirements
          may reduce the potential market for our common stock by reducing the number
          of
          potential investors. This may make it more difficult for investors in our
          common
          stock to sell shares to third parties or to otherwise dispose of them.
          This
          could cause our stock price to decline. Penny stocks are stock:
  **•**
                With
                    a price of less than $5.00 per
                    share;
 **•**
                That
                    are not traded on a "recognized" national
                    exchange;
 **•**
                Whose
                    prices are not quoted on the NASDAQ automated quotation system
                    (NASDAQ
                    listed stock must still have a price of not less than $5.00 per
                    share);
                    or
 **•**
                In
                    issuers with net tangible assets less than $2.0 million (if the
                    issuer has
                    been in continuous operation for at least three years) or $10.0
                    million
                    (if in continuous operation for less than three years), or with
                    average
                    revenues of less than $6.0 million for the last three
                    years.
  10
 
 Broker/dealers
          dealing in penny stocks are required to provide potential investors with
          a
          document disclosing the risks of penny stocks. Moreover, broker/dealers
          are
          required to determine whether an investment in a penny stock is a suitable
          investment for a prospective investor.
  ***We
          may acquire assets or other businesses in the future.***
  We
          may
          consider acquisitions of other assets or other business. Any acquisition
          involves a number of risks that could fail to meet our expectations and
          adversely affect our profitability.
  For
          example:
  **•**
                The
                    acquired assets or business may not achieve expected
                    results;
 **•**
                We
                    may incur substantial, unanticipated costs, delays or other operational
                    or
                    financial problems when integrating the acquired
                    assets;
 **•**
                We
                    may not be able to retain key personnel of an acquired
                    business;
 **•**
                Our
                    management’s attention may be diverted;
                    or
 **•**
                Our
                    management may not be able to manage the acquired assets or combined
                    entity effectively or to make acquisitions and grow our business
                    internally at the same time.
  If
          these
          problems arise we may not realize the expected benefits of an
          acquisition.
  ***Our
          internal controls may be inadequate, which could cause our financial reporting
          to be unreliable and lead to misinformation being disseminated to the public.***
  Our
          management is responsible for establishing and maintaining adequate internal
          control over financial reporting. As defined in Exchange Act Rule 13a-15(f),
          internal control over financial reporting is a process designed by, or
          under the
          supervision of, the principal executive and principal financial officer
          and
          effected by the board of directors, management and other personnel, to
          provide
          reasonable assurance regarding the reliability of financial reporting and
          the
          preparation of financial statements for external purposes in accordance
          with
          generally accepted accounting principles and includes those policies and
          procedures that: (i) pertain to the maintenance of records that in reasonable
          detail accurately and fairly reflect the transactions and dispositions
          of the
          assets of the Company; (ii) provide reasonable assurance that transactions
          are
          recorded as necessary to permit preparation of financial statements in
          accordance with generally accepted accounting principles, and that receipts
          and
          expenditures of the Company are being made only in accordance with
          authorizations of management and directors of the Company, and (iii) provide
          reasonable assurance regarding prevention or timely detection of unauthorized
          acquisition, use or disposition of the Company’s assets that could have a
          material effect on the financial statements.
  We
          have
          one individual performing the functions of all officers and directors.
          This
          individual is responsible for monitoring and ensuring compliance with our
          internal control procedures. As a result, our internal controls may be
          inadequate or ineffective, which could cause our financial reporting to
          be
          unreliable and lead to misinformation being disseminated to the public.
          Investors relying upon this misinformation may make an uninformed investment
          decision.
  **ITEM
                    7.**
                **FINANCIAL
                    STATEMENTS.**
  See
          Index
          to Financial Statements and Financial Statement Schedules appearing on
          page F-1
          through F-17 of this Form 10-KSB.
  11
  **ITEM
                    8.**
                **CHANGES
                    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
                    DISCLOSURE.**
  We
          have
          had no disagreements with our independent auditors on accounting or financial
          disclosures.
 
 **ITEM
                    8.A.**
                **CONTROLS
                    AND PROCEDURES.**
  We
          maintain disclosure controls and procedures designed to ensure that information
          required to be disclosed in reports filed under the Securities Exchange
          Act of
          1934, as amended, is recorded, processed, summarized and reported within
          the
          specified time periods. As of the end of the period covered by this report,
          Stephen W. Carnes, our Chief Executive Officer and Principal Financial
          Officer
          evaluated the effectiveness of our disclosure controls and procedures pursuant
          to Exchange Act Rule 13a-15. Based on the evaluation, which disclosed no
          significant deficiencies or material weaknesses, Mr. Carnes, our Chief
          Executive
          Officer and Principal Financial Officer concluded that our disclosure controls
          and procedures are effective in timely alerting him to material information
          required to be included in our periodic SEC filings.
  It
          should
          be noted, however, that no matter how well designed and operated, a control
          system can provide only reasonable, not absolute, assurance that the objectives
          of the control system are met. In addition, the design of any control system
          is
          based in part upon certain assumptions about the likelihood of future events.
          Because of these and other inherent limitations of control systems (including
          faulty judgments in decision making or breakdowns resulting from simple
          errors
          or mistakes), there can be no assurance that any design will succeed in
          achieving its stated goals under all potential conditions. Additionally,
          controls can be circumvented by individual acts, collusion or by management
          override of the controls in place.
  There
          were no changes in our internal control over financial reporting that occurred
          during our most recent fiscal quarter that have materially affected, or
          are
          reasonably likely to materially affect, our internal control over financial
          reporting.
  **ITEM
                    8.B.**
                **OTHER
                    INFORMATION.**
  None.
  **PART
          III**
  **ITEM
                    9**
                **DIRECTORS,
                    EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS and CORPORATE
                    GOVERNANCE;
                    COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE
                    ACT.**
  The
          following table sets forth the name and position of our sole officer and
          director. Directors will be elected at our annual meeting of stockholders
          and
          serve for one year or until their successors are elected and qualified.
          Officers
          are elected by the Board and their terms of office are, except to the extent
          governed by employment contract, at the discretion of the Board.
 
 **Name**
                **Age**
                **Positions
                    and Offices held**
                **Term**Stephen
                    W. Carnes
                44
                CEO,
                    President, Secretary/Treasurer and Director
                Since
                    July 2004
  **Duties,
          Responsibilities and Experience**
  **Stephen
          W. Carnes** **,** age
          44 **,** is
          Chief
          Executive Officer, President, Secretary/Treasurer and Director of the Company
          since July of 2004. Mr. Carnes is also the President, CEO and a director
          of
          Signature Leisure, Inc., a publicly traded company trading on the OTC Bulletin
          Board. From 2000 to 2003, Mr. Carnes was founder and co-owner of a private
          public relations firm that assisted companies with marketing and public
          relations. From 1998 to 2003, Mr. Carnes has been self-employed as an
          independent manufacturer’s representative acting as an outside sales
          representative for various companies. From 1982 thru 1986, Mr. Carnes attended
          Indiana University at Fort Wayne, Indiana and received a B.S. degree in
          Business
          Administration.
  12
  Election
                    of Directors and Officers.
  Directors
          are elected to serve until the next annual meeting of stockholders and
          until
          their successors have been elected and qualified. Officers are appointed
          to
          serve until the meeting of the Board of Directors following the next annual
          meeting of stockholders and until their successors have been elected and
          qualified.
  No
          Executive Officer or Director of the Corporation has been the subject of
          any
          Order, Judgment, or Decree of any Court of competent jurisdiction, or any
          regulatory agency permanently or temporarily enjoining, barring suspending
          or
          otherwise limiting him from acting as an investment advisor, underwriter,
          broker
          or dealer in the securities industry, or as an affiliated person, director
          or
          employee of an investment company, bank, savings and loan association,
          or
          insurance company or from engaging in or continuing any conduct or practice
          in
          connection with any such activity or in connection with the purchase or
          sale of
          any securities.
  No
          Executive Officer or Director of the Corporation has been convicted in
          any
          criminal proceeding (excluding traffic violations) or is the subject of
          a
          criminal proceeding which is currently pending.
  No
          Executive Officer or Director of the Corporation is the subject of any
          pending
          legal proceedings.
  **Audit
          Committee and Financial Expert**
  We
          do not
          have an Audit Committee, Stephen W. Carnes, our sole director, performs
          some of
          the same functions of an Audit Committee, such as: recommending a firm
          of
          independent certified public accountants to audit the annual financial
          statements; reviewing the independent auditors independence, the financial
          statements and their audit report; and reviewing management's administration
          of
          the system of internal accounting controls. The Company does not currently
          have
          a written audit committee charter or similar document.
  We
          have
          no financial expert. We believe the cost related to retaining a financial
          expert
          at this time is prohibitive. Further, because of our start-up operations,
          we
          believe the services of a financial expert are not warranted.
  **Code
          of Ethics**
  A
          code of
          ethics relates to written standards that are reasonably designed to deter
          wrongdoing and to promote:
  (1)
                Honest
                    and ethical conduct, including the ethical handling of actual
                    or apparent
                    conflicts of interest between personal and professional
                    relationships;
 (2)
                Full,
                    fair, accurate, timely and understandable disclosure in reports
                    and
                    documents that are filed with, or submitted to, the Commission
                    and in
                    other public communications made by an
                    issuer;
 (3)
                Compliance
                    with applicable governmental laws, rules and
                    regulations;
 (4)
                The
                    prompt internal reporting of violations of the code to an appropriate
                    person or persons identified in the code;
                    and
 (5)
                Accountability
                    for adherence to the code.
  We
          have
          not adopted a corporate code of ethics that applies to our principal executive
          officer, principal financial officer, principal accounting officer or
          controller, or persons performing similar functions in that our sole officer
          and
          director serves in all the above capacities.
  Our
          decision to not adopt such a code of ethics results from our having only
          one
          officer and director operating as the sole management for the Company.
          We
          believe that as a result of the limited interaction, which occurs having
          a sole
          officer/director for the Company eliminates the current need for such a
          code, in
          that violations of such a code would be reported to the party generating
          the
          violation.
 13
  **Corporate
          Governance**
  Nominating
          Committee
  We
          do not
          have a Nominating Committee or Nominating Committee Charter. Stephen W.
          Carnes,
          our sole director, performs some of the functions associated with a Nominating
          Committee. We have elected not to have a Nominating Committee in that we
          are a
          development stage company with limited operations and resources.
  Director
          Nomination Procedures
  Generally,
          nominees for Directors are identified and suggested by the members of the
          Board
          or management using their business networks. The Board has not retained
          any
          executive search firms or other third parties to identify or evaluate director
          candidates in the past and does not intend to in the near future. In selecting
          a
          nominee for director, the Board or management considers the following criteria:
 
 1.
                whether
                    the nominee has the personal attributes for successful service
                    on the
                    Board, such as demonstrated character and integrity; experience
                    at a
                    strategy/policy setting level; managerial experience dealing
                    with complex
                    problems; an ability to work effectively with others; and sufficient
                    time
                    to devote to the affairs of Renovo;
 2.
                whether
                    the nominee has been the chief executive officer or senior executive
                    of a
                    public company or a leader of a similar organization, including
                    industry
                    groups, universities or governmental
                    organizations;
 3.
                whether
                    the nominee, by virtue of particular experience, technical expertise
                    or
                    specialized skills or contacts relevant to Renovo’s current or future
                    business, will add specific value as a Board member;
                    and
 4.
                whether
                    there are any other factors related to the ability and willingness
                    of a
                    new nominee to serve, or an existing Board member to continue
                    his
                    service.
  The
          Board
          or management has not established any specific minimum qualifications that
          a
          candidate for director must meet in order to be recommended for Board
          membership. Rather the Board or management will evaluate the mix of skills
          and
          experience that the candidate offers, consider how a given candidate meets
          the
          Board’s current expectations with respect to each such criterion and make a
          determination regarding whether a candidate should be recommended to the
          stockholders for election as a director. During 2007, Renovo received no
          recommendation for Directors from its stockholders.
  Renovo
          will consider for inclusion in its nominations of new Board of Director
          nominees
          proposed by stockholders who have held at least 1% of the outstanding voting
          securities of Renovo for at least one year. Board candidates referred by
          such
          stockholders will be considered on the same basis as Board candidates referred
          from other sources. Any stockholder who wishes to recommend for Renovo’s
          consideration a prospective nominee to serve on the Board of Directors
          may do so
          by giving the candidate’s name and qualifications in writing to Renovo’s
          Secretary at the following address: 1375 Semoran Blvd., Casselberry, Florida
          32707.
  **Section
          16(a) Beneficial Ownership Reporting Compliance**
  Section
          16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
          requires our executive officers and directors, and persons who beneficially
          own
          more than ten percent of our common stock, to file initial reports of ownership
          and reports of changes in ownership with the SEC. Executive officers, directors
          and greater than ten percent beneficial owners are required by SEC regulations
          to furnish us with copies of all Section 16(a) forms they file. Based upon
          a
          review of the copies of such forms furnished to us and written representations
          from our executive officers and directors, we believe that during the year
          ended
          2007, Stephen W. Carnes was current in his filings.
  14
  **ITEM
                    10.**
                **EXECUTIVE
                    COMPENSATION.**
  The
          following table summarizes the total compensation paid or earned by the
          named
          executive officer and director for the fiscal years ended December 31,
          2007 and
          2006. The remuneration described in the table does not include the cost
          to the
          Company of benefits furnished to the named executive officers, including
          premiums for health insurance and other benefits provided to such individual
          that are extended in connection with the conduct of the Company’s
          business.
  **SUMMARY
                      COMPENSATION TABLE****Name
                      and Principal Position**
                    **(a)**
                  **Year**
                    **(b)**
                  **Salary
                      ($)**
                    **(c)**
                  **Bonus
                      ($)**
                    **(d)**
                  **Stock
                      Awards ($)**
                    **(e)**
                  **Option
                      Awards ($)**
                    **(f)**
                  **Non-Equity
                      Incentive Plan Compen-sation ($)**
                    **(g)**
                  **Nonqualified
                      Deferred Compensation Earnings ($)**
                    **(h)**
                  **All
                      Other Compen-sation ($)**
                    **(i)**
                  **Total
                      ($)**
                    **(j)****Stephen
                      W. Carnes,**President
                  2007
                  $250,000
                  -0-
                  -0-
                  -0-
                  -0-
                  -0-
                  $8,400(1)
                  $258,4002006
                  $250,000(2)
                  -0-
                  -0-
                  -0-
                  -0-
                  -0-
                  $8,400(3)
                  $258,400
  (1)
                Pursuant
                    to Mr. Carnes employment agreement, we agreed to give him an
                    automobile
                    allowance of $700 per month, of which all was accrued for the
                    year
                    2007
 (2)
                Of
                    the $250,000, $0 was paid, $23,000 was paid in shares of our
                    restricted
                    common stock and the remaining $227,000 was accrued for the year
                    2006.
 (3)
                Pursuant
                    to Mr. Carnes employment agreement, we agreed to give him an
                    automobile
                    allowance of $700 per month, of which all was accrued for the
                    year
                    2006.
  **Employment
          Agreement**
  On
          September 3, 2003, we entered into an Employment Agreement with Stephen
          W.
          Carnes, wherein Mr. Carnes agreed to serve as the Chairman of the Board,
          President and Chief Executive Officer of the Company. The term of the Agreement
          was for a period of three years, it commenced on August 1, 2003 and terminated
          on July 31, 2006. On August 1, 2006, we extended the termination date to
          July
          31, 2010. Pursuant to the agreement we agreed to pay Mr. Carnes a salary
          at an
          annual rate equal to the sum of $250,000. A bonus in the amount of $500,000
          will
          be paid to Mr. Carnes upon successfully completing the opening or
          merger/acquisition of our first operating business unit. A bonus of $250,000
          will be compensated to Mr. Carnes for each additional merger and/or acquisition
          and/or business unit start-up Mr. Carnes brings to the Company. Mr. Carnes
          will
          also receive an automobile allowance of $700 per month. Mr. Carnes has
          agreed to
          accrue such portions of his salary as deemed relevant by the board of directors
          until such time as the Company is adequately capitalized and able to pay
          such
          salary.
  **Termination
          of Employment**
  There
          are
          no compensatory plans or arrangements, other than those described above,
          including payments to be received from the Company, with respect to any
          person
          named in Cash Consideration set out above which would in any way result
          in
          payments to any such person because of his resignation, retirement, or
          other
          termination of such person’s employment with the Company or its subsidiaries, or
          any change in control of the Company, or a change in the person’s
          responsibilities following a change in control of the Company.
  15
  **Compensation
          of Directors**
  All
          directors will be reimbursed for expenses incurred in attending Board or
          committee, when established, meetings.
  **ITEM
                    11.**
                **SECURITY
                    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
                    STOCKHOLDER MATTERS.**
  The
          following table presents information, to the best of our knowledge, about
          the
          beneficial ownership of our common stock on March 8, 2007 relating to the
          beneficial ownership of our common stock by those persons known to beneficially
          own more than 5% of our capital stock and by our director and executive
          officer.
          The percentage of beneficial ownership for the following table is based
          on
          854,087,549 shares of common stock outstanding.
  Beneficial
          ownership is determined in accordance with the rules of the Securities
          and
          Exchange Commission and does not necessarily indicate beneficial ownership
          for
          any other purpose. Under these rules, beneficial ownership includes those
          shares
          of common stock over which the stockholder has sole or shared voting or
          investment power. It also includes shares of common stock that the stockholder
          has a right to acquire within 60 days after February 29, 2008 pursuant
          to
          options, warrants, conversion privileges or other rights. The percentage
          ownership of the outstanding common stock, however, is based on the assumption,
          expressly required by the rules of the Securities and Exchange Commission,
          that
          only the person or entity whose ownership is being reported has converted
          options or warrants into shares of our common stock.
  ***Security
                  Ownership of Management***Name
                    of Beneficial Owner (1)
                
                Number
                  of
                    Shares
                
                Percent
                  Beneficially
                  Owned
                    (2)Stephen
                    W. Carnes
                  1375
                    Semoran Blvd.
                  Casselberry,
                    Florida 32707
                
                259,375,000
                
                30%Director
                    & Officer
                
                259,375,000
                
                30%
 
 (1)
                As
                    used in this table, “beneficial ownership” means the sole or shared power
                    to vote, or to direct the voting of, a security, or the sole
                    or shared
                    investment power with respect to a security (i.e., the power
                    to dispose
                    of, or to direct the disposition of, a security).
 (2)
                Rounded
                    to the nearest whole percentage.
  **ITEM
                  12.**
                **CERTAIN
                    RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
                    INDEPENDENCE.**
  Employment
          Agreement with Steve Carnes
  On
          September 3, 2003, we entered into an Employment Agreement with Stephen
          W.
          Carnes, wherein Mr. Carnes agreed to serve as the Chairman of the Board,
          President and Chief Executive Officer of the Company. The term of the Agreement
          was for a period of three years, it commenced on August 1, 2003 and terminated
          on July 31, 2006. On August 1, 2006, we extended the termination date to
          July
          31, 2010. Pursuant to the agreement we agreed to pay Mr. Carnes a salary
          at an
          annual rate equal to the sum of $250,000. A bonus in the amount of $500,000
          will
          be paid to Mr. Carnes upon successfully completing the opening or
          merger/acquisition of our first operating business unit. A bonus of $250,000
          will be compensated to Mr. Carnes for each additional merger and/or acquisition
          and/or business unit start-up Mr. Carnes brings to the Company. Mr. Carnes
          will
          also receive an automobile allowance of $700 per month. Mr. Carnes has
          agreed to
          accrue such portions of his salary as deemed relevant by the board of directors
          until such time as the Company is adequately capitalized and able to pay
          such
          salary.
  Reimbursements/
          Salary Accrued
  As
          of
          December 31, 2007, Mr. Carnes had accrued reimbursements of $37,013, accrued
          salary of $906,166 and accrued auto allowance of $37,100.
  16
  **Director
          Independence**
  The
          Board
          of Directors has concluded that Stephen W. Carnes, being the sole director
          of
          the Company is not considered an independent director in accordance with
          the
          director independence standards of the American Stock Exchange.
  **ITEM
                    13.**
                **EXHIBITS.**
  (a)
                Exhibits
 
 **Incorporated
                    by reference****Exhibit**
                  **number**
                
                **Exhibit
                    description**
                
                **Filed**
                  **herewith**
                
                **Form**
                
                **Period**
                  **ending**
                
                **Exhibit
                    No.**
                
                **Filing**
                  **date**2.1
                
                Letter
                    of Intent to acquire James Bar Contractors, Inc. dated October
                    23, 2003
                
                
                
                SB-2
                
                
                
                2.1
                
                6/30/042.2
                
                Agreement
                    and Plan of Merger with ei3 Corporation, dated September 26,
                    2005
                
                
                
                8-K
                
                
                
                2.1
                
                9/29/052.3
                
                Amendment
                    No. 1 to Agreement and Plan of Merger with ei3 Corporation, dated
                    November
                    22, 2005
                
                
                
                8-K
                
                
                
                2.1
                
                11/28/052.4
                
                Amendment
                    No. 2 to Agreement and Plan of Merger with ei3 Corporation, dated
                    February
                    14, 2006
                
                
                
                8-K
                
                
                
                2.1
                
                2/14/063(i).1
                
                Articles
                    of Incorporation dated October 17, 2000
                
                
                
                10-SB
                
                
                
                3(i)(a)
                
                2/20/023(i).2
                
                Certificate
                    of Amendment to Articles of Incorporation dated January 10, 2002
                
                
                
                10-SB
                
                
                
                3(i)(b)
                
                2/20/023(i).3
                
                Certificate
                    of Amendment to Articles of Incorporation dated July 14, 2003
                
                
                
                10-QSB
                
                6/30/03
                
                3(i)
                
                8/6/033(i).4
                
                Certificate
                    of Amendment of Articles of Incorporation dated June 19, 2004
                
                
                
                SB-2
                
                
                
                3(i).4
                
                6/30/043(i).5
                
                Certificate
                    of Amendment of Articles of Incorporation dated September 6,
                    2007
                
                
                
                8K
                
                
                
                3(i)5
                
                9/25/073(ii).1
                
                Bylaws
                    dated October 17, 2002
                
                
                
                10-SB
                
                
                
                3(ii)
                
                2/20/02
  17
  **Incorporated
                    by reference****Exhibit**
                  **number**
                
                **Exhibit
                    description**
                
                **Filed**
                  **herewith**
                
                **Form**
                
                **Period**
                  **ending**
                
                **Exhibit
                    No.**
                
                **Filing**
                  **date**
 10.1
                
                Employment
                    Agreement with Stephen W. Carnes dated September 3, 2003
                
                
                
                10-QSB
                
                9/30/03
                
                10.1
                
                11/14/0310.2
                
                Independent
                    Contractor Agreement with Cynthia Wainwright dated October 1,
                    2003
                
                
                
                10-QSB
                
                9/30/03
                
                10.3
                
                11/14/0310.3
                
                Independent
                    Contractor Agreement with Loren Brown dated October 1,
                    2003
                
                
                
                10-QSB
                
                9/30/03
                
                10.4
                
                11/14/0310.4
                
                Independent
                    Contractor Agreement with Matt Lettau dated October 1,
                    2003
                
                
                
                10-QSB
                
                9/30/03
                
                10.5
                
                11/14/0310.5
                
                Consulting
                    Agreement with Mark Broersma dated August 27, 2003
                
                
                
                10-QSB
                
                9/30/03
                
                10.6
                
                11/14/0310.6
                
                Consulting
                    Agreement with Mike Barr dated August 27, 2003
                
                
                
                10-QSB
                
                9/30/03
                
                10.7
                
                11/14/0310.7
                
                Consulting
                    Agreement with Florida Catastrophe Corp. dated September 17,
                    2003
                
                
                
                8-K
                
                
                
                10
                
                9/17/03
 
 10.8
                
                Letter
                    Agreement with Source Capital Group, Inc. dated January 21,
                    2004
                
                
                
                10-KSB
                
                12/31/03
                
                10.8
                
                3/30/0410.9
                
                Consulting
                    Agreement with Mark Broersma dated April 29, 2004
                
                
                
                10-QSB
                
                3/31/04
                
                10.2
                
                5/17/0410.10
                
                Consulting
                    Agreement with Mike Barr dated April 29, 2004
                
                
                
                10-QSB
                
                3/31/04
                
                10.3
                
                5/17/0410.11
                
                Consulting
                    Agreement with VBg Design dated April 29, 2004
                
                
                
                10-QSB
                
                3/31/04
                
                10.4
                
                5/17/0410.12
                
                Standby
                    Equity Distribution Agreement with Cornell Capital Partners,
                    LP dated
                    April 14, 2004
                
                
                
                SB-2
                
                
                
                10.14
                
                6/30/0410.13
                
                Registration
                    Rights Agreement with Cornell Capital Partners, LP dated April
                    14,
                    2004
                
                
                
                SB-2
                
                
                
                10.15
                
                6/30/0410.14
                
                Escrow
                    Agreement with Cornell Capital Partners, LP dated April 14,
                    2004
                
                
                
                SB-2
                
                
                
                10.16
                
                6/30/0410.15
                
                Placement
                    Agent Agreement with Cornell Capital Partners, LP and Newbridge
                    Securities
                    Corporation dated April 14, 2004
                
                
                
                SB-2
                
                
                
                10.17
                
                6/30/04
  18
  **Incorporated
                      by reference****Exhibit**
                    **number**
                  
                  **Exhibit
                      description**
                  
                  **Filed**
                    **herewith**
                  
                  **Form**
                  
                  **Period**
                    **ending**
                  
                  **Exhibit
                      No.**
                  
                  **Filing**
                    **date**
 10.16
                
                Securities
                    Purchase Agreement with Cornell Capital Partners, LP dated April
                    14,
                    2004
                
                
                
                SB-2
                
                
                
                10.18
                
                6/30/0410.17
                
                Secured
                    Convertible Debenture dated April 14, 2004
                
                
                
                SB-2
                
                
                
                10.19
                
                6/30/0410.18
                
                Investor
                    Registration Rights Agreement with Cornell Capital Partners,
                    LP dated
                    April 14, 2004
                
                
                
                SB-2
                
                
                
                10.20
                
                6/30/0410.19
                
                Security
                    Agreement with Cornell Capital Partners, LP dated April 14,
                    2004
                
                
                
                SB-2
                
                
                
                10.21
                
                6/30/0410.20
                
                Warrant
                    Agreement dated April 14, 2004
                
                
                
                SB-2
                
                
                
                10.22
                
                6/30/0410.21
                
                Escrow
                    Agreement with Butler Gonzalez, LLP dated April 14, 2004
                
                
                
                SB-2
                
                
                
                10.23
                
                6/30/0410.22
                
                Assumption
                    Agreement with Stephen W. Carnes dated September 26, 2005
                
                
                
                8-K
                
                
                
                10.1
                
                9/29/0531
                
                Certification
                    of Stephen W. Carnes pursuant to Section 302 of the Sarbanes-Oxley
                    Act
                
                X32
                
                Certification
                    of Stephen W. Carnes pursuant to Section 906 of the Sarbanes-Oxley
                    Act
                
                X
  **ITEM
                    14.**
                **PRINCIPAL
                    ACCOUNTANT FEES AND
                    SERVICES.**
  *(1)
          AUDIT FEES*
  The
          aggregate fees billed for professional services rendered by Jaspers + Hall,
          PC,
          for the audit of the registrant's annual financial statements and review
          of the
          financial statements included in the registrant's Form 10-QSB or services
          that
          are normally provided by the accountant in connection with statutory and
          regulatory filings or engagements for fiscal years 2007 and 2006 were $9,000
          and
          $3,000.
  *(2)
          AUDIT-RELATED FEES*
  NONE
  *(3)
          TAX FEES*
  NONE
  *(4)
          ALL OTHER FEES*
  NONE
  *(5)
          AUDIT COMMITTEE POLICIES AND PROCEDURES*
  The
          Company does not have an audit committee.
  *(6)* If
          greater than 50 percent, disclose the percentage of hours expended on the
          principal accountant's engagement to audit the registrant's financial statements
          for the most recent fiscal year that were attributed to work performed
          by
          persons other than the principal accountant's full-time, permanent
          employees.
  Not
          applicable.
  19
  SIGNATURES
  Pursuant
            to the requirements of Section 13 or 15(d) of the Securities Exchange
            Act of
            1934, the registrant has duly caused this report to be signed on its
            behalf by
            the undersigned thereunto duly authorized.
  RENOVO
                      HOLDINGSBy:
                  /s/
                      Stephen
                      CarnesStephen
                      W. Carnes, PresidentDated:
                      March 28, 2008
  Pursuant
            to the requirements of the Securities Exchange Act of 1934, this report
            has been
            signed below by the following persons on behalf of the registrant and
            in the
            capacities and on the dates indicated.
  NAME
                    
                    OFFICE
                    
                    DATE/s/
                        Stephen
                        Carnes
                    
                    CEO/President
                    
                    March
                        28, 2008Stephen
                        W. Carnes
                    
                    Secretary/Treasurer
                        Chief Accounting Officer Director
  20
  Renovo
            Holdings
 
 Financial
            Statements
 Year
            Ended December 31, 2007
 **TABLE
          OF CONTENTS**
  PAGEIndependent
                    Auditors’ Report
                F-1Balance
                    Sheets
                F-2Statement
                    of Operations
                F-3Statement
                    of Stockholders’ Equity
                F-4Statement
                    of Cash Flows
                F-5Footnotes
                F-6
                    - F-17
  21


***JASPERS
        + HALL, PC***


*CERTIFIED
      PUBLIC ACCOUNTANTS*


***9175
      Kenyon Avenue, Suite 100***


***Denver,
      CO 80237***


***303-796-0099***




To
      the
      Board of Directors


Renovo
      Holdings




REPORT
      OF
      INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





We
      have
      audited the accompanying balance sheet of Renovo Holdings as of December 31,
      2007 and 2006, and the related statements of operations, cash flows, and changes
      in stockholders’ deficit for the years then ended and for the period October 18,
      2000 (inception) to December 31, 2007. 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.





We
      conducted our audits 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. The company is not required to
      have, nor were we engaged to perform, an audit of its internal control over
      financial reporting. Our audit included consideration of internal control over
      financial reporting as a basis for designing audit procedures that are
      appropriate in the circumstances, but not for the purpose of expressing an
      opinion on the effectiveness of the company’s internal control over financial
      reporting. Accordingly, we express no such opinion. An audit also includes
      examining, on a test basis, evidence supporting the amounts and disclosures
      in
      the financial statements, assessing the accounting principles used and
      significant estimates made by management, as well as evaluating the overall
      financial statement presentation. We believe that our audits provide a
      reasonable basis for our opinion.





In
      our
      opinion, the financial statements referred to above present fairly, in all
      material respects, the financial position of Renovo Holdings at December 31,
      2007 and 2006, and the results of its operations and its cash flows for the
      years then ended and for the period October 18, 2000 (inception) to December
      31,
      2007, in conformity with accounting principles generally accepted in the United
      States.





The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern. As described in Note 6 to the financial
      statements, the Company is in the development stage and conditions exist which
      raise substantial doubt about the Company’s ability to continue as a going
      concern. Management’s plans in regard to these matters are described in Note 7.
      The financial statements do not include any adjustments that might result from
      the outcome of this uncertainty.





/s/
      Jaspers + Hall, PC


March
      20,
      2008


F-1




**RENOVO
      HOLDINGS**


**(A
      Development Stage Company)**





**BALANCE
      SHEETS**




**December
                31,**
            
            **December
                31,****2007**
            
            **2006****ASSETS**Current
                assets:Cash
            
            $
            -
            
            $
            -Total
                current assets
            
            
            -
            
            
            -Equipment,
                net of accumulated depreciation
            
            
            -
            
            
            -Total
                Assets
            
            $
            -
            
            $
            -**LIABILITIES
                AND STOCKHOLDERS' DEFICIT**Current
                Liabilities:Accounts
                payable
            
            $
            82,472
            
            $
            84,299Payroll
                taxes payable
            
            
            24,111
            
            
            24,111Accrued
                interest payable
            
            
            37,844
            
            
            29,120Accrued
                auto allowance
            
            
            37,100
            
            
            28,700Accrued
                reimbursement to officer
            
            
            37,013
            
            
            1,650Accrued
                salary - officer
            
            
            906,166
            
            
            656,166Accrued
                redemption premium
            
            
            49,539
            
            
            49,539Secured
                convertible debenture
            
            
            159,750
            
            
            220,000Total
                current liabilities
            
            
            1,333,995
            
            
            1,093,585Stockholders'
                deficit:Preferred
                stock, $.001 par value authorized 5,000,000; no shares issued and
                outstanding as of December 31, 2007 and December 31, 2006
            
            
            -
            
            
            -Common
                stock, $.001 par value, authorized 4,900,000,000 shares; 619,687,549
                and
                499,854,216 issued and outstanding as of December 31, 2007 and December
                31, 2006
            
            
            619,687
            
            
            499,854Additional
                paid-in capital
            
            
            647,023
            
            
            706,606Deficit
                accumulated during development stage
            
            
            (2,600,705
            )
            
            (2,300,045
            )Total
                stockholders' deficit
            
            
            (1,333,995
            )
            
            (1,093,585
            )Total
                liabilities and stockholders' deficit
            
            $
            -
            
            $
            -





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





F-2




**RENOVO
      HOLDINGS**


**(A
      Development Stage Company)**





**STATEMENTS
      OF OPERATIONS**





**Twelve
                Months Ended December 31,**
            
            **For
                the Period October 18, 2000 (Inception) to December
                31,****2007**
            
            **2006**
            
            **2007**Revenue
            
            $
            -
            
            $
            -
            
            $
            -Expenses:Loss
                on sale of property
            
            
            -
            
            
            6,552
            
            
            12,108General
                and Administrative
            
            
            6,654
            
            
            2,562
            
            
            333,619Depreciation
            
            
            -
            
            
            3,142
            
            
            23,821Advertising
            
            
            -
            
            
            -
            
            
            286,900Consulting
            
            
            -
            
            
            -
            
            
            411,500Officer
                salary
            
            
            250,000
            
            
            250,000
            
            
            1,104,167Legal
                and accounting
            
            
            26,882
            
            
            89,396
            
            
            213,580Auto
                Allowance
            
            
            8,400
            
            
            8,400
            
            
            37,100Interest
                expense
            
            
            8,724
            
            
            11,632
            
            
            42,100Redemption
                premium
            
            
            -
            
            
            49,539
            
            
            49,539Other
                services - related party
            
            
            -
            
            
            -
            
            
            72,500Other
                expense
            
            
            -
            
            
            -
            
            
            13,771Total
                expenses
            
            
            300,660
            
            
            421,223
            
            
            2,600,705Net
                loss
            
            $
            (300,660
            )
            $
            (421,223
            )
            $
            (2,600,705
            )Weighted
                average number of common shares outstanding, basic and fully
                diluted
            
            
            510,425,449
            
            
            343,037,333Net
                loss per weighted share basic and fully diluted
            
            $
            (0.00
            )
            $
            (0.00
            )





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


F-3





**RENOVO
      HOLDINGS**


**(A
      Development Stage Company)**





**STATEMENT
      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**





**Common Stock**
            
            **Stock subscriptions**
            
            **Additional**
            
            **Accumulated
                During Developmental Stage**
            
            **Total
                Stockholder's****Shares**
            
            **Amount**
            
            **Receivable**
            
            **Paid-in
                Capital**
            
            **(Deficit)**
            
            **Equity**10/18/2000
                - (inception)Shares
                issued for services
            
            
            20,000,000
            
            $
            200
            
            $
            -
            
            $
            4,800
            
            $
            -
            
            $
            5,000Shares
                issued for cash
            
            
            40,000,000
            
            
            400
            
            
            -
            
            
            9,600
            
            
            -
            
            
            10,000Net
                (loss) October 18, 2000 (Inception) to December 31, 2000
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (12,849
            )
            
            (12,849
            )Balance
                - December 31, 2000
            
            
            60,000,000
            
            
            600
            
            
            -
            
            
            14,400
            
            
            (12,849
            )
            
            2,151Shares
                issued for cash
            
            
            6,200,000
            
            
            62
            
            
            -
            
            
            9,238
            
            
            -
            
            
            9,300Donated
                services
            
            
            -
            
            
            -
            
            
            -
            
            
            4,231
            
            
            -
            
            
            4,231Net
                loss for year
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (7,429
            )
            
            (7,429
            )Balance
                - December 31, 2001
            
            
            66,200,000
            
            
            662
            
            
            -
            
            
            27,869
            
            
            (20,278
            )
            
            8,253Shares
                issued for cash
            
            
            13,800,000
            
            
            138
            
            
            -
            
            
            20,562
            
            
            -
            
            
            20,700January
                10, 2002 recapitalization adjustment to additional
                paid-in-capital
            
            
            -
            
            
            79,200
            
            
            -
            
            
            (79,200
            )
            
            -
            
            
            -Donated
                services
            
            
            -
            
            
            -
            
            
            -
            
            
            6,000
            
            
            -
            
            
            6,000Net
                loss for year
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (10,647
            )
            
            (10,647
            )Balance
                - December 31, 2002
            
            
            80,000,000
            
            
            80,000
            
            
            -
            
            
            (24,769
            )
            
            (30,925
            )
            
            24,306Donated
                services
            
            
            -
            
            
            -
            
            
            -
            
            
            3,000
            
            
            -
            
            
            3,000Shares
                Cancelled by majority stockholders
            
            
            (60,000,000
            )
            
            (60,000
            )
            
            -
            
            
            60,000
            
            
            -
            
            
            -Shares
                issued for services
            
            
            45,000,000
            
            
            45,000
            
            
            -
            
            
            22,500
            
            
            -
            
            
            67,500Shares
                issued for services
            
            
            957,062
            
            
            957
            
            
            -
            
            
            115,843
            
            
            -
            
            
            116,800Net
                loss for year
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (313,527
            )
            
            (313,527
            )Balance
                - December 31, 2003
            
            
            65,957,062
            
            
            65,957
            
            
            -
            
            
            176,574
            
            
            (344,452
            )
            
            (101,921
            )Shares
                issued for cash
            
            
            13,988,094
            
            
            13,988
            
            
            -
            
            
            47,191
            
            
            -
            
            
            61,179Shares
                issued related to equity distribution agreement
            
            
            82,300,000
            
            
            82,300
            
            
            (47,000
            )
            
            317,700
            
            
            -
            
            
            353,000Shares
                issued for services
            
            
            7,887,938
            
            
            7,888
            
            
            -
            
            
            226,812
            
            
            -
            
            
            234,700Net
                loss for year
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (1,099,313
            )
            
            (1,099,313
            )Balance
                - December 31, 2004
            
            
            170,133,094
            
            
            170,133
            
            
            (47,000
            )
            
            768,277
            
            
            (1,443,765
            )
            
            (552,355
            )Shares
                issued related to equity distribution agreement
            
            
            83,758,696
            
            
            83,759
            
            
            47,000
            
            
            18,449
            
            
            -
            
            
            149,208Shares
                issued for debt repayment
            
            
            221,637,426
            
            
            221,637
            
            
            -
            
            
            (80,795
            )
            
            -
            
            
            140,842Shares
                issued for services
            
            
            9,950,000
            
            
            9,950
            
            
            -
            
            
            (7,950
            )
            
            -
            
            
            2,000Net
                loss for year
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (435,057
            )
            
            (435,057
            )Balance
                - December 31, 2005
            
            
            485,479,216
            
            
            485,479
            
            
            -
            
            
            697,981
            
            
            (1,878,822
            )
            
            (695,362
            )Shares
                issued in payment for officer salaries payable
            
            
            14,375,000
            
            
            14,375
            
            
            -
            
            
            8,625
            
            
            -
            
            
            23,000Net
                loss December 31, 2006
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (421,223
            )
            
            (421,223
            )Balance
                - December 31, 2006
            
            
            499,854,216
            
            
            499,854
            
            
            -
            
            
            706,606
            
            
            (2,300,045
            )
            
            (1,093,585
            )Shares
                issued for debt repayment
            
            
            119,833,333
            
            
            119,833
            
            
            -
            
            
            (59,583
            )
            
            -
            
            
            60,250Net
                loss December 31, 2007
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (300,660
            )
            
            (300,660
            )Balance
                - December 31, 2007
            
            
            619,687,549
            
            $
            619,687
            
            $
            -
            
            $
            647,023
            
            $
            (2,600,705
            )
            $
            (1,333,995
            )





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


F-4





**RENOVO
      HOLDINGS**


**(A
      Development Stage Company)**





**STATEMENTS
      OF CASH FLOWS**





**Twelve
                Months Ended December 31,**
            
            **For
                the Period October 18, 2000 (Inception) to December
                31,****2007**
            
            **2006**
            
            **2007****CASH
                FLOWS FROM OPERATIONS**Net
                loss
            
            $
            (300,660
            )
            $
            (421,223
            )
            $
            (2,600,705
            )Adjustments
                to reconcile net loss to net cash used for operating
                activities:Stock
                issued for services
            
            
            -
            
            
            -
            
            
            329,700Loss
                on sale of equipment
            
            
            -
            
            
            6,552
            
            
            12,108Donated
                services
            
            
            -
            
            
            -
            
            
            13,230Depreciation
            
            
            -
            
            
            3,142
            
            
            23,821Increase(decrease)
                in accounts payable
            
            
            (1,827
            )
            
            84,299
            
            
            81,951Increase
                in accrued auto allowance
            
            
            8,400
            
            
            8,400
            
            
            37,100Increase
                in accrued expenses
            
            
            8,724
            
            
            68,174
            
            
            113,988Increase
                in accrued salary -officer
            
            
            250,000
            
            
            250,000
            
            
            1,094,167Increase(decrease)
                in accrued reimbursements from officer
            
            
            35,363
            
            
            (2,211
            )
            
            55,373Net
                cash used for operating activities
            
            
            -
            
            
            (2,867
            )
            
            (839,267
            )**CASH
                FLOWS FROM INVESTING ACTIVITIES**Purchase
                of equipment
            
            
            -
            
            
            -
            
            
            (62,931
            )Proceeds
                from sale of equipment
            
            
            -
            
            
            -
            
            
            20,000Net
                cash used in investing activities
            
            
            -
            
            
            -
            
            
            (42,931
            )**CASH
                FLOWS FROM FINANCING ACTIVITIES**Issuance
                of common stock
            
            
            -
            
            
            -
            
            
            666,198Issuance
                of secured debenture
            
            
            -
            
            
            -
            
            
            300,000Proceeds
                from note payable
            
            
            -
            
            
            -
            
            
            100,000Payment
                of accrued salary to officer
            
            
            -
            
            
            -
            
            
            (165,000
            )Repayment
                of debt to officer
            
            
            -
            
            
            -
            
            
            (19,000
            )Net
                cash used in financing activities
            
            
            -
            
            
            -
            
            
            882,198Net
                increase (decrease) in cash
            
            
            -
            
            
            (2,867
            )
            
            -Cash,
                beginning of period
            
            
            -
            
            
            2,867
            
            
            -Cash,
                end of period
            
            $
            -
            
            $
            -
            
            $
            -Supplemental
                disclosureInterest
                paid
            
            $
            -
            
            $
            -
            
            $
            1,359Taxes
                paid
            
            $
            -
            
            $
            -
            
            $
            -




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


F-5




**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**FOR
      THE TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006**




**Note
      1 – Organization and summary of significant accounting principles**




Organization




The
      Company was organized October 18, 2000 (Date of Inception) under the laws of
      the
      State of Nevada, as First Impressions. The Company has not commenced significant
      operations and, in accordance with Statement of Financial Accounting Standards
      No. 7 *Accounting
      and Reporting by Development Stage Enterprises* (“SFAS
      No. 7”), the Company is considered a development stage company.




On
      July
      14, 2003, we amended our Articles of Incorporation changing our name from First
      Impressions to Fortis Enterprises. The Board of Directors determined that the
      name, "First Impressions" was limiting the Company's ability to pursue the
      expansion of our business into other marketing arenas and felt that the name
      Fortis Enterprises was more generic and allows for more flexibility in the
      future expansion of business opportunities. We also increased the total amount
      of authorized common stock from 50,000,000 shares to 100,000,000
      shares.




On
      June
      11, 2004, we amended our Articles of Incorporation changing our name from Fortis
      Enterprises to Renovo Holdings. We also increase the total mount of authorized
      common stock from 100,000,000 to 500,000,000 shares.




On
      September 20, 2007 we amended our Articles of Incorporation to increase
      our authorized common stock from 500,000,000 to 4,900,000,000.  We added
      5,000,000 shares of $0.001 par value preferred stock.




Accounting
      period




The
      Company has adopted an annual accounting period of January through
      December.




Use
      of
      estimates




The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities and disclosure of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts of revenue and expenses during the reporting period. Actual
      results could differ significantly from those estimates.




Cash
      and cash equivalents




For
      the
      purpose of the statements of cash flows, all highly liquid investments with
      maturity of three months or less are considered to be cash
      equivalents.




F-6




**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(continued)**




Revenue
      recognition




Sales
      and
      related cost of sales are generally recognized upon shipment of products. Cost
      of goods sold generally represents the cost of items sold and the related
      shipping and selling expenses.




Furniture
      and equipment -
      Furniture and equipment are stated at cost less accumulated depreciation. It
      is
      the policy of the Company to capitalize items greater than or equal to $1,000
      and provide depreciation based on the estimated useful life of individual
      assets, calculated using the straight line method.





Estimated
      useful lives range as follows:




**Years**Furniture
                and equipment
            
            
            3
                - 5Computer
                hardware
            
            
            3Vehicles
            
            
            5




Advertising
      Costs




The
      Company expenses all costs of advertising as incurred. There were no advertising
      costs included in general and administrative expenses as of December 31, 2007
      or
      December 31, 2006.




Fair
      value of financial instruments




Fair
      value estimates discussed herein are based upon certain market assumptions
      and
      pertinent information available to management as of December 31, 2007 or
      December 31, 2006. The respective carrying value of certain on-balance-sheet
      financial instruments approximated their fair values. These financial
      instruments include cash, accounts payable and notes payable. Fair values were
      assumed to approximate carrying values for cash and payables because they are
      short term in nature and their carrying amounts approximate fair values or
      they
      are payable on demand.




Stock-Based
      Compensation




During
      2004, the Company adopted the *fair
      value based method* of
      Statement of Financial Accounting Standards No. 123 (“SFAS 123”). Under the fair
      value based method, compensation cost is measured at the grant date based on
      the
      value of the award and is recognized over the service period, which is usually
      the vesting period. Stock-based compensation to vendors is recorded based upon
      the fair value of the services provided when it constitutes a more reliable
      measure of fair value than the stock price.


F-7


**RENOVO
        HOLDINGS**
 **(A
        DEVELOPMENTAL STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **(continued)**





Adoption
      of the fair value provisions of SFAS 123 did not result in a significant change
      in the financial statements of the Company.




Earnings
      per share




The
      Company has adopted Statement of Financial Accounting Standards No. 128. *Earnings
      Per Share* ("SFAS
      No. 128"). Basic earnings per common share ("EPS") calculations are determined
      by dividing net income by the weighted average number of shares of common stock
      outstanding during the year. Diluted earning per common share calculations
      are
      determined by dividing net income by the weighted average number of common
      shares and dilutive common share equivalents outstanding. During periods when
      common stock equivalents, if any, are anti- dilutive they are not considered
      in
      the computation.




Segment
      reporting




The
      Company has adopted Statement of Financial Accounting Standards No. 130, *Disclosures
      About Segments of an Enterprise and Related Information* .
      The
      Company operates as a single segment and will evaluate additional segment
      disclosure requirements as it expands its operations.




Income
      taxes




The
      Company has adopted Statement of Financial Accounting Standard No. 109, *Accounting
      for Income Taxes* ("SFAS
      No. 109") for recording the provision for income taxes. Deferred tax assets
      and
      liabilities are computed based upon the difference between the financial
      statement and income tax basis of assets and liabilities using the enacted
      marginal tax rate applicable when the related asset or liability is expected
      to
      be realized or settled. Deferred income tax expenses or benefits are based
      on
      the changes in the asset or liability each period. If available evidence
      suggests that it is more likely than not that some portion or all of the
      deferred tax assets will not be realized, a valuation allowance is required
      to
      reduce the deferred tax assets to the amount that is more likely than not to
      be
      realized. Future changes in such valuation allowance are included in the
      provision for deferred income taxes in the period of change.




The
      provision for income taxes differs from the amount computed by applying the
      statutory federal income tax rate to income before provision for income taxes
      because of differences in amounts deductible for tax purposes. Deferred income
      taxes may arise from temporary differences resulting from income and expense
      items reported for financial accounting and tax purposes in different periods.
      Deferred taxes are classified as current or non-current, depending on the
      classification of assets and liabilities to which they relate. Deferred taxes
      arising from temporary differences that are not related to an asset or liability
      are classified as current or non-current depending on the periods in which
      the
      temporary differences are expected to reverse.




F-8




**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(continued)**





Recent
      pronouncements




In
      June
      2003, the Securities and Exchange Commission (“SEC”) adopted final rules under
      Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”). Commencing with
      our annual report for the year ended December 31, 2007, we will be required
      to
      include a report of management on our internal control ever financial reporting.
      The internal control report must include a statement,




•
            of
                management’s responsibility for establishing and maintaining adequate
                internal control over our financial
                reporting;





•
            of
                management’s assessment of the effectiveness of our internal control over
                financial reporting as of year end;





•
            of
                the framework used by management to evaluate the effectiveness of
                our
                internal control over financial reporting;
                and





•
            that
                our independent accounting firm has issued an attestation report
                on
                management’s assessment of our internal control over financial reporting,
                which report is also required to be
                filed





In
      December 2005 the SEC’s advisory committee on small business recommended that
      the SEC allow most companies with market values of less than $700 million to
      avoid having their internal controls certified by auditors. The advisory
      committee recommended that most companies with market capitalizations under
      $100
      million be exempted totally. It further recommended that companies with market
      capitalizations of $100 million to $700 million not face audits of internal
      controls. Some Companies with large revenues but low market values would still
      be required to comply with the act. There can be no assurances that these
      proposals or similar proposals will be adopted.


F-9




**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(continued)**




In
      May
      2005, the FASB issued SFAS 154, “Accounting Changes and Error Corrections - a
      replacement of APB Opinion 20, “Accounting Changes” and FASB Statement No. 3,
“Reporting Accounting Changes in Interim Financial Statements”. SAFS requires
      This Statement requires retrospective  application
      to prior periods’ financial statements of changes in accounting  principle,
      unless it is impracticable to determine either the period-specific effects
      or
      the  cumulative
      effect of the change. When it is impracticable to determine the
      period  specific  effects
      of an accounting change on one or more individual prior periods  presented,
      this Statement requires that the new accounting principle be applied to
      the  balances
      of assets and liabilities as of the beginning of the earliest period for
      which  retrospective
      application is practicable and that a corresponding adjustment be made
      to  the
      opening balance of retained earnings (or other appropriate components of equity
      or  net
      assets in the statement of financial position) for that period rather than
      being  reported
      in an income statement. When it is impracticable to determine the
      cumulative  effect
      of
      applying a change in accounting principle to all prior periods, this
      Statement  requires
      that the new accounting principle be applied as if it were adopted
      prospectively  from
      the
      earliest date practicable.  This
      statement is effective  for
      accounting changes and errors made in fiscal years beginning after December
      15,
      2005.  Management
      does not expect adoption of SFAS 152 to have a material impact on the Company's
      financial statements.





In
      February 2006, the FASB issued SFAS 155, “Accounting for Certain Hybrid
      Financial Instruments." This Statement amends FASB Statements No. 133,
      Accounting for Derivative Instruments and Hedging Activities, and No. 140,
      Accounting for Transfers and Servicing of Financial Assets and Extinguishments
      of Liabilities. This Statement resolves issues addressed in Statement 133
      Implementation Issue No. Dl, “Application of Statement 133 to Beneficial
      Interests in Securitized Financial Assets.” This Statement:





a)
            Permits
                fair value remeasurement for any hybrid financial instrument that
                contains
                an embedded derivative that otherwise would require
                bifurcation.





b)
            Clarifies
                which interest-only strips and principal-only strips are not subject
                to
                the requirements of Statement 133.





c)
            Establishes
                a requirement to evaluate interests in securitized financial assets
                to
                identify interests that are freestanding derivatives or that are
                hybrid
                financial instruments that contain an embedded derivative requiring
                bifurcation.





d)
            Clarifies
                that concentrations of’ credit risk in the form of subordination are not
                embedded derivatives.


F-10


**RENOVO
        HOLDINGS**
 **(A
        DEVELOPMENTAL STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **(continued)**


e)
            Amends
                Statement 140 to eliminate the prohibition on a qualifying special-purpose
                entity from holding a derivative financial instrument that pertains
                to a
                beneficial interest other than another derivative financial
                instrument.





The
      fair
      value election provided for in paragraph 4(e) of this Statement may also be
      applied upon adoption of this Statement for hybrid financial instruments that
      had been bifurcated under paragraph 12 of Statement 133 prior to the adoption
      of
      this Statement. Earlier adoption is permitted as of the beginning of our fiscal
      year, provided we have not yet issued financial statements, including financial
      statements for any interim period, for that fiscal year. Provisions of this
      Statement may be applied to instruments that we hold at the date of adoption
      on
      an instrument-by-instrument basis.





Adoption
      of this Statement is required as of the beginning of the first fiscal year
      that
      begins after September 15, 2005. The adoption of this statement is not expected
      to have a material impact on the Company’s financial statements.





In
      March
      2006, The FASB issued SEAS 156 *,* “Accounting
      for Servicing of Financial Assets.” This Statement amends FASB Statement No.
      140, Accounting for Transfers and Servicing of Financial Assets and
      Extinguishments of Liabilities, with respect to the accounting for separately
      recognized servicing assets and servicing liabilities. This
      Statement:





a)
            Requires
                an entity to recognize a servicing asset or servicing liability each
                time
                it undertakes an obligation to service a financial asset by entering
                into
                a servicing contract in certain
                situations.





b)
            Requires
                all separately recognized servicing assets and servicing liabilities
                to be
                initially measured at fair value, if
                practicable.





c)
            Permits
                an entity to choose either the amortization method or the fair value
                measurement method for each class of separately recognized servicing
                assets and servicing liabilities.





d)
            At
                its initial adoption, permits a one-time reclassification of
                available-for-sale securities to trading securities by entities with
                recognized servicing rights, without calling into question the treatment
                of other available-for-sale securities under Statement 115, provided
                that
                the available-for-sale securities are identified in some manner as
                offsetting the entity’s exposure to changes in fair value of servicing
                assets or servicing liabilities that a servicer elects to subsequently
                measure at fair value.


F-11




**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(continued)**




e)
              Requires
                  separate presentation of servicing assets and servicing liabilities
                  subsequently measured at fair value in the statement of financial
                  position
                  and additional disclosures for all separately recognized servicing
                  assets
                  and servicing liabilities.





Adoption
      of this Statement is required as of the beginning of the first fiscal year
      that
      begins after September 15, 2006. The adoption of this statement is not expected
      to have a material impact on the Company’s financial statements.





In
      September 2006, the FASB issued Statement No. 157, “Fair Value Measurements.”
This Statement defines fair value, establishes a framework for measuring fair
      value in generally accepted accounting principles and expands disclosure about
      fair value measurement. The implementation of this guidance is not expected
      to
      have any impact on the Company’s financial statements.





In
      September 2006, the FASB issued Statement of Financial Accounting Standards
      No.
      158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
      Plans, an amendment of PASS Statements No. 87, 106, and 132(R)” (“SFAS No.
      158”). SFAS No. 158 requires companies to recognize a net liability or asset and
      an offsetting adjustment to accumulated other comprehensive income to report
      the
      funded status of defined benefit pension and other postretirement benefit plans.
      SFAS No. 158 requires prospective application, recognition and disclosure
      requirements effective for the Company’s fiscal year ending December 31, 2007.
      Additionally, SFAS No. 158 requires companies to measure plan assets and
      obligations at their year-end balance sheet date. This requirement is effective
      for the Company’s fiscal year ending December 31, 2009. The Company is currently
      evaluating the impact of the adoption of SFAS No. 258 and does not expect that
      it will have a material impact on its financial statements.





In
      September 2006, the United States Securities and Exchange Commission (“SEC”),
      adopted SAB No. 108, “Considering the Effects of Prior Year Misstatements when
      Quantifying Misstatements in Current Year Financial Statements.” This SAB
      provides guidance on the consideration of the effects to prior year
      misstatements in quantifying current year misstatements for the purpose of
      a
      materiality assessment. SAB 108 establishes an approach that requires
      quantification of financial statement errors based on the effects of each of
      the
      company’s balance sheet and statement of operations financial statements and the
      related financial statement disclosures. The SAB permits existing public
      companies to record the cumulative effect of initially applying this approach
      in
      the first year ending after November 15, 2006 by recording the necessary
      correcting adjustments to the carrying values of assets and liabilities as
      of
      the beginning of that year with the offsetting adjustment recorded to the
      opening balance of retained earnings. Additionally, the use of the cumulative
      effect transition method requires detailed disclosure of the nature and amount
      of each individual error being corrected through the cumulative adjustment
      and
      how and when it arose. The Company is currently evaluating the impact, if any,
      that SAB 108 may have on the Company’s results of operations or financial
      position.


F-12


**RENOVO
        HOLDINGS**
 **(A
        DEVELOPMENTAL STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **(continued)**


In
      July
      2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in
      Income Taxes-an interpretation of FASB Statement No. 109.” This Interpretation
      prescribes a recognition threshold and measurement attribute for the financial
      statement recognition and measurement of a tax position taken or expected to
      be
      taken in a tax return. Interpretation No. 48 also provides guidance on
      derecognition, classification, interest and penalties,  accounting
      in interim periods, disclosure, and transition. Interpretation No. 48 is
      effective for fiscal years beginning after December 15, 2006 and the Company
      is
      currently evaluating the impact, if any, that FASB No. 48 may have on the
      Company’s results of operations or financial position.




**Note
      2 – Furniture and Equipment**




Furniture
      and equipment consists of the following categories at December 31, 2007 and
      2006:




2007
            
            2006Computers
            
            
            -
            
            
            -Office
                equipment
            
            
            -
            
            
            -Software
            
            
            -
            
            
            --
            
            
            -Less
                accumulated depreciation
            
            
            -
            
            
            -Total
            
            
            -
            
            
            -




Depreciation
      expense for the year ended December 31, 2007 and 2006 totaled -0- and $3,143,
      respectively.




F-13


**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(continued)**




**Note
      3 – Secured convertible debentures**




During
      2004, the Company issued secured convertible debentures totaling $300,000 to
      a
      securities broker. These debentures mature in April 2007 and include interest
      of
      5% payable upon conversion or maturity.




The
      holder has the option to convert, at any time, all or part of the principal
      amount of the debenture, plus accrued interest, into shares of the Company’s
      common stock at a conversion price equal to the lesser of (a) 120% of the
      closing bid price of the common stock or (b) 80% of the lowest closing bid
      price
      of the Company’s common stock for the five trading days immediately preceding
      the conversion date. During the year ended December 31, 2006, $20,000 of these
      debentures were converted to 21,637,426 shares of common stock. Theses
      debentures are in default. Subsequently, for the year ended December 31, 2007,
      $60,250 of these debentures were converted to 119,833,333 shares of common
      stock.




The
      Company may redeem a portion or all of these debentures with 15 days notice
      for
      120% of the amount redeemed, plus accrued interest.




**Note
      4 – Income taxes**




Deferred
      income taxes may arise from temporary differences resulting from income and
      expense items reported for financial accounting and tax purposes in different
      periods. Deferred taxes are classified as current or non-current, depending
      on
      the classification of assets and liabilities to which they relate. Deferred
      taxes arising from temporary differences that are not related to an asset or
      liability are classified as current or non-current depending on the periods
      in
      which the temporary differences are expected to reverse.





The
      Company currently has net operating loss carryforwards aggregating approximately
      $1,500,000, which expire through 2025. The deferred tax asset of approximately
      $500,000 related to this carryforward has been fully reserved.





The
      provision for income taxes differs from the amount computed by applying the
      statutory federal income tax rate to income before provision for income taxes.
      The sources and tax effects of the differences for the periods presented are
      as
      follows:




Income
                    tax provision at the federal statutory rate
                
                
                34
                %Effect
                    of operating losses
                
                
                -34
                %0
                %


F-14




**RENOVO
        HOLDINGS**
 **(A
        DEVELOPMENTAL STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **(continued)**


Net
      deferred tax assets consist of the following:




For
                the year endedDecember
                31,2007
            
            2006Gross
                deferred tax asset
            
            $
            640,000
            
            $
            625,000Gross
                deferred tax liability
            
            
            -
            
            
            -Valuation
                allowance
            
            
            (640,000
            )
            
            (625,000
            )Net
                deferred tax asset
            
            $
            -
            
            $
            -






The
      Company did not pay any income taxes during the year ended December 31, 2007
      or
      2006.




**Note
      5 – Stockholders’ equity**




The
      Company is authorized to issue 5,000,000 shares of preferred stock with a par
      value of $0.001. Rights, preferences and other terms of the preferred stock
      will
      be determined by the board of directors at the time of issuance.





During
      the year ended December 31, 2005, the Company issued 83,758,696 shares of its
      $0.001 par value common stock to an escrow agent on behalf of Cornell Capital
      pursuant to the Standby Equity Distribution Agreement entered into on June
      30,
      2004. The Company received $79,500 in payment of the subscription receivable
      in
      2005.





In
      February 2005, the Company converted $20,000 of the secured convertible
      debenture in exchange for 21,637,426 shares of its $0.001 par value common
      stock.





On
      August
      17, 2005, the Company issued 200,000,000 shares of its par value common stock
      to
      a to its sole officer in exchange for accrued salaries valued at
      $120,000.





On
      September 30, 2006, the Company issued 14,375,000 shares of its par value common
      stock to a to its sole officer in exchange for accrued salaries valued at
      $23,000.





In
      October 2007, the Company converted $25,000 of the secured convertible debenture
      in exchange for 20,833,333 shares of its $0.001 par value common
      stock.





In
      November 2007, the Company converted $24,000 of the secured convertible
      debenture in exchange for 24,000,000 shares of its $0.001 par value common
      stock.


F-15


**RENOVO
        HOLDINGS**
 **(A
        DEVELOPMENTAL STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **(continued)**


In
      December 2007, the Company converted $11,250 of the secured convertible
      debenture in exchange for 75,000,000 shares of its $0.001 par value common
      stock.





There
      have been no other issuances of common stock.





During
      2004, management entered into a Standby Equity Distribution Agreement with
      Cornell Capital Partners (“Cornell”) in order to fund development efforts. This
      agreement calls for Cornell to purchase up to $5,000,000 of the Company’s common
      stock at a price based upon recent market activity. Purchases of stock are
      initiated by the Company as funds are needed in accordance with the
      agreement.




**Note
      6 – Going concern**




The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern which contemplates the recoverability of assets
      and the satisfaction of liabilities in the normal course of business. As noted
      above, the Company is in the development stage and, accordingly, has not yet
      generated revenues from operations. Since its inception, the Company has been
      engaged substantially in financing activities and developing its product line,
      setting up its e-commerce website, and incurring substantial costs and expenses.
      As a result, the Company incurred accumulated net losses from October 17, 2000
      (inception) through the period ended December 31, 2007 in excess of $2,600,000.
      The Company’s current liabilities exceed its current assets by $1,333,995. In
      addition, the Company's development activities since inception have been
      financially sustained through equity financing.




The
      ability of the Company to continue as a going concern is dependent upon its
      ability to raise additional capital from the sale of common stock and,
      ultimately, the achievement of significant operating revenues. The accompanying
      financial statements do not include any adjustments that might be required
      should the Company be unable to recover the value of its assets or satisfy
      its
      liabilities.




In
      order
      to fund development, management has entered into a Standby Equity Distribution
      Agreement with Cornell Capital as described in Note 5.




**Note
      7 – Warrants and options**




There
      are
      no warrants or options outstanding to acquire any additional shares of common
      stock.




F-16




**RENOVO
      HOLDINGS**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(continued)**




**Note
      8 – Related party transactions**




Amounts
      due to the Company’s chief executive officer totaled approximately $980,000 and
      $690,000 at December 31, 2007 and 2006, respectively. These amounts primarily
      represent unpaid salary and auto allowance in accordance with an employment
      agreement.




**Note
      9 – Commitments and contingent liabilities**




Legal
      matters - The
      Company is occasionally party to litigation or threat of litigation arising
      in
      the normal course of business. Management, after consultation with legal
      counsel, does not believe that the resolution of any such matters will have
      a
      material effect on the Company’s financial position or results of
      operations.





Employment
      agreement - The
      Company has entered into an employment agreement with its chief executive
      officer. This agreement establishes bonuses based upon new mergers, acquisitions
      or business unit start-ups the executive brings to the Company.




**Note
      10 – Stock-based compensation**




During
      2004, the Company adopted a consultant and employee stock compensation plan
      whereby they may issue up to 15,625,000 shares of common stock at the discretion
      of the board of directors. The purpose of the plan is to further the growth
      of
      the Company by awarding common stock for services provided.





During
      the year ended December 31, 2007, the Company did not grant any shares to
      employees, vendors and others as disclosed in the accompanying statement of
      changes in stockholders’ equity. Shares granted as compensation to non-employees
      are recorded at the fair value of the services provided since that provides
      a
      more objective source of information. Expenses included in the accompanying
      financial statements related to stock-based compensation totaled approximately
      $0 during the year ended December 31, 2007.





F-17