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UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549

FORM 10-KSB

(Mark One)

x ANNUAL REPORT UNDER
  SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the fiscal year ended September 30, 2003

 ̈ TRANSITION REPORT
  UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934
  For the transition period from ___________ to __________

COMMISSION FILE NUMBER: 000-31639

K-TRONIK INTERNATIONAL CORP.(Name of small business issuer in its charter)

|Nevada                                                     | 88-0436364                       
|---------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or           | (IRS Employer Identification No.)
|organization)                                              |                                  
|                                                           |                                  
|290 Vincent Avenue, 3rdfloor, Hackensack,
      New Jersey | 07601                            
|(Address of principal executive offices)                   | (Zip Code)                       

(201) 488-4600(Registrants telephone number)

Securities registered pursuant to Section 12(b) of the Exchange
  Act: None

None(Title of class)

Securities registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, $0.00001 Par Value

Check mark whether the issuer (1) has filed all reports required
  to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding
  12 months (or for such shorter period that the registrant was required to file
  such reports), and (2) has been subject to such filing requirements for the
  past 90 days.   Yes x   No
   ̈

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Check if there is no disclosure of delinquent filers in response
  to Item 405 of Regulation S-B contained in this form, and no disclosure will
  be contained, to the best of registrants knowledge, in definitive proxy
  or information statements incorporated by reference in Part III of this Form
  10-KSB or any amendment to this Form 10-KSB. x

The issuer had revenues of $6,536,978 for the fiscal year ended
  September 30, 2003.

Of the 22,573,886 shares of voting stock of the registrant
  issued and outstanding as of December 24, 2003, 1,550,000 shares are held by
  non-affiliates. Because of the absence of an established trading market for
  the voting stock, the registrant is unable to calculate the aggregate market
  value of the voting stock held by non-affiliates as of a specified date within
  the past 60 days.

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

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FORM 10-KSB ANNUAL REPORT
  FOR THE YEAR ENDED SEPTEMBER 30, 2003
  K-TRONIK INTERNATIONAL CORPORATION

TABLE OF CONTENTS

|PART I   |                                                                                                                       | PAGE
|-------- | --------------------------------------------------------------------------------------------------------------------- | ----
|         |                                                                                                                       |     
|Item 1   | Description of Business                                                                                               | 3   
|Item 2   | Description of Property                                                                                               | 6   
|Item 3   | Legal Proceedings                                                                                                     | 6   
|Item 4   | Submission of Matters to a Vote of Security Holders                                                                   | 7   
|         |                                                                                                                       |     
|PART II  |                                                                                                                       |     
|         |                                                                                                                       |     
|Item 5   | Market for Common Equity and Related Stockholder Matters                                                              | 7   
|Item 6   | Managements Discussion and Analysis or Plan of
      Operation                                                       | 8   
|Item 7   | Financial Statements                                                                                                  | 12  
|Item 8   | Changes in and Disagreements With Accountants on Accounting
      and Financial Disclosure                            | 12  
|Item 8A  | Controls and Procedures                                                                                               | 13  
|         |                                                                                                                       |     
|PART III |                                                                                                                       |     
|         |                                                                                                                       |     
|Item 9   | Directors, Executive Officers, Promoters and Control
      Persons; Compliance with Section 16(a) of the Exchange Act | 14  
|Item 10  | Executive Compensation                                                                                                | 15  
|Item 11  | Security Ownership of Certain Beneficial Owners and
      Management                                                  | 16  
|Item 12  | Certain Relationships and Related Transactions                                                                        | 16  
|Item 13  | Exhibits and Reports on Form 8-K                                                                                      | 17  
|Item 14  | Principal Accountant Fees and Services                                                                                | 17  

PART I

Item 1.     Description of
  Business

Company History and Business

The Company was incorporated on September 2, 1999 in the State
  of Nevada as LMC Capital Corp. and was organized for the purpose of creating
  a corporate vehicle to locate and acquire an operating business. On December
  12, 2001 the Company changed its name to K-Tronik International Corp. (KTI
  or the Company). On September 28,

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2000, KTI completed a Form 10-SB registration with the United
  States Securities and Exchange Commission and as a result is subject to the
  regulations governing reporting issuers in the United States.

By agreement dated November 29, 2001 and approved by the board
  of directors effective December 12, 2001, KTI issued 14,285,714 shares of restricted
  common stock to the shareholders of K-Tronik Intl Corporation, a Nevada
  corporation, in exchange for 100% of the issued and outstanding shares of K-Tronik
  Intl Corporation which, at the time of the transaction, owned a 100% interest
  in K-Tronik Asia Corporation (KTA), a Korean corporation. In connection
  with this transaction, K-Tronik Intl Corporation changed its name effective
  December 12, 2001 to K-Tronik N.A. Inc. (KTNA). As a condition of
  this acquisition, KTI also issued 3,788,172 shares of restricted common stock
  to ETIFF Holdings Inc. (ETIFF) in settlement of $3,788,172 owed
  to ETIFF by KTNA. ETIFF, a wholly owned subsidiary of Eiger Technologies, Inc.
  (Eiger), a Toronto Stock Exchange listed company, owned 53% of the
  issued and outstanding shares of KTNA. Also in connection with this transaction,
  Eiger was granted an option, which has been exercised, to acquire an additional
  3,000,000 shares of KTI from the original shareholders of KTI.

The acquisition resulted in the former shareholders of KTNA
  acquiring 93.4% of KTI representing 21,073,886 of the 22,573,886 total issued
  and outstanding shares of KTI. This acquisition has been accounted for as a
  reverse acquisition with KTNA being treated as the accounting parent and KTI,
  the legal parent, being treated as the accounting subsidiary.

We design, market and distribute electronic stabilizers and
  illuminator ballasts for florescent lighting fixtures primarily in the United
  States from our premises in Hackensack, New Jersey and minimally in Asia. A
  ballast is a device in lighting systems that operates fluorescent lights. The
  ballast provides the necessary starting voltages, frequency and wattage to a
  fluorescent light while limiting and regulating the current during the lights
  operation. Electronic ballasts use semi-conductor components to increase the
  frequency of fluorescent light operation. The smaller inductive components provide
  the lights current control. Fluorescent system efficiency is increased
  due to high frequency light operation. Electronic ballasts, when used with T-8
  fluorescent light systems, result in about a 30% savings of electricity when
  compared to conventional T-12 40 watt light systems (or bulbs).

Our ballasts and ballasts components are sourced through either
  South Korean manufacturers or manufacturers in mainland China. Ballast components
  are, effectively, commodities (assuming that they are produced within proper
  specifications with normal failure rates) so the business failure of any one
  of our suppliers (even one of our major suppliers) would be unlikely to affect
  us greatly.

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Products

There are two main types of ballast products: those which
  rely on magnetic technology (magnetic ballasts) to carry and regulate
  current in lighting and those which rely on electronic transformers (electronic
  ballasts) to carry out the same functions. The Company manufactures and
  distributes only electronic ballasts

The market for electronic ballast products has grown significantly
  in the past decade, especially the past 5 years as it was proven that multi-voltage
  products reduce brownouts which are becoming more common both inside
  and outside of the United States. The Department of Energy has mandated that
  magnetic ballasts be phased out by April 2005. The Company has a number of product
  lines including its new MVP multi-voltage product line which is
  designed to cater to the growing market demand for multi voltage electronic
  ballast products.

Product Pricing

As electronic ballasts have become more of a commodity item
  in the lighting industry over time, the prices for ballasts have and may continue
  to drop.

The result has been increasingly difficult competition, mergers
  and closures in the ballast industry and attempts by companies to find low labor
  cost jurisdictions (such as mainland China or Mexico) in which to manufacture
  product.

Product Development

Our engineering team engages in ongoing research and development
  relating mostly to product design and market requirements. The result has been
  the introduction of a number of products in the past several years which are
  designed to meet changing consumer demands, regulatory requirements and energy
  saving goals.

We intend to focus on new product development in the ballast
  industry, in particular the development of smaller ballast products and better
  production systems which reduce production and delivery time (reducing costs
  and increasing production reliability).

Markets

The market for our ballasts is essentially split in two parts:
  the market for original installations (such as those in new buildings) where
  ballasts are purchased by original equipment manufacturers (OEMs)
  and the market for replacement of existing ballasts to install energy saving
  ballasts (the retrofit market). During the past decade the OEM market
  growth has outpaced retrofit market growth.

The Companys main sales target is the niche market which
  other, larger manufacturers find too small to accommodate. Also, our ability
  to design and custom manufacture

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specialty ballasts has been key to our acceptance in the lighting
  industry. Our principle customers are original equipment manufacturers of these
  ballasts.

Distribution in the OEM market is effected by a large number
  of distributors which typically will carry a whole range of lighting and building
  products. Distribution in the retrofit market is effected by energy saving companies
  (ESCOs) which will often be involved in the analysis of a buildings
  or institutions potential cost savings from a retrofit and which are often
  owned or operated by energy utilities.

Competition

The business in which we engage is highly competitive. Some
  of our competitors are substantially larger than we are and have greater financial
  and other resources. In the production of ballasts for original equipment manufacturers,
  we compete with approximately four other primary producers in the United States.
  We believe that we sustain our competitive position through maintenance of an
  extensive line of products, design capability, competitive pricing policies,
  reliable product delivery and quality.

Employees

At September 30, 2003, we had 13 full-time employees, of whom
  10 are employed in executive, sales, operations and administrative capacities
  and 3 in research and development, quality control and manufacturing capacities.

Item 2.     Description of Property

K-Tronik (Asia) and K-Tronik N.A. do not have any physical
  property other than their production and office equipment. K-Tronik (Asia)s
  plant in Korea is leased as is the office and warehousing space of K-Tronik
  in New Jersey. The Company believes it has adequate space for the foreseeable
  future.

K-Tronik N.A. leases approximately 3,500 square feet of office
  space in Hackensack New Jersey. Under the terms of the lease, which expires
  in May 2004, the monthly rent is $3,900 per month. We use this office space
  as our headquarters.

K-Tronik (Asia) leases its factory in South Korea. Under the
  terms of the lease, which expires March 31, 2004, the monthly rent is $2,100
  per month.

K-Tronik leases warehousing facilities in New Jersey and California
  under month-to-month lease agreements.

Item 3.     Legal Proceedings

The Company is not a party to any litigation and has no knowledge
  of any threatened or pending litigation against it.

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Item 4.     Submission of Matters
  To A Vote of Security Holders

No matters were submitted to a vote of security holders during
  the fourth quarter of the fiscal year ended September 30, 2003.

PART II

Item 5.     Market for Common
  Equity and Related Stockholder Matters

Market for Common Stock

There is no public trading market for our common shares in
  the United States or elsewhere at this time. Public Securities Inc. of Spokane
  Washington has submitted Form C211 to the NASD requesting that it be permitted
  to post the Companys common shares for trading on the NASDs OTCBB.
  The Form C211 was submitted December 15, 2003 and is under review by the NASD.

Holders of Common Stock

On September 30, 2003, there were approximately 43 holders
  of record of our common stock and 22,573,886 shares outstanding. There are no
  indirect holdings of registered shares to outside institutions or stock brokerage
  firms, and we estimate that there are no additional beneficial shareholders
  beyond the 43 registered shareholders at September 30, 2003.

There are no outstanding options or warrants to purchase,
  or securities convertible into our common stock although the shareholders
  at a meeting held on November 12, 2001 approved an Incentive Stock Option Plan
  (under which no options have yet been granted) which would allow us to grant
  up to 1,000,000 incentive stock options to directors and employees at the board
  of directors discretion.

Dividends

We have not declared or paid a cash dividend to stockholders
  since our incorporation. The Board of Directors presently intends to retain
  any earnings to finance company operations and does not expect to authorize
  cash dividends in the foreseeable future. Any payment of cash dividends in the
  future will depend upon our earnings, capital requirements and other factors.

Recent Sales of Unregistered Securities

We have registered for resale a total of 8,288,172 shares
  of common stock by way of an SB-2 registration statement declared effective
  by the SEC November 14, 2003. A total of 14,285,714 shares of common stock are
  not being registered and will not be available for sale in the open market without
  separate registration except in reliance upon Rule 144 under the Securities
  Act of 1933. In general, under Rule 144 a person (or persons whose shares are
  aggregated) who has beneficially owned shares acquired in a non-public

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transaction for at least one year, including persons who may
  be deemed affiliates of the company (as that term is defined under that rule)
  would be entitled to sell within any three-month period a number of shares that
  does not exceed the greater of 1% of the then outstanding shares of common stock,
  or the average weekly reported trading volume during the four calendar weeks
  preceding such sale, provided that certain current public information is then
  available. The 14,285,714 shares of common stock were issued on December 12,
  2001.

In addition to the resale restrictions on these shares detailed
  above, 6,714,286 of those shares, which are held by the President and CEO, are
  subject to an agreement where the shares are held in escrow. Upon the first
  anniversary date of the Companys listing on a public exchange, 10% are
  to be released to the President and CEO. On every six months thereafter, 15%
  of the escrowed shares are to be released until such time as all are released.

Item 6.     Managements
  Discussion and Analysis or Plan of Operation

The following discussion should be read in conjunction with
  the Companys consolidated financial statements and the notes thereto.
  The discussion of results, causes and trends should not be construed to imply
  any conclusion that such results or trends will necessarily continue in the
  future.

Critical Accounting Policies

We believe that the estimates, assumptions and judgments involved
  in the accounting policies described below have the greatest potential impact
  on our financial statements, so we consider these to be our critical accounting
  policies. Because of the uncertainty inherent in these matters, actual results
  could differ from the estimates we used in applying the critical accounting
  policies. Within the context of these critical accounting policies, we are not
  currently aware of any reasonably likely event that would result in materially
  different amounts being reported.

Revenue Recognition

Sales to customers are FOB shipping point. As a result the
  Company recognizes sales when products are shipped.

Allowance for Doubtful Accounts

The Company establishes an allowance for doubtful accounts
  based on specifically identified amounts that it believes to be uncollectible
  as well as for additional factors surrounding the credit risk of its customers,
  historical trends, and other information.

Long-Lived Assets

The carrying values of long-lived assets are periodically
  reviewed by management and impairments would be recognized if the expected future
  operating non-discounted cash

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flows derived from an asset were less than carrying value.
  No impairments have been recorded through September 30, 2003.

Results of Operation:

The year ended September 30, 2003 (2003 period)
  compared to the year ended September 30, 2002 (2002 period).

Net Sales

The Company reported net sales of $6,536,978 for the 2003
  period, a decrease of $200,741 or 3% from the $6,737,719 in sales reported for
  the 2002 period. The decrease in sales was mainly attributed to a weak economy,
  and changes in the Companys production from in-house to outsourcing. Sales
  were also negatively impacted by an unexpected shortage of inventory during
  the fourth quarter ended September 30, 2003, necessary to meet sales orders.

The inventory shortage was due to seizure of an inventory
  shipment of $350,000 by US Customs. Although the manufacturer of the inventory
  was UL Certified, a requirement of all products used in construction in the
  United States, the inventory was seized as it was unclear if some or the entire
  inventory had been produced at the manufacturers new production facility.
  This new production facility had been approved, in writing, by UL but the approval
  was not yet effective. Such a seizure of inventory is unlikely to occur in the
  future because the manufacturers new facilitys UL Certification
  was effective in August of 2003 for all future shipments of products and production.
  The Company received a credit from the manufacturer for the entire amount seized.

Gross Profit

The Companys gross profit increased to $1,611,599 in
  the 2003 period, a increase of $173,013 or 12% compared to $1,438,586 in the
  2002 period. This increase was primarily attributed to the new manufacturing
  arrangements whereby certain manufacturing previously performed by the Company
  is now being outsourced at lower costs. This arrangement started in the Companys
  first quarter ended December 31, 2002, and was more established during the 2003
  period.

Selling, General and Administrative

Selling, general and administrative (SG&A) expenses increased
  to $2,322,747 in the 2003 period, versus the prior year total of $2,020,670.
  The increase of $302,077 or 15% is primarily attributable to an increase in
  provisions for severance and other benefits of $44,072 for KTA as it reduced
  its employee work force, increased commissions and export expenses of $70,536
  as KTA increased its sales activities in the 2003 period. Professional accounting
  and legal fees also increased $190,526. These increases were partially offset
  by decreases in advertising and equipment rental costs.

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Operating Loss

The loss from operations increased to ($711,148) in the 2003
  period from ($582,084) in the 2002 period. The increase in the loss from operations
  is directly related to those items discussed above.

Interest and Other Expenses

Interest and other expenses decreased to $156,648 for the
  2003 periodfrom $228,434 for the 2002 period. This decrease was primarily
  due to an overall reduction in the average amount borrowed and a lower interest
  rate associated with the Companys new credit facility. Interest expense
  decreased to $161,602 in the 2003 period compared to $232,165 in the 2002 period
  primarily due to the lower interest rate for the 2003 period and decreased debt
  levels.

Net Loss

For the reasons stated above the Company incurred a net loss
  of ($867,796) for the 2003 period as compared to ($810,518) for the prior period.

Liquidity and Capital Resources

At September 30, 2003, the Company had working capital deficit
  of (439,971), and cash and cash equivalents of $145,952 as compared to working
  capital of $469,051 and cash and cash equivalents of $294,484 at September 30,
  2002. The decrease in working capital was primarily attributed to the net loss
  in 2003.

Net cash provided by operating activities was $173,902 for
  the 2003 period as compared to $11,723 during the 2002 period. The positive
  net cash provided by operating activities for the 2003 period as compared to
  the 2002 period was primarily attributed to higher amortization and depreciation,
  collections of accounts receivable and an increase in accounts payable. The
  prepaid expenses, security deposits, and accounts receivables were the primary
  uses of operating cash in the 2002 period.

Net cash used in investing activities was $217,359 for the
  2003 period as compared to $61,948 for the 2002 period. Investing activities
  for the 2003 period included purchases of fixed assets of $213,249 and patents
  and intangible assets of $4,110. The Company has no plans for significant equipment
  purchases during the fiscal year ended September 30, 2004.

Net cash used in financing activities in the 2003 period was
  attributed to net repayments of the Companys revolving credit lines totaling
  $60,364.

The Company has credit facilities providing a maximum borrowing
  of $2.1 million with asset-based lenders. Borrowings under these facilities
  bear interest at the lenders prime rate plus 1.5%. At September 30, 2003
  borrowings under these facilities were $1,625,254 as compared to $1, 685,618
  at September 30, 2002. At September 30, 2003,

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the loans have been classified as current liabilities in the
  accompanying balance sheet because the facilities mature in less than one year
  ($1.5 million of the total line related to the Companys US operations
  expires June 30, 2006, however it is renewable annually at June 30, 2004 and
  2005).

Management believes, based upon current circumstances, its
  pledge of continued support from its parent company that it has adequate capital
  resources to support expected operating levels for the next twelve months. See
  footnote No. 7 in the attached consolidated financial statements.

New Accounting Pronouncements

In December 2002, the FASB issued Statements of Financial
  Accounting Standards No.148, Accounting for Stock-Based Compensation ' Transition
  and Disclosure ' An Amendment of FASB Statement 123 (SFAS 123). For entities
  that change their accounting for stock-based compensation from the intrinsic
  method to the fair value method under SFAS 123, the fair value method is to
  be applied prospectively to those awards granted after the beginning of the
  period of adoption (the prospective method). The amendment permits two additional
  transition methods for adoption of the fair value method. In addition to the
  prospective method, the entity can choose to either (i) restate all periods
  presented (retroactive restatement method) or (ii) recognize compensation cost
  from the beginning of the fiscal year of adoption as if the fair value method
  had been used to account for awards (modified prospective method). For fiscal
  years beginning December 15, 2003, the prospective method will no longer be
  allowed. The Company currently accounts for its stock-based compensation using
  the intrinsic value method as proscribed by Accounting Principles Board Opinion
  No. 25, Accounting for Stock Issued to Employees and plans on continuing
  using this method to account for stock options , therefore, it does not intend
  to adopt the transition requirements as specified in SFAS 148. The Company has
  adopted the new SFAS 148 disclosure requirements in these financial statements.

SFAS No. 150, Accounting for Certain Financial Instruments
  with Characteristics of Both Liabilities and Equity, was issued in May 2003
  and requires issuers to classify as liabilities (or assets in some circumstances)
  three classes of freestanding financial instruments that embody obligations
  for the issuer. SFAS No. 150 is effective for financial instruments entered
  into or modified after May 31, 2003 and is otherwise effective at the beginning
  of the first interim period beginning after June 15, 2003. Management believes
  the adoption of SFAS No. 150 will have no immediate impact on its financial
  position or results of operations.

The FASB issued Interpretation ("FIN") No. 45, Guarantor's
  Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees
  of Indebtedness of Others, in November 2002 and FIN No. 46, Consolidation
  of variable Interest Entities, in January 2003. FIN No. 45 is applicable
  on a prospective basis for initial recognition and measurement provisions to
  guarantees issued after December 2002; however, disclosure requirements are
  effective immediately. FIN No. 45 requires a guarantor to recognize, at the
  inception of a guarantee, a liability for the fair value of the obligations
  undertaken in

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issuing the guarantee and expands the required disclosures
  to be made by the guarantor about its obligation under certain guarantees that
  it has issued. The adoption of FIN No. 45 did not have a material impact on
  the Company's financial position or results of operations. FIN No. 46 requires
  that a company that controls another entity through interest other than voting
  interest should consolidate such controlled entity in all cases for interim
  periods beginning after June 15, 2003. Management does not believe the adoption
  of FIN No. 46 will have a material impact on its financial position or results
  of operations.

Inflation

Management does not believe that inflation had a material
  adverse affect on the financial statements for the periods presented.

Qualitative and Quantitative Disclosure About Market Risk

The Company is exposed to certain market risks in the areas
  of commodity prices, interest rates, and economic changes. To mitigate the effects
  of such risks, the Company selectively utilizes specific financial and insurance
  instruments, including, but not limited to, Accounts Receivable Credit Insurance
  to insure some specific customer accounts receivable balances. In the event
  that the customer cannot make payments against such balances the Company can
  recoup a substantial amount of the open balance depending upon the terms of
  the policy and the customer account.

The Company maintains borrowings under working capital credit
  facilities with asset-based lenders that are not subject to material market
  risk exposure except for such risks relating to fluctuations in market interest
  rates. The carrying value of these borrowings approximates fair value since
  they bear interest at a floating rate based on the prime rate. There are
  no other material qualitative or quantitative market risks particular to the
  Company.

Item 7.     Financial Statements

The audited Consolidated Financial Statements are included
  in this Form 10-KSB beginning on page F-1 following the
  signature page.

Item 8.     Changes in and Disagreements
  With Accountants on Accounting and

Financial Disclosure

During the Companys two most recent fiscal years and
  any subsequent interim period, there were no disagreements with the Companys
  accountants on any matter of accounting principle or practices, financial statement
  disclosure or auditing scope or procedure. In addition, there were no reportable
  events as described in Item 304(a)(1)(iv)(B)1 through 3 of Regulation S-B that
  occurred within the Companys two most recent fiscal years and the subsequent
  interim periods.

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With the completion of the acquisition of K-Tronik N.A. Inc.
  on December 12, 2001, the Companys year end was changed to September 30.
  As a result, the December 31, 2001 financial statements filed on EDGAR were
  not audited or presented on form 10-KSB (but rather were presented on form 10-QSB
  as they represented the first quarter of the new fiscal year).

Effective on May 15, 2002, the independent accountants who
  were previously engaged as the principal accountants to audit the Companys
  financial statements, LaBonte & Company, resigned. The accountant's reports
  on the financial statements for the fiscal year ended December 31, 2000 neither
  contained an adverse opinion or a disclaimer of opinion, nor was it qualified
  or modified as to uncertainty, audit scope or accounting principles.

Effective on May 15, 2002, BDO Seidman, LLP was engaged to
  serve as the new principal accountant to audit the Companys financial
  statements.

The change in principal accountants was disclosed on Form
  8K filed with EDGAR and dated May 16, 2002.

Item 8A.     Controls and
  Procedures

The Company maintains a system of disclosure controls and
  procedures that are designed for the purposes of ensuring that information required
  to be disclosed in the Company's Securities Exchange Act of 1934 reports is
  recorded, processed, summarized and reported within the time periods specified
  in the SEC's rules and forms, and that such information is accumulated and communicated
  to the Company's management, including the Chief Executive Officer and the Chief
  Financial Officer, as appropriate to allow timely decisions regarding required
  disclosure.

As of the end of the period covered by this report, the Company
  carried out an evaluation, under the supervision and with the participation
  of the Company's management, including the Chief Executive Officer and the Chief
  Financial Officer, of the effectiveness of the design and operation of the Company's
  disclosure controls and procedures pursuant to Securities Exchange Act of 1934
  Rules 13a-14(c) and 15d-14(c). Based upon that evaluation, the Chief Executive
  Officer and the Chief Financial Officer concluded that the Company's disclosure
  controls and procedures are effective in connection with the filing of this
  annual report on Form 10-KSB for the fiscal year ended September 30, 2003.

There have been no significant changes in the Company's internal
  controls over financial reporting during the quarter ended September 30, 2003
  that have materially affected or are reasonably likely to materially affect,
  our internal controls over financial reporting.

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PART III

Item 9.     Directors, Executive
  Officers, Promoters and Control Persons;Compliance with Section 16(a)
  of the Exchange Act

The following discussion contains disclosure concerning the
  directors, officers and control persons of the Company. There are no persons
  which have acted as a promoter, controlling person, or significant employee
  of the Company other than as disclosed below.

|Name            | Position                          | Ages | Date Elected*1*2            
|--------------- | --------------------------------- | ---- | ----------------------------
|Robert Kim      | President, Treasurer and Director | 47   | December 12, 2001 to present
|Gerry Racicot   | Director                          | 53   | December 12, 2001 to present
|Keith Attoe     | Director                          | 53   | December 12, 2001 to present
|Kenneth Edwards | Chief Financial Officer           | 45   | *3                          
|J.K. Lee        | Corporate Secretary               | 32   | *2                          

|1. | Directors, whether appointed at a meeting
        of stockholders or by the remaining directors, are appointed until the
        next annual meeting of stockholders.                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | The President, Secretary and Treasurer
        do not have a set term of office. They serve at the pleasure of the Directors
        and can be removed at any time by the Directors under the Articles and
        Bylaws of the Company.
|3. | Mr. Edwards was appointed in November
        of 2002 as both CFO of the Company and CFO of its subsidiary, K-Tronik
        N.A. Inc.                                                                                                    

Robert Kim, President, Treasurer and Director

Robert Kim, in addition to being President and Treasurer of
  the Company, is President and CEO of K-Tronik N.A. Mr. Kim began work in the
  lighting and energy management industry in 1990. He was the founding President
  of Daewoo Americas subsidiary, King Tech, which in its first year produced
  sales exceeding $15 million. Mr. Kim also worked with GoldStar Electronic Ballast
  Corporation from 1993 until he founded K-Tronik Industries, Inc. (a predecessor
  company of K-Tronik N.A.) in 1995.

Gerry Racicot, Director

Gerry Racicot, in addition to being a director of the Company,
  is director and President of Eiger Technology, Inc. Eiger Technology, Inc.,
  of which K-Tronik N.A. was an operating subsidiary until the closing of the
  K-Tronik N.A. Agreement, is a diverse manufacturer and distributor of a number
  of products in the technology and commercial lighting industries. Eiger Technology
  Inc. is listed for trading on the Toronto Stock Exchange and its shares are
  also posted for trading through the facilities of the NASDs OTCBB. Gerry
  Racicot was, from 1988 to 2001, President of ADH Custom Metal Fabricators Inc.
  and Vision Unlimited Equipment Inc., companies which manufactured

14

---

and distributed various lighting and other products. ADH Custom
  Metal Fabricators Inc. listed on the TSX Exchange as Newlook Industries
  Corp. in May of 2002.

Keith Attoe, Director

Keith Attoe, in addition to being a director of the Company,
  is director and CFO of Eiger Technology, Inc. A chartered accountant by background,
  Keith Attoe has been with Eiger Technology, Inc. since 1996.

Kennneth Edwards, Chief Financial Officer

Kenneth Edwards, has been the Chief Financial Officer of K-Tronik
  N.A. since November of 2002. Prior to that, he was a Senior Manager with BDO
  Seidman, LLP from November 2000 to November 2002 and Chief Financial Officer
  of Menudirect Corporation from December 1997 to August 2000. Mr. Edwards is
  a CPA.

J.K. Lee, Corporate Secretary

J.K Lee, in addition to being Corporate Secretary of the Company,
  is the controller of K- Tronik N.A.Before joining K-Tronik N.A. Inc.,
  he worked for Nara Travel as a principal accountant from 1998 to 2000 in Toronto,
  Canada. Mr. Lee joined K-Tronik in 2000 as an accounting manager.

Item 10.     Executive Compensation

Summary Compensation Table

|Name and principal position                   | Year                                   | AnnualCompensation            | Long-term compensation
|--------------------------------------------- | -------------------------------------- | ----------------------------- | ----------------------
|Salary ($)                                    | Bonus ($)                              | Other Annual Compensation ($) | Awards                
|Restricted Stock Award(s) ($)                 | Securities Underlying options/SARs (#) | LTIP payouts ($)             
|(a)                                           | (b)                                    | (c)                           | (d)                   
|Robert Kim(1) President, Treasurer & Director | 2001 2002 2003                         | $165,000 $180,000 $180,000    | 0 0 0                 

(1) Robert Kim is paid by the Companys subsidiary, K-Tronik N.A.

15

---

Item 11.     Security Ownership of Certain Beneficial
  Owners and Management

The following table sets forth information regarding the beneficial
  ownership of shares of the Companys common stock as of September 30, 2003
  (22,573,886 issued and outstanding) by (i) all stockholders known to the Company
  to be beneficial owners of more than 5% of the outstanding common stock; and
  (ii) all directors and executive officers of the Company, and as a group (each
  person has sole voting power and sole dispositive power as to all of the shares
  shown as beneficially owned by them):

|Name and Address                                             | Position                                                       | Amount of Stock Beneficially Owned | Percentage of Class
|------------------------------------------------------------ | -------------------------------------------------------------- | ---------------------------------- | -------------------
|ETIFF Holdings, LLC (Eiger Technology, Inc. subsidiary)      | Greater than 5% shareholder                                    | 14,359,600                         | 63.61%             
|Robert Kim                                                   | Director, Treasurer and President, Greater than 5% shareholder | 6,714,286                          | 29.74%             
|                                                             |                                                                |                                    |                    
|Gerry Racicot                                                | Director                                                       | (1)                                | (1)                
|Keith Attoe                                                  | Director                                                       | (2)                                | (2)                
|Kenneth Edwards                                              | Chief Financial Officer                                        | 0                                  | 0                  
|J.K. Lee                                                     | Corporate Secretary                                            | 0                                  | 0%                 
|Directors, Officers and 5% stockholders in total (5 Persons) |                                                                | 21,023,886                         | 93.36%             

|1. | No shares of common stock are registered
        in Gerry Racicots name. However, as well as being a director of
        the Registrant, he is a Director and President of Eiger Technology Inc.
        which, through its wholly owned subsidiary ETIFF Holdings, LLC, owns 14,359,600
        shares of common stock of the Registrant. As stated in the table above,
        ETIFF holds a total of 63.61% of the issued and outstanding stock of the
        Company.                               
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | No shares of common stock are registered
        in Keith Attoes name. However, as well as being a director of the
        Registrant, he is a Director of Eiger Technology, Inc. which, through
        its wholly owned subsidiary ETIFF Holdings, LLC, owns 14,359,600 shares
        of common stock of the Registrant. As stated in the table above, ETIFF
        holds a total of 63.61% of the issued and outstanding stock of the Company.
        Mr. Keith Attoe is also the Manager of ETIFF.

Item 12.     Certain Relationships and Related
  Transactions

During the past two years, there have not been any transactions
  that have occurred between the Company and its officers, directors, and five
  percent or greater shareholders, except as follows:

16

---

The Share Purchase Agreement described in Description of Business
  above resulted in the Company issuing to its president and director, Mr. Robert
  Kim, shares in exchange for his shares of the Companys subsidiary, K-Tronik
  N.A. Inc. The closing of the Share Purchase Agreement and the Debt Settlement
  Agreement also resulted in the issuance of shares to ETIFF Holdings, LLC, a
  subsidiary of the Companys parent, Eiger Technology, Inc. (of which two
  of the directors of the Company, Gerry Racicot and Keith Attoe, are directors
  and officers). At the time of the negotiation of the Share Purchase Agreement
  and the Debt Settlement Agreement, the Company was not a related party of Robert
  Kim and Eiger Technology, Inc. The terms of the Share Purchase Agreement and
  the Debt Settlement Agreement were negotiated between the Company, Robert Kim
  and Eiger Technology, Inc.

Certain of the officers and directors of the Company are engaged
  in other businesses, either individually or through partnerships and corporations
  in which they have an interest, hold an office, or serve on a board of directors.
  As a result, certain conflicts of interest may arise between the Company and
  its officers and directors. The Company will attempt to resolve such conflicts
  of interest in favor of the Company. The officers and directors of the Company
  are accountable to it and its shareholders as fiduciaries, which require that
  such officers and directors exercise good faith and integrity in handling the
  companys affairs. A shareholder may be able to institute legal action
  on behalf of the Company or on behalf of itself and other similarly situated
  shareholders to recover damages or for other relief in cases of the resolution
  of conflicts is in any manner prejudicial to the Company.

In February of 2003, Mr. Ki-Seung, Vice President of K-Troniks
  Korean subsidiary, K-Tronik (Asia), lent K-Tronik (Asia) a total of $112,000.
  No written agreement was made in connection with this loan. However, K-Tronik
  (Asia) and Mr. Ki-Seung have agreed that the loan is non-interest bearing, payable
  on demand and has no fixed date of repayment. To date, none of these funds have
  been repaid by K-Tronik (Asia) to Mr. Ki-Seung.

Item 13.     Exhibits and Reports
  on Form 8-K

The exhibits to be filed with this Form 10-KSB are listed
  below in the Exhibit Index

There were no Reports on Form 8-K filed during the fourth
  quarter of the fiscal year ended September 30, 2003.

Item 14.     Principal Accountant
  Fees and Services

Not applicable as the Companys fiscal year ended prior
  to December 15, 2003.

17

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EXHIBIT INDEX

|Number | Exhibit Description                                                                                                                                                               
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                   
|3.1    | Articles of Incorporation (incorporated by reference to Exhibit 3 of the
      Registration Statement on Form 10-SB filed on September 28, 2000).                                 
|       |                                                                                                                                                                                   
|3.2    | Certificate of Amendment to Articles of Incorporation (incorporated by
      reference to Exhibit 2 of the Form 10-SB filed on September 28, 2000).                               
|       |                                                                                                                                                                                   
|3.3    | Certificate of Amendment to Articles of Incorporation dated October 13,
      2000. (incorporated by reference to Exhibit 3.3 of the Form 10-QSB filed
      on November 7, 2000).
|       |                                                                                                                                                                                   
|3.4    | ByLaws (incorporated by reference to Exhibit 3.3 of the Form 10-QSB filed
      on November 7, 2001).                                                                             
|       |                                                                                                                                                                                   
|14.1   | Code of Business Conduct                                                                                                                                                          
|       |                                                                                                                                                                                   
|16.1   | Change in certifying accountant (incorporated by reference to the Registrants
      report on Form 8-K filed on June 6, 2002                                                     
|       |                                                                                                                                                                                   
|31.1   | Section 302 certification of Chief Executive
      Officer                                                                                                                        
|       |                                                                                                                                                                                   
|31.2   | Section 302 certification of Chief Financial
      Officer                                                                                                                        
|       |                                                                                                                                                                                   
|32     | Section 906 certification of Chief Executive
      Officer                                                                                                                        

18

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SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|                         | K-TRONIK INTERNATIONAL CORP.         
|------------------------ | -------------------------------------
|                         |                                      
|Dated: December 31, 2003 | By: /s/ Robert Kim                   
|                         | Robert Kim, President and Director,  
|                         | Tresurer and Principal Accounting    
|                         | Officer                              
|                         |                                      
|Dated: December 31, 2003 | By: /s/ Kenneth Edwards              
|                         | Chief Financial Officer and Principal
|                         | Accounting Officer                   

In accordance with the Exchange Act, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

|Dated: December 31, 2003 | By: /s/ Gerry Racicot  
|------------------------ | -----------------------
|                         | Gerry Racicot, Director
|                         |                        
|Dated: December 31, 2003 | By: /s/ Keith Attoe    
|                         | Keith Attoe, Director  

19

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K-TRONIK INTERNATIONAL CORPORATION INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

|                                                              | PAGE      
|------------------------------------------------------------- | ----------
|                                                              |           
|Index to Consolidated Financial Statements                    | F-1       
|                                                              |           
|Report of Independent Certified Public Accountants            | F-2       
|                                                              |           
|Consolidated Financial Statements                             |           
|                                                              |           
|Balance sheet                                                 | F-3       
|                                                              |           
|Statements of operations and comprehensive loss               | F-4       
|                                                              |           
|Statements of changes in stockholders equity
      (deficit) | F-5       
|                                                              |           
|Statements of cash flows                                      | F-6       
|                                                              |           
|Notes to financial statements                                 | F-7  F-16

F-1

---

Report of Independent Certified Public Accountants

Board of Directors 
  K-Tronik International Corporation 
  Hackensack, New Jersey

We have audited the accompanying consolidated balance sheet
  of K-Tronik International Corporation and subsidiaries as of September 30, 2003
  and the related consolidated statements of operations and comprehensive loss,
  stockholders equity (deficit), and cash flows for the years ended September
  30, 2003 and 2002. These financial statements are the responsibility of the
  Companys management. Our responsibility is to express an opinion on these
  financial statements based on our audits.

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

In our opinion, the consolidated financial statements referred
  to above present fairly, in all material respects, the financial position of
  K-Tronik International Corporation and subsidiaries at September 30, 2003, and
  the results of their operations and their cash flows for the years ended September
  30, 2003 and 2002 in conformity with accounting principles generally accepted
  in the United States of America.

BDO Seidman, LLP 
  Woodbridge, New Jersey 
  November 17, 2003

F-2

---

K-TRONIK INTERNATIONAL CORP.Consolidated Balance SheetSeptember 30, 2003

|ASSETS                                                     |                            |            |          
|---------------------------------------------------------- | -------------------------- | ---------- | ---------
|                                                           |                            |            |          
|Current Assets:                                            |                            |            |          
|Cash and cash equivalents                                  | $                          | 145,952    |          
|Accounts receivable, net of an allowance of $72,000        |                            | 1,290,022  |          
|Inventories                                                |                            | 1,743,028  |          
|Prepaid expenses                                           |                            | 92,634     |          
|                                                           | Total current assets       |            | 3,271,636
|                                                           |                            |            |          
|Property and equipment, net of accumulated depreciation of |                            |            |          
|$517,457                                                   |                            | 443,559    |          
|Security deposits and other                                |                            | 48,389     |          
|Intangible assets, net of accumulated amortization of      |                            |            |          
|$64,959                                                    |                            | 102,059    |          
|Total Assets                                               | $                          | 3,865,643  |          
|                                                           |                            |            |          
|LIABILITIES AND STOCKHOLDERS EQUITY                       |                            |            |          
|                                                           |                            |            |          
|Current Liabilities:                                       |                            |            |          
|Notes payable                                              |                            | 1,625,254  |          
|Accounts payable and accrued expenses                      |                            | 2,086,353  |          
|                                                           | Total Current Liabilities  |            | 3,711,607
|                                                           |                            |            |          
|Commitments and contingencies                              |                            |            |          
|                                                           |                            |            |          
|Stockholders Equity:                                      |                            |            |          
|Common stock, $.00001 par value 100,000,000 authorized     |                            |            |          
|shares 22,573,886 issued and outstanding                   |                            | 226        |          
|Additional paidin capital                                 |                            | 5,020,108  |          
|Retained deficit                                           |                            | (4,591,935 | )        
|Accumulated comprehensive loss, foreign currency           |                            |            |          
|translation adjustment                                     |                            | (274,363   | )        
|                                                           | Total stockholders equity |            | 154,036  
|                                                           |                            |            |          
|Total liabilities and stockholders equity                 | $                          | 3,865,643  |          

See accompanying notes to consolidated financial statements.

F-3

---

K-TRONIK INTERNATIONAL CORP.Consolidated Statements of Operations and Comprehensive Loss

|                                             | For the Year Ended |           
|-------------------------------------------- | ------------------ | ----------
|                                             | September 30,      |           
|                                             |                    | 2003      
|                                             |                    |           
|Net revenues                                 | $                  | 6,536,978 
|Cost of revenues                             |                    | 4,925,379 
|Gross profit                                 |                    | 1,611,599 
|Selling, general and administrative expenses |                    | 2,322,747 
|Loss from operations                         |                    | (711,148  
|Other income (expenses)                      |                    |           
|Interest expense                             |                    | (161,602  
|Other income                                 |                    | 4,954     
|Total other income (expenses)                |                    | (156,648  
|Net loss                                     |                    | (867,796  
|Foreign currency translation adjustments     |                    | (44,711   
|Comprehensive loss                           | $                  | (912,507  
|Basic and diluted net loss per share         | $                  | (0.04     
|Weighted average number of common shares     |                    |           
|outstanding                                  |                    | 22,573,886

See accompanying notes to consolidated financial statements.

F-4

---

K-TRONIK INTERNATIONAL CORP.Consolidated Statement of Changes in Stockholders Equity (Deficit)

|                                               |            |  |   |            |   |   | Additional |  |   |            |   |   | Accumulated   |   |   |            |  
|---------------------------------------------- | ---------- |  | - | ---------- | - | - | ---------- |  | - | ---------- | - | - | ------------- | - | - | ---------- | -
|                                               |            |  |   |            |   |   | Paid-in    |  |   | Retained   |   |   | Comprehensive |   |   | Total      |  
|                                               | Shares     |  |   | Amount     |   |   | Capital    |  |   | Deficit    |   |   | Loss          |   |   | Equity     |  
|                                               |            |  |   |            |   |   |            |  |   |            |   |   |               |   |   |            |  
|Balance at September 30, 2001                  | 25,000     |  | $ | 100,000    |   | $ | 1,053,162  |  | $ | (2,920,596 | ) | $ | (140,762      | ) | $ | (1,908,196 | )
|Conversion of parent company debt to equity    | 3,788,172  |  |   | 3,788,172  |   |   | -          |  |   | -          |   |   | -             |   |   | 3,788,172  |  
|Recapitalization as a result of reverse merger | 18,760,714 |  |   | (3,887,946 | ) |   | 3,966,946  |  |   | 6,975      |   |   | -             |   |   | 85,975     |  
|Net loss for the year                          | -          |  |   | -          |   |   | -          |  |   | (810,518   | ) |   | -             |   |   | (810,518   | )
|Foreign currency translation adjustment        | -          |  |   | -          |   |   | -          |  |   | -          |   |   | (88,890       | ) |   | (88,890    | )
|Balance at September 30, 2002                  | 22,573,886 |  |   | 226        |   |   | 5,020,108  |  |   | (3,724,139 | ) |   | (229,652      | ) |   | 1,066,543  |  
|Net loss for the year                          | -          |  |   | -          |   |   | -          |  |   | (867,796   | ) |   | -             |   |   | (867,796   | )
|Foreign currency translation adjustment        | -          |  |   | -          |   |   | -          |  |   | -          |   |   | (44,711       | ) |   | (44,711    | )
|Balance at September 30, 2003                  | 22,573,886 |  | $ | 226        |   | $ | 5,020,108  |  | $ | (4,591,935 | ) | $ | (274,363      | ) | $ | 154,036    |  

See accompanying notes to consolidated financial statements.

F-5

---

K-TRONIK INTERNATIONAL CORP.
  Consolidated Statements of Cash Flows

|                                                                                | For the Year Ended |         
|------------------------------------------------------------------------------- | ------------------ | --------
|                                                                                | September 30,      |         
|                                                                                |                    | 2003    
|                                                                                |                    |         
|Cash flow from operating activities:                                            |                    |         
|Net loss                                                                        | $                  | (867,796
|                                                                                |                    |         
|Adjustments to reconcile net loss to net cash provided by operating activities: |                    |         
|Amortization and depreciation                                                   |                    | 192,211 
|Change in reserve for inventory obsolescence                                    |                    | (60,000 
|Bad debt expense                                                                |                    | 53,116  
|Change in operating assets and liabilities                                      |                    |         
|Accounts receivable                                                             |                    | 123,615 
|Inventories                                                                     |                    | 979     
|Prepaid expenses                                                                |                    | 66,102  
|Security deposits and other                                                     |                    | 28,633  
|Accounts payable and accrued expenses                                           |                    | 637,042 
|                                                                                |                    |         
|Net cash provided by operating activities                                       |                    | 173,902 
|                                                                                |                    |         
|Cash flows from investing activities:                                           |                    |         
|Purchase of equipment                                                           |                    | (213,249
|Intangible assets                                                               |                    | (4,110  
|                                                                                |                    |         
|Net cash used in investing activities:                                          |                    | (217,359
|Cash flows from financing activities:                                           |                    |         
|Proceeds (payments) from notes payable bank  net                               |                    | (149,612
|Proceeds from notes payable  other than bank                                   |                    | 279,372 
|Repayment of notes payable  other than bank                                    |                    | (190,124
|Proceeds from loan payable  parent company                                     |                    | -       
|                                                                                |                    |         
|Net cash provided by (used in) financing activities                             |                    | (60,364 
|Effect of exchange rate changes                                                 |                    | (44,711 
|Net increase (decrease) in cash and cash equivalents                            |                    | (148,532
|Cash and cash equivalents at beginning of period                                |                    | 294,484 
|Cash and cash equivalents at end of period                                      | $                  | 145,952 

See accompanying notes to consolidated financial statements.

F-6

---

K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1  Summary Of Significant Accounting Policies:

Nature of Business and Basis of Presentation

The Company was incorporated on September 2, 1999 in the State
  of Nevada as LMC Capital Corp. and was organized for the purpose of creating
  a corporate vehicle to locate and acquire an operating business. On December
  12, 2001 the Company changed its name to K-Tronik International Corp. (KTI
  or the Company).

By agreement dated November 29, 2001 and approved by the board
  of directors effective December 12, 2001, KTI issued 14,285,714 shares of restricted
  common stock to the shareholders of K-Tronik Intl Corporation, a Nevada
  corporation, in exchange for 100% of the issued and outstanding shares of K-Tronik
  Intl Corporation which, at the time of the transaction, owned a 100% interest
  in K-Tronik Asia Corporation (KTA), a Korean corporation. In connection
  with this transaction, K-Tronik Intl Corporation changed its name effective
  December 12, 2001 to K-Tronik N.A. Inc. (KTNA).

The acquisition resulted in the former shareholders of KTNA
  acquiring 93.4% of the outstanding shares of the KTI and has been accounted
  for as a reverse acquisition with KTNA being treated as the accounting parent
  and KTI, the legal parent, being treated as the accounting subsidiary. Accordingly,
  the consolidated results of operations of the Company include those of KTNA
  for all periods shown and those of the KTI since the date of the reverse acquisition.

The Company is engaged in the manufacture and distribution
  of various types of electronic stabilizers and illuminator ballasts for fluorescent
  lighting fixtures. The Company grants credit, on an unsecured basis, to distributors
  and installers located throughout the United States.

Method of Accounting

The financial statements have been prepared on the basis of
  accounting principles generally accepted in the United States of America.

Principles of Consolidation

The accompanying consolidated financial statements include
  the accounts of KTI, KTNA and KTA as described above and in Note 2. All intercompany
  balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an
  initial maturity date of three months or less and money market accounts to be
  cash equivalents.

Inventories

Inventories are stated at the lower of cost or market, determined
  by the moving weighted average method. An allowance has provided for obsolescence.

F-7

---

K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Property and Equipment

Property and equipment are stated at cost less accumulated
  depreciation. Depreciation of property and equipment is computed using the straight-line
  and accelerated methods over their estimated useful lives that range from three
  to five years. Repairs and maintenance are charged to expense as incurred.

Intangible Assets

Intangible assets, primarily UL certification costs, are recorded
  at cost and amortized over their estimated useful lives which range from five-to-ten
  years.

Research and Development Costs

Research and development costs are charged to operations when
  incurred. Research and development expense totaled $25,371 and $4,903 for the
  years ending September 30, 2003 and 2002, respectively.

Revenue Recognition

Sales to customers are FOB shipping point. As a result the
  Company recognizes sales when products are shipped.

Allowance for Doubtful Accounts

The Company establishes an allowance for doubtful accounts
  based on specifically identified amounts that it believes to be uncollectible
  as well as for additional factors surrounding the credit risk of its customers,
  historical trends, and other information.

Shipping and Handling Costs

Shipping and handling costs are recorded as a component of
  cost of sales.

Foreign Currency Translation

Assets and liabilities of the Companys foreign subsidiary,
  KTA, are translated at the rate of exchange in effect at the end of the period.
  Net sales and expenses are translated at the average rate of exchange for the
  period. Translation adjustments are reflected as a separate component of stockholders
  equity.

Advertising Costs

The Company records advertising costs in accordance with SOP
  93-7. Advertising costs of $48,083 and $71,674 were recognized as expense for
  years ended September 30, 2003 and 2002, respectively.

F-8

---

K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates

The preparation of financial statements in conformity with
  accounting principles generally accepted in the United States of America requires
  management to make estimates and assumptions that affect the reported amounts
  of assets and liabilities and disclosure of contingent assets and liabilities
  at the date of the financial statements and the reported amounts of revenues
  and expenses during the reporting period. Actual results could differ from those
  estimates.

Long-Lived Assets

The carrying values of long-lived assets are periodically
  reviewed by management and impairments would be recognized if the expected future
  operating non-discounted cash flows derived from an asset were less than carrying
  value. No impairments have been recorded through September 30, 2003.

Fair Value of Financial Instruments

Financial instruments reported in the Companys consolidated
  balance sheet consist of cash, accounts receivable, prepaid expenses, accounts
  payable, notes payable and accrued expenses, the carrying value of which approximate
  fair value due to the current maturity of these items.

Earnings Per Share

The Company accounts for earnings per share under the provisions
  of Statement of Financial Accounting Standards (SFAS) No. 128, Earnings Per
  Share, which requires a dual presentation of basic and diluted earnings per
  share. Basic earnings per share excludes dilution and is computed by dividing
  income available to common stockholders by the weighted average number of common
  shares outstanding for the period. Diluted earnings per share is computed assuming
  the conversion of convertible preferred stock and the exercise or conversion
  of common stock equivalent shares, if dilutive, consisting of unissued shares
  under options and warrants. Basic and diluted losses are the same as no options,
  warrants or convertible preferred stock have been issued.

Stock Based Compensation

The Company follows SFAS No. 123, Accounting for Stock-Based
  Compensation, as amended by SFAS No. 148, Accounting for Stock Based
  Compensation-Transition and Disclosure. It chose to apply Accounting Principle
  Board Opinion 25 and related interpretations in accounting for stock options
  granted to its employees and present pro forma effect of the fair value of such
  options. No options have been granted to date.

F-9

---

K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Concentrations of Credit Risk

Financial instruments that potentially subject the Company
  to credit risk consist principally of trade receivables. The Company extends
  credit to a substantial number of its customers and performs ongoing credit
  evaluations of those customers financial condition while, generally requiring
  no collateral.

Income Taxes

The Company accounts for income taxes under the provisions
  of SFAS No. 109, Accounting for Income Taxes. Deferred income tax
  assets and liabilities are recognized for differences between the financial
  statement and income tax basis of assets and liabilities based upon statutory
  rates enacted for future periods. Valuation allowances are established when
  necessary to reduce deferred tax assets to the amount expected to be realized.

New Accounting Pronouncements

In December 2002, the FASB issued Statements of Financial
  Accounting Standards No.148, Accounting for Stock-Based Compensation ' Transition
  and Disclosure ' An Amendment of FASB Statement 123 (SFAS 123). For entities
  that change their accounting for stock-based compensation from the intrinsic
  method to the fair value method under SFAS 123, the fair value method is to
  be applied prospectively to those awards granted after the beginning of the
  period of adoption (the prospective method). The amendment permits two additional
  transition methods for adoption of the fair value method. In addition to the
  prospective method, the entity can choose to either (i) restate all periods
  presented (retroactive restatement method) or (ii) recognize compensation cost
  from the beginning of the fiscal year of adoption as if the fair value method
  had been used to account for awards (modified prospective method). For fiscal
  years beginning December 15, 2003, the prospective method will no longer be
  allowed. The Company currently accounts for its stock-based compensation using
  the intrinsic value method as proscribed by Accounting Principles Board Opinion
  No. 25, Accounting for Stock Issued to Employees and plans on continuing
  using this method to account for stock options , therefore, it does not intend
  to adopt the transition requirements as specified in SFAS 148. The Company has
  adopted the new SFAS 148 disclosure requirements in these financial statements.

SFAS No. 150, Accounting for Certain Financial Instruments
  with Characteristics of Both Liabilities and Equity, was issued in May 2003
  and requires issuers to classify as liabilities (or assets in some circumstances)
  three classes of freestanding financial instruments that embody obligations
  for the issuer. SFAS No. 150 is effective for financial instruments entered
  into or modified after May 31, 2003 and is otherwise effective at the beginning
  of the first interim period beginning after June 15, 2003. Management believes
  the adoption of SFAS No. 150 will have no immediate impact on its financial
  position or results of operations.

F-10

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K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The FASB issued Interpretation ("FIN") No. 45, Guarantor's
  Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees
  of Indebtedness of Others, in November 2002 and FIN No. 46, Consolidation
  of variable Interest Entities, in January 2003. FIN No. 45 is applicable
  on a prospective basis for initial recognition and measurement provisions to
  guarantees issued after December 2002; however, disclosure requirements are
  effective immediately. FIN No. 45 requires a guarantor to recognize, at the
  inception of a guarantee, a liability for the fair value of the obligations
  undertaken in issuing the guarantee and expands the required disclosures to
  be made by the guarantor about its obligation under certain guarantees that
  it has issued. The adoption of FIN No. 45 did not have a material impact on
  the Company's financial position or results of operations. FIN No. 46 requires
  that a company that controls another entity through interest other than voting
  interest should consolidate such controlled entity in all cases for interim
  periods beginning after June 15, 2003. Management does not believe the adoption
  of FIN No. 46 will have a material impact on its financial position or results
  of operations

NOTE 2  Acquisition:

By agreement dated November 29, 2001 and approved by the board
  of directors effective December 12, 2001, KTI acquired 100 % of the issued and
  outstanding shares of KTNA, which included KTNAs wholly-owned subsidiary
  KTA, in exchange for 14,285,714 shares of restricted common stock of KTI. As
  a condition of this acquisition, KTI also issued 3,788,172 shares of restricted
  common stock to ETIFF Holdings Inc. (ETIFF) in settlement of $3,788,172
  owed to ETIFF by KTNA. ETIFF, a wholly owned subsidiary of Eiger Technologies,
  Inc. (Eiger), a Toronto Stock Exchange listed company, owned 53%
  of the issued and outstanding shares of KTNA. Also in connection with this transaction,
  Eiger was granted and exercised an option to acquire an additional 3,000,000
  shares of KTI from the original shareholders of KTI. As a result of these transactions,
  the former shareholders of KTNA own 93.4% of KTI representing 21,073,886 of
  the 22,573,886 total issued and outstanding shares of KTI.

This acquisition has been accounted for as a recapitalization
  using accounting principles applicable to reverse acquisitions with KTNA being
  treated as the accounting parent (acquirer) and KTI being treated as the accounting
  subsidiary (acquired). The value assigned to the capital stock of consolidated
  KTI on acquisition of KTNA is equal to the book value of the capital stock of
  KTNA plus the book value of the net assets of KTI as at the date of the acquisition.

F-11

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K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The carrying value of KTIs capital stock as December
  12, 2001, after giving effect to the reverse acquisition and the ETIFF debt
  settlement is calculated as follows:

| | KTNA capital stock                                              | $ | 100,000   | 
| | --------------------------------------------------------------- | - | --------- | 
| | KTNA additional paid in capital                                 |   | 1,132,162 | 
| | Settlement of amounts due to ETIFF                              |   | 3,788,172 | 
| |                                                                 |   |           | 
| | KTI capital stock, September 30, 2002                           | $ | 5,020,334 | 
| |                                                                 |   |           | 
| |                                                                 |   |           | 
| | The components of KTI capital stock are made up as follows:     |   |           | 
| |                                                                 |   |           | 
| | Capital stock (22,573,886 common shares issued and outstanding) | $ | 226       | 
| | Additional paid-in capital                                      |   | 5,020,108 | 
| |                                                                 |   |           | 
| |                                                                 | $ | 5,020,334 | 

NOTE 3  Investment in K-Tronik Asia Corporation:

As at September 30, 2001, KTNA had an 86.66% ownership interest
  in KTA. On December 4, 2001, Eiger acquired the additional 17,199 shares (13.34%)
  of KTA for $79,000. Eiger then transferred the 17,199 shares to KTNA in exchange
  for $79,000 which was assigned to ETIFF by Eiger and settled in connection with
  the amounts due to ETIFF as described in Notes 2 and 8. As a result of this
  transaction, KTNA owns 100% of KTA.

The functional currency of Asia is the Korean Won.

NOTE 4  Inventories:

Inventories consist of the following at September 30, 2003:

|Raw materials                      | $ | 515,241   |  
|---------------------------------- | - | --------- | -
|Finished goods                     |   | 1,287,787 |  
|                                   |   | 1,803,028 |  
|Reserve for inventory obsolescence |   | (60,000   | )
|                                   | $ | 1,743,028 |  

F-12

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K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5  Property and Equipment:

Property and equipment consists of the following at September 30, 2003:

|Transportation equipment       | $ | 17,758  | 
|------------------------------ | - | ------- | 
|Computer equipment             |   | 136,676 | 
|Tools                          |   | 298,199 | 
|Furniture and fixtures         |   | 62,359  | 
|Machinery and equipment        |   | 446,024 | 
|                               |   | 961,016 | 
|Less: Accumulated depreciation |   | 517,457 | 
|                               | $ | 443,559 | 

Depreciation expense for the years ended September 30, 2003 and 2002 was $175,271
  and $139,856, respectively.

NOTE 6  Intangible Assets:

Intangible assets consist of the following at September 30, 2003:

|Intangible Assets, primarily UL certification costs | $ | 167,018 |  
|--------------------------------------------------- | - | ------- | -
|Accumulated Amortization                            |   | (64,959 | )
|Net Amount                                          | $ | 102,059 |  

Amortization expense for the years ended September 30, 2003
  and 2002 was $16,940 and $14,984, respectively.

The weighted average amortization period is 6 years. The estimated
  aggregate amortization expense for each of the five succeeding years is approximately
  $17,000 per year.

NOTE 7  Notes Payable:

The Company has drawn down $971,788 as of September 30, 2003
  under a $1,500,000 revolving credit line with Trust Company Bank of New Jersey
  (Trust), which is due on demand. This line replaced the expired
  Alliance revolving credit line. The line of credit is secured by equipment,
  general intangibles, inventory, and stockholder guarantees of up to $500,000.
  The line expires June 30, 2006, however it is renewable annually at June 30,
  2004 and 2005. The availability of funds is limited to percentages of eligible
  accounts receivable and inventory. This agreement contains various financial
  and non-financial covenants of which the Company was in violation of the tangible
  net worth covenant at September 30, 2003. The Company received a waiver from
  the Bank in December 2003.

The Company had drawn down $1,157,219 as of September 30,
  2002 under a $1,500,000 revolving credit line with Business Alliance Capital
  Corporation (Alliance), which was due on

F-13

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K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

demand. The line of credit was secured by equipment, general
  intangibles, accounts receivables, inventory, and stockholder guarantees of
  $250,000. The line expired and was repaid June 30, 2003.

KTA has drawn down $564,218 and $528,399 under a separate
  revolving line of credit of $600,000 at September 30, 2003 and 2002, respectively
  with Woori Bank (Formely Hanvit Bank) in Korea. The line of credit is secured
  by equipment, accounts receivables and inventory. Interest, which is payable
  upon borrowing, is charged at an adjustable rate, currently 7.02% per annum.
  The line of credit expires May 29, 2004.

In February 2003, KTA was advanced $111,741 by one of its
  employees, the total amount outstanding at September 30, 2003 was $53,904. The
  advance is non- interest bearing and is payable on demand.

In May 2003, KTA was advanced $167,631 by an outside financier.
  The advance bears interest at the rate of 12% and is due by May 2004. The total
  amount outstanding at September 30, 2003 was $35,344.

The Company extended its credit facilities for KTA through
  May 29, 2004 and KTNA through June 30, 2006, renewable annually June 30, 2004
  and 2005. The Company expects that its working capital needs will require it
  to obtain a new revolving credit facilities by May 29, 2004 and June 30, 2004,
  when the credit facilities matures, whether by extending, renewing, replacing
  or otherwise refinancing the facility. While no assurance can be given that
  any such extension, renewal, replacement or refinancing can be successfully
  accomplished, Eiger has committed to provide the Company with the necessary
  financing to continue its operations through 2004. Eiger has supported the Company
  in the past by providing working capital to the Company.

NOTE 8  Capital Stock:

The legal share capital of the Company subsequent to the reverse
  acquisition is that of KTI, the legal parent. KTI has authorized capital of
  100,000,000 shares of common stock with a par value of $0.00001 of which 4,500,000
  were issued and outstanding prior to the reverse acquisition as described in
  Note 2.

The weighted average number of common shares outstanding prior
  to the reverse acquisition is deemed to be 14,285,714 being the number of shares
  issued to effect the reverse acquisition. As of September 30, 2003 the Company
  had 22,573,866 shares outstanding.

The Company has no stock options outstanding as of September
  30, 2003 and has not recorded any stock-based compensation in the current period
  or in any prior period.

NOTE 9  Commitments and Contingencies:

The Company assumed a lease of its office space located in
  Hackensack, New Jersey, which expires May 31, 2004. The lease contains a provision
  requiring the Company to pay property taxes and operating expenses, which exceed
  base year amounts. KTA occupies a factory located

F-14

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K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

in South Korea under a lease, which expires March 31, 2004.
  Total rent expense was approximately $88,175 and $67,900 for the years ended
  September 30, 2003 and 2002, respectively.

Future minimum annual rent payments under these leases are as follows:

| | Year Ending   |  |   |        |  | 
| | ------------- |  | - | ------ |  | 
| | September 30, |  |   |        |  | 
| | 2004          |  | $ | 27,000 |  | 
| |               |  | $ | 27,000 |  | 

NOTE 10  Major Customer:

One customer accounted for approximately 12% and 15% of sales
  for the years ended September 30, 2003 and 2002, respectively, and two customers
  accounted for 32% of accounts receivables as of September 30, 2003 and one customer
  accounted for 14% of accounts receivables as of September 30, 2002.

NOTE 11  Income Taxes:

Deferred income taxes reflect the tax effects of temporary
  differences between the carrying amounts of assets for financial reporting purposes
  and amounts used for income tax purposes. The Company provides deferred income
  taxes for temporary differences between assets and liabilities recognized for
  financial reporting and income tax purposes. A deferred tax asset valuation
  allowance has been provided to entirely offset deferred tax assets due to the
  uncertainty regarding the realization of these assets based on future probability.
  Differences between income tax benefits computed at the federal statutory rate
  and reported income taxes for tax year 2002 are primarily attributed to net
  operating loss carryforwards, the loss on income from foreign subsidiary and
  other permanent differences. United States and foreign components of net losses
  were $287,915, $579,881 and $337,827, $472,691 for the years ended September
  30, 2003 and 2002, respectively. At September 30, 2003 the Company had net operating
  loss carryforwards of $240,000 from its US operations and $2,417,000 from its
  foreign operations available to offset future taxable income expiring through
  2008. The tax effects of temporary differences at September 30, 2003 are as
  follows:

Deferred tax assets:

|Allowance for doubtful accounts      | $ | 24,500   |  
|------------------------------------ | - | -------- | -
|Net operating losses                 |   | 779,000  |  
|Allowance for inventory obsolescence |   | 20,400   |  
|Retirement and severance benefits    |   | 10,000   |  
|Allowance for warranty expense       |   | 17,300   |  
|Depreciation and Amortization        |   | 6,600    |  
|Total deferred tax assets            |   | 857,800  |  
|Less valuation allowance             |   | (857,800 | )
|                                     | $ | -        |  

F-15

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K-TRONIK INTERNATIONAL CORP.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12  Retirement and Severance Benefits:

Employees who have been with KTA for over one year are entitled
  to lump-sum payments based on current rates of pay and length of service when
  they leave KKTA. It is not the policy of KTA to fund retirement and severance
  benefits accrued. However, provisions in the amount of approximately $30,000
  and $47,000 at September 30, 2003 and 2002, respectively, has been made in the
  accompanying financial statements for the estimated accrued liability under
  the plan, which would be payable if all employees left on the balance sheet
  date.

NOTE 13  Supplemental Disclosure of Cash Flow Information:

Cash paid for interest for the years ended September 30, 2003 and 2002 was
  $161,602 and $233,704, respectively.

NOTE 14  Operating Segments

The Company has only one material operating segment, the design,
  market and distribution of electronic stabilizers and illuminator ballasts for
  florescent lighting fixtures, which is managed on a geographic basis.

The table below presents information by geographic location:

|                  |   | 2003      |  |  |   | 2002      | 
|----------------- | - | --------- |  |  | - | --------- | 
|Revenues:         |   |           |  |  |   |           | 
|United States     | $ | 5,436,501 |  |  | $ | 6,312,696 | 
|Asia and other    |   | 1,100,477 |  |  |   | 425,023   | 
|                  | $ | 6,536,978 |  |  | $ | 6,737,719 | 
|                  |   |           |  |  |   |           | 
|Long-lived assets |   |           |  |  |   |           | 
|United States     | $ | 155,211   |  |  |   |           | 
|Asia and other    |   | 288,348   |  |  |   |           | 
|                  | $ | 443,559   |  |  |   |           | 

Revenues are attributed to countries based on the location
  in which the sale originated. Long-lived assets principally consist of net equipment,
  property and leasehold improvements.

F-16

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