**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-KSB/A**

**SUNBURST      ACQUISITIONS IV, INC.**

| Colorado                                                      | 0-23561                                 | 84-1431797                                          |
|---------------------------------------------------------------|-----------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation) | (Commission                File Number) | (IRS                Employer Identification Number) |

| 595                Howe Street, Suite 206Vancouver,                BC |  V6C                2T5 |
|-----------------------------------------------------------------------|------------------------------|
| (Address                of principal executive offices)               | (Zip                Code)    |

----

----

**EXPLANATORY      NOTE **

----

**ITEM      7.**
**FINANCIAL      STATEMENTS AND EXHIBITS**

**SUNBURST      ACQUISITION IV, INC.**

**(A      Development Stage Company)**

**Consolidated      Financial Statements**

**February      28, 2005**

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**TO      THE SHAREHOLDERS OF SUNBURST ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**PROFESSIONAL      CORPORATION**

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Consolidated      Balance Sheets **

----

|                                                                          |   | **February                  28,**2005  |   | **February                  29,**2004 |
|-------------------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------|
|                                                                          |   |
| **Assets**                                                                    |   |
| **Current**                                                                   |   |                                        |   |                                  |   |   |   |   |
| Cash                and cash equivalents                                      | $      | 35,122                                      |   |                                  |   | $ | 22,077 |   |
| Accounts                receivable                                            |   | -                                           |   |                                  |   |   | 8,206 |   |
| Other                current assets                                           |   | 8,113                                       |   |                                  |   |   | 6,480 |   |
| Total                current assets                                           |   | 43,235                                      |   |                                  |   |   | 36,763 |   |
|                                                                          |   |                                        |   |                                  |   |   |   |   |
| **Other                Assets**                                               |   |                                        |   |                                  |   |   |   |   |
| Investment                in Sierra                                           |   | -                                           |   |                                  |   |   | 57,500 |   |
|                                                                          |   |                                        |   |                                  |   |   |   |   |
| **Total                Assets**                                               | $      | 43,235                                      |   |                                  |   | $ | 94,263 |   |
|                                                                          |   |                                        |   |                                  |   |   |   |   |
| **Liabilities**                                                               |   |                                        |   |                                  |   |   |   |   |
| **Current**                                                                   |   |                                        |   |                                  |   |   |   |   |
| Accounts                payable and accrued liabilities                       | $      | 31,948                                      |   |                                  |   | $ | 22,193 |   |
| Customer                deposits                                              |   | -                                           |   |                                  |   |   | 44,809 |   |
| Convertible                debenture                                          |   | 705,000                                     |   |                                  |   |   | 30,000 |   |
| Notes                payable - related parties (note 3)                       |   | 28,500                                      |   |                                  |   |   | 28,500 |   |
| **Total                Liabilities**                                          |   | 765,448                                     |   |                                  |   |   | 125,502 |   |
|                                                                          |   |                                        |   |                                  |   |   |   |   |
| **Stockholders’                Equity (Deficit)**                       |   |                                        |   |                                  |   |   |   |   |
| **Capital                Stock**                                              |   |                                        |   |                                  |   |   |   |   |
| Authorized:                                                                   |   |                                        |   |                                  |   |   |   |   |
| 20,000,000                Preferred shares without par value (note 2)         |   |                                        |   |                                  |   |   |   |   |
| 200,000,000                Common shares without par value                    |   |                                        |   |                                  |   |   |   |   |
| Issued                                                                        |   |                                        |   |                                  |   |   |   |   |
| 86,894,324                Common shares                                       |   | 2,435,977                                   |   |                                  |   |   | 1,768,868 |   |
| Additional                paid-in capital                                     |   | 457,146                                     |   |                                  |   |   | 194,391 |   |
| Accumulated                deficit during the development stage               |   | (3,621,215                                  | )      |                                  |   |   | (2,003,427 | ) |
| Accumulated                other comprehensive income                         |   | 5,879                                       |   |                                  |   |   | 8,929 |   |
| **Total                Stockholders’ Equity (Deficit**)                 |   | (722,213                                    | )      |                                  |   |   | (31,239 | ) |
|                                                                          |   |                                        |   |                                  |   |   |   |   |
| **Total                Liabilities and Stockholders’ Equity (Deficit)** | $      | 43,235                                      |   |                                  |   | $ | 94,263 |   |

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Consolidated      Statement of Stockholders’ Equity (Deficit)**

**Period      from Inception (August 27, 1997) to February 28, 2005 **

----

|                                                     |   | Numberof                Shares  |   |   | Amount    |   |   | AdditionalPaid-inCapital |   |   | StockSubscriptions |   |   | DeficitAccumulatedduring                    theDevelopmentStage |   |   | OtherComprehensiveIncome(Loss) |   | TotalStockholders’Equity(Deficit) |    |
|----------------------------------------------------------|--------|--------------------------------------|--------|--------|-----------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|-----------------------------------------------------------------|--------|--------|--------------------------------|--------|-----------------------------------------|---------|
| Common                stock issued for cash              |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| April                1999                                |   | 15,000,000                           |   | $      | 15,000    |   | $      | 0                        |   | $      | 0                  |   | $      | 0                                                               |   | $      | 0                              | $      | 15,000                                  |    |
| May                1999                                  |   | 15,000,000                           |   |   | 15,000    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 15,000                                  |    |
| July                1999                                 |   | 2,500,000                            |   |   | 2,500     |   |   | 22,500                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 25,000                                  |    |
| August                1999                               |   | 1,500,000                            |   |   | 1,500     |   |   | 13,500                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 15,000                                  |    |
| September                1999                            |   | 136,667                              |   |   | 137       |   |   | 81,863                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 82,000                                  |    |
| October                1999                              |   | 100,000                              |   |   | 100       |   |   | 59,900                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 60,000                                  |    |
| November                1999                             |   | 376,667                              |   |   | 377       |   |   | 225,623                  |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 226,000                                 |    |
| December                1999                             |   | 546,667                              |   |   | 547       |   |   | 327,453                  |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 328,000                                 |    |
| January                2000                              |   | 521,667                              |   |   | 522       |   |   | 312,478                  |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 313,000                                 |    |
| February                2000                             |   | 150,000                              |   |   | 150       |   |   | 89,850                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 90,000                                  |    |
| Net                loss for period ended                 |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| February                29, 2000                         |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | (536,237                                                        | )      |   | 0                              |   | (536,237                                | )       |
| Balance,                February 29, 2000                |   | 35,831,668                           |   |   | 35,833    |   |   | 1,133,671                |   |   | 0                  |   |   | (536,237                                                        | )      |   | 0                              |   | 632,763                                 |    |
| Recapitalization                of                       |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| HollywoodBroadcasting.com                                |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| December                4, 2000                          |   | 9,070,831                            |   |   | 1,309,283 |   |   | (1,133,167               | )      |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 176,116                                 |    |
| Net                loss for year ended                   |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| February                28, 2001                         |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | (1,630,777                                                      | )      |   | 0                              |   | (1,630,777                              | )  |
| Balance,                February 28, 2001                |   | 44,902,499                           |   |   | 1,345,116 |   |   | 0                        |   |   | 0                  |   |   | (2,167,014                                                      | )      |   | 0                              |   | (821,898                                |    |
| Cancellation                of shares                    |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| December                4, 2000                          |   | (15,000,000                          | )      |   | 0         |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 0                                       |    |
| Common                stock issued for cash              |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| June                2001                                 |   | 235,000                              |   |   | 7,050     |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 7,050                                   |    |
| July                2001                                 |   | 945,000                              |   |   | 28,351    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 28,351                                  |    |
| August                2001                               |   | 350,000                              |   |   | 10,500    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 10,500                                  |    |
| September                2001                            |   | 350,000                              |   |   | 10,500    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 10,500                                  |    |
| October                2001                              |   | 330,000                              |   |   | 9,900     |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 9,900                                   |    |
| Net                income for year ended                 |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| February                28, 2002                         |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | 721,350                                                         |   |   | 0                              |   | 721,350                                 |    |
| Balance,                February 28, 2002                |   | 32,112,499                           |   |   | 1,411,417 |   |   | 0                        |   |   | 0                  |   |   | (1,445,664                                                      | )      |   | 0                              |   | (34,247                                 | )  |
| Common                stock issued for cash              |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| September                2002                            |   | 1,082,098                            |   |   | 110,126   |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 110,126                                 |    |
| November                2002                             |   | 943,000                              |   |   | 94,300    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 94,300                                  |    |
| Common                stock issued in exchange of debt   |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| September                2002                            |   | 220,000                              |   |   | 22,000    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 22,000                                  |    |
| Options                issued                            |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| March                2002                                |   | 0                                    |   |   | 31,000    |   |   | 31,000                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 62,000                                  |    |
| June                2002                                 |   | 0                                    |   |   | 0         |   |   | 17,320                   |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 17,320                                  |    |
| Options                exercised                         |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| April                2002                                |   | 1,000,000                            |   |   | 30,000    |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 30,000                                  |    |
| September                2002`                           |   | 100,000                              |   |   | 3,000     |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 3,000                                   |    |
| Foreign                exchange translation adjustment   |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | (5,810                         |   | (5,810                                  | )  |
| Net                loss for year ended February 28, 2003 |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | (200,802                                                        | )      |   | 0                              |   | (200,802                                | )  |
| Balance,                February 28, 2003                |   | 35,457,597                           |   |   | 1,701,843 |   |   | 48,320                   |   |   | 0                  |   |   | (1,646,466                                                      | )      |   | (5,810                         |   | 97,887                                  |    |
| Capital                contribution                      |   | 0                                    |   |   | 0         |   |   | 16                       |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 16                                      |    |
| Stock                subscriptions                       |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 67,025             |   |   | 0                                                               |   |   | 0                              |   | 67,025                                  |    |
| Options                issued                            |   |                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                            |   |   |                           |   |                                    |    |
| March                2003                                |   | 0                                    |   |   | 0         |   |   | 146,055                  |   |   | 0                  |   |   | 0                                                               |   |   | 0                              |   | 146,055                                 |    |
| Foreign                exchange translation adjustment   |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | 0                                                               |   |   | 14,739                         |   | 14,739                                  |    |
| Net                loss for year ended February 29, 2004 |   | 0                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | (356,961                                                        | )      |   | 0                              |   | (356,961                                | )  |
| Balance,                February 28, 2004                |   | 35,457,597                           |   | $      | 1,701,843 |   | $      | 194,391                  |   | $      | 67,025             |   | $      | (2,003,427                                                      | )      | $      | 8,929                          | $      | (31,239                                 | )       |

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Consolidated      Statement of Stockholders’ Equity (Deficit)**

**(Continued)      **

----

|                                                       |   | Number   of                  Shares    |   |   | Amount    |   |   | AdditionalPaid-inCapital |   |   | StockSubscriptions |   |   | DeficitAccumulatedduring                        theDevelopmentStage |   |   |  OtherComprehensiveIncome(Loss) |                                                                  | TotalStockholders’Equity(Deficit) |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|---------------------------------------------------------------------|--------|--------|--------------------------------------|-----------------------------------------------------------------------|-----------------------------------------|
|                                                       |   |                                                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                                |   |   |                                 |                                                                  |                                    |
| Balance,                  February 28, 2004                |   | 35,457,597                                                           |   | $      | 1,701,843 |   | $      | 194,391                  |   | $      | 67,025             |   | $      | (2,003,427                                                          | )      | $      | 8,929                                | $                         (31,239) |
| Common                  stock issued in Share Exchange     |   | 43,000,000                                                           |   |   | 430,000   |   |   | 0                        |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 430,000                                                               |
| Common                  stock issued for cash              |   |                                                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                                |   |   |                                 |                                                                  |
| March                  2004                                |   | 3,650,000                                                            |   |   | 73,000    |   |   | 0                        |   |   | (67,025            | )      |   | 0                                                                   |   |   | 0                                    | 5,975                                                                 |
| May                  2004                                  |   | 2,011,095                                                            |   |   | 196,134   |   |   | 0                        |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 196,134                                                               |
| Options                  exercised                         |   |                                                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                                |   |   |                                 |                                                                  |
| March                  2004                                |   | 1,000,000                                                            |   |   | 20,000    |   |   | 0                        |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 20,000                                                                |
| July                  2004                                 |   | 1,500,000                                                            |   |   | 15,000    |   |   | 0                        |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 15,000                                                                |
| Options                  issued                            |   |                                                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                                |   |   |                                 |                                                                  |
| May                  2004                                  |   | 0                                                                    |   |   | 0         |   |   | 175,800                  |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 175,800                                                               |
| March                  2004                                |   | 0                                                                    |   |   | 0         |   |   | 86,955                   |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 86,955                                                                |
| Warrants                  exercised                        |   | 275,632                                                              |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | 0                                                                   |   |   | 0                                    | 0                                                                     |
| Foreign                  exchange translation adjustment   |   | 0                                                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | 0                                                                   |   |   | (3,050                               | (3,050)                                                               |
| Net                  loss for year ended February 28, 2005 |   | 0                                                                    |   |   | 0         |   |   | 0                        |   |   | 0                  |   |   | (1,617,788                                                          | )      |   | 0                                    | (1,617,788)                                                           |
|                                                       |   |                                                                 |   |   |      |   |   |                     |   |   |               |   |   |                                                                |   |   |                                 |                                                                  |                                    |
| Balance,                  February 28, 2005                |   | 86,894,324                                                           |   | $      | 2,435,977 |   | $      | 457,146                  |   | $      | 0                  |   | $      | (3,621,215                                                          | )      | $      | 5,879                                | $                       (722,213)            |

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Consolidated      Statement of Operations and Retained Earnings (Deficit) **

----

|                                                                               |   | **February                  28,**2005  |   |   | **Year                    Ended**February 29,2004 |   |   | **Period**fromInception(August                              27, 1997)to February                            28,2005 |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                                               |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
| **Revenues**                                                                       | $      | -                                           |   | $      | 13,580                                            |   | $      | 246,395                                                                                                             |   |
| **Expenses**                                                                       |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
| Cost                of goods sold                                                  |   | -                                           |   |   | 8,082                                             |   |   | 24,721                                                                                                              |   |
| Selling,                general and administrative                                 |   | 324,365                                     |   |   | 357,879                                           |   |   | 1,756,867                                                                                                           |   |
| **Total                Expenses**                                                  |   | 324,365                                     |   |   | 365,961                                           |   |   | 1,781,588                                                                                                           |   |
| Net                Operating Loss                                                  |   | (324,365                                    | )      |   | (352,381                                          | )      |   | (1,535,193                                                                                                          | )      |
| Other                Income and Expense                                            |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
| Interest                expense                                                    |   | (180,123                                    | )      |   | (4,580                                            | )      |   | (221,364                                                                                                            | )      |
| Gain                on sale of securities                                          |   | -                                           |   |   | -                                                 |   |   | 469,863                                                                                                             |   |
| Acquisition                of resource properties                                  |   | (1,113,300                                  | )      |   | -                                                 |   |   | (1,113,300                                                                                                          | )      |
| Net                Loss from Continuing Operations                                 |   | (1,617,788                                  | )      |   | (356,961                                          | )      |   | (2,399,994                                                                                                          | )      |
| Discontinued                Operations                                             |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
| ** **Loss                from operations of** **HolywoodBroadcasting.com |   | -                                           |   |   | -                                                 |   |   | (2,066,371                                                                                                          | )      |
| **Gain                on disposition of discontinued operations**                  |   | -                                           |   |   | -                                                 |   |   | 845,150                                                                                                             |   |
| Net                Loss                                                            |   | (1,617,788                                  | )      |   | (356,961                                          | )      |   | (3,621,215                                                                                                          | )      |
| Accumulated                Deficit, Beginning of Period                            |   | (2,003,427                                  | )      |   | (1,646,466                                        | )      |   | -                                                                                                                   |   |
| **Accumulated                Deficit, End of Period**                              | $      | (3,621,215                                  | )      | $      | (2,003,427                                        | )      | $      | (3,621,215                                                                                                          | )      |
| **Other                Comprehensive Income (Loss)**                               |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
| Foreign                exchange gain on translation                                |   | 5,879                                       |   |   | 14,739                                            |   |   | 14,807                                                                                                              |   |
| **Total                Comprehensive Loss**                                        | $      | (1,611,911                                  | )      | $      | (342,222                                          | )      | $      | (3,606,408                                                                                                          | )      |
| **Total                Loss Per Share**                                            | $      | (0.02                                       | )      | $      | (0.01                                             | )      |   |                                                                                                                |   |
| Weighted                Average Number of Shares of                                |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
| Common                Stock and Common Stock                                       |   |                                        |   |   |                                              |   |   |                                                                                                                |   |
|  **Equivalents                Outstanding**                                   |   | 73,984,330                                  |   |   | 35,457,597                                        |   |   |                                                                                                                |   |

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Consolidated      Statements of Cash Flows **

----

|                                                             |   | **February                  28,**2005 |   |   | **Year                    Ended**February 29,2004 |   |   | **Period**fromInception(August                      27, 1997)to February 28,2005 |   |
|------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|
| **Operating                Activities**                          |   |                                  |   |   |                                              |   |   |                                                                             |   |
| Net                loss                                          | $      | (1,617,788                            | )      | $      | (356,961                                          | )      | $      | (3,621,215                                                                       | )      |
| **Adjustments                to reconcile net income (loss) to** |   |                                  |   |   |                                              |   |   |                                                                             |   |
| **net                cash flows**                                |   |                                  |   |   |                                              |   |   |                                                                             |   |
| Write-off                of note receivable                      |   | 57,500                                |   |   | -                                                 |   |   | 57,500                                                                           |   |
| Acquisition                of resources properties for shares    |   | 430,000                               |   |   | -                                                 |   |   | 430,000                                                                          |   |
| Discount                on Convertible Debenture                 |   | 175,000                               |   |   | -                                                 |   |   | 175,000                                                                          |   |
| Gain                on sale of securities                        |   | -                                     |   |   | -                                                 |   |   | (469,863                                                                         | )      |
| Effect                of Foreign Currency translation on cash    |   | 10,096                                |   |   | 14,739                                            |   |   | 19,025                                                                           |   |
| Issuance                of options                               |   | 262,755                               |   |   | 146,055                                           |   |   | 488,130                                                                          |   |
| Allowance                for doubtful accounts                   |   | -                                     |   |   | -                                                 |   |   | 88,360                                                                           |   |
| Discontinued                operations                           |   | -                                     |   |   | -                                                 |   |   | (846,150                                                                         | )      |
| Increase                (decrease) in inventory                  |   | -                                     |   |   | 22,245                                            |   |   | (57,705                                                                          | )      |
| Increase                (decrease) in other assets               |   | 1,633                                 |   |   | 84,380                                            |   |   | (480,104                                                                         | )      |
| Increase                (decrease) in accounts receivable        |   | (8,206                                | )      |   | 13,038                                            |   |   | (37,910                                                                          | )      |
| Increase                in accrued expenses                      |   | -                                     |   |   | 4,580                                             |   |   | 150,218                                                                          |   |
| Increase                (decrease) in customer deposits          |   | (44,809                               | )      |   | 44,809                                            |   |   | -                                                                                |   |
| Increase                (decrease) in accounts payable and       |   |                                  |   |   |                                              |   |   |                                                                             |   |
| accrued                liabilities                               |   | 9,755                                 |   |   | 74                                                |   |   | 134,987                                                                          |   |
| Amortization                                                     |   | -                                     |   |   | -                                                 |   |   | 52,332                                                                           |   |
| **Operating                Cash Flow**                           |   | (724,064                              | )      |   | (27,041                                           | )      |   | (3,917,395                                                                       | )      |
| Investing                Activities                              |   |                                  |   |   |                                              |   |   |                                                                             |   |
| Purchase                of investment                            |   | -                                     |   |   | -                                                 |   |   | (22,353                                                                          | )      |
| **Maturity                of investment**                        |   | -                                     |   |   | -                                                 |   |   | 22,353                                                                           |   |
| **Proceeds                from sale of securities**              |   | -                                     |   |   | -                                                 |   |   | 394,863                                                                          |   |
| Purchase                of property and equipment                |   | -                                     |   |   | -                                                 |   |   | (208,585                                                                         | )      |
| Cash                Provided by Investing Activities             |   | -                                     |   |   | -                                                 |   |   | 186,278                                                                          |   |
| **Financing                Activities**                          |   |                                  |   |   |                                              |   |   |                                                                             |   |
| Issuance                of note receivable                       |   | -                                     |   |   | (57,500                                           | )      |   | (57,500                                                                          | )      |
| Related                party debt                                |   | -                                     |   |   | -                                                 |   |   | 691,056                                                                          |   |
| Proceeds                from notes payable to stockholders       |   | -                                     |   |   | -                                                 |   |   | 548,191                                                                          |   |
| Proceeds                from notes payable                       |   | -                                     |   |   | -                                                 |   |   | 100,500                                                                          |   |
| Proceeds                from convertible debenture               |   | 500,000                               |   |   | 30,000                                            |   |   | 530,000                                                                          |   |
| Proceeds                from exercise of options                 |   | 35,000                                |   |   | -                                                 |   |   | 68,000                                                                           |   |
| Stock                subscriptions                               |   | -                                     |   |   | 67,025                                            |   |   | 67,025                                                                           |   |
| Paid-in                capital                                   |   | -                                     |   |   | 16                                                |   |   | 16                                                                               |   |
| Issuance                of common stock                          |   | 201,109                               |   |   | -                                                 |   |   | 1,818,951                                                                        |   |
|                                                             |   | 737,109                               |   |   | 39,541                                            |   |   | 3,766,239                                                                        |   |
| Inflow                of Cash and Cash Equivalents               |   | 13,045                                |   |   | 12,500                                            |   |   | 35,122                                                                           |   |
| Cash                and Cash Equivalents, Beginning of Year      |   | 22,077                                |   |   | 9,577                                             |   |   | 0                                                                                |   |
|                                                             |   |                                  |   |   |                                              |   |   |                                                                             |   |
| **Cash                and Cash Equivalents, End of Year**        | $      | 35,122                                |   | $      | 22,077                                            |   | $      | 35,122                                                                           |   |

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**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

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| **1.  ** | **SIGNIFICANT                ACCOUNTING POLICIES** |
|--------------------|----------------------------------------------------|

| (a)   | Development                stage activities and basis of                presentation |
|-----------------|--------------------------------------------------------------------------------------|

| (b)   | Accounting                method |
|-----------------|----------------------------------|

| (c)   | Fiscal                year |
|-----------------|----------------------------|

| (d)   | Principles                of consolidation |
|-----------------|--------------------------------------------|

| (e)   | Accounts                receivable |
|-----------------|------------------------------------|

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**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004**

----

| **1.  ** | **SIGNIFICANT                ACCOUNTING POLICIES**                (Continued) |
|--------------------|-------------------------------------------------------------------------------|

| (f)   | Financial                instruments |
|-----------------|--------------------------------------|

| (g)   | Advertising                costs |
|-----------------|----------------------------------|

| (h)   | Cash                and cash equivalents |
|-----------------|------------------------------------------|

| (i)   | Loss                per share |
|-----------------|-------------------------------|

| (j)   | Impairment                or disposal of long-lived assets |
|-----------------|------------------------------------------------------------|

| (k)   | Use                of estimates |
|-----------------|---------------------------------|

| (l)   | Consideration                of other comprehensive income items |
|-----------------|------------------------------------------------------------------|

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **1.  ** | **SIGNIFICANT                ACCOUNTING POLICIES**                (Continued) |
|--------------------|-------------------------------------------------------------------------------|

| (m)   | Stock-based                compensation |
|-----------------|-----------------------------------------|

**2003**

| (n)   | Income                taxes |
|-----------------|-----------------------------|

| (o)   | Recent                accounting pronouncements |
|-----------------|-------------------------------------------------|

| i.   | In                January 2003 the FASB issued interpretation No. 46, Consolidation                of                Variable Interest Entities, an interpretation of Accounting Research                Bulletin No. 51, Consolidated Financial Statements. Interpretation                46                establishes accounting guidance for consolidation of variable interest                entitles that function to support the activities of the primary                beneficiary. Interpretation 46 applies to any business enterprise                both                private and public that has a controlling interest, contractual                relationship or other business relationship with a variable interest                entity. The company has no investment in or contractual relationship                or                other business relationship with a variable interest entity and therefore                the adoption did not have any impact on the Company’s consolidated                financial position, results of operations or cash                flows. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **1.  ** | **SIGNIFICANT                ACCOUNTING POLICIES**                (Continued) |
|--------------------|-------------------------------------------------------------------------------|

| ii.   | On                April 30, 2003 the FASB issued Statement No. 149, Amendment of Statement                133 on Derivative Instruments and Hedging Activities. Statement 149                is                intended to result in more consistent reporting of contracts as either                freestanding derivative instruments subject to Statement 133 in its                entirety, or as hybrid instruments with debt host contracts and embedded                derivative features. In addition, Statement 149 clarifies the definition                of a derivative by providing guidance on the meaning of initial net                investments related to derivatives. Statement 149 is effective for                contracts entered into or modified after June 30, 2003. The adoption                of                Statement 149 did not have any effect on the Company’s consolidated                financial position, results of operation or cash                flows. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | On                May 15, 2003 the FASB issued Statement No. 150, Accounting For Certain                Financial Instruments with Characteristics both Liabilities and Equity.                Statement 150 establishes standards for classifying and measuring                as                liabilities certain financial instruments that embody obligations                of the                issuer and have characteristics of both liabilities and equity. Statement                150 represents a significant change in practice in the accounting                for a                number of financial instruments, including mandatory redeemable equity                instruments and certain equity derivatives that frequently are used                in                connection with share repurchase programs. Statement 150 is effective                for                all financial instruments created or modified after May 31, 2003                and to                other instruments as of September 1, 2003. The adoption of Statement                150                on June 1, 2003 did not have any impact on its consolidated financial                position, results of operations or cash                flows. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | In                2004, FASB issued a revision of FASB Statement No. 123, Accounting                for                Stock-Based Compensation. This Statement supersedes APB Opinion No.                25,                Accounting for Stock Issued to Employees, and its related implementation                guidance. The revised pronouncement requires that all stock options                and                warrants be accounted for using the Fair Value Method. This pronouncement                will impact on the Company, as the Company currently accounts for                all                options and warrants using the Intrinsic Value                Method. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | FIN                46(R), Consolidation of Variable Interest Entities, applies at different                dates to different types of enterprises and entitles, and special                provisions apply to enterprises that have fully or partially applied                Interpretation 46 prior to issuance of Interpretation 46®. Application of                Interpretation 46 or Interpretation 46® is required in financial                statements of public entities that have public interests in variable                interest entities or potential variable interest entities commonly                referred to as special-purpose entities for periods ending after                December                15, 2003. Application by public entities (other than small business                issuers) for all other types of entities is required in financial                statements for periods ending after March 15, 2004. Application by                small                business issuers to entities other than special-purpose entitles                and by                non-public entities is required at various dates in 2004 and 2005.                There                is no impact on the Company’s financial                statements. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | In                December 2004, the FASB issued SFAS Statement No. 153, “Exchanges of                Nonmonetary Assets.” The statement is an amendment of APB Opinion No. 29                to eliminate the exception for nonmonetary exchanges of similar productive                assets and replaces it with a general exception for exchanges of                nonmonetary assets that do not have commercial substance. The Company                believes that the adoption of this standard will have no material                impact                on its financial statements. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **2.  ** | **STOCKHOLDERS’                EQUITY** |
|--------------------|-----------------------------------------------|

| **3.  ** | **RELATED                PARTY TRANSACTIONS** |
|--------------------|-----------------------------------------------|

| **4.  ** | **INCOME                TAXES** |
|--------------------|---------------------------------|

| **5.  ** | **INVESTMENT                IN PROLOGIC MANAGEMENT SYSTEMS,                INC.** |
|--------------------|-----------------------------------------------------------------------------------|

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **6.  ** | **GOING-CONCERN** |
|--------------------|-------------------|

| **7.  ** | **DISTRIBUTION                AGREEMENT** |
|--------------------|-------------------------------------------|

| **8.  ** | **SALE                OF DISCONTINUED OPERATIONS** |
|--------------------|----------------------------------------------------|

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **9.  ** | **STOCK                COMPENSATION PROGRAM** |
|--------------------|-----------------------------------------------|

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **10.  ** | **CONVERTIBLE                DEBENTURE** |
|---------------------|------------------------------------------|

**11.       **
**ACQUISITION      OF SIERRA MINERALS AND MINING, INC.**

----

**SUNBURST      ACQUISITIONS IV, INC.**

**(A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**Years      Ended February 28, 2005 and 2004 **

----

| **11.  ** | **ACQUISITION                OF SIERRA MINERALS AND MINING, INC.**(Continued) |
|---------------------|-------------------------------------------------------------------------------|

|   | The                joint venture agreement between Sierra and MRT requires Sierra to                invest                cash totalling $1,000,000 by June 30, 2004, and to secure a $2,000,000                line of credit for the joint venture within sixty days of signing                the                joint venture agreement.  MRT will contribute the properties.                 The joint venture is to be owned 60% by Sierra and 40% by MRT, however,                should Sierra fail to secure the line of credit, its interest shall                be                reduced to 30% and the interest of MRT shall be increased to 70%.                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**12.**
**SUBSEQUENT      EVENTS**

**Sierra      Minerals and Mining, Inc.**

----

**SIGNATURES**

**MEXORO      MINERALS LTD.**

----