----

----

| Nevada                                        | 20-2066406           |
|-----------------------------------------------|---------------------------|
| (State or Other Jurisdiction of Incorporation | (I.R.S. Employer          |
| or Organization)                              |  Identification No.) |

| 5190 Neil Road, Suite 430, Reno, Nevada  | 89502      |
|------------------------------------------|------------|
| (Address of Principal Executive Offices) | (Zip Code) |

----

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

----

| PART I – FINANCIAL INFORMATION                                                                                                                                                                                    | PAGE   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                    |   |
|             ITEM 1.  FINANCIAL STATEMENTS                                                                                                         |   |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2010 |   |
|                             (UNAUDITED) AND DECEMBER 31, 2009               | 4      |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED STATEMENTS OF OPERATIONS           |   |
|                             (UNAUDITED) FOR THE THREE AND SIX MONTHS        |   |
|                             ENDED JUNE 30, 2010 AND JUNE 30, 2009 AND       |   |
|                             PERIOD OF INCEPTION THROUGH JUNE 30, 2010       | 6      |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED STATEMENTS OF CASH FLOWS           |   |
|                             (UNAUDITED) FOR THE SIX MONTHS ENDED            |   |
|                             JUNE 30, 2010 AND JUNE 30, 2009 AND             |   |
|                             PERIOD OF INCEPTION THROUGH JUNE 30, 2010       | 7      |
|                                                                                                                                                                                                                    |   |
|                             NOTES TO UNAUDITED CONSOLIDATED                 |   |
|                             FINANCIAL STATEMENTS                            | 9      |
|                                                                                                                                                                                                                    |   |
|             ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF                                                                                |   |
|                             FINANCIAL CONDITION AND RESULTS OF OPERATIONS   | 18     |
|                                                                                                                                                                                                                    |   |
|             ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES                                                                                                |   |
|                             ABOUT MARKET RISK                               | 24     |
|                                                                                                                                                                                                                    |   |
|             ITEM 4.  CONTROLS AND PROCEDURES                                                                                                      | 24     |
|                                                                                                                                                                                                                    |   |
| PART II – OTHER INFORMATION                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                    |   |
|             ITEM 1.  LEGAL PROCEEDINGS                                                                                                            | 25     |
|                                                                                                                                                                                                                    |   |
|             ITEM 1A. RISK FACTORS                                                                                                                           | 26     |
|                                                                                                                                                                                                                    |   |
|             ITEM 2.  UNREGISTERED SALES OF EQUITY                                                                                                 |   |
|                              SECURITIES AND USE OF PROCEEDS            | 26     |
|                                                                                                                                                                                                                    |   |
|             ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                                                                              | 26     |
|                                                                                                                                                                                                                    |   |
|             ITEM 4.  (REMOVED AND RESERVED)                                                                                                       | 26     |
|                                                                                                                                                                                                                    |   |
|             ITEM 5.  OTHER INFORMATION                                                                                                            | 26     |
|                                                                                                                                                                                                                    |   |
|             ITEM 6.  EXHIBITS                                                                                                                     | 26     |
|                                                                                                                                                                                                                    |   |
| SIGNATURE                                                                                                                                                                                                               | 26     |

----

|                                        |   | June 30, 2010(Unaudited) |      |   | December 31, 2009 |   |
|---------------------------------------------|--------|--------------------------|-----------|--------|-------------------|--------|
| ASSETS                                      |   |
| Current assets:                             |   |                     |      |   |              |   |
|    Cash and cash equivalents |   | $                        | 5,445     |   |              | $      | 28,604 |   |
|    Accounts receivable       |   |                     | 66,188    |   |              |   | 11,532 |   |
| Total current assets                        |   |                     | 71,633    |   |              |   | 40,136 |   |
|                                        |   |                     |      |   |              |   |   |   |
| Property, plant and equipment               |   |                     | 29,747    |   |              |   | 26,171 |   |
| Investment in equity-accounted investee     |   |                     | 2,775     |   |              |   | 2,459 |   |
| Other assets                                |   |                     | 63,028    |   |              |   | 43,686 |   |
|                                        |   |                     |      |   |              |   |   |   |
| Total assets                                |   | $                        | 167,183   |   |              | $      | 112,452 |   |
|                                        |   |                     |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT |   |
| Current liabilities:                        |   |                     |      |   |              |   |   |   |
|   Accounts payable                |   | $                        | 322,651   |   |              | $      | 208,954 |   |
| Total current liabilities                   |   |                     | 322,651   |   |              |   | 208,954 |   |
|                                        |   |                     |      |   |              |   |   |   |
| Long-term liabilities:                      |   |                     |      |   |              |   |   |   |
|   Long-term debt                  |   |                     | 1,635,634 |   |              |   | 1,421,928 |   |
|   Bank overdrafts                 |   |                     | 35,157    |   |              |   | 36,089 |   |
|                                        |   |                     |      |   |              |   |   |   |
| Total liabilities                           |   |                     | 1,993,442 |   |              |   | 1,666,971 |   |
|                                        |   |                     |      |   |              |   |   |   |
| Minority interest                           |   |                     | (6,396    | )      |              |   | 2,295 |   |

----

|                                                                                                                                |   | June 30, 2010(Unaudited) |       |   | December 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-------------------|--------|
| Stockholders’ deficit:                                                                                                        |   |                     |       |   |              |   |
|    Preferred stock, $0.001 par value, 10,000,000 authorized  shares; no shares issued and outstanding      |   |                     | --         |   |              |   | -- |   |
|    Common stock, $0.001 par value, 500,000,000 shares  authorized; 9,980,000 shares issued and outstanding |   |                     | 9,980      |   |              |   | 9,980 |   |
|    Additional paid-in capital                                                                                        |   |                     | 156,730    |   |              |   | 156,730 |   |
|    Share-based reserves                                                                                              |   |                     | 6,300      |   |              |   | 6,300 |   |
|    Accumulated deficit during development stage                                                                      |   |                     | (2,002,256 | )      |              |   | (1,732,351 | ) |

|    Accumulated other comprehensive loss                                               |   |   | 9,383      |   |   |   | 2,527      |   |
|------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|           Total Andain stockholders’ deficit |   |   | (1,819,863 | )      |   |   | (1,556,814 | )      |
|                                                                                                 |   |   |       |   |   |   |       |   |
|           Total stockholders’ deficit        |   |   | (1,826,259 | )      |   |   | (1,554,519 | )      |
|                                                                                                 |   |   |       |   |   |   |       |   |
| Total liabilities and stockholders’ deficit                                                    |   | $      | 167,183    |   |   | $      | 112,452    |   |

----

|                                                                                       |   | Three Months Ended June 30, |       |   | Six Months EndedJune 30, |   |       | Period of Inception (July 23, 2004) through |   |
|--------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|------------|---------------------------------------------|--------|
|                                                                                       |   | 2010                        |       |   | 2009                     |   |       | 2010                                        |   |   | 2009 |   |   | June 30, 2010 |   |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |
| Net revenue                                                                                |   | $                           | 20,081     |   |                     | $      | --         |                                        |   | $ | 64,270 |   |   | $ | 34,859 |   |   | $ | 430,509 |   |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                        |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                               |   |                        | (1,985     | )      |                     |   | (1,646     | )                                           |   |   | (4,150 | ) |   |   | (3,094 | ) |   |   | (23,399 | ) |
| General and administrative                                                                 |   |                        | (120,076   | )      |                     |   | (127,203   | )                                           |   |   | (246,754 | ) |   |   | (263,138 | ) |   |   | (2,267,568 | ) |
| Impairment of goodwill                                                                     |   |                        | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (75,014 | ) |
| Research and development                                                                   |   |                        | (68,128    | )      |                     |   | --         |                                        |   |   | (91,807 | ) |   |   | -- |   |   |   | (91,807 | ) |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                                       |   |                        | (170,108   | )      |                     |   | (128,849   | )                                           |   |   | (278,441 | ) |   |   | (231,373 | ) |   |   | (2,027,279 | ) |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest received                                                                          |   |                        | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | 19,002 |   |
| Interest expense                                                                           |   |                        | --         |   |                     |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (2,515 | ) |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                   |   |                        | (170,108   | )      |                     |   | (128,849   | )                                           |   |   | (278,441 | ) |   |   | (231,373 | ) |   |   | (2,010,792 | ) |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Add: Net loss attributable to non-controlling interest                           |   |                        | 14,894     |   |                     |   | --         |                                        |   |   | 8,536 |   |   |   | -- |   |   |   | 8,536 |   |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss and deficit accumulated during development stage attributable to Andain |   | $                           | (155,214   | )      |                     | $      | (128,849   | )                                           |   | $ | (269,905 | ) |   | $ | (231,373 | ) |   | $ | (2,002,256 | ) |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share:                                                                      |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Andain                                                            |   | $                           | (0.02      | )      |                     | $      | (0.01      | )                                           |   | $ | (0.03 | ) |   | $ | (0.02 | ) |   |   |   |   |
| Weighted average shares outstanding                                                   |   |                        | 9,980,000  |   |                     |   | 9,980,000  |                                        |   |   | 9,980,000 |   |   |   | 9,980,000 |   |   |   |   |   |
|                                                                                       |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted loss per share:                                                                    |   |                        |       |   |                     |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Andain                                                            |   | $                           | (0.00      | )      |                     | $      | (0.00      | )                                           |   | $ | (0.02 | ) |   | $ | (0.02 | ) |   |   |   |   |
| Weighted average shares outstanding                                                   |   |                        | 15,398,000 |   |                     |   | 15,398,000 |                                        |   |   | 15,398,000 |   |   |   | 15,398,000 |   |   |   |   |   |

----

|                                                                                                                                                                                               |   | Six Months Ended June 30, |     |   | Period of Inception(July 23, 2004) through June 30, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|--------|----------------------------------------------------------|--------|
|                                                                                                                                                                                               |   | 2010                           |     |   | 2009                                                     |   |   |   |
| Operating activities:                                                                                                                                                                              |   |                           |     |   |                                                     |   |   |   |   |
|   Net loss                                                                                                                                                                               |   | $                              | (278,441 | )      |                                                     | $      | (231,373 | ) |   | $ | (2,010,792 | ) |
|   Adjustments to reconcile net loss to net    cash provided by operating activities:                                                                                 |   |                           |     |   |                                                     |   |   |   |   |   |   |   |
|          Depreciation                                                                                                                                 |   |                           | 4,150    |   |                                                     |   | 3,094 |   |   |   | 23,399 |   |
|          Minority interest                                                                                                                            |   |                           | (155     | )      |                                                     |   | (177 | ) |   |   | 2,140 |   |
|          Shares issued for professional services                                                                                                      |   |                           | --       |   |                                                     |   | -- |   |   |   | 1,910 |   |
|          Accrued expenses – stockholder                                                                                                         |   |                           | --       |   |                                                     |   | -- |   |   |   | 37,508 |   |
|          Accrued consulting fees - stockholder                                                                                                        |   |                           | --       |   |                                                     |   | -- |   |   |   | 60,000 |   |
|          Accounts payable                                                                                                                             |   |                           | 113,697  |   |                                                     |   | (16,106 | ) |   |   | 317,674 |   |
|          Accounts receivable                                                                                                                          |   |                           | (54,656  | )      |                                                     |   | 5,462 |   |   |   | (65,842 | ) |
|          Non-cash compensation expense                                                                                                                |   |                           | --       |   |                                                     |   | -- |   |   |   | 6,000 |   |
|          Equity-settled share-based payment                                                                                                           |   |                           | --       |   |                                                     |   | -- |   |   |   | 300 |   |
|          Accrued compensation                                                                                                                         |   |                           | 240,000  |   |                                                     |   | 240,000 |   |   |   | 1,680,000 |   |
|          Effect of movements in foreign             exchange rates on non-cash items |   |                           | 675      |   |                                                     |   | 689 |   |   |   | (4,014 | ) |
|                                                                                                                                                                                               |   |                           |     |   |                                                     |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                                                                                                                          |   |                           | 25,270   |   |                                                     |   | 1,589 |   |   |   | 48,283 |   |

|                                                                                             |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Investing activities:                                                                            |   |   |   |   |   |   |   |   |   |
|    Purchase of equipment                                                          |   |   | (8,401 | )      |   |   | (5,514 | )      |   |   | (50,313 | ) |
|    Purchase of interest in equity-accounted     investee |   |   | (316   | )      |   |   | (296   | )      |   |   | (2,775 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                                            |   |   | (8,717 | )      |   |   | (5,810 | )      |   |   | (53,088 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing activities:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Proceeds from increase in bank overdrafts                                      |   |   | (932   | )      |   |   | (1,073 | )      |   |   | 35,157 |   |
|    Proceeds from stock issued for cash                                            |   |   | --     |   |   |   | --     |   |   |   | 164,800 |   |
|    Proceeds (repayment) of other loans                                            |   |   | 1,072  |   |   |   | 50,664 |   |   |   | (34,651 | ) |

----

|                                                                                          |   | Six Months EndedJune 30, |    |   | Period of Inception(July 23, 2004) through June 30, 2010 |   |
|-----------------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|----------------------------------------------------------|--------|
|                                                                                          |   | 2010                     |    |   | 2009                                                     |   |   |   |
|    Loan from majority stockholder                                              |   |                     | 413     |   |                                                     |   | 441 |   |   |   | (14,106 | ) |
|    Loan from equity-accounted investee                                         |   |                     | (20,414 | )      |                                                     |   | 39,334 |   |   |   | (22,565 | ) |
|    Loans from key management personnel                                         |   |                     | (26,707 | )      |                                                     |   | (75,395 | ) |   |   | (127,768 | ) |
|                                                                                          |   |                     |    |   |                                                     |   |   |   |   |   |   |   |
| Net cash provided by (used in)  financing activities                                |   |                     | (46,568 | )      |                                                     |   | 13,971 |   |   |   | 867 |   |
|                                                                                          |   |                     |    |   |                                                     |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash  equivalents                                   |   |                     | (30,015 | )      |                                                     |   | 9,750 |   |   |   | (3,938 | ) |
|                                                                                          |   |                     |    |   |                                                     |   |   |   |   |   |   |   |
| Effects of exchange rate changes on the  balance of cash held in foreign currencies |   |                     | 6,856   |   |                                                     |   | 517 |   |   |   | 9,383 |   |
|                                                                                          |   |                     |    |   |                                                     |   |   |   |   |   |   |   |
| Cash and cash equivalents,  beginning of period                                     |   |                     | 28,604  |   |                                                     |   | -- |   |   |   | -- |   |
|                                                                                          |   |                     |    |   |                                                     |   |   |   |   |   |   |   |
| Cash and cash equivalents,  end of period                                           |   | $                        | 5,445   |   |                                                     | $      | 10,267 |   |   | $ | 5,445 |   |

| Supplementary schedule of  cash flow activities:                                                                                    |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   Non-cash investing and financing    activities:                                                               |   |   |   |   |   |   |   |   |   |
|      Issuance of common stock for payment       of consulting fees                |   | $      | --     |   |   | $      | --     |   |   | $ | 1,900 |   |
|      Issuance of common stock for       purchase of intellectual property         |   | $      | --     |   |   | $      | --     |   |   | $ | 4,500 |   |
|      Issuance of common stock for       purchase of subsidiary                    |   | $      | --     |   |   | $      | --     |   |   | $ | 2,500 |   |
|      Issuance of common stock for payment       of management and consulting fees |   | $      | --     |   |   | $      | --     |   |   | $ | 300 |   |
|      Non-cash compensation expense                                                                                   |   | $      | --     |   |   | $      | --     |   |   | $ | 6,000 |   |

----

----

----

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

----

----

| Name of Company         |   | Principal Activity |   | Location |   | Proportion of OwnershipInterest and Voting PowerHeld at June 30, 2010 |
|-------------------------|--------|--------------------|--------|----------|--------|-----------------------------------------------------------------------|
|                    |   |               |   |     |   |                                                                  |
| Impact Active Team Ltd. |   | Consulting         |   | Israel   |   | 100%                                                                  |
| TPDS Ltd.               |   | Medical            |   | Israel   |   | 69%                                                                   |

|                                                        |   | Computers |       |   | Furniture |   |       | Vehicles |   |   | Total      |   |
|-------------------------------------------------------------|--------|-----------|------------|--------|-----------|--------|------------|----------|--------|--------|------------|--------|
|                                                        |   |      |       |   |      |   |       |     |   |   |       |   |
| Balance as of December 31, 2009                             |   | $         | 4,079      |   |      | $      | 4,609      |     |   | $      | 17,483     |   |   | $ | 26,171 |   |
|                                                        |   |      |       |   |      |   |       |     |   |   |       |   |   |   |   |   |
|   Capital expenditure                             |   |      | 1,624      |   |      |   | 6,777      |     |   |   | --         |   |   |   | 8,401 |   |
|   Depreciation                                    |   |      | (897       | )      |      |   | (679       | )        |   |   | (2,574     | )      |   |   | (4,150 | ) |
|   Effect of foreign currency exchange differences |   |      |  (105 | )      |      |   |  (119 | )        |   |   |  (451 | )      |   |   |  (675 | ) |
|                                                        |   |      |       |   |      |   |       |     |   |   |       |   |   |   |   |   |
| Balance as of June 30, 2010 (unaudited)                     |   | $         | 4,701      |   |      | $      | 10,588     |     |   | $      | 14,458     |   |   | $ | 29,747 |   |

| Investment in Equity-Accounted Investee at December 31, 2009         |   | $      | 2,459     |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                 |   |   |      |   |
| Acquisitions                                                         |   |   |  316 |   |
|                                                                 |   |   |      |   |
| Investment in Equity-Accounted Investee at June 30, 2010 (unaudited) |   | $      | 2,775     |   |

----

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

|                                        |   | June 30, 2010 |        |   | December 31, 2009 |   |
|---------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                        |   | (Unaudited)   |        |   |              |   |
|                                        |   |          |        |   |              |   |
| Other loans                                 |   | $             | 37,463      |   |              | $      | 38,456 |   |
|                                        |   |          |        |   |              |   |   |   |
| Loans with related companies:               |   |          |        |   |              |   |   |   |
|    Equity-Accounted Investee |   |          | 22,565      |   |              | $      | 2,151 |   |
|    Related company           |   |          |  3,000 |   |              |   |  3,079 |   |
|                                        |   |          |        |   |              |   |   |   |
|                                        |   | $             | 63,028      |   |              | $      | 43,686 |   |

|                                            |   | June 30, 2010 |         |   | December 31, 2009 |   |
|-------------------------------------------------|--------|---------------|--------------|--------|-------------------|--------|
|                                            |   | (Unaudited)   |         |   |              |   |
|                                            |   |          |         |   |              |   |
| Key management personnel                        |   | $             | 1,552,232    |   |              | $      | 1,338,939 |   |
| Majority Stockholder (as defined under Note 11) |   |          |  83,402 |   |              |   |  82,989 |   |
|                                            |   |          |         |   |              |   |   |   |
|                                            |   | $             | 1,635,634    |   |              | $      | 1,421,928 |   |

----

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

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

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

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

| Income tax benefit at statutory rate |   | $      | (94,467 | )      |
|--------------------------------------|--------|--------|---------|--------|
| Valuation allowance                  |   |   | 94,467  |   |
|                                 |   |   |    |   |
| Total                                |   | $      | --      |   |

----

----

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

|                                                           |   | June 30, 2010 |       |   | December 31, 2009 |   |
|----------------------------------------------------------------|--------|---------------|------------|--------|------------------------|--------|
|                                                           |   | (Unaudited)   |       |   |                   |   |
|                                                           |   | $             |       |   | $                      |   |
| Income statements:                                             |   |          |       |   |                   |   |
|   Directors’ remuneration                      |   |          | 240,000    |   |                   |   | 480,000 |   |
|                                                           |   |          |       |   |                   |   |   |   |
| Balance sheets:                                                |   |          |       |   |                   |   |   |   |
|   Investment in Equity-Accounted Investee            |   |          | 2,775      |   |                   |   | 2,459 |   |
|   Loan – Equity-Accounted Investee             |   |          | 22,565     |   |                   |   | 2,151 |   |
|   Loan – related company                       |   |          | 3,000      |   |                   |   | 3,079 |   |
|   Accounts payable – Equity-Accounted Investee |   |          | (181,509   | )      |                   |   | (120,329 | ) |
|   Loan – Majority Stockholder                  |   |          | (83,402    | )      |                   |   | (82,989 | ) |
|   Loans – key management personnel             |   |          | (1,552,232 | )      |                   |   | (1,338,939 | ) |

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

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

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

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

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|                    | Andain, Inc.                    |   |
|-------------------------|---------------------------------|--------|
|                    |                            |   |
|                    |                            |   |
| Dated: January 30, 2011 | By: /s/ Sam Shlomo Elimelech    |   |
|                    | Sam Shlomo Elimelech, President |   |

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| Number | Description                                                                                                                                                                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                             |
| 3.1    | Articles of Incorporation, dated July 14, 2004 (incorporated by reference to Exhibit 3.1 of the Form 10-SB filed on March 24, 2005).                                                                                             |
|   |                                                                                                                                                                                                                             |
| 3.2    | Bylaws, dated August 1, 2004 (incorporated by reference to Exhibit 3.2 of the Form 10-SB filed on March 24, 2005).                                                                                                               |
|   |                                                                                                                                                                                                                             |
| 10.1   | Affiliation Agreement between the Impact Active Team Ltd. and P.O.C. High-Tech (1992) Ltd. Corporation, dated June 23, 2004 (incorporated by reference to Exhibit 10.8 of the Form SB-2 filed on February 13, 2007).             |
|   |                                                                                                                                                                                                                             |
| 10.2   | Consulting Agreement between the Company and Dr. Leonid Lurya, dated May 16, 2006 (incorporated by reference to Exhibit 10.2 of the Form 10-K filed on December 30, 2010).                                                       |
|   |                                                                                                                                                                                                                             |
| 10.3   | Share Purchase Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (not including Schedule 1, Disclosure Schedule) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed on July 5, 2006). |
|   |                                                                                                                                                                                                                             |
| 10.4   | Technology Purchase Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (incorporated by reference to Exhibit 10.2 of the Form 8-K filed on July 5, 2006).                                            |
|   |                                                                                                                                                                                                                             |
| 10.5   | Finder’s Fee Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (incorporated by reference to Exhibit 10.5 of the Form 8-K filed on July 5, 2006).                                             |
|   |                                                                                                                                                                                                                             |
| 10.6   | Consulting Agreement between the Company and Pangea Investments GmbH, dated July 3, 2006 (incorporated by reference to Exhibit 10.3 of the Form 8-K filed on July 5, 2006).                                                      |
|   |                                                                                                                                                                                                                             |
| 10.7   | Business Development Services Agreement between the Company and Pangea Investments GmbH, dated July 3, 2006 (incorporated by reference to Exhibit 10.4 of the Form 8-K filed on July 5, 2006).                                   |
|   |                                                                                                                                                                                                                             |
| 10.8   | Employment Agreement between the Company and Sam Elimelech, dated July 3, 2006 (incorporated by reference to Exhibit 10.6 of the Form 8-K filed on July 5, 2006).                                                                |
|   |                                                                                                                                                                                                                             |
| 10.9   | Employment Agreement between the Company and Gai Mar-Chaim, dated July 3, 2006 (incorporated by reference to Exhibit 10.7 of the Form 8-K filed on July 5, 2006).                                                                |

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| 10.10  | Consulting Agreement between the Company and Meizam - Advanced Enterprise Center Arad Ltd., dated October 25, 2006 (incorporated by reference to Exhibit 10.10 of the Form 10-K filed on December 30, 2010). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                         |
| 16.1   | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on January 5, 2006).                                                                                |
|   |                                                                                                                                                                                                         |
| 16.2   | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on November 5, 2010).                                                                               |
|   |                                                                                                                                                                                                         |
| 21     | Subsidiaries of the Company (incorporated by reference to Exhibit 21 of the Form 10-QSB filed on November 20, 2006).                                                                                         |
|   |                                                                                                                                                                                                         |
| 31.1   | Rule 13a-14(a)/15d-14(a) Certification of Sam Shlomo Elimelech (filed herewith).                                                                                                                             |
|   |                                                                                                                                                                                                         |
| 31.2   | Rule 13a-14(a)/15d-14(a) Certification of Gai Mar-Chaim (filed herewith).                                                                                                                                    |
|   |                                                                                                                                                                                                         |
| 32     | Section 1350 Certification of Sam Shlomo Elimelech and Gai Mar-Chaim (filed herewith).                                                                                                                       |

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