UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
DC 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




Pure
Play Music, Ltd.


(formally
known as Latin Television, Inc.)





(Name of
small business issuer in its charter)




NEVADA
            0-50069
            22-2991753(State or other
      jurisdiction
              of incorporation or
      organization)
            Commission
              File
      Number
            (I.R.S.
      Employer
              Identification
      No.)




3200
Airport Avenue, Ste. 20, Santa Monica, CA 90405





(Address
of Principal Executive Office)   (Zip Code)




310-636-9224





(Registrant's
telephone number, including Area Code)




SECURITIES
REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: NONE





SECURITIES
REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:





COMMON
STOCK, PAR VALUE $.001 PER SHARE





(Title of
Class)












Check
whether the issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act during the past 12 months, and (2) has
been subject to such filing requirements for the past 90 days.  x
Yes   o No





Check if
there is no disclosure of delinquent filers pursuant to Item 405 of Regulation
S-B is not 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 Act). x Yes  o No





The
issuer's revenues for the fiscal year ended December 31, 2007 were
$0.





Number of
shares outstanding of registrant's Common Stock, as of December 31, 2007 was
54,385 shares.




DOCUMENTS
INCORPORATED BY REFERENCE





Registrants
SB2, AMENDMENT 4, dated May, 1, 2002, is herein incorporated by reference
throughout PART I, II and III of this report.





Transitional
Small Business Disclosure Format (check one)     x
Yes   o No







PART
I
 
 ITEM 1.
DESCRIPTION OF BUSINESS
 
 Overview
 
 The
Company was incorporated in New Jersey on August 11, 1989. From inception until
1992, the Company acted as consultants and engineers providing research and
development for manufacturers and clients using RF Broadband technology for
video and data products.  Beginning in 1992, the Company began to
design and install video conference and video presentation systems.
 
 The
Company became a wholly owned subsidiary of Visual Telephone of New Jersey,
Inc., a publicly traded Delaware corporation and changed its name to Visual
Telephone International, Inc. in 1996. The Company was a wholly owned subsidiary
of Visual Telephone until 1999, when the shares were distributed to the
shareholders of Visual Telephone pursuant to an Agreement and Plan of
Reorganization.  Since 1999, the Company operated as a separate and
autonomous entity. On July 15, 1999, the Company changed its domicile from New
Jersey to Nevada pursuant with merger agreement.  In November 1999 the
company purchased the assets of Optel, of Syosset, NY, that principle asset was
the exclusive rights to the Tele-Writer-AGS (Advanced Graphics System)
software.
 
 In 2002,
the Company phased its PC based desktop video conferencing products. The Company
continued to support and develop the software embedded into the operating system
of the TeleWRITER AGS system until 2006.  On or about November 22,
2006 the Board of Directors voted to discontinue further funding for the program
and withdrew its ownership position in TeleWRITER Corporation, resending the
funding agreement and ownership position, directing its accounts to write off
the debt as uncollectible.
 
 After
years of reoccurring losses, the management and Board of Directors of the
Company determined it to be in the best interest of the shareholders to merge
with a going corporation and move the Company forward in a positive
direction.
 
 On or
about March 13, 2007 the Company filed a Schedule 14C seeking to amend its
Articles of Incorporation.  It was accepted by the U.S. Securities
Exchange Commission and was mailed to all shareholders on March 19, 2007 to vote
on the proposed amendments.  The Company obtained the written consent
of the majority of shareholders of the outstanding capital stock of the
corporation approving the adoption of proposed amendments to the Articles of
Incorporation.  The amendments changed the name of the Company to Stratus
Entertainment, Inc. and changed the capital structure to provide for one class
of Common Stock with 400,000,000 shares authorized and a class of Preferred
Stock with 5,000,000 shares authorized but preferences
undefined.  Additionally, the amendment effected a one for 3,000
reverse split of the issued and outstanding common shares.  The
Company was issued a new trading symbol of SRTU. On July 20, 2007 the Company
authorized a 5 for 1 forward split.
  1
  On August
14, 2007, the Company entered into an Asset Purchase Agreement with THE League
Publishing, Inc., a Nevada Corporation, (formally known as Latin Television,
Inc., symbol LTVI.PK) whereby the Company would purchase certain assets
associated with Latin Television.  The Company purchased the Latin
Television’s Intellectual Property Rights (trademarks and logos), broadcasting
rights to certain programs previously produced for Latin Television and a small
amount of studio equipment.  The Company issued 1,500,000 of
restricted common stock as purchase price for those assets.
 
 The
Company formulated a plan whereby it would use the purchased assets to enter
into the Spanish language television market.  On August 29, 2007
the shareholders of the Company consented to an amendment to the Articles of
Incorporation of the Company to change the name of the company to Latin
Television, Inc. The Company’s name change became effective September 10,
2007. The NASDAQ assigned the Company a new trading symbol of LTVS.
 
 The
Company never generated any revenue as Latin Television.
 
 On
November 15, 2007, the Company rescinded the Asset Purchase Agreement with THE
League Publishing, Inc. and returned all the Latin Television
assets.  Additionally, THE League Publishing, Inc. has returned the
1,500,000 restricted purchase shares to the treasury of the
Company.
 
 On June
12, 2008 the Company has changed its name from Latin Television, Inc to Pure
Play Music, LTD. The Company has filed an amended Articles of Incorporation
reflecting the name change with the Nevada Secretary of
State.  Additionally, the Company has made an application to NASDAQ
obtain a new CUSIP number and a new trading symbol.  The Company
has conducted negotiations with potential merger candidates.
 
 Also on
June 12, 2008,the
Company effected a 1,000 for 1 reverse stock split of the Company’s common
shares outstanding and increased the number of preferred shares authorized to
10,000,000 with a par value of $ .001.
 
 DESCRIPTION
OF OUR BUSINESS SEGMENTS
  Currently
the Company has no business operations.  The sole officer and director
of the Company, Mr. Derek J. Jones, is currently searching and evaluating
possible merger candidates, asset purchases, and/or other
opportunities.
  2
  EMPLOYEES
 
 As of December 31, 2007, the Company
had no employees.  Mr. Derek J. Jones is serving the company part-time
as the sole executive. He is also the sole director of the Company. Mr. Jones is
uncompensated and does not have an employment agreement with the
Company.  There are not collective bargaining agreements.
 
 The Company has retained Cohiba
Partners, Inc. as an independent contractor to act as consultants to assist the
Company in identifying potential merger candidates and facilitating those
transactions.  Further, Cohiba Partners, Inc. is engaged to provide
general investment banking services for the Company.
 
 ADDITIONAL
INFORMATION
 
 The Company filed a SECregistration statement on
Form SB-2 under the Securities Act of 1933 to register our common
stock.  Our SEC registration became effective May 8, 2002. The company
was cleared by NASD and assigned the trading symbol CRHI. The company was
cleared to commence trading on or about May 5, 2003. The Company posted a
Bid/Ask on the Over the Counter Pink Sheets on or about October 21, 2003 and on
or about November 6, 2003, was authorized to trade on the Over the Counter
Bulletin Board. On or about November 29, 2004 the company was approved to
increase its Class A shares authorized to 160,000,000 and Class B Convertible
shares authorized to 2,000,000.
 
 On or
about March 13, 2007 the Company filed a Schedule 14C seeking to amend its
Articles of Incorporation.  It was accepted by the U.S. Securities
Exchange Commission and was mailed to all shareholders on March 19, 2007 to vote
on the proposed amendments.  The Company obtained the written consent
of the majority of shareholders of the outstanding capital stock of the
corporation approving the adoption of proposed amendments to the Articles of
Incorporation.  The amendments changed the name of the Company to Stratus
Entertainment, Inc. and changed the capital structure to provide for one class
of Common Stock with 400,000,000 shares authorized and a class of Preferred
Stock with 5,000,000 shares authorized but preferences
undefined.  Additionally, the amendment effect a one for 3,000 reverse
split of the issued and outstanding common shares.  The Company was
issued a new trading symbol of “SRTU”.
 
 Effective July 31, 2007, the Board
of Directors of the Company authorized a 1-5 forward split of its Common
Stock.
 
 On September 10, 2007, the Company’s
trading symbol was changed to “LTVS” to correspond with its the name change to
Latin Television, Inc..
  3
  On June 12, 2008 the Company has
changed its name from Latin Television, Inc to Pure Play Music,
LTD.  The Company has made an application to NASDAQ obtain a new CUSIP
number and a new trading symbol.  Also on June 12, 2008,the Company effected a
1,000 for 1 reverse stock split of the Company’s common shares outstanding and
increased the authorized preferred shares from 5,000,000 to 10,00,000 at $.001
par value.
 
 The
Company is a fully reporting company and all filings and accompanying exhibits,
may be inspected and copied at the principal offices of the SEC, 450 Fifth
Street, N.W., Washington, D.C. 20549, and at any of the 12 regional offices of
the SEC around the country. Copies of all or any part of this registration
statement may be obtained at prescribed rates from the SEC's Public Reference
Section at 450 Fifth Street, N.W., Washington, D.C. 20545 or by calling the SEC
at 1-800 SEC-0330. The SEC also maintains a World Wide Web site on the Internet
at http://www.sec.gov that contains reports, proxy and information statements
and other information regarding registrants that file electronically with the
SEC.
 
 When we qualify statements in this
document with the word "believe", unless otherwise indicated, we are basing our
belief on the knowledge and experience of our personnel and advisors.
Statistical information included in this prospectus has been obtained by us from
publications we deem reliable and with which we have no
relationship.
 
 ITEM 2.
DESCRIPTION OF PROPERTY
 
 Pure Play Music, LTD. currently
occupies approximately 1,200 square feet of office space at 3200 Airport Avenue,
Ste. 20, Santa Monica, California for our corporate and administrative
offices.
 
 ITEM 3.
LEGAL PROCEEDINGS
 
 There are no pending or threatened
legal or governmental claims, actions or proceedings against or relating to us
which could, individually or in the aggregate, have a materially adverse effect
on us.
 
 The
Company entered into a disputed transaction with Merger Law Associates,
Ltd., a Canadian corporation, regarding their purchase of 26,000,000 shares of
Common Stock which occurred July 20, 2007.  Merger Law Associates,
Ltd. paid $400,000 in cash to the Company to purchase those
shares.  Those funds were paid to Cohiba Partners, Inc. pursuant to
the terms of a July 16, 7007 Investment Banking and Consulting
Agreement.
  4
  ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
 On or
about March 13, 2007 the Company prepared and filled a Schedule 14C with was
accepted by the SEC, which was filed in definitive form with the SEC and mailed
to all shareholders on March 19, 2007 to vote on the proposed amendments to the
Articles of Incorporation of the company.  Waiting the required 20 days,
the company obtained the written consent of the majority of shareholders of the
outstanding capital stock of the corporation approving the adoption of proposed
amendments to the Articles of Incorporation.
 
 The March
2007 Amendments approved changed:
 
 (i)
              Changed
      our name to "Stratus Entertainment,
Inc.";
  (ii)
              Changed
      the Company’s capital structure to provide for one class of Common Stock
      with 400,000,000 shares authorized and a class of Preferred Stock with
      5,000,000 shares authorized but preferences
  undefined;
 
 (iii)
              Effected
      a one for 3,000 reverse split of the issued and outstanding common
      shares.
 
 The
Amendments were filed with the Nevada Secretary of State and designated as
effective by the Board of Directors.  The following summarizes the
Amendments.
 
 NAME
CHANGE
 
 The March
2007 Amendment changed our name to "Stratus Entertainment, Inc." Our ticker
(trading) symbol, which was "CRHI" was changed to “SRTU” the CUSIP number which
was 203416102 was changed to 863158014.  The Company’s stock changed as a
result of the name and CUSIP Number change. Upon the name change, shareholders
were permitted to exchange their certificates to reflect the change in corporate
name.  However, the existing certificates continued to represent full
shares (but not fractional shares) of Common Stock after the 1 for 3000 reverse
split, as if the corporate name had not changed, but with the number of shares
indicated on the certificate reduced by the reverse stock split.  Our
transfer is permitted to issue stock certificates with the new company name as
stock certificates are sent in upon transfers of shares by existing
shareholders.
 
 On June
12, 2008 the Company has changed its name from Latin Television, Inc to Pure
Play Music, LTD.  The Company has made an application to NASDAQ obtain
a new CUSIP number and a new trading symbol.  Also on June 12,
2008,the Company
effected a 1,000 for 1 reverse stock split of the Company’s common shares
outstanding.
  5
  The Board
authorized a change in Transfer Agents.  The transfer agent for the common
stock is: Signature Stock Transfer, Inc., Attention: Jason Bogutski, Plano, TX,
Telephone: 972-612-4120.
 
 CREATION
OF PREFERRED STOCK
 
 The
Company’s Articles of Incorporation did not authorize a class of Preferred
Stock.  The Board believes that it may be preferable or necessary in
the future to issue preferred stock to investors. Preferred stock usually grants
the holders certain preferential rights in voting, dividends, liquidation and/or
other rights in preference over the Common Stock.  Accordingly, in
order to grant the Company the flexibility to issue our equity securities in the
manner best suited for the company, or as may be required by the capital
markets, the March 2007 Amendment created 5,000,000 authorized shares of
preferred stock.
 
 Since the
Directors do not know what the terms of any future series of preferred stock may
be, the Amendment to the Articles of Incorporation, authorizes the issuance of
preferred stock with the terms, rights and features to be determined by the
Board of Directors upon issuance.  The authorization of such preferred
stock permitted the Board of Directors to authorize and issue preferred stock
from time to time in one or more series.  The Amendment should provide
the Company with increased financial flexibility to meet future capital
requirements by providing another type of security in addition to our Common
Stock, as it will allow preferred stock to be available for issuance from time
to time and with such features as determined by the Board of Directors for any
proper corporate purpose.
 
 Subject
to the limitations prescribed by law, the Board of Directors will be expressly
authorized, at its discretion, to determine the number of series into which
shares of Preferred Stock may be divided, to determine the designations, powers,
preferences and voting and other rights, and the qualifications, limitations and
restrictions granted to or imposed upon the Preferred Stock or any series
thereof or any holders thereof, to determine and alter the designations, powers,
preferences and rights, and the qualifications, limitations and restrictions
granted to or imposed upon any wholly unissued series of Preferred Stock or the
holders thereof, to fix the number of shares of that series and to increase or
decrease, within the limits stated in any resolution of the board of directors
originally fixing the number of shares constituting any series (but not below
the number of such shares then outstanding), the number of shares of any such
series subsequent to the issuance of shares of that series.
 
 On June
12, 2008, the Company increased the number of authorized Preferred Shares to
10,000,000, with a par value to $0.001 per share.
  6
  REVERSE
STOCK SPLIT
 
 The Board
of Directors believed the number of common shares in the float was far too large
given the size of the Company, and results in our Common Stock being priced at
pennies per share, on March 13, 2007, a one for 3,000 reverse stock split was
recommended to reduce the Company’s number of shares of Common Stock outstanding
to approximately 120,000 shares as of the Record Date for the reverse stock
split, on an as converted basis. The Board of Directors is hopeful that the
smaller number of shares outstanding may help the Company to develop an improved
trading market for our shares.
  The
Company did not issue fractional shares as a result of the March 13, 2007,
reverse stock split. If the number of shares held by a stockholder was less than
the next higher whole number, the number of shares was rounded down to the
nearest whole number. Given that the value of any fractional share was likely
small, the Company believed that this method was preferable to paying cash in
lieu of issuing fractional shares. Because we did not pay cash for fractional
shares, our reverse split had the effect of reducing the number of our
shareholders.
  While
Management is optimistic that the reverse split will ultimately result in an
increase in the market price of our Common Stock, there can be no assurance that
our Common Stock will trade at a higher price in the future, or that any such
increase if it occurs, will be sustained. If the market price of our Common
Stock ultimately declines after the implementation of the reverse split, the
percentage decline as an absolute number and as a percentage of our overall
market capitalization may be greater than would be the case in the absence of a
reverse split.
  Management
calculated that upon consummation of the March 2007 reverse split, the Company
had approximately 120,000 common shares outstanding in the hands of
approximately 520 shareholders.  Management believes there will remain
a sufficient base of shareholders and publicly held stock such that an improved
trading market in our common stock can be sustained.  As a result, we
did not become a private company upon consummation of the reverse split and we
will continue to file reports under the Exchange Act, and our common shares will
continue to be publicly traded.
  We
believe that the federal income tax consequences of the March 2007 reverse split
to shareholders will be as follows:
 
 No gain
or loss will be recognized by a stockholder on the surrender of their existing
shares of Common Stock or upon receipt of a certificate representing the new
number of shares of Common Stock;
 
 The
aggregate tax basis of the shares after the reverse split will equal the
aggregate tax basis of the shares exchanged therefore; The holding period of the
shares after the reverse split will include the holding period of the holder's
existing shares and the conversion of the existing shares into the new shares
after the reverse split will produce no gain or loss to the
Company.
  7
  Our
belief as outlined above is not binding upon the Internal Revenue Service or the
courts, and there can be no assurance that the Internal Revenue Service or the
courts will accept the positions expressed above. This summary does not purport
to be complete and does not address the tax consequences to holders that are
subject to special tax rules, such as banks, insurance companies, regulated
investment companies, personal holding companies, foreign entities, non-resident
foreign individuals, broker-dealers and tax exempt entities. This summary also
assumes that the existing shares of Common Stock were, and the new shares of
Common Stock will be, held as a “capital asset,” as defined in the Internal
Revenue Code of 1986, as amended (i.e., generally, property held for
investment). The state and local tax consequences of the reverse split may vary
significantly as to each stockholder, depending upon the state in which the
stockholder resides. The foregoing summary is included for general information
only. Accordingly, shareholders are urged to consult their own tax advisors with
respect to the federal, state and local tax consequences of the reverse
split.
  Subsequent to the end of the fiscal
year but prior to the filing of this report the Company effected another reverse
stock split.  On June 12, 2008 the Board of Directors authorized a 1
for 1000 reverse split, leaving approximately 54,385 shares and 530
shareholders.
 
 PART
II
 
 ITEM 5.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
 
 Market
Information:
 
 On March 19, 2003 the company was given
approval to trade its securities on the National Association of Securities
Dealers in the National Quotations Bureau Pink Sheets under the symbol “CRHI.”
On March 13, 2007 the symbol was changed to “SRTU”.  In August of 2007
the symbol was changed to “LTVS”. The Company’s Class A shares have been
recognized and traded on the NASD Over the Counter Bulletin Board since October
21, 2003. Our securities have traded in a range of 2.40 (high) and .01 (low)
cents in the past year.
 
 Subsequent close of the 2007 fiscal
year but prior to the filing of this report, the Company’s stock was removed
from trading from the Over the Counter Bulletin Board (“OTCBB”) to the NASD Pink
Sheets. The Company will be eligible to re-apply for listing on the OTCBB in 12
months if the Company stays current with its reports.
 
 The Company is seeking to change its
trading symbol from “LTVS” to a symbol which will reflect our name change to
Pure Play Music, LTD.
 
 HOLDERS.
 
 As of December 31, 2007, there were
approximately 520 shareholders of record of our common stock.
  8
  DIVIDENDS.
 
 We have not declared any cash dividends
on our common stock since our inception and do not anticipate paying such
dividends in the foreseeable future. We plan to retain any future earnings for
use in our business. Any decisions as to future payment of dividends will depend
on our earnings and financial position and such other factors, as the Board of
Directors deems relevant.
 
 ITEM 6.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
 
 During the second half of 2007, the
management was principally focused upon our developing the Latin Television
assets to form a profitable national Spanish language television broadcasting
operation. Since November 15, 2007, when the Asset Purchase was rescinded and
declared void, the management has focused on locating another merger
candidate.
 
 The Executive and Director of the
Company believes that the Company will be able to locate a suitable merger
candidate but we cannot express any guarantees to that end.  To the
extent that we cannot locate and negotiate a suitable merger transaction, we
will require additional financing to continue our operations.  The
Company does not have any agreement with any party to provide additional
funding.
 
 RESULTS
OF OPERATIONS.
 
 Revenues – The Company booked total
revenues of $0 for the year ending December 31, 2007, as compared to revenues
$44,340 for the prior year.
 
 Operating Expenses for Pure Play Music,
LTD.  - Our revenues were significantly down from 2006 continuing the
downward spiral of the past years. Our operating expenses have decreased from
$1,424,472 for the year ending December 31, 2006, to $676,378 for the year
ending December 31, 2007.
 
 Operating Loss - We have not shown a
net profit to date. Our net operating losses have decreased from $1,407,636 as
of December 31, 2006 to $683,408 as of December 31, 2007. Over the past years,
executive officers have been loaning the Company funds to finance our losses
over the last several years.  In the current year the Company secured
the funding of essential operation from Cohiba Partners, Inc. in exchange for
promissory notes.
 
 Cash and cash Equivalents Total cash as
of December 31, 2007 fell to an all time low of $0. Total current assets
non-existent as of December 31, 2007 largely as a result of the rescission of
the Latin Television Asset Purchase Agreement.
 
 Current Liabilities Our current
liabilities as of December 31, 2007 was $282,773. The increase is attributable
to an increase in accrued expenses.
  9
  Until we
are successful in locating a suitable merger partner, we are reliant upon the
ongoing loans from our executive officers, share holders, strategic partners or
the proceeds of any stock offerings to remain in business.
 
 Future
Expenditures
 
 Our future capital expenditures will
depend upon our ability to generate revenues or additional investment capital if
our revenues are not sufficient. If, and to the extent that we are successful in
generating net revenues or raising investment capital, our future expenditures
will be applied towards salaries and general working capital
purposes.
 
 LIQUIDITY
AND CAPITAL RESOURCES
 
 We have incurred cumulative losses
since being spun off as an independent corporation. At December 31, 2007 we have
an accumulated deficit of $4,414,664 compared to $3,731,256, at December 31,
2006 and the report from of our independent auditor on our audited financial
statements at December 31, 2007 contained a going concern statement. We will
continue to incur losses during the foreseeable future and have yet to achieve
revenues sufficient to offset direct expenses and corporate overhead. We do not
have any present commitments for capital expenditures. While we are taking
measures to identify and evaluate potential merger candidates which may generate
revenue and improve our liquidity, we cannot guaranty that we will be successful
in that effort.
 
 We do not have adequate working capital
for the near term. We will continue to be reliant on loans from our officers,
outside lenders or proceeds of sale of stock to provide additional
working capital. If the Company is unable to continue to borrow working capital,
or we do not raise working capital through our public offering, we cannot
guarantee that we will be successful in obtaining capital upon terms acceptable
to us, if at all. Our failure to secure necessary capital when needed could have
a material adverse effect on our financial condition and results of operations
in future periods.
  10




ITEM
7. FINANCIAL STATEMENTS.













PURE
PLAY MUSIC, LTD.


(Formerly
Latin Television, Inc.)


(A
Development Stage Company)





CONSOLIDATED
FINANCIAL STATEMENTS





December
31, 2007

















F-1





C O N T E
N T S








Report
      of Independent Registered Public Accounting Firm
            F-3Consolidated
      Balance Sheet
            F-4Consolidated
      Statements of Operations
            F-5Consolidated
      Statements of Stockholders’ Deficit
            F-6Consolidated
      Statements of Cash Flows
            F-7Notes
      to the Consolidated Financial Statements
            F-8





F-2





REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM





To the
Stockholders and Directors of


Pure Play
Music, Ltd.


(formerly
Latin Television, Inc.)





We have
audited the accompanying consolidated balance sheet of Pure Play Music, Ltd.
(formerly, Latin Television, Inc.) as of December 31, 2007 and the related
consolidated statements of operations, stockholders’ deficit, and cash flows for
the years ended December 31, 2007 and 2006, and from inception of the
development stage on January 1, 2007 through December 31, 2007.  These
consolidated financial statements are the responsibility of the Company’s
management.  Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.





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





In our
opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the financial position of Pure Play Music, Ltd. as of
December 31, 2007 and the results of its operations and its cash flows for the
years ended December 31, 2007 and 2006, and from inception of the development
stage on January 1, 2007 through December 31, 2007, which is in conformity with
U.S. generally accepted accounting principles.





The
accompanying consolidated financial statements have been prepared assuming that
the Company will continue as a going concern.  As discussed in Note 2
to the consolidated financial statements, the Company has suffered recurring
losses from operations and has a net capital deficiency that raises substantial
doubt about the company’s ability to continue as a going
concern.  Management’s plans in regard to these matters are also
described in Note 2.  The consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.








Chisholm,
Bierwolf & Nilson, LLC


Bountiful,
Utah


May 28,
2008








F-3




PURE
PLAY MUSIC, LTD.
 (Formerly
Latin Television, Inc.)
 (A
Development Stage Company)
 Consolidated
Balance Sheet


ASSETSDecember
      31,2007CURRENT
      ASSETSTotal
      Current Assets
              
              $
              -TOTAL
      ASSETS
              
              $
              -LIABILITIES AND
      STOCKHOLDERS' DEFICITCURRENT
      LIABILITIESAccounts
      payable
              
              $
              12,801Accrued
      interest - related party (Note 4)
              
              
              7,030Convertible
      note payable - related party (Note 4)
              
              
              262,942Total
      Current Liabilities
              
              
              282,773Total
      Liabilities
              
              
              282,773STOCKHOLDERS'
      DEFICITPreferred
      stock, par value $0.001 per share; authorized 10,000,000shares;
      no shares issued or outstanding
              
              
              -Common
      stock Class A, par value $0.001 per share; authorized
      400,000,000shares;
      54,385 shares issued and outstanding
              
              
              54Common
      stock Class B, par value $0.0001 per share; authorized
      2,000,000shares;
      no shares issued or outstanding
              
              
              -Additional
      paid-in capital
              
              
              4,131,837Accumulated
      deficit
              
              
              (3,731,256
              )Accumulated
      deficit since inception of development stage
              
              
              (683,408
              )Total
      Stockholders' Deficit
              
              
              (282,773
              )TOTAL
      LIABILITIES AND STOCKHOLDERS' DEFICIT
              
              $
              -
   The
accompanying notes are an integral part of these consolidated financial
statements
  F-4




PURE
PLAY MUSIC, LTD.
 (Formerly
Latin Television, Inc.)
 (A
Development Stage Company)
 Consolidated
Statements of Operations


For
      theYears Ended
              
              
              From
      Inception
                      of the
                      Development Stage
                      on January 1, 2007
                      ThroughDecember
      31,
              
              
              December
      31,2007
              
              
              2006
              
              
              2007REVENUES
              
              $
              -
              
              
              $
              44,340
              
              
              $
              -OPERATING
      EXPENSESGeneral
      and administrative
              
              
              655,973
              
              
              
              786,713
              
              
              
              655,973Bad
      debt expense
              
              
              20,405
              
              
              
              651,097
              
              
              
              20,405Depreciation
      and amortization
              
              
              -
              
              
              
              31,002
              
              
              
              -Total
      Operating Expenses
              
              
              676,378
              
              
              
              1,468,812
              
              
              
              676,378NET
      OPERATING LOSS
              
              
              (676,378
              )
              
              
              (1,424,472
              )
              
              
              (676,378
              )OTHER
      INCOME (EXPENSE)Interest
      income
              
              
              -
              
              
              
              17,006
              
              
              
              -Interest
      expense
              
              
              (7,030
              )
              
              
              (170
              )
              
              
              (7,030
              )Total
      Other Income (Expense)
              
              
              (7,030
              )
              
              
              16,836
              
              
              
              (7,030
              )NET
      LOSS
              
              $
              (683,408
              )
              
              $
              (1,407,636
              )
              
              $
              (683,408
              )BASIC
      LOSS PER COMMON SHARE (Note 1)
              
              $
              (22.45
              )
              
              $
              (5,570.89
              )WEIGHTED
      AVERAGE NUMBER OFCOMMON
      SHARES OUTSTANDING
              
              
              30,438
              
              
              
              253






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




F-5




PURE
PLAY MUSIC, LTD.
 (Formerly
Latin Television, Inc.)
 (A
Development Stage Company)
 Consolidated
Statements of Stockholders' Deficit
 For the
Years Ended December 31, 2007 and 2006


Common Stock
              
              
              AdditionalClass
      A
              
              
              Class
      B
              
              
              paid-in
              
              
              Subscription
              
              
              AccumulatedShares
              
              
              Amount
              
              
              Shares
              
              
              Amount
              
              
              capital
              
              
              Receivable
              
              
              DeficitBalances,
      December 31, 2005
              
              
              208
              
              
              $
              -
              
              
              
              2,000,000
              
              
              $
              -
              
              
              $
              2,860,615
              
              
              $
              (19,965
              )
              
              $
              (2,323,620
              )Common
      stock issued for cash at$8,183 per share
              
              
              1
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              8,183
              
              
              
              -
              
              
              
              -Common
      stock issued for servicesrendered valued at $12,600 per
      share
              
              
              50
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              630,000
              
              
              
              -
              
              
              
              -Common
      stock issued for servicesrendered valued at $14,000 per
      share
              
              
              3
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              42,000
              
              
              
              -
              
              
              
              -Common
      stock issued for servicesrendered valued at $9,000 per
      share
              
              
              2
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              18,000
              
              
              
              -
              
              
              
              -Net
      loss for 2006
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (1,407,636
              )Balances,
      December 31, 2006
              
              
              264
              
              
              
              -
              
              
              
              2,000,000
              
              
              
              -
              
              
              
              3,558,798
              
              
              
              (19,965
              )
              
              
              (3,731,256
              )Conversion
      of Class B Commonstock to Class A Common stock valued at $0.001
      per share
              
              
              333
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              333
              
              
              
              -
              
              
              
              -Retirement
      of Class B sharesupon conversion to class A shares
              
              
              -
              
              
              
              -
              
              
              
              (2,000,000
              )
              
              
              -
              
              
              
              (333
              )
              
              
              -
              
              
              
              -Common
      stock issued for conversionof debt of $130,956, valued at $7.46
      per share to the Company's former President
              
              
              17,550
              
              
              
              18
              
              
              
              -
              
              
              
              -
              
              
              
              130,938
              
              
              
              -
              
              
              
              -Common
      stock issued for conversionof debt of $42,137, valued at $4.12 per
      share to a related party
              
              
              10,238
              
              
              
              10
              
              
              
              -
              
              
              
              -
              
              
              
              42,127
              
              
              
              -
              
              
              
              -Common
      stock issued for cash at$15.38 per share
              
              
              26,000
              
              
              
              26
              
              
              
              -
              
              
              
              -
              
              
              
              399,974
              
              
              
              -
              
              
              
              -Write-off
      of subscription receivable
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              19,965
              
              
              
              -Net
      loss for 2007
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (683,408
              )Balances,
      December 31, 2007
              
              
              54,385
              
              
              $
              54
              
              
              
              -
              
              
              $
              -
              
              
              $
              4,131,837
              
              
              $
              -
              
              
              $
              (4,414,664
              )






The
accompanying notes are an integral part of these consolidated financial
statements
  F-6




PURE
PLAY MUSIC, LTD.
 (Formerly
Latin Television, Inc.)
 (A
Development Stage Company)
 Consolidated
Statements of Cash Flows


From
      Inceptionof
      theDevelopment
      StageFor
      the Years Ended
              
              
              on
      January 1, 2007December
      31,
              
              
              Through2007
              
              
              2006
              
              
              December
      31, 2007CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
              
              $
              (683,408
              )
              
              $
              (1,407,636
              )
              
              $
              (683,408
              )Adjustments
      to reconcile net loss to net cash  used
      in operating activities:Depreciation
      and amortization
              
              
              -
              
              
              
              31,002
              
              
              
              -Bad
      debt expense
              
              
              20,405
              
              
              
              651,097
              
              
              
              20,405Common
      stock issued for services rendered
              
              
              -
              
              
              
              690,000
              
              
              
              -Changes
      in operating assets and liabilities:Accounts
      receivable
              
              
              820
              
              
              
              3,669
              
              
              
              820Accounts
      receivable - related party
              
              
              -
              
              
              
              (21,243
              )
              
              
              -Prepaid
      expenses
              
              
              35
              
              
              
              -
              
              
              
              35Interest
      receivable
              
              
              -
              
              
              
              (17,006
              )
              
              
              -Deposits
      and other assets
              
              
              -
              
              
              
              4,988
              
              
              
              -Accounts
      payable - related parties
              
              
              -
              
              
              
              59,918
              
              
              
              -Accounts
      payable and accrued expenses
              
              
              7,177
              
              
              
              (13,561
              )
              
              
              7,177Net
      Cash Used in Operating Activities
              
              
              (654,971
              )
              
              
              (18,772
              )
              
              
              (654,971
              )CASH
      FLOWS FROM INVESTING ACTIVITIES:Net
      Cash Used in Investing Activities
              
              
              -
              
              
              
              -
              
              
              
              -CASH
      FLOWS FROM FINANCING ACTIVITIES:Proceeds
      on notes payable
              
              
              -
              
              
              
              12,969
              
              
              
              -Payments
      on notes payable
              
              
              (7,979
              )
              
              
              (4,490
              )
              
              
              (7,979
              )Proceeds
      from issuance of common stock
              
              
              400,000
              
              
              
              8,183
              
              
              
              400,000Proceeds
      from convertible note payable
              
              
              262,942
              
              
              
              -
              
              
              
              262,942Net
      Cash Provided by Financing Activities
              
              
              654,963
              
              
              
              16,662
              
              
              
              654,963NET
      DECREASE IN CASH
              
              
              (8
              )
              
              
              (2,110
              )
              
              
              (8
              )CASH
      AND CASH EQUIVALENTS AT BEGINNING OF YEAR
              
              
              8
              
              
              
              2,118
              
              
              
              8CASH
      AND CASH EQUIVALENTS AT END OF YEAR
              
              $
              -
              
              
              $
              8
              
              
              $
              -SUPPLEMENTAL
      CASH FLOW INFORMATIONCASH
      PAID FOR:Interest
              
              $
              -
              
              
              $
              94
              
              
              $
              -Income
      taxes
              
              $
              -
              
              
              $
              -
              
              
              $
              -NON-CASH
      FINANCING ACTIVITIESCommon
      stock issued for services rendered
              
              $
              -
              
              
              $
              690,000
              
              
              $
              -Common
      stock issued in relief of related party debt
              
              $
              173,093
              
              
              $
              -
              
              
              $
              173,093




The
accompanying notes are an integral part of these consolidated financial
statements
  F-7


PURE
PLAY MUSIC, LTD.


(formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006







NOTE 1
-       ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES





a.  Organization





The
consolidated financial statements presented are those of Pure Play Music,
Ltd.  (formerly, Latin Television, Inc.) (the “Company”). The Company
was organized on August 11, 1989 in the State of New Jersey.  On July
17, 1996, the Company became a wholly-owned subsidiary of Visual Telephone
International (VTI), a publicly traded Delaware corporation.  On May
21, 1999, shares of the Company were distributed to the shareholders of VTI
pursuant to an agreement and Plan of Reorganization spin off.  The
Company has operated as a separate entity since that date.  Effective
July 15, 1999, the Company changed its domicile to the State of Nevada through
the spin off reorganization.





During
March 2007, the Company’s name was changed to Stratus Entertainment,
Inc.  On August 29, 2007, the shareholders of the Company consented to
an amendment to the Articles of Incorporation of the Company to change the name
to Latin Television, Inc. This name change became effective on September 10,
2007.  Then on June 12, 2008 the shareholders of the Company consented
to again amend the Articles of Incorporation of the Company to change the name
to Pure Play Music, Ltd.





On
      August 14, 2007, the Company purchased the assets of THE League
      Publishing, Inc. (Latin Television, Inc.) for the purchase price of
      1,500,000 restricted shares of common stock.   The acquired
      assets of THE League Publishing, Inc. consisted primarily of television
      studio assets, intellectual property and television broadcasting
      rights.  Subsequently, on November 15, 2007, the parties of the
      asset acquisition agreement, mutually agreed to rescind and unwind the
      asset acquisition.  The consideration of restricted shares are
      subsequently held in escrow pending final conditions to be resolved. The
      anticipated operations related to the acquired broadcasting assets and
      rights had not commenced.  In accordance with the rescission
      agreement, the parties mutually released Latin Television, Inc. of any
      contractual or contingent obligations that may have been
      incurred.





b.  Accounting
      Methods





The
Company’s consolidated financial statements are prepared using the accrual
method of accounting.  The Company has elected a December 31 year
end.





c.  Cash
and Cash Equivalents





Cash
equivalents include short-term, highly liquid investments with maturities of
three months or less at the time of acquisition.





F-8
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 1
-        ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES


(Continued)





d.  Estimates





The
preparation of consolidated financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the consolidated financial
statements and expenses during the reporting period.  In these
consolidated financial statements, assets, liabilities and expenses involve
extensive reliance on management’s estimates.  Actual results could
differ from those estimates.





e.  Basic
(Loss) Per Share





The
computations of basic (loss) per share of common stock are based on the weighted
average number of common shares outstanding during the period of the
consolidated financial statements.





December 31,2006
            
            
            2005Numerator
      - (loss)
            
            $
            (683,408
            )
            
            $
            (1,407,636
            )Denominator
      - weighted average number of shares outstanding
            
            
            30,438
            
            
            
            253Loss
      per share
            
            $
            (22.45
            )
            
            $
            (5,570.89
            )





f.  Property
and Equipment





Property
and equipment is recorded at cost.  Major additions and improvement
are capitalized.  The cost and related accumulated depreciation of
equipment retired or sold are removed from the accounts and any differences
between the undepreciated amount and the proceeds from the sale are recorded as
gain or loss on sale.  Depreciation is computed using the
straight-line method over the estimated useful life of the assets as
follows:





Description
            
            Estimated Useful LifeFurniture
      and fixtures
            
            5
      yearsLab
      and test equipment
            
            5
      yearsSoftware
            
            3
      yearsVehicles
            
            5
      years





Depreciation
expense for the years ended December 31, 2007 and 2006 was $-0- and $31,002,
respectively.





In
accordance with Financial Accounting Standards Board Statement No. 144, the
Company records impairment of long-lived assets to be held and used or to be
disposed of when indicators of impairment are present and the undiscounted cash
flows estimated to be generated by those assets are less than the carrying
amount.  At December 31, 2007, no impairments were
recognized.





F-9
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 1
-        ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES


(Continued)





g.  Revenue
Recognition





The
Company applies the provisions of SEC Staff Accounting Bulletin (“SAB”) No. 104,
Revenue Recognition in Financial Statements (“SAB 104”), which provides guidance
on the recognition, presentation and disclosure of revenue in financial
statements filed with the SEC.  The SAB 104 outlines the basic
criteria that must be met to recognize the revenue and provides guidance for
disclosure related to revenue recognition policies.  In general, the
Company recognizes revenue related to monthly contracted amounts for services
provided when (i) persuasive evidence of an arrangement exists, (ii) delivery
has occurred or services have been rendered, (iii) the fee is fixed or
determinable and (iv) collectibility is reasonably assured. The Company had no
revenue for the year ended December 31, 2007.





h.  Provision
for Income Taxes





No
provision for income taxes has been recorded due to the net operating losses
(NOL) of the Company of approximately $3,950,000.  The NOL
carryforward will begin to expire in the year 2012.  No tax benefit
has been reported in the consolidated financial statements because the Company
has yet to generate taxable income from operations, or show probability of
taxable income.  Some of the losses will be limited due to the
acquisition and change of control.





The
deferred tax asset and the valuation account is as follows at December 31, 2007
and 2006:





December 31,2007
            
            
            2006Deferred
      tax asset:Deferred
      noncurrent tax asset
            
            $
            1,499,800
            
            
            $
            1,297,700Valuation
      allowance
            
            
            (1,499,800
            )
            
            
            (1,297,700
            )Total
            
            $
            -
            
            
            $
            -





The components of income tax expense
are as follows:





December 31,2007
            
            
            2006Current
      federal tax
            
            $
            -
            
            
            $
            -Current
      state tax
            
            
            -
            
            
            
            -Change
      in NOL benefit
            
            
            (202,100
            )
            
            
            (134,803
            )Change
      in allowance
            
            
            202,100
            
            
            
            134,803Total
            
            $
            -
            
            
            $
            -





F-10
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 1
-        ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES


(Continued)





i.  Newly
Adopted Pronouncements





In
February 2006, the Financial Accounting Standards Board (“FASB”) issued
Statement of Financial Accounting Standard (“SFAS”) 155, Accounting for Certain Hybrid
Financial Instruments, which amends SFAS 133, Accounting for Derivative
Instruments and Hedging Activities, and SFAS 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities—a replacement
of FASB Statement No. 125. SFAS 155 will be effective for all financial
instruments issued or acquired after the beginning of an entity's first fiscal
year that begins after September 15, 2006. The Company does not expect the
adoption of SFAS 155 to have a material impact on its results of operations,
financial position, or cash flow.





In March
2006, the FASB issued SFAS 156, Accounting for Servicing of
Financial Assets—an amendment of FASB Statement No. 140.  SFAS
156 provides guidance on recognition and disclosure of servicing assets and
liabilities and is effective beginning January 1, 2007.  The Company
does not expect the adoption of SFAS 156 to have a material impact on its
results of operations, financial position, or cash flow.





In
September 2006, the FASB issued SFAS 157, Fair Value Measurements,
which defines fair value, establishes a framework for measuring fair value, and
expands disclosures about fair value measurements.  SFAS 157 will be
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years.  The Company does not expect the
adoption of SFAS 157 to have a material impact on its results of operations,
financial position, or cash flow.





In
September 2006, the FASB issued SFAS No. 158, Employers’ Accounting for Defined
Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No.
87, 88, 106, and 132(R) (“SFAS 158”), which improves financial reporting
by requiring an employer to recognize the over-funded or under-funded status of
a defined benefit postretirement plan as an asset or liability in its statement
of financial position and to recognize changes in that funded status in the year
in which the changes occur through comprehensive income.  The Company does
not expect the adoption of SFAS 158 to have a material impact on its results of
operations, financial position, or cash flow.





In
February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial
Assets and Financial Liabilities, including an amendment of FASB Statement No.
115, which allows an entity the irrevocable option to elect fair value
for the initial and subsequent measurement for certain financial assets and
liabilities under an instrument-by-instrument election. Subsequent measurements
for the financial assets and liabilities an entity elects to fair value will be
recognized in earnings. SFAS 159 also establishes additional disclosure
requirements. SFAS 159 is effective for fiscal years beginning after November
15, 2007, with early adoption permitted provided that the entity also adopts
SFAS 157. The Company has not yet determined the impact this standard will have
on its consolidated financial statements.





F-11
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 1
-        ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES


(Continued)





i.  Newly
Adopted Pronouncements (Continued)





In
December 2007, the FASB issued SFAS No. 141(R), Business
Combinations.  SFAS 141(R) replaces SFAS No. 141, Business Combinations, but
retains the requirement that the purchase method of accounting for acquisitions
be used for all business combinations. SFAS 141(R) expands on the disclosures
previously required by SFAS 141, better defines the acquirer and the acquisition
date in a business combination, and establishes principles for recognizing and
measuring the assets acquired (including goodwill), the liabilities assumed and
any non-controlling interests in the acquired business. SFAS 141(R) also
requires an acquirer to record an adjustment to income tax expense for changes
in valuation allowances or uncertain tax positions related to acquired
businesses. SFAS 141(R) is effective for all business combinations with an
acquisition date in the first annual period following December 15, 2008; early
adoption is not permitted. The impact SFAS 141(R) will have on the Company’s
consolidated financial statements will depend on the nature and size of
acquisitions the Company completes after it adopts SFAS 141(R).





In
December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements-an amendment of ARB No.
51.  SFAS 160 requires that non-controlling (or minority)
interests in subsidiaries be reported in the equity section of the company’s
balance sheet, rather than in a mezzanine section of the balance sheet between
liabilities and equity. SFAS 160 also changes the manner in which the net income
of the subsidiary is reported and disclosed in the controlling company’s income
statement. SFAS 160 also establishes guidelines for accounting for changes in
ownership percentages and for deconsolidation. SFAS 160 is effective for
financial statements for fiscal years beginning on or after December 1, 2008 and
interim periods within those years; early adoption is not permitted. The
adoption of SFAS 160 is not expected to have a material impact on the Company’s
financial position, results of operations or cash flows.





j.
            Fair
      Value of Financial Instruments





The fair
value of the Company’s cash and cash equivalents, accounts payable and accrued
liabilities approximate carrying value based on their effective interest rates
compared to current market prices.





k.
            Beneficial
      Conversion Feature





The
Company has adopted Emerging Issues Task Force (“EITF”) Issue No. 98-5, Accounting for Convertible
Securities with Beneficial Conversion Features or Contingently Adjustable
Conversion Ratios,and EITF Issue No. 00-27, Application of EITF Issue No. 98-5
to Certain Convertible Instruments.  The Company incurred debt
whereby the convertible feature of the debt provides for a rate of conversion
that is equal to the market value on the date of
conversion.  Accordingly, no beneficial conversion feature was
recorded pursuant to EITF Issue No. 98-5 and 00-27.





F-12
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 2
-        GOING CONCERN





The
Company’s consolidated financial statements are prepared using generally
accepted accounting principles applicable to a going concern which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business.  The Company has historically incurred significant losses
which have resulted in an accumulated deficit of $4,414,664 at December 31, 2007
and limited internal financial resources.  These factors combined
raise substantial doubt about the Company’s ability to continue as a going
concern.  The accompanying consolidated financial statements do not
include any adjustments relating to the recoverability and classification of
asset carrying amounts or the amount and classification of liabilities that
might result from the outcome of this uncertainty.  It is the intent
of management to continue to raise additional funds to sustain operations and to
generate the necessary revenue to support operations.  Officers will
continue to advance funds as needed for any shortfalls in cash
flows.





NOTE 3
-     STOCK TRANSACTIONS





During
the years ended December 31, 2007 and 2006, the following significant equity
transactions were approved:





2007





-
            Conversion
      of 2,000,000 Class B common stock shares to 200,000,000 (333 post-split)
      shares of Class A common stock.





-
            Retirement
      of the Class B shares upon conversion to Class A common
    shares





-
            Increase
      of authorized Class A common stock to 400,000,000 shares with par value at
      $0.001 per share.





-
            Created
      a class of preferred stock with 5,000,000 shares authorized. No preferred
      shares have been issued (Subsequently amended to be 10,000,000 authorized
      shares).





-
            Effective
      April 11, 2007, the Company effected a 1 for 3,000 reverse split of the
      Company’s common shares outstanding. Common stock outstanding and share
      issuances during 2006 and 2007 in the accompanying consolidated financial
      statements and notes are shown retroactive of this stock
      split.





-
            Effective
      July 25, 2007, the Company effected a 5 for 1 stock split of the Company’s
      common shares outstanding.  Common stock outstanding and share
      issuances during 2006 and 2007 in the accompanying consolidated financial
      statements and notes are shown retroactive of this stock
      split.





F-13
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 3
-            STOCK
TRANSACTIONS (Continued)





During
April 2007, the Company issued a total of 17,550 (post-split) shares of common
stock (3,510,000 shares pre-split) in conversion of debt totaling $130,956, or
$7.46 per share, to the Company’s former President.  An additional
10,238 (post-split) shares of common stock (2,047,500 shares pre-split) were
also issued during April 2007 in conversion of debt totaling $42,137, or $4.12
per share, to a related party.





During
July 2007, the Company issued a total of 26,000 (post-split) shares of common
stock (26,000,000 shares pre-spilt) pursuant to a “Stock Purchase Agreement” at
$15.38 per share for total proceeds of $400,000.  However, as a
condition of the agreement, the Company was also to issue an additional 1,500
shares of common stock (1,500,000 shares pre-split) to acquire the assets of THE
League Publishing, Inc. (Latin Television, Inc.).  As previously
discussed, this acquisition, however, was later rescinded during November 2007
and the additional shares were not issued by the Company.  Therefore,
the “Stock Purchase Agreement” is voidable by the investor, although the Company
does not currently expect that it will be required to repay the $400,000 to the
investor.  Accordingly, the $400,000 has been recorded as equity in
the accompanying financial statements for the year ended December 31,
2007.  The $400,000 received was paid out during the year ended
December 31, 2007 to a related company (“Investment Banking Company”) for
investment banking services rendered.





A
subscription receivable totaling $19,965 was written off to bad debt expense as
the Company has been unable to locate and collect the balance
outstanding.





2006





During
2006, the Company issued 1 (post-split) share of common stock (464,000 shares
pre-split) for cash of $8,183.





On March
16, 2006, the Company issued 50 (post-split) shares of common stock (30,000,000
shares pre-split) to the Company’s former President for services rendered valued
at $12,600 per share, or $630,000.





On March
16, 2006, the Company issued 3 (post-split) shares of common stock (2,000,000
shares pre-split) to a Company employee for services rendered valued at $14,000
per share, or $42,000.





On March
21, 2006, the Company issued 2 (post-split) shares of common stock (1,000,000
shares pre-split) to a Company employee for services rendered valued at $9,000
per share, or $18,000.





NOTE 4
-            CONVERTIBLE
NOTE PAYABLE – RELATED PARTY





On July
25, 2007, the Company executed a “Promissory Convertible Note” (“Convertible
Note”), for an amount up to $300,000 with a related company, to cover payments
made by this related company on behalf of the Company.  Total payments
made by this related company on behalf of the Company during the year ended
December 31, 2007 totaled $262,942.  The note bears interest at 8.5%
per annum.  Accrued interest on this note payable at December 31, 2007
totaled $7,030.





F-14
 PURE
PLAY MUSIC, LTD.
 (formerly
Latin Television, Inc.)
 Notes to
the Consolidated Financial Statements
 December
31, 2007 and 2006





NOTE 4
-            CONVERTIBLE
NOTE PAYABLE – RELATED PARTY (Continued)





The note
holder has the right to convert the balance owed on this convertible note,
including interest, into shares of common stock of the Company prior to July 25,
2008 at either $0.01 per share, or the current market price of the Company’s
common stock on the date of conversion, whichever is greater.  The
convertible note has been accounted for pursuant to EITF Issue No. 98-5, Accounting for Convertible
Securities with Beneficial Conversion Features or Contingently Adjustable
Conversion Ratios, and EITF Issue No. 00-27, Application of EITF Issue No. 98-5
to Certain Convertible Instruments.  However, since the
conversion rate is equal to the market value of the shares on the date of
conversion, no beneficial conversion feature was recorded for the year ended
December 31, 2007.





NOTE 5
-           SUBSEQUENT
EVENTS





Effective
June 12, 2008, the Shareholders of the Company approved the following amendment
to the Company’s Articles of Incorporation:





-
            The
      Company approved a name change to Pure Play Music,
  Ltd.





-
            The
      Company effected a 1,000 for 1 reverse stock split of the Company’s common
      shares outstanding.  Common stock outstanding and share
      issuances during 2006 and 2007 in the accompanying consolidated financial
      statements and notes are shown retroactive of this stock
      split.





-
            The
      Company increased the number of authorized Preferred Shares to 10,000,000,
      with a change in the par value to $0.001 per
  share.





In June
2008 the convertible note payable and the related accrued interest were
converted into 29,101,221 shares of common stock at a price of $0.01 per
share.





F-15




ITEM 8. CHANGES AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES.





NONE




ITEM
8A 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.
Our management, President and Chief Financial Officer, has evaluated the
effectiveness of our disclosure controls, procedures and internal control over
financial reporting (as defined in Rule 13a-14(c) promulgated under the
Securities and Exchange Act of 1934, as amended) and we have concluded these
were effective as of Dec 31, 2006 (the "Evaluation Date"). Based on the
evaluation, which disclosed no significant deficiencies or material weaknesses,
our Chief Executive Officer/Chief Financial Officer concluded that our
disclosure controls and procedures and internal controls over financial
reporting have been designed and are being operated in a manner that provides
reasonable assurance that the information required to be disclosed by us in
reports filed under the Securities Exchange Act of 1934, as amended, is
recorded, processed, summarized and reported within the time periods specified
in the SEC's rules and forms. There were no changes in our disclosure controls
and procedures or internal control over financial reporting that occurred during
the quarter covered by this Report that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.





PART
III





ITEM 9. DIRECTORS, EXECUTIVE
OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE
EXCHANGE ACT.





The following table sets forth
information regarding the executive officers, directors and our control
persons.




NAME
            AGE
            POSITIONS
      HELDDerek Joseph
      Jones
            74
            Director, President,
      CEO, Secretary, Treasurer





11





Derek J. Jones is serving the Company
as its sole director and executive officer. Since 2004, Mr. Jones has served the
Rio Grande Foundation (a non-profit organization dedicated to distance learning)
as director of its international fundraising division.  Prior to 2004,
Mr. Jones was the Deputy Chairman of Consolidated General, Ltd., located in the
United Kingdom. During his tenure he was primarily responsible for directing
mergers and acquisitions for the company.   He was with
Consolidated General, Ltd. from 1976 to 2004. Mr. Jones also has served as a
consultant and financial advisor to Business Without Borders in the United
Kingdom, assisting senior management with matters such as marketing and
distribution of their publications which was distributed in four
languages.  Mr. Jones was educated at Oxford University, Oxford,
England.





Mr. Jones serve until the next annual
meeting of our shareholders to be held within six (6) months of the close of our
fiscal year or until their successors shall have been elected and accepted their
positions. Directors are elected for one year terms.




ITEM
10. EXECUTIVE COMPENSATION.





The following table sets forth the
compensation of our four (4) officers for the last five (5) fiscal
years:


ANNUAL COMPENSATION
              
              
              
              LONG TERM
    COMPENSATIONNAME
      &-POSITION
              YEAR
              
              SALARY
              
              BONUS
              
              OTHER
              
              STOCK
              
              SAR's
              
              LTIP
              
              OTHERCarl
      R. Ceragno*
              2003
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00President
      & Treasurer
              2004
              
              $
              0.00
              
              
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002005
              
              $
              13,653
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002006
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002007
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00Lawrence
      S. Hartman
              2003
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00Vice
      President*
              2004
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002005
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002006
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002007
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00Almajean
      O'Connor
              2003
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00Secretary*
              2004
              
              $
              50,000
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002005
              
              $
              51,715
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002006
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.002007
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00Derek
      J. Jones
              2007
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00
              
              $
              0.00President
      &Treasurer**





*Executive
officers resigned in May of 2007.


** Began
in June of 2007




12





The four
executives of the Company received no cash compensation in 2007.





In April
2007, the company authorized the conversion of the two year old debt to L.
Hartman of $25,000 plus interest of 8 1⁄2% as per the terms and conditions of the
note into post reverse shares at a conversion rate of .02 per share into 2,047*
shares.





In April
2007, the company authorized the conversion of the two year old debt to C.
Ceragno of $60,000 plus interest of 8 1⁄2% as per the terms and conditions of the
note into post reverse shares at a conversion rate of .02 per share into 3,510*
shares.





*Share
figures are calculated based upon the June 12, 2008, 1 for 1000 reverse
split.





TERMS OF
OFFICE.





Our director, Mr. Derek J. Jones, will
hold office until the next annual meeting of our stockholders or until his
successor(s) are elected and duly qualified. All officers serve at the
discretion of the directors.





DIRECTORS'
COMPENSATION





No compensation has been paid to any
directors for service in such capacity in the past. Directors may be reimbursed
for expenses incurred while attending Board and committee meetings. Board of
Directors intends to adopt an appropriate policy to compensate non-employee
directors, in order to attract and retain the services of qualified non-employee
directors. Out of pocket expenses shall continue to be paid to all independent
directors to travel to Board and committee meetings.





STOCK
OPTIONS





NONE





ITEM
11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.





The following tables set forth the
ownership, as of December 31, 2007, of our common stock (i) by each person known
by us to be the beneficial owner of more than 5% of our outstanding common
stock, (ii) by each of our directors, (iii) by stockholders owning more than
five percent (5%) of our shares, and (iv) by all executive officers and our
directors as a group. All persons named have sole voting and investment power
with respect to such shares, subject to community property laws, and except as
otherwise noted.





13





PERCENTAGE
OF TOTAL SHARES





TITLE
      OF
            
            
            NO.
      OF
            
            
            PERCENTAGE
      OFCLASS
            NAME & ADDRESS
            
            SHARES*
            
            
            OWNERSHIPCommon
      Stock
            Merger
      Law Associates, Inc. (Held
      in Trust)
            
            
            26,000
            
            
            
            45.3
            %Common
      Stock
            Richard
      O'Connor
            
            
            4,500
            
            
            
            7.8
            %Common
      Stock
            Carl
      R. Ceragno
            
            
            4,484
            
            
            
            7.8
            %Common
      Stock
            Derek
      J. Jones
            
            
            5
            
            
            
            .01
            %All
      Officers and Directors as a Group
              (1
      Individual)
            
            
            
            5
            
            
            
            .01
            %





*  All
share figures are calculated based upon the June 12, 2008, 1 for 1000 reverse
split.




CHANGES
IN CONTROL





In May of 2007, the long serving
executive team of Carl Ceragno (President and Treasurer) Lawrence Hartman
(Vice-President) and Alamajean O’Conner (Secretary) resigned from their
positions as officers and directors.  Mr. Derek J. Jones was appointed
to fill the vacancies left by their respective departures.




ITEM
12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS





Carl R. Ceragno, our past president,
and Almajean O'Connor, our past secretary, funded our ongoing losses thru May of
2007. The loans from Mr. Ceragno and Ms. O'Conner have been used to pay salaries
and other operating expenses. These loans are demand loans and are not evidenced
by promissory notes and may be called by Mr. Ceragno and Ms. O'Connor, as the
case may be, at any time.  Ms. O'Connor's and Mr. Ceragno's loan
accrue interest at the rate of 7% per annum.





RECENT
DEVELOPMENTS





The Company is seeking a merger
candidate to continue as a going concern and potential to increase asset and
revenues.  The Company has entered into a Letter of Intent with Pure
Play Music, Ltd. of the United Kingdom.  The Company is conducting due
diligence and exploring a contemplated transaction.





14





On June 12, 2008 the Board of Directors
of the Company approved a resolution to amend Articles of Incorporation, I and
IV.  Articles I is amended to reflect the change of the name of the
Company to “Pure Play Music, Ltd.”  Article IV is to be amended to
increase the authorized shares of common stock to 400,000,000 and the preferred
shares to 10,000,000.  A majority of the stockholders consented to the
resolution.





On June 12, 2008, in a separate
subsequent action, the Board of Directors authorized a 1,000 to 1 reverse stock
split of its common stock. On that date the Board also approved an increase in
the authorized shares of Preferred Stock from 5,000,000 to 10,000,000 at a $.001
par value.




ITEM
13. EXHIBITS AND REPORTS ON FORM 8-K.





(a)      Exhibits





31.1              Certification
of Chief Executive Officer





31.2              Certification
of Principle Financial Officer





32.1              Certification
of Chief Executive Officer and Chief Financial Officer Pursuant To 18 U.S.C.
Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of
2002




(b)      Reports
on Form 8-K





10.1              Asset
Purchase Agreement between Stratus Entertainment and THE League Publishing, Inc.
date August 14, 2007 was filed by Form 8-K on September 17, 2007 is hereby
incorporated by reference.





10.2              Rescission
Agreement, dated November 15, 2007, Rescinding the August 14, 2007 Asset
Purchase Agreement was filed by form 10QSB on December 20, 2007 is hereby
incorporated by reference.





15





SIGNATURES





Pursuant
to the requirements 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.





Date:
July 15, 2008




PURE PLAY MUSIC
      LTD.By: /s/ Derek J.
      Jones
              Derek J.
      Jones