----

----

| Nevada                                        | 20-2066406     |
|-----------------------------------------------|---------------------|
| (State or Other Jurisdiction of Incorporation | (I.R.S. Employer    |
| or Organization)                              | Identification No.) |
|                                          |                |
| 5190 Neil Road, Suite 430, Reno, Nevada       |  89502         |
| (Address of Principal Executive Offices)      | (Zip Code)          |

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

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| PART I – FINANCIAL INFORMATION                                                                                                                                                                                    | PAGE     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                    |     |
|             ITEM 1.  FINANCIAL STATEMENTS                                                                                                              |     |
|                                                                                                                                                                                                                    |     |
|                             CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2009 |     |
|                             (UNAUDITED) AND DECEMBER 31, 2008               | 3        |
|                                                                                                                                                                                                                    |     |
|                             CONSOLIDATED STATEMENTS OF OPERATIONS           |     |
|                             (UNAUDITED) FOR THE THREE AND SIX MONTHS        |     |
|                             ENDED JUNE 30, 2009 AND JUNE 30, 2008 AND       |     |
|                             PERIOD OF INCEPTION THROUGH JUNE 30, 2009       | 5        |
|                                                                                                                                                                                                                    |     |
|                             CONSOLIDATED STATEMENTS OF CASH FLOWS           |     |
|                             (UNAUDITED) FOR THE SIX MONTHS ENDED            |     |
|                             JUNE 30, 2009 AND JUNE 30, 2008 AND             |     |
|                             PERIOD OF INCEPTION THROUGH JUNE 30, 2009       | 6        |
|                                                                                                                                                                                                                    |     |
|                             NOTES TO UNAUDITED CONSOLIDATED                 |     |
|                             FINANCIAL STATEMENTS                            | 8        |
|                                                                                                                                                                                                                    |     |
|             ITEM 2.  MANAGEMIENT’S DISCUSSION AND ANALYSIS OF                                                                               |     |
|                             FINANCIAL CONDITION AND RESULTS OF OPERATIONS   | 17       |
|                                                                                                                                                                                                                    |     |
|             ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES                                                                                                |     |
|                             ABOUT MARKET RISK                               | 23       |
|                                                                                                                                                                                                                    |     |
|             ITEM 4.  CONTROLS AND PROCEDURES                                                                                                      | 23       |
|                                                                                                                                                                                                                    |     |
| PART II – OTHER INFORMATION                                                                                                                                                                                       |     |
|                                                                                                                                                                                                                    |     |
|             ITEM 1.  LEGAL PROCEEDINGS                                                                                                            | 24       |
|                                                                                                                                                                                                                    |     |
|             ITEM 1A. RISK FACTORS                                                                                                                           | 24       |
|                                                                                                                                                                                                                    |     |
|             ITEM 2.  UNREGISTERED SALES OF EQUITY                                                                                                 |     |
|                              SECURITIES AND USE OF PROCEEDS            | 25       |
|                                                                                                                                                                                                                    |     |
|             ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                                                                              | 25       |
|                                                                                                                                                                                                                    |     |
|             ITEM 4.  (REMOVED AND RESERVED)                                                                                                       | 25       |
|                                                                                                                                                                                                                    |     |
|             ITEM 5.  OTHER INFORMATION                                                                                                            | 25       |
|                                                                                                                                                                                                                    |     |
|             ITEM 6.  EXHIBITS                                                                                                                     | 25       |
|                                                                                                                                                                                                                    |     |
| SIGNATURE                                                                                                                                                                                                               |  26 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | June 30, 2009(Unaudited) |      |   | December 31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|-------------------|--------|
|                                                                        ASSETS |   |                     |      |   |              |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     |      |   |              |   |
|    Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                        | 10,267    |   |              | $      | -- |   |
|    Accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     | 6,846     |   |              |   | 12,308 |   |
| Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     | 17,113    |   |              |   | 12,308 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                     | 24,809    |   |              |   | 23,078 |   |
| Investment in equity-accounted investee                                                                                                                                                                                                                                                                                                                                                                                                          |   |                     | 2,119     |   |              |   | 1,823 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                     | 40,010    |   |              |   | 90,674 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                        | 84,051    |   |              | $      | 127,883 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
|   Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                |   | $                        | 103,558   |   |              | $      | 119,664 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                     | 103,558   |   |              |   | 119,664 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Long-term liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     |      |   |              |   |   |   |
|   Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                     | 1,268,612 |   |              |   | 1,064,232 |   |
|   Bank overdrafts                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                     | 34,763    |   |              |   | 35,836 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                     | 1,406,933 |   |              |   | 1,219,732 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                     | 2,075     |   |              |   | 2,252 |   |

----

|                                                                                                                          |   | June 30, 2009(Unaudited) |       |   |    December 31, 2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|--------------------------------|--------|
| 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; 9,980,000 shares issued and outstanding |   |                     | 9,980      |   |                           |   | 9,980 |   |
|    Additional paid-in capital                                                                                  |   |                     | 156,730    |   |                           |   | 156,730 |   |
|    Share-based reserves                                                                                        |   |                     | 6,300      |   |                           |   | 6,300 |   |
|    Accumulated deficit during development stage                                                                |   |                     | (1,500,361 | )      |                           |   | (1,268,988 | ) |
|    Accumulated other comprehensive loss                                                                        |   |                     | 2,394      |   |                           |   | 1,877 |   |
|           Total Andain stockholders’ deficit                          |   |                     | (1,324,957 | )      |                           |   | (1,094,101 | ) |
|                                                                                                                          |   |                     |       |   |                           |   |   |   |
|           Total stockholders’ deficit                                 |   |                     | (1,322,882 | )      |                           |   | (1,091,849 | ) |
|                                                                                                                          |   |                     |       |   |                           |   |   |   |
| Total liabilities and stockholders’ deficit                                                                             |   | $                        | 84,051     |   |                           | $      | 127,883 |   |

----

|                                                           |   | Three Months Ended June 30, |       |   | Six Months EndedJune 30, |   |       | Period of Inception (July 23, 2004) through |   |
|----------------------------------------------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|------------|---------------------------------------------|--------|
|                                                           |   | 2009                        |       |   | 2008                     |   |       | 2009                                        |   |   | 2008 |   |   | June 30, 2009 |   |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |
| Net revenue                                                    |   | $                           | --         |   |                     | $      | 9,086      |                                        |   | $ | 34,859 |   |   | $ | 9,086 |   |   | $ | 335,597 |   |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                            |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Depreciation                                 |   |                        | (1,646     | )      |                     |   | (1,672     | )                                           |   |   | (3,094 | ) |   |   | (3,164 | ) |   |   | (15,917 | ) |
|    General and administrative                   |   |                        | (127,203   | )      |                     |   | (134,534   | )                                           |   |   | (263,138 | ) |   |   | (269,559 | ) |   |   | (1,753,231 | ) |
|    Impairment of goodwill                       |   |                        | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (75,014 | ) |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                           |   |                        | (128,849   | )      |                     |   | (127,120   | )                                           |   |   | (231,373 | ) |   |   | (263,637 | ) |   |   | (1,508,565 | ) |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest received                                              |   |                        | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | 10,719 |   |
| Interest expense                                               |   |                        | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (2,515 | ) |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss and deficit accumulated during development stage |   | $                           | (128,849   | )      |                     | $      | (127,120   | )                                           |   | $ | (231,373 | ) |   | $ | (263,637 | ) |   | $ | (1,500,361 | ) |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share:                                          |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain              |   | $                           | (0.01      | )      |                     | $      | (0.01      | )                                           |   | $ | (0.02 | ) |   | $ | (0.03 | ) |   |   |   |   |
|    Weighted average shares outstanding     |   |                        | 9,980,000  |   |                     |   | 9,980,000  |                                        |   |   | 9,980,000 |   |   |   | 9,980,000 |   |   |   |   |   |
|                                                           |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted loss per share:                                        |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain              |   | $                           | (0.00      | )      |                     | $      | (0.00      | )                                           |   | $ | (0.02 | ) |   | $ | (0.00 | ) |   |   |   |   |
|    Weighted average shares outstanding     |   |                        | 15,980,000 |   |                     |   | 13,980,000 |                                        |   |   | 15,980,000 |   |   |   | 13,980,000 |   |   |   |   |   |

----

|                                                                                                                       |   | Six Months Ended June 30, |     |   | Period of Inception(July 23, 2004) through |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|--------|--------------------------------------------|--------|
|                                                                                                                       |   |  2009                     |     |   |  2008                                 |   |   |  June 30, 2009 |   |
| Operating activities:                                                                                                      |   |                           |     |   |                                       |   |   |   |   |
|   Net loss                                                                                                       |   | $                              | (231,373 | )      |                                       | $      | (263,637 | ) |   | $ | (1,500,361 | ) |
|   Adjustments to reconcile net loss to net cash provided by (used in) operating activities:            |   |                           |     |   |                                       |   |   |   |   |   |   |   |
|          Depreciation                                                         |   |                           | 3,094    |   |                                       |   | 3,164 |   |   |   | 15,917 |   |
|          Minority interest                                                    |   |                           | (177     | )      |                                       |   | 866 |   |   |   | 2,075 |   |
|          Shares issued for professional services                              |   |                           | --       |   |                                       |   | -- |   |   |   | 1,910 |   |
|          Accrued expenses – stockholder                                 |   |                           | --       |   |                                       |   | -- |   |   |   | 37,508 |   |
|          Accrued consulting fees - stockholder                                |   |                           | --       |   |                                       |   | -- |   |   |   | 60,000 |   |
|          Accounts payable                                                     |   |                           | (16,106  | )      |                                       |   | 30,654 |   |   |   | 99,204 |   |
|          Accounts receivable                                                  |   |                           | 5,462    |   |                                       |   | 3,211 |   |   |   | (6,588 | ) |
|          Non-cash compensation expense                                        |   |                           | --       |   |                                       |   | -- |   |   |   | 6,000 |   |
|          Equity-settled share-based payment                                   |   |                           | --       |   |                                       |   | -- |   |   |   | 300 |   |
|          Accrued compensation                                                 |   |                           | 240,000  |   |                                       |   | 240,000 |   |   |   | 1,200,000 |   |
|          Effect of movements in foreign exchange rates on non-cash items |   |                           | 689      |   |                                       |   | (4,175 | ) |   |   | (3,722 | ) |
|                                                                                                                       |   |                           |     |   |                                       |   |   |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                                                   |   |                           | 1,589    |   |                                       |   | 10,083 |   |   |   | (87,757 | ) |

|                                                                     |   |   |   |   |   |   |    |   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Investing activities:                                                    |   |   |   |   |   |   |    |   |   |
|    Purchase of equipment                                  |   |   | (5,514 | )      |   |   | --      |   |   |   | (38,071 | ) |
|    Purchase of interest in equity-accounted investee |   |   | (296   | )      |   |   | (348    | )      |   |   | (2,119 | ) |
|                                                                     |   |   |   |   |   |   |    |   |   |   |   |   |
| Net cash used in investing activities                                    |   |   | (5,810 | )      |   |   | (348    | )      |   |   | (40,190 | ) |
|                                                                     |   |   |   |   |   |   |    |   |   |   |   |   |
| Financing activities:                                                    |   |   |   |   |   |   |    |   |   |   |   |   |
|    Proceeds from increase in bank overdrafts              |   |   | (1,073 | )      |   |   | 4,014   |   |   |   | 34,763 |   |
|    Proceeds from stock issued for cash                    |   |   | --     |   |   |   | --      |   |   |   | 164,800 |   |
|    Proceeds (repayment) of other loans                    |   |   | 50,664 |   |   |   | (40,710 | )      |   |   | (34,847 | ) |

----

|                                                                                    |   |   | Six Months EndedJune 30, |   |   |   | Period of Inception(July 23, 2004) through  |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------------------------------------------|--------|
|                                                                                    |   |   | 2009                     |   |   |   | 2008                                             |   |   |   | June 30, 2009 |   |
|                                                                                    |   |   |                     |   |   |   |                                             |   |   |   |   |   |
|    Loan from majority stockholder                                        |   |   | 441                      |   |   |   | (1,980                                           | )      |   |   | (12,793 | ) |
|    Loan from equity-accounted investee                                   |   |   | 39,334                   |   |   |   | 348                                              |   |   |   | 41,157 |   |
|    Loans from key management personnel                                   |   |   | (75,395                  | )      |   |   | 28,239                                           |   |   |   | (57,260 | ) |
|                                                                                    |   |   |                     |   |   |   |                                             |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                |   |   | 13,971                   |   |   |   | (10,089                                          | )      |   |   | 135,820 |   |
|                                                                                    |   |   |                     |   |   |   |                                             |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                   |   |   | 9,750                    |   |   |   | (354                                             | )      |   |   | 7,873 |   |
|                                                                                    |   |   |                     |   |   |   |                                             |   |   |   |   |   |
| Effects of exchange rate changes on the balance of cash held in foreign currencies |   |   | 517                      |   |   |   | 354                                              |   |   |   | 2,394 |   |
|                                                                                    |   |   |                     |   |   |   |                                             |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                     |   |   | --                       |   |   |   | --                                               |   |   |   | -- |   |
|                                                                                    |   |   |                     |   |   |   |                                             |   |   |   |   |   |
| Cash and cash equivalents, end of period                                           |   | $      | 10,267                   |   |   | $      | --                                               |   |   | $ | 10,267 |   |

|                                                                                                      |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Supplementary schedule of cash flow activities:                                                      |   |   |   |   |   |   |   |   |   |
|   Non-cash investing and financing activities:                                             |   |   |   |   |   |   |   |   |   |
|      Issuance of common stock for payment of consulting fees                |   | $      | --     |   |   | $      | --     |   |   | $ | 1,900 |   |
|      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 |

----

----

|                    |   |               |   |     |   | Proportion of Ownership   |
|-------------------------|--------|--------------------|--------|----------|--------|---------------------------|
|                    |   |               |   |     |   | Interest and Voting Power |
| Name of Company         |   | Principal Activity |   | Location |   | Held at June 30, 2009     |
|                    |   |               |   |     |   |                      |
| Impact Active Team Ltd. |   | Consulting         |   | Israel   |   | 100%                      |
| TPDS Ltd.               |   | Medical            |   | Israel   |   | 69%                       |

|                                                        |   | Computers |   |   | Furniture |   |   | Vehicles |   |   | Total  |   |
|-------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|----------|--------|--------|--------|--------|
|                                                        |   |      |   |   |      |   |   |     |   |   |   |   |
| Balance as of December 31, 2008                             |   | $         | 273    |   |      | $      | 198    |     |   | $      | 22,607 |   |   | $ | 23,078 |   |
|                                                        |   |      |   |   |      |   |   |     |   |   |   |   |   |   |   |   |
|   Capital expenditure                             |   |      | 3,447  |   |      |   | 2,067  |     |   |   | --     |   |   |   | 5,514 |   |
|   Depreciation                                    |   |      | (404   | )      |      |   | (145   | )        |   |   | (2,545 | )      |   |   | (3,094 | ) |
|   Effect of foreign currency exchange differences |   |      | (8     | )      |      |   | (6     | )        |   |   | (675   | )      |   |   | (689 | ) |
|                                                        |   |      |   |   |      |   |   |     |   |   |   |   |   |   |   |   |
| Balance as of June 30, 2009 (unaudited)                     |   | $         | 3,308  |   |      | $      | 2,114  |     |   | $      | 19,387 |   |   | $ | 24,809 |   |

| Investment in Equity-Accounted Investee at December 31, 2008         |   | $      | 1,823  |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                 |   |   |   |   |
| Acquisitions                                                         |   |   | 296    |   |
|                                                                 |   |   |   |   |
| Investment in Equity-Accounted Investee at June 30, 2009 (unaudited) |   | $      | 2,119  |   |

----

|                                                |   | Stockholding |   |
|-----------------------------------------------------|--------|--------------|--------|
|                                                |   |         |   |
| Meizam – Advanced Enterprise Center Arad Ltd. |   |         | 45%    |   |

|                              |   | 2009   |   |   | 2008   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   |   |   |   |   |   |
| Other loans                       |   | $      | 37,044 |   |   | $      | 87,616 |   |
|                              |   |   |   |   |   |   |   |   |
| Loans with related companies:     |   |   |   |   |   |   |   |   |
|    Related company |   |   | 2,966  |   |   |   | 3,058 |   |
|                              |   | $      | 40,010 |   |   | $      | 90,674 |   |

|                                            |   | June 30, 2009 |      |   | December 31, 2008 |   |
|-------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                            |   | (Unaudited)   |      |   |              |   |
|                                            |   |          |      |   |              |   |
| Key management personnel                        |   | $             | 1,142,740 |   |              | $      | 978,135 |   |
| Equity-Accounted Investee                       |   |          | 41,157    |   |              |   | 1,823 |   |
| Majority Stockholder (as defined under Note 11) |   |          | 84,715    |   |              |   | 84,274 |   |
|                                            |   |          |      |   |              |   |   |   |
|                                            |   | $             | 1,268,612 |   |              | $      | 1,064,232 |   |

----

| · | 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; |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | 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 |   | $      | (80,981 | )      |
|--------------------------------------|--------|--------|---------|--------|
| Valuation allowance                  |   |   | 80,981  |   |
|                                 |   |   |    |   |
| Total                                |   | $      | --      |   |

----

| Pangea Investments GmbH                       | Majority 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, Equity-Accounted Investee   |
| Sam Elimelech                                 | Director of Andain, Inc.             |
| Gai Mar-Chaim                                 | Director of Andain, Inc.             |
| P.O.C. Hi Tech Ltd.                           | Israeli company with common director |

----

|                                                                   |   | June 30, 2009 |       |   | December 31, 2008 |   |
|------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                   |   | (Unaudited)   |       |   |              |   |
|                                                                   |   |          | $          |   |              |   | $ |   |
| Income statements:                                                     |   |          |       |   |              |   |   |   |
|     Compensation expenses                          |   |          | --         |   |              |   | 2,000 |   |
|     Directors’ remuneration                  |   |          | 240,000    |   |              |   | 480,000 |   |
|                                                                   |   |          |       |   |              |   |   |   |
| Balance sheets:                                                        |   |          |       |   |              |   |   |   |
|     Investment in Equity-Accounted Investee        |   |          | 2,119      |   |              |   | 1,823 |   |
|     Loan - Equity-Accounted Investee               |   |          | (41,157    | )      |              |   | (1,823 | ) |
|     Loan - related company                         |   |          | 2,966      |   |              |   | 3,058 |   |
|     Accounts payable - Equity - Accounted Investee |   |          | (28,705    | )      |              |   | --  |   |
|     Loan - Majority Stockholder                    |   |          | (84,715    | )      |              |   | (84,274 | ) |
|     Loans - key management personnel               |   |          | (1,142,740 | )      |              |   | (978,135 | ) |

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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. |
|--------|---------------------------------------------------------------------------------|

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|                    | Andain, Inc. |                            |
|-------------------------|--------------|---------------------------------|
|                    |         |                            |   |
| Dated: January 26, 2011 | By:          | /s/ Sam Shlomo Elimelech   |   |
|                    |         | Sam Shlomo Elimelech, President |   |
|                    |         |                            |   |
|                    |         |                            |   |

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| 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).                                                                |

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| 10.10  | 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). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                         |
| 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-QSB filed on November 20, 2006).                                                                                         |
|   |                                                                                                                                                                                                         |
| 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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