----

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| 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, 2008 |   |
|                             (UNAUDITED) AND DECEMBER 31, 2007               | 3      |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED STATEMENTS OF OPERATIONS           |   |
|                             (UNAUDITED) FOR THE THREE AND SIX MONTHS        |   |
|                             ENDED JUNE 30, 2008 AND JUNE 30, 2007 AND       |   |
|                             PERIOD OF INCEPTION THROUGH JUNE 30, 2008       | 5      |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED STATEMENTS OF CASH FLOWS           |   |
|                             (UNAUDITED) FOR THE SIX MONTHS ENDED            |   |
|                             JUNE 30, 2008 AND JUNE 30, 2007 AND             |   |
|                             PERIOD OF INCEPTION THROUGH JUNE 30, 2008       | 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                                                                                                                                                                                                               | 25     |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | June 30, 2008(Unaudited) |      |   | December 31, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|-------------------|--------|
|                                                                        ASSETS |   |                     |      |   |              |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     |      |   |              |   |
|    Accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                        | 13,601    |   |              | $      | 16,812 |   |
|           Total current assets                                                                                                                                                                                                                                                                                                                                                                 |   |                     | 13,601    |   |              |   | 16,812 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                     | 29,339    |   |              |   | 28,328 |   |
| Investment in equity-accounted investee                                                                                                                                                                                                                                                                                                                                                                                                          |   |                     | 1,540     |   |              |   | 1,192 |   |
| Loan with related party                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                     | 18,216    |   |              |   | -- |   |
| Other loans                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                     | 95,172    |   |              |   | 72,678 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                        | 157,868   |   |              | $      | 119,010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
|   Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                |   | $                        | 142,675   |   |              | $      | 112,021 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                     | 142,675   |   |              |   | 112,021 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Long-term liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     |      |   |              |   |   |   |
|   Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                     | 826,030   |   |              |   | 559,423 |   |
|   Bank overdrafts                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                     | 46,699    |   |              |   | 42,685 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                     | 1,015,404 |   |              |   | 714,129 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     |      |   |              |   |   |   |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                     | 3,051     |   |              |   | 2,185 |   |

----

|                                                                                                                                |   | June 30, 2008(Unaudited) |       |   | December 31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-------------------|--------|
| 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                                                                                              |   |                     | 4,300      |   |              |   | 4,300 |   |
|    Accumulated deficit during development stage                                                                      |   |                     | (1,032,697 | )      |              |   | (769,060 | ) |
|    Accumulated other comprehensive loss                                                                              |   |                     | 1,100      |   |              |   | 746 |   |
|           Total Andain stockholders’ deficit                                |   |                     | (860,587   | )      |              |   | (597,304 | ) |
|                                                                                                                                |   |                     |       |   |              |   |   |   |
|           Total stockholders’ deficit                                       |   |                     | (857,536   | )      |              |   | (595,119 | ) |
|                                                                                                                                |   |                     |       |   |              |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                   |   | $                        | 157,868    |   |              | $      | 119,010 |   |

----

|                                                                               |   | Three Months Ended June 30, |       |   | Six Months EndedJune 30, |   |       | Period of Inception (July 23, 2004) through |   |
|------------------------------------------------------------------------------------|--------|----------------------------------|------------|--------|--------------------------|--------|------------|---------------------------------------------|--------|
|                                                                               |   | 2008                             |       |   | 2007                     |   |       | 2008                                        |   |   | 2007 |   |   | June 30, 2008 |   |
|                                                                               |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |
| Net revenue                                                                        |   | $                                | 9,086      |   |                     | $      | 139,444    |                                        |   | $ | 9,086 |   |   | $ | 139,444 |   |   | $ | 271,974 |   |
|                                                                               |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Depreciation                                                     |   |                             | (1,672     | )      |                     |   | (1,216     | )                                           |   |   | (3,164 | ) |   |   | (2,488 | ) |   |   | (10,409 | ) |
|    General and administrative                                       |   |                             | (134,534   | )      |                     |   | (218,076   | )                                           |   |   | (269,559 | ) |   |   | (373,239 | ) |   |   | (1,223,173 | ) |
|    Impairment of goodwill                                           |   |                             | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (75,014 | ) |
|                                                                               |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                               |   |                             | (127,120   | )      |                     |   | (79,848    | )                                           |   |   | (263,637 | ) |   |   | (236,283 | ) |   |   | (1,036,622 | ) |
|                                                                               |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest received                                                                  |   |                             | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | 5,469 |   |
| Interest expense                                                                   |   |                             | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (1,544 | ) |
|                                                                               |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss and deficit accumulated  during development stage               |   | $                                | (127,120   | )      |                     | $      | (79,848    | )                                           |   | $ | (263,637 | ) |   | $ | (236,283 | ) |   | $ | (1,032,697 | ) |
|                                                                               |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share:                                                              |   |                             |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain                                  |   | $                                | (0.01      | )      |                     | $      | (0.01      | )                                           |   | $ | (0.03 | ) |   | $ | (0.02 | ) |   |   |   |   |
|    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 | ) |   | $ | (0.02 | ) |   |   |   |   |
|    Weighted average shares     outstanding |   |                             | 13,980,000 |   |                     |   | 11,980,000 |                                        |   |   | 13,980,000 |   |   |   | 11,980,000 |   |   |   |   |   |

----

|                                                                                                                                                                                               |   | Six Months Ended June 30,                                         |     |   | Period of Inception (July 23, 2004) through |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|----------|--------|--------------------------------------------------|--------|
|                                                                                                                                                                                               |   | 2008            |     |   | 2007                                             |   |   | June 30, 2008 |   |
|                                                                                                                                                                                               |   |                                                                   |     |   |                                             |   |   |   |   |   |   |   |
| Operating activities:                                                                                                                                                                              |   |                                                                   |     |   |                                             |   |   |   |   |   |   |   |
|   Net loss                                                                                                                                                                               |   | $                                                                      | (263,637 | )      |                                             | $      | (236,283 | ) |   | $ | (1,032,697 | ) |
|   Adjustments to reconcile net loss to net    cash provided by (used in) operating activities:                                                                  |   |                                                                   |     |   |                                             |   |   |   |   |   |   |   |
|          Depreciation                                                                                                                                 |   |                                                                   | 3,164    |   |                                             |   | 2,488 |   |   |   | 10,409 |   |
|          Minority interest                                                                                                                            |   |                                                                   | 866      |   |                                             |   | (30 | ) |   |   | 3,051 |   |
|          Shares issued for professional services                                                                                                      |   |                                                                   | --       |   |                                             |   | -- |   |   |   | 1,910 |   |
|          Accrued expenses – stockholder                                                                                                         |   |                                                                   | --       |   |                                             |   | 1,506 |   |   |   | 37,508 |   |
|          Accrued consulting fees - stockholder                                                                                                        |   |                                                                   | --       |   |                                             |   | -- |   |   |   | 60,000 |   |
|          Accounts payable                                                                                                                             |   |                                                                   | 30,654   |   |                                             |   | 52,402 |   |   |   | 139,617 |   |
|          Accounts receivable                                                                                                                          |   |                                                                   | 3,211    |   |                                             |   | (6,047 | ) |   |   | (13,538 | ) |
|          Non-cash compensation expense                                                                                                                |   |                                                                   | --       |   |                                             |   | -- |   |   |   | 4,000 |   |
|          Equity-settled share-based payment                                                                                                           |   |                                                                   | --       |   |                                             |   | -- |   |   |   | 300 |   |
|          Accrued compensation                                                                                                                         |   |                                                                   | 240,000  |   |                                             |   | 180,000 |   |   |   | 720,000 |   |
|          Effect of movements in foreign             exchange rates on non-cash items |   |                                                                   | (4,175   | )      |                                             |   | 173 |   |   |   | (8,518 | ) |
|                                                                                                                                                                                               |   |                                                                   |     |   |                                             |   |   |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                                                                                                                      |   |                                                                   | 10,083   |   |                                             |   | (5,791 | ) |   |   | (77,958 | ) |

|                                                                                             |   |   |    |   |
|--------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Investing activities:                                                                            |   |   |    |   |   |   |   |   |   |
|    Purchase of equipment                                                          |   |   | --      |   |   |   | -- |   |   |   | (32,557 | ) |
|    Purchase of interest in equity-accounted     investee |   |   | (348    | )      |   |   | (312 | ) |   |   | (1,540 | ) |
|                                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                                            |   |   | (348    | )      |   |   | (312 | ) |   |   | (34,097 | ) |
|                                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Financing activities:                                                                            |   |   |    |   |   |   |   |   |   |   |   |   |
|    Proceeds from increase in bank overdrafts                                      |   |   | 4,014   |   |   |   | 19,215 |   |   |   | 46,699 |   |
|    Proceeds from stock issued for cash                                            |   |   | --      |   |   |   | -- |   |   |   | 164,800 |   |
|    Repayment of other loans                                                       |   |   | (40,710 | )      |   |   | (14,480 | ) |   |   | (109,066 | ) |
|    Loan from majority stockholder                                                 |   |   | (1,980  | )      |   |   | 65 |   |   |   | (13,907 | ) |

----

|                                                                                          |   |   | Six Months Ended  June 30, |   |   | Period of Inception (July 23, 2004) through, |    |
|-----------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|---------------------------------------------------|---------|
|                                                                                          |   | 2008   |                            |   | 2007   |                                              |    |  June 30, 2008 |   |
|                                                                                          |   |   |                            |   |   |                                              |    |   |   |   |   |   |
|    Loan from equity-accounted investee                                         |   |   | 348                             |   |   |                                              | 312     |   |   |   | 1,540 |   |
|    Loans from key management personnel                                         |   |   | 28,239                          |   |   |                                              | (12,136 | ) |   |   | 20,889 |   |
|                                                                                          |   |   |                            |   |   |                                              |    |   |   |   |   |   |
| Net cash provided by (used in)  financing activities                                |   |   | (10,089                         | )      |   |                                              | (7,024  | ) |   |   | 110,955 |   |
|                                                                                          |   |   |                            |   |   |                                              |    |   |   |   |   |   |
| Decrease in cash and cash  equivalents                                              |   |   | (354                            | )      |   |                                              | (13,127 | ) |   |   | (1,100 | ) |
|                                                                                          |   |   |                            |   |   |                                              |    |   |   |   |   |   |
| Effects of exchange rate changes on the  balance of cash held in foreign currencies |   |   | 354                             |   |   |                                              | 21,818  |   |   |   | 1,100 |   |
|                                                                                          |   |   |                            |   |   |                                              |    |   |   |   |   |   |
| Cash and cash equivalents,  beginning of period                                     |   |   | --                              |   |   |                                              | 45,563  |   |   |   | -- |   |
|                                                                                          |   |   |                            |   |   |                                              |    |   |   |   |   |   |
| Cash and cash equivalents,  end of period                                           |   | $      | --                              |   |   | $                                                 | 54,254  |   |   | $ | -- |   |

| 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                                                                                   |   | $      | --     |   |   | $      | --     |   |   | $ | 4,000 |   |

----

----

----

| 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 June 30, 2008 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|----------------------|--------|------------------------------------------------------------------------------------|
|                                                                                                           |   |                            |   |                 |   |                                                                               |
| Impact Active Team Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Consulting                      |   | Israel               |   |  100%                                                                         |
| TPDS Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Medical                         |   | Israel               |   | 69%                                                                                |

|                                         |   |   | Computers   |   |   |   | Furniture |   |   |   | Vehicles |   |   |   | Total  |   |
|----------------------------------------------|--------|--------|-----------------------|--------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|--------|--------|--------|
|                                         |   |   |                  |   |   |   |      |   |   |   |     |   |   |   |   |   |
| Balance as of December 31, 2007              |   | $      | 582                   |   |   | $      | 211       |   |   | $      | 27,535   |   |   | $      | 28,328 |   |
|                                         |   |   |                  |   |   |   |      |   |   |   |     |   |   |   |   |   |
|   Depreciation                     |   |   | (179                  | )      |   |   | (4        | )      |   |   | (2,981   | )      |   |   | (3,164 | )      |
|   Effect of foreign currency       |   |   |                  |   |   |   |      |   |   |   |     |   |   |   |   |   |
|     exchange differences |   |   | 86                    |   |   |   | 31        |   |   |   | 4,058    |   |   |   | 4,175  |   |
|                                         |   |   |                  |   |   |   |      |   |   |   |     |   |   |   |   |   |
| Balance as of June 30, 2008 (unaudited)      |   | $      | 489                   |   |   | $      | 238       |   |   | $      | 28,612   |   |   | $      | 29,339 |   |

| Investment in Equity-Accounted Investee at December 31, 2007         |   | $      | 1,192     |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                 |   |   |      |   |
| Acquisitions                                                         |   |   |  348 |   |
|                                                                 |   |   |      |   |
| Investment in Equity-Accounted Investee at June 30, 2008 (unaudited) |   | $      | 1,540     |   |

----

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

|                                            |   |   | June 30, 2008           |   |   |   | December 31, 2007 |   |
|-------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|-------------------|--------|
|                                            |   |   | (Unaudited)   |   |   |   |              |   |
|                                            |   |   |                    |   |   |   |              |   |
| Key management personnel                        |   | $      | 740,889                 |   |   | $      | 472,650           |   |
| Equity-Accounted Investee                       |   |   | 1,540                   |   |   |   | 1,192             |   |
| Majority Stockholder (as defined under Note 10) |   |   | 83,601                  |   |   |   | 85,581            |   |
|                                            |   |   |                    |   |   |   |              |   |
|                                            |   | $      | 826,030                 |   |   | $      | 559,423           |   |

----

| · | 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 |   | $      | (92,273 | )      |
|--------------------------------------|--------|--------|---------|--------|
| Valuation allowance                  |   |   | 92,273  |   |
|                                 |   |   |    |   |
| 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, 2008 |     |   |   December 31, 2007 |        |
|-----------------------------------------|--------|----------------------|----------|--------|--------------------------|-------------|
|                                    |   | (Unaudited)$         |     |   | $                   |        |
|                                    |   |                 |     |   |                     |        |
| Income statements:                      |   |                 |     |   |                     |        |
| Compensation expenses                   |   |                 | --       |   |                     |  2,000 |   |
| Directors’ remuneration           |   |                 | 240,000  |   |                     |        | 360,000 |   |
|                                    |   |                 |     |   |                     |        |   |   |
| Balance sheets                          |   |                 |     |   |                     |        |   |   |
| Investment in Equity-Accounted Investee |   |                 | 1,540    |   |                     |        | 1,192 |   |
| Loan from Equity-Accounted Investee     |   |                 | (1,540   | )      |                     |        | (1,192 | ) |
| Loan from Majority Stockholder          |   |                 | (83,601  | )      |                     |        | (85,581 | ) |
| Loans from key management personnel     |   |                 | (740,889 | )      |                     |        | (472,650 | ) |
| Loan from related party                 |   |                 | 18,216   |   |                     |        | -- |   |

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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 23, 2011  | By:          | /s/ Sam Shlomo Elimelech  |   |
|                          |         | Sam Shlomo Elimelech, Presiden |   |
|                          |         |                           |   |

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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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