----

----

| Nevada                                                        | 20-2066406          |
|---------------------------------------------------------------|---------------------|
| (State or Other Jurisdiction of Incorporation                 | (I.R.S. Employer    |
| or Organization)                                              | Identification No.) |
|                                                          |                |
| 400 South Beverly Drive, Suite 312, Beverly Hills, California | 90212               |
| (Address of Principal Executive Offices)                      |  (Zip Code)    |

| Large accelerated filer o | Accelerated filer o    |
|--------------------------------|-----------------------------|
|                           |                        |
| Non-accelerated filer o   | Smaller reporting company x |

----

| PART I – FINANCIAL INFORMATION                                          |   | PAGE                                             |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                                    |   |                                             |   |   |
| ITEM 1.                                                                                 |   | FINANCIAL STATEMENTS                             |   |   |
|                                                                                    |   |                                             |   |   |
|                                                                                    |   | CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2011 |   |   |
|                                                                                    |   | (UNAUDITED) AND DECEMBER 31, 2010                |   | 3 |
|                                                                                    |   |                                             |   |   |
|                                                                                    |   | CONSOLIDATED STATEMENTS OF OPERATIONS            |   |   |
|                                                                                    |   | (UNAUDITED) FOR THE THREE MONTHS                 |   |   |
|                                                                                    |   | ENDED MARCH 31, 2011 AND MARCH 31, 2010 AND      |   |   |
|                                                                                    |   | PERIOD OF INCEPTION THROUGH MARCH 31, 2011       |   | 5 |
|                                                                                    |   |                                             |   |   |
|                                                                                    |   | CONSOLIDATED STATEMENTS OF CASH FLOWS            |   |   |
|                                                                                    |   | (UNAUDITED) FOR THE THREE MONTHS ENDED           |   |   |
|                                                                                    |   | MARCH 31, 2011 AND MARCH 31, 2010 AND            |   |   |
|                                                                                    |   | PERIOD OF INCEPTION THROUGH MARCH 31, 2011       |   | 6 |
|                                                                                    |   |                                             |   |   |
|                                                                                    |   | NOTES TO UNAUDITED CONSOLIDATED                  |   |   |
|                                                                                    |   | FINANCIAL STATEMENTS                             |   | 8 |
|                                                                                    |   |                                             |   |   |
| ITEM 2.                                                                                 |   | MANAGEMENT’S DISCUSSION AND ANALYSIS OF    |   |   |
|                                                                                    |   | FINANCIAL CONDITION AND RESULTS OF OPERATIONS    |   | 19 |
| ITEM 3.                                                                                 |   |                                             |   |   |
|                                                                                    |   | QUANTITATIVE AND QUALITATIVE DISCLOSURES         |   |   |
|                                                                                    |   | ABOUT MARKET RISK                                |   | 25 |
|                                                                                    |   |                                             |   |   |
| ITEM 4.                                                                            |   | CONTROLS AND PROCEDURES                          |   | 26 |
|                                                                                    |   |                                             |   |   |
| PART II –          OTHER INFORMATION |   |                                             |
|                                                                                    |   |                                             |   |   |
| ITEM 1.                                                                                 |   | LEGAL PROCEEDINGS                                |   | 27 |
|                                                                                    |   |                                             |   |   |
| ITEM 1A.                                                                                |   | RISK FACTORS                                     |   | 27 |
|                                                                                    |   |                                             |   |   |
| ITEM 2.                                                                                 |   | UNREGISTERED SALES OF EQUITY                     |   |   |
|                                                                                    |   | SECURITIES AND USE OF PROCEEDS                   |   | 27 |
|                                                                                    |   |                                             |   |   |
| ITEM 3.                                                                                 |   | DEFAULTS UPON SENIOR SECURITIES                  |   | 27 |
|                                                                                    |   |                                             |   |   |
| ITEM 4.                                                                                 |   | (REMOVED AND RESERVED)                           |   | 27 |
|                                                                                    |   |                                             |   |   |
| ITEM 5.                                                                                 |   | OTHER INFORMATION                                |   | 27 |
|                                                                                    |   |                                             |   |   |
| ITEM 6.                                                                                 |   | EXHIBITS                                         |   | 27 |
|                                                                                    |   |                                             |   |   |
| SIGNATURE                                                                               |   | 28                                               |

----

|                                        |   | March 31, 2011(Unaudited) |      |   | December 31, 2010 |   |
|---------------------------------------------|--------|---------------------------|-----------|--------|-------------------|--------|
| ASSETS                                      |   |                      |      |   |              |   |
| Current assets:                             |   |                      |      |   |              |   |
|    Cash and cash equivalents |   | $                         | 48,046    |   |              | $      | 23,672 |   |
|    Accounts receivable       |   |                      | 357,750   |   |              |   | 236,382 |   |
| Total current assets                        |   |                      | 405,796   |   |              |   | 260,054 |   |
|                                        |   |                      |      |   |              |   |   |   |
| Property, plant and equipment               |   |                      | 45,949    |   |              |   | 47,477 |   |
| Investment in equity-accounted investee     |   |                      | 646,366   |   |              |   | -- |   |
| Other assets                                |   |                      | 767,067   |   |              |   | 93,841 |   |
|                                        |   |                      |      |   |              |   |   |   |
| Total assets                                |   | $                         | 1,865,178 |   |              | $      | 401,372 |   |
|                                        |   |                      |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT |   |                      |      |   |
| Current liabilities:                        |   |                      |      |   |              |   |   |   |
|   Accounts payable                |   | $                         | 980,541   |   |              | $      | 1,205,129 |   |
| Total current liabilities                   |   |                      | 980,541   |   |              |   | 1,205,129 |   |
|                                        |   |                      |      |   |              |   |   |   |
| Long-term liabilities:                      |   |                      |      |   |              |   |   |   |
|   Long-term debt                  |   |                      | 951,555   |   |              |   | 1,867,201 |   |
|   Bank overdrafts                 |   |                      | 39,138    |   |              |   | 38,387 |   |
|                                        |   |                      |      |   |              |   |   |   |
| Total liabilities                           |   |                      | 1,971,234 |   |              |   | 3,110,717 |   |
|                                        |   |                      |      |   |              |   |   |   |
| Non-controlling interest                    |   |                      | (202,826  | )      |              |   | (186,441 | ) |

----

|                                                                                                                                                                                                 |   | March 31, 2011(Unaudited) |       |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|------------|--------|-------------------|--------|
| Stockholders’ deficit:                                                                                                                                                                         |   |                      |       |   |              |   |
|    Preferred stock, $0.001 par value, 10,000,000 authorized  shares; no shares issued and outstanding                                                                       |   |                      | --         |   |              |   | -- |   |
|    Common stock, $0.001 par value, 500,000,000 shares  authorized; 18,246,667 shares issued and outstanding at  March 31, 2011 and 9,980,000 at December 31, 2010 |   |                      | 18,247     |   |              |   | 9,980 |   |
|    Additional paid-in capital                                                                                                                                                         |   |                      | 2,911,356  |   |              |   | 156,730 |   |
|    Share-based reserves                                                                                                                                                               |   |                      | 6,300      |   |              |   | 6,300 |   |
|    Accumulated deficit during development stage                                                                                                                                       |   |                      | (2,812,106 | )      |              |   | (2,682,781 | ) |
|    Accumulated other comprehensive loss                                                                                                                                               |   |                      | (27,027    | )      |              |   |  (13,133 | ) |
|            Total Andain stockholders’ deficit                                                                                           |   |                      | 96,770     |   |              |   |  (2,522,904 | ) |
|                                                                                                                                                                                                 |   |                      |       |   |              |   |   |   |
|            Total stockholders’ deficit                                                                                                       |   |                      | (106,056   | )      |              |   |  (2,709,345 | ) |
|                                                                                                                                                                                                 |   |                      |       |   |              |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                                                                                    |   | $                         | 1,865,178  |   |              | $      | 401,372 |   |

----

  

|                                                                                                   |   | Three Months Ended March 31, |       | Period of Inception(July 23, 2004) through |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------------------------------------------|
|                                                                                                   |   | 2011                         |       |                                       | 2010 |   | March 31, 2011 |
| Revenue:                                                                                               |   |                         |       |                                       |   |   |   |   |   |
|    Government grants                                                                    |   | $                            | 104,132    |                                       |   | $ | 44,189 |   |   | $ | 473,832 |   |
|    Consulting income                                                                    |   |                         | 7,439      |                                       |   |   | -- |   |   |   | 379,757 |   |
|       Total revenue                                                      |   |                         | 111,571    |                                       |   |   | 44,189 |   |   |   | 853,589 |   |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                    |   |                         |       |                                       |   |   |   |   |   |   |   |   |
|    Depreciation                                                                         |   |                         | (2,745     | )                                          |   |   | (2,165 | ) |   |   | (30,991 | ) |
|    General and administrative                                                           |   |                         | (266,810   | )                                          |   |   | (126,678 | ) |   |   | (3,198,217 | ) |
|    Impairment of goodwill                                                               |   |                         | --         |                                       |   |   | -- |   |   |   | (397,991 | ) |
|    Research and development                                                             |   |                         | --         |                                       |   |   | (23,679 | ) |   |   | (146,760 | ) |
|       Total operating expenses                                           |   |                         | (269,555   | )                                          |   |   | (152,522 | ) |   |   | (3,773,959 | ) |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Loss from operations                                                                                   |   |                         | (157,984   | )                                          |   |   | (108,333 | ) |   |   | (2,920,370 | ) |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Interest received                                                                                      |   |                         | --         |                                       |   |   | -- |   |   |   | 32,735 |   |
| Interest expense                                                                                       |   |                         | --         |                                       |   |   | -- |   |   |   | (4,734 | ) |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Net loss                                                                                               |   |                         | (157,984   | )                                          |   |   | (108,333 | ) |   |   | (2,892,369 | ) |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Less: Net income/(loss)  attributable to non-controlling  interests                |   |                         | 28,659     |                                       |   |   | (6,358 | ) |   |   | 80,263 |   |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Net loss and deficit accumulated  during development state  attributable to Andain |   | $                            | (129,325   | )                                     |   | $ | (114,691 | ) |   | $ | (2,812,106 | )  |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
| Loss per share – basic:                                                                          |   |                         |       |                                       |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain                                                      |   | $                            | (0.01      | )                                          |   | $ | (0.01 | )  |   |   |   |   |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
|  Weighted average shares      outstanding                                |   |                         | 18,246,667 |                                       |   |   | 9,980,000 |   |   |   |   |   |
|                                                                                                   |   |                         |       |                                       |   |   |   |   |   |   |   |   |
|  Loss per share – diluted:                                                                  |   |                         |       |                                       |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain                                                           |   | $                            | (0.01      | )                                          |   | $ | (0.01 | ) |   |   |   |   |
|  Weighted average shares      outstanding                                |   |                         | 24,246,667 |                                       |   |   | 15,980,000 |   |   |   |   |   |

----

|                                                                                                                                                                                               |   | Three Months Ended March 31, |      |   | Period of Inception(July 23, 2004) through |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|--------------------------------------------|--------|
|                                                                                                                                                                                               |   |  2011                        |      |   |  2010                                 |   |   |  March 31, 2011 |   |
| Operating activities:                                                                                                                                                                              |   |                              |      |   |                                       |   |   |   |   |
|   Net loss attributable to Andain, Inc.                                                                                                                                                  |   | $                                 | (157,984  | )      |                                       | $      | (108,333 | ) |   | $ | (2,892,369 | ) |
|   Adjustments to reconcile net loss to net    cash provided by operating activities:                                                                                 |   |                              |      |   |                                       |   |   |   |   |   |   |   |
|          Depreciation                                                                                                                                 |   |                              | 2,745     |   |                                       |   | 2,165 |   |   |   | 30,991 |   |
|          Amortized goodwill                                                                                                                           |   |                              | --        |   |                                       |   | -- |   |   |   | 322,977 |   |
|          Minority interest                                                                                                                            |   |                              | 12,274    |   |                                       |   | 100 |   |   |   | 14,569 |   |
|          Shares issued for professional services                                                                                                      |   |                              | 1,920,000 |   |                                       |   | -- |   |   |   | 1,921,910 |   |
|          Shares issued in subsidiary                                                                                                                  |   |                              | 642,170   |   |                                       |   | -- |   |   |   | 642,170 |   |
|          Non-cash compensation expense                                                                                                                |   |                              | --        |   |                                       |   | -- |   |   |   | 6,000 |   |
|          Equity-settled share-based payment                                                                                                           |   |                              | --        |   |                                       |   | -- |   |   |   | 300 |   |
|          Effect of movements in foreign             exchange rates on non-cash items |   |                              | (927      | )      |                                       |   | (437 | ) |   |   | (7,283 | ) |
|   Changes in operating assets and liabilities:                                                                                                                                           |   |                              |      |   |                                       |   |   |   |   |   |   |   |
|          Accounts payable                                                                                                                             |   |                              | (224,588  | )      |                                       |   | 71,359 |   |   |   | 975,564 |   |
|          Accounts receivable                                                                                                                          |   |                              | (121,368  | )      |                                       |   | (33,922 | ) |   |   | (357,404 | ) |
|          Accrued compensation                                                                                                                         |   |                              | 90,000    |   |                                       |   | 120,000 |   |   |   | 2,010,000 |   |
|          Accrued consulting fees                                                                                                                      |   |                              | --        |   |                                       |   | -- |   |   |   | 60,000 |   |
|          Accrued expenses – stockholder                                                                                                         |   |                              | --        |   |                                       |   | -- |   |   |   | 37,508 |   |
|                                                                                                                                                                                               |   |                              |      |   |                                       |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                                                                                                                          |   |                              | 2,162,322 |   |                                       |   | 50,932 |   |   |   | 2,764,933 |   |

|                                                                                    |   |   |     |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|
| Investing activities:                                                                   |   |   |     |   |   |   |   |   |   |
|   Purchase of equipment                                                       |   |   | (290     | )      |   |   | (1,586 | )      |   |   | (70,838 | ) |
|   Acquisition of subsidiary                                                   |   |   | (200,723 | )      |   |   | --     |   |   |   | (662,475 | ) |
|   Acquisition of interest in equity-accounted    investee |   |   | (646,366 | )      |   |   | (162   | )      |   |   | (646,366 | ) |
|                                                                                    |   |   |     |   |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                                   |   |   | (847,379 | )      |   |   | (1,748 | )      |   |   | (1,379,679 | ) |

----

|                                                  |   | Three Months Ended March 31, |       |   | Period of Inception(July 23, 2004) through |   |
|-------------------------------------------------------|--------|-----------------------------------|------------|--------|--------------------------------------------|--------|
|                                                  |   |  2011                        |       |   |  2010                                 |   |   | March 31, 2011 |   |
| Financing activities:                                 |   |                              |       |   |                                       |   |   |   |   |
|   Proceeds from increase in bank overdrafts |   |                              | 751        |   |                                       |   | 602 |   |   |   | 39,138 |   |
|   Proceeds from stock issued for cash       |   |                              | 200,723    |   |                                       |   | -- |   |   |   | 365,523 |   |
|   Proceeds from other loans                 |   |                              | (182,085   | )      |                                       |   | (694 | ) |   |   | (183,394 | ) |
|   Loan from majority stockholder            |   |                              | (354       | )      |                                       |   | (269 | ) |   |   | (16,971 | ) |
|   Loan from equity-accounted investee       |   |                              | 646,366    |   |                                       |   | (28,686 | ) |   |   | 646,366 |   |
|   Loans from key management personnel       |   |                              | (1,942,076 | )      |                                       |   | (15,655 | ) |   |   | (2,160,843 | ) |

|                                  |   |   |       |   |   |   |    |   |   |   |             |
|---------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|------------------|
| Net cash used in financing activities |   |   | (1,276,675 | )      |   |   | (44,702 | )      |   |   |  (1,310,181 | ) |
|                                  |   |   |       |   |   |   |    |   |   |   |             |   |
| Increase in cash and cash equivalents |   |   | 38,268     |   |   |   | 4,482   |   |   |   |  75,073     |   |
|                                  |   |   |       |   |   |   |    |   |   |   |             |   |

| Effects of exchange rate changes on the balance of cash held in foreign currencies |   |   | (13,894 | )      |   |   | 252    |   |   |   | (27,027 | )      |
|------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
|                                                                               |   |   |    |   |   |   |   |   |   |   |    |   |
| Cash and cash equivalents,   beginning of period                    |   |   | 23,672  |   |   |   | 28,604 |   |   |   | --      |   |
|                                                                               |   |   |    |   |   |   |   |   |   |   |    |   |
| Cash and cash equivalents,   end of period                          |   | $      | 48,046  |   |   | $      | 33,338 |   |   | $      | 48,046  |   |

| Supplementary schedule of  cash flow activities:                                                                        |   |   |      |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|
|   Non-cash investing and financing    activities:                                                   |   |   |      |   |   |   |   |   |   |
|     Issuance of common stock for payment      of management and consulting fees |   | $      | 1,920,000 |   |   | $      | --     |   |   | $ | 1,921,900 |   |
|     Issuance of common stock for      purchase of intellectual property         |   | $      | --        |   |   | $      | --     |   |   | $ | 4,500 |   |

|     Issuance of common stock for      purchase of subsidiary                    |   | $ | -- |   |   | $ | -- |   |   | $ | 2,500 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---|----|--------|--------|---|----|--------|--------|---|-------|--------|
|     Issuance of common stock for payment      of management and consulting fees |   | $ | -- |   |   | $ | -- |   |   | $ | 300   |   |
|    Non-cash compensation expense                                                                                   |   | $ | -- |   |   | $ | -- |   |   | $ | 6,000 |   |

----

  

----

----

| Motor vehicles     | 5 years  |
|--------------------|----------|
| Furniture          | 15 years |
| Computer equipment | 3 years  |

----

----

| Name of Company                          | Principal Activity   | Location | Proportion of Ownership Interest and Voting PowerHeld at March 31, 2011 |
|------------------------------------------|----------------------|----------|-------------------------------------------------------------------------|
|                                     |                 |     |                                                                    |
| Impact Active Team Ltd.                  | Consulting           | Israel   | 100%                                                                    |
| TPDS Ltd.                                | Medical              | Israel   | 94%                                                                     |
| Meizam Arad Investments Ltd.   | Financing            | Israel   | 92%                                                                     |
| Meizam – Advanced Enterprise       |                 |     |                                                                    |
| Center Arad Ltd.                         | Industrial Incubator | Israel   | 72%                                                                     |

|                                                          |   |   | March 31, 2011 |   |   |   | December 31, 2010 |   |
|---------------------------------------------------------------|--------|--------|----------------|--------|--------|--------|-------------------|--------|
|                                                          |   |   | (Unaudited)    |   |   |   |              |   |
|                                                          |   |   |           |   |   |   |              |   |
| Trade accounts receivable                                     |   | $      | 368            |   |   | $      | 7,888             |   |
| Advances to suppliers                                         |   |   | 91,196         |   |   |   | 100,821           |   |
| Institutions                                                  |   |   | 35,461         |   |   |   | 29,545            |   |
| Other accounts receivable from the                            |   |   |           |   |   |   |              |   |
|   Office of the Chief Scientist (“OCS”) |   |   |  230,725  |   |   |   |  98,128      |   |
|                                                          |   |   |           |   |   |   |              |   |
|                                                          |   | $      | 357,750        |   |   | $      | 236,382           |   |

----

|                                         |   |   | Computers  |   |   |   | Furniture |   |   |   | Vehicles  |   |   |   | Total     |   |
|----------------------------------------------|--------|--------|-----------------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|
|                                         |   |   |            |   |   |   |      |   |   |   |      |   |   |   |      |   |
| Balance as of December 31, 2010              |   | $      | 14,066          |   |   | $      | 20,435    |   |   | $      | 12,976    |   |   | $      | 47,477    |   |
|                                         |   |   |            |   |   |   |      |   |   |   |      |   |   |   |      |   |
|   Capital expenditure              |   |   | --              |   |   |   | 290       |   |   |   | --        |   |   |   | 290       |   |
|   Depreciation                     |   |   | (803            | )      |   |   | (510      | )      |   |   | (1,432    | )      |   |   | (2,745    | )      |
|   Effect of foreign currency       |   |   |            |   |   |   |      |   |   |   |      |   |   |   |      |   |
|     exchange differences |   |   |  275       |   |   |   |  399 |   |   |   |  253 |   |   |   |  927 |   |
|                                         |   |   |            |   |   |   |      |   |   |   |      |   |   |   |      |   |
| Balance as of March 31, 2011 (unaudited)     |   | $      | 13,538          |   |   | $      | 20,614    |   |   | $      | 11,797    |   |   | $      | 45,949    |   |

| Investment in Equity-Accounted Investee at December 31, 2010          |   | $      | --      |   |
|-----------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                  |   |   |    |   |
| Acquisitions                                                          |   |   | 646,366 |   |
|                                                                  |   |   |    |   |
| Investment in Equity-Accounted Investee at March 31, 2011 (unaudited) |   | $      | 646,366 |   |

|                      |   | March 31, 2011 |   |   | December 31, 2010 |   |
|---------------------------|--------|----------------|--------|--------|-------------------|--------|
|                      |   | Ownership      |   |   | Ownership         |   |
| Equity-Accounted Investee |   |           | 38     | %      |              |   | 0 |   |

|                                       |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                       |   | (Unaudited)    |    |   |              |   |
|                                       |   |           |    |   |              |   |
| Other loans                                |   | $              | 44,630  |   |              | $      | 43,775 |   |
|                                       |   |           |    |   |              |   |   |   |
| Loans with related parties:                |   |           |    |   |              |   |   |   |
|    Key management personnel |   |           | 194,371 |   |              |   | -- |   |
|    Related companies        |   |           | 528,066 |   |              |   | 50,066 |   |
|                                       |   |           |    |   |              |   |   |   |
|                                       |   | $              | 797,067 |   |              | $      | 93,841 |   |

----

|                                                 |   | March 31, 2011 |    |   | December 31, 2010 |   |
|------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                 |   | (Unaudited)    |    |   |              |   |
|                                                 |   |           |    |   |              |   |
| Trade payables                                       |   | $              | 571,361 |   |              | $      | 606,133 |   |
| Institutions                                         |   |           | 52,260  |   |              |   | 44,942 |   |
| Accrued liabilities                                  |   |           | 96,003  |   |              |   | 13,246 |   |
| Deferred revenue:                                    |   |           |    |   |              |   |   |   |
|    Arising from government grants (1) |   |           | 34,447  |   |              |   | 33,787 |   |
|    Arising from unearned revenues     |   |           | 226,470 |   |              |   | 222,132 |   |
| Refundable deposits                                  |   |           | --      |   |              |   | 284,889 |   |
|                                                 |   |           |    |   |              |   |   |   |
|                                                 |   | $              | 980,541 |   |              | $      | 1,205,129 |   |

|                     |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------|--------|----------------|---------|--------|-------------------|--------|
|                     |   | (Unaudited)    |    |   |              |   |
|                     |   |           |    |   |              |   |
| Key management personnel |   | $              | 43,528  |   |              | $      | 1,701,233 |   |
| Pangea Investments GmbH  |   |           | 80,537  |   |              |   | 80,891 |   |
| Related companies        |   |           | 714,680 |   |              |   | 47,275 |   |
| Other loans              |   |           | 112,810 |   |              |   | 37,802 |   |
|                     |   |           |    |   |              |   |   |   |
|                     |   | $              | 951,555 |   |              | $      | 1,867,201 |   |

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| · | have equal ratable rights to dividends from funds legally available for payment of dividends when, and if declared by the board of directors; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| · | are entitled to share ratably in all of the assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | do not have preemptive, subscription or conversion rights, or redemption or access to any sinking fund and; |
|--------|-------------------------------------------------------------------------------------------------------------|

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| · | are entitled to one non-cumulative vote per share on all matters submitted to stockholders for a vote at any meeting of stockholders. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| Income tax benefit at statutory rate |   | $      | (55,294 | )      |
|--------------------------------------|--------|--------|---------|--------|
| Valuation allowance                  |   |   | 55,294  |   |
|                                 |   |   |    |   |
| Total                                |   | $      | --      |   |

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| Consideration transferred                                            |   | $      | 203,604  |   |
|----------------------------------------------------------------------|--------|--------|----------|--------|
| Add: Non-controlling interest                                        |   |   | 546      |   |
| Add: Previously held equity interest in Meizam Arad Investments |   |   | 0        |   |
| Less: Fair value of identifiable net assets acquired                 |   |   | (204,150 | )      |
|                                                                 |   |   |     |   |
| Goodwill arising on acquisition                                      |   | $      | 0        |   |

|                |   | Meizam Arad Investments |    |
|---------------------|--------|------------------------------|---------|
|                |   |                         |    |
| Non-current assets  |   | $                            | 204,150 |   |
|                |   |                         |    |   |
| Net assets acquired |   | $                            | 204,150 |   |

----

| Pangea Investments GmbH                       | Affiliate stockholder of Andain, Inc. |
|-----------------------------------------------|---------------------------------------|
| 1568934 Ontario Limited                       | Affiliate stockholder of Andain, Inc. |
| Impact Active Team Ltd.                       | Israeli, wholly-owned subsidiary      |
| TPDS Ltd.                                     | Israeli, majority-owned subsidiary    |
| Meizam - Advanced Enterprise Center Arad Ltd. | Israeli, majority-owned subsidiary    |
| Meizam Arad Investments                       | Israeli, majority-owned subsidiary    |
| Sam Elimelech                                 | Director of Andain, Inc.              |
| Gai Mar-Chaim                                 | Director of Andain, Inc.              |
| P.O.C. Hi Tech Ltd.                           | Israeli company with common director  |
| Gaia Med Ltd.                                 | Israeli, Equity-Accounted Investee    |

|                                               |   | March 31, 2011 |     |   | December 31, 2010 |   |
|----------------------------------------------------|--------|----------------|----------|--------|-------------------|--------|
|                                               |   | (Unaudited)    |     |   |              |   |
|                                               |   | $              |     |   | $                 |   |
| Income statements:                                 |   |           |     |   |              |   |
|   Directors’ remuneration          |   |           | 60,000   |   |              |   | 480,000 |   |
|                                               |   |           |     |   |              |   |   |   |
| Balance sheets:                                    |   |           |     |   |              |   |   |   |
|   Loan – related companies         |   |           | 528,066  |   |              |   | 50,066 |   |
|   Loan – Pangea Investments GmbH   |   |           | (80,537  | )      |              |   | (80,891 | ) |
|   Loans – key management personnel |   |           | 150,843  |   |              |   | (1,701,233 | ) |
|   Loan – related company           |   |           | (714,680 | )      |              |   | (47,275 | ) |

----

  

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----

----

----

| · | curtail operations significantly; |
|--------|-----------------------------------|

| · | sell significant assets; |
|--------|--------------------------|

| · | seek arrangements with strategic partners or other parties that may require the Company to relinquish significant rights to products, technologies or markets; or |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | explore other strategic alternatives including a merger or sale of the Company. |
|--------|---------------------------------------------------------------------------------|

----

----

----

  

----

  

----

|                | Andain, Inc. |                            |
|---------------------|--------------|---------------------------------|
|                |         |                            |   |
| Dated: May 23, 2011 | By:          | /s/ Sam Shlomo Elimelech   |   |
|                |         | Sam Shlomo Elimelech, President |   |

----

| Number                                                              | Description |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|

| 3.1 | Articles of Incorporation, dated July 14, 2004 (incorporated by reference to Exhibit 3.1 of the Form 10-SB filed on March 24, 2005). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Bylaws, dated August 1, 2004 (incorporated by reference to Exhibit 3.2 of the Form 10-SB filed on March 24, 2005). |
|-----|--------------------------------------------------------------------------------------------------------------------|

| 10.1 | Affiliation Agreement between the Impact Active Team Ltd. and P.O.C. High-Tech (1992) Ltd. Corporation, dated June 23, 2004 (incorporated by reference to Exhibit 10.8 of the Form SB-2 filed on February 13, 2007). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Consulting Agreement between the Company and Dr. Leonid Lurya, dated May 16, 2006 (incorporated by reference to Exhibit 10.2 of the Form 10-K filed on December 30, 2010). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Share Purchase Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (not including Schedule 1, Disclosure Schedule) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed on July 5, 2006). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Technology Purchase Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (incorporated by reference to Exhibit 10.2 of the Form 8-K filed on July 5, 2006). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Finder’s Fee Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (incorporated by reference to Exhibit 10.5 of the Form 8-K filed on July 5, 2006). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Consulting Agreement between the Company and Pangea Investments GmbH, dated July 3, 2006 (incorporated by reference to Exhibit 10.3 of the Form 8-K filed on July 5, 2006). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Business Development Services Agreement between the Company and Pangea Investments GmbH, dated July 3, 2006 (incorporated by reference to Exhibit 10.4 of the Form 8-K filed on July 5, 2006). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Employment Agreement between the Company and Sam Elimelech, dated July 3, 2006 (incorporated by reference to Exhibit 10.6 of the Form 8-K filed on July 5, 2006). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 | Employment Agreement between the Company and Gai Mar-Chaim, dated July 3, 2006 (incorporated by reference to Exhibit 10.7 of the Form 8-K filed on July 5, 2006). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.10 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated July 19, 2006 (incorporated by reference to Exhibit 10.11 of the Form 10-K/A filed on February 7, 2011). |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Consulting Agreement between the Company and Meizam - Advanced Enterprise Center Arad Ltd., dated October 25, 2006 (incorporated by reference to Exhibit 10.10 of the Form 10-K filed on December 30, 2010). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Employment Agreement between the Company and Sam Elimelech, dated January 1, 2011 (incorporated by reference to Exhibit 10.1 of the Form 8-K filed on March 29, 2011). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Employment Agreement between the Company and Gai Mar-Chaim, dated January 1, 2011 (incorporated by reference to Exhibit 10.2 of the Form 8-K filed on March 29, 2011). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | Regulation S Stock Purchase Agreement between the Company and Sam Elimelech, dated January 5, 2011 (incorporated by reference to Exhibit 10.3 of the Form 8-K filed on March 29, 2011). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 | Regulation S Stock Purchase Agreement between the Company and Gai Mar-Chaim, dated January 5, 2011 (incorporated by reference to Exhibit 10.4 of the Form 8-K filed on March 29, 2011). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated January 14, 2011 (incorporated by reference to Exhibit 10.5 of the Form 8-K filed on March 29, 2011). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | Option issued to 1568934 Ontario Limited by the Company, dated January 14, 2011 (incorporated by reference to Exhibit 10.6 of the Form 8-K filed on March 29, 2011). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 | Stock Purchase Agreement between the Company and Meizam Arad Investments Ltd., dated January 31, 2011 (incorporated by reference to Exhibit 10.7 of the Form 8-K filed on March 29, 2011). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19 | Stock Purchase Agreement between Meizam – Advanced Enterprise Center Arad Ltd and Meizam Arad Investments Ltd., dated January 31, 2011 (incorporated by reference to Exhibit 10.8 of the Form 8-K filed on March 29, 2011). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.1 | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on January 5, 2006). |
|------|-------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on November 5, 2010). |
|------|--------------------------------------------------------------------------------------------------------------------------------|

----

| 21 | Subsidiaries of the Company (incorporated by reference to Exhibit 21 of the Form 10-K filed on April 15, 2011). |
|----|-----------------------------------------------------------------------------------------------------------------|

| 31.1 | Rule 13a-14(a)/15d-14(a) Certification of Sam Shlomo Elimelech (filed herewith). |
|------|----------------------------------------------------------------------------------|

| 31.2 | Rule 13a-14(a)/15d-14(a) Certification of Gai Mar-Chaim (filed herewith). |
|------|---------------------------------------------------------------------------|

| 32 | Section 1350 Certification of Sam Shlomo Elimelech and Gai Mar-Chaim (filed herewith). |
|----|----------------------------------------------------------------------------------------|

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----