----

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

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

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

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | September 30, 2009(Unaudited) |      |   | December 31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|--------|-------------------|--------|
|                                                                        ASSETS |   |                          |      |   |              |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                          |      |   |              |   |
|     Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                             | 15,982    |   |              | $      | -- |   |
|     Accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          | 7,849     |   |              |   | 12,308 |   |
| Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          | 23,831    |   |              |   | 12,308 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                          | 25,790    |   |              |   | 23,078 |   |
| Investment in equity-accounted investee                                                                                                                                                                                                                                                                                                                                                                                                          |   |                          | 2,279     |   |              |   | 1,823 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          | 41,722    |   |              |   | 90,674 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                             | 93,622    |   |              | $      | 127,883 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
|   Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                             | 107,068   |   |              | $      | 119,664 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                          | 107,068   |   |              |   | 119,664 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Long-term liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |      |   |              |   |   |   |
|   Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          | 1,404,993 |   |              |   | 1,064,232 |   |
|   Bank overdrafts                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          | 36,252    |   |              |   | 35,836 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | 1,548,313 |   |              |   | 1,219,732 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | 2,322     |   |              |   | 2,252 |   |

----

|                                                                                                                                |   | September 30, 2009(Unaudited) |       |   | December 31, 2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|-------------------|--------|
| Stockholders’ deficit:                                                                                                        |   |                               |       |   |              |   |
|    Preferred stock, $0.001 par value, 10,000,000 authorized  shares; no shares issued and outstanding      |   |                               | --         |   |              |   | -- |   |
|    Common stock, $0.001 par value, 500,000,000 shares  authorized; 9,980,000 shares issued and outstanding |   |                               | 9,980      |   |              |   | 9,980 |   |
|    Additional paid-in capital                                                                                        |   |                               | 156,730    |   |              |   | 156,730 |   |
|    Share-based reserves                                                                                              |   |                               | 6,300      |   |              |   | 6,300 |   |
|    Accumulated deficit during development stage                                                                      |   |                               | (1,631,664 | )      |              |   | (1,268,988 | ) |
|    Accumulated other comprehensive loss                                                                              |   |                               | 1,641      |   |              |   | 1,877 |   |
|           Total Andain stockholders’ deficit                                |   |                               | (1,457,013 | )      |              |   | (1,094,101 | ) |
|                                                                                                                                |   |                               |       |   |              |   |   |   |
|           Total stockholders’ deficit                                       |   |                               | (1,454,691 | )      |              |   | (1,091,849 | ) |
|                                                                                                                                |   |                               |       |   |              |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                   |   | $                                  | 93,622     |   |              | $      | 127,883 |   |

----

|                                                                               |   | Three Months Ended September 30, |       |   | Nine Months EndedSeptember 30, |   |       | Period of Inception (July 23, 2004) through |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|--------------------------------|--------|------------|---------------------------------------------|--------|
|                                                                               | 2009   |                                  | 2008       |   |                           | 2009   |       |                                        | 2008   |   |   | September 30, 2009 |   |
|                                                                               |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |
| Net revenue                                                                        |   | $                                     | 603        |   |                           | $      | 12,133     |                                        |   | $ | 35,462 |   |   | $ | 21,219 |   |   | $ | 336,200 |   |
|                                                                               |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Depreciation                                                     |   |                                  | (1,747     | )      |                           |   | (1,486     | )                                           |   |   | (4,841 | ) |   |   | (4,650 | ) |   |   | (17,664 | ) |
|    General and administrative                                       |   |                                  | (130,159   | )      |                           |   | (125,445   | )                                           |   |   | (393,297 | ) |   |   | (395,004 | ) |   |   | (1,883,390 | ) |
|    Impairment of goodwill                                           |   |                                  | --         |   |                           |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (75,014 | ) |
|                                                                               |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                               |   |                                  | (131,303   | )      |                           |   | (114,798   | )                                           |   |   | (362,676 | ) |   |   | (378,435 | ) |   |   | (1,639,868 | ) |
|                                                                               |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest received                                                                  |   |                                  | --         |   |                           |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | 10,719 |   |
| Interest expense                                                                   |   |                                  | --         |   |                           |   | --         |                                        |   |   | -- |   |   |   | -- |   |   |   | (2,515 | ) |
|                                                                               |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss and deficit accumulated  during development stage               |   | $                                     | (131,303   | )      |                           | $      | (114,798   | )                                           |   | $ | (362,676 | ) |   | $ | (378,435 | ) |   | $ | (1,631,664 | ) |
|                                                                               |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share:                                                              |   |                                  |       |   |                           |   |       |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain                                  |   | $                                     | (0.01      | )      |                           | $      | (0.01      | )                                           |   | $ | (0.04 | ) |   | $ | (0.04 | ) |   |   |   |   |
|    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                                  |   | $                                     | (0.01      | )      |                           | $      | (0.01      | )                                           |   | $ | (0.02 | ) |   | $ | (0.03 | ) |   |   |   |   |
|    Weighted average shares     outstanding |   |                                  | 15,980,000 |   |                           |   | 13,980,000 |                                        |   |   | 15,980,000 |   |   |   | 13,980,000 |   |   |   |   |   |

----

|                                                                                                                                                                                               |   | Nine Months Ended September 30, |     |   | Period of Inception(July 23, 2004) through |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|----------|--------|--------------------------------------------|--------|
|                                                                                                                                                                                               |   | 2009                                 |     |   | 2008                                       |   |   | September 30, 2009 |   |
| Operating activities:                                                                                                                                                                              |   |                                 |     |   |                                       |   |   |   |   |
|   Net loss                                                                                                                                                                               |   | $                                    | (362,676 | )      |                                       | $      | (378,435 | ) |   | $ | (1,631,664 | ) |
|   Adjustments to reconcile net loss to net    cash provided by (used in)    operating activities:                                                |   |                                 |     |   |                                       |   |   |   |   |   |   |   |
|          Depreciation                                                                                                                                 |   |                                 | 4,841    |   |                                       |   | 4,650 |   |   |   | 17,664 |   |
|          Minority interest                                                                                                                            |   |                                 | 70       |   |                                       |   | 730 |   |   |   | 2,322 |   |
|          Shares issued for professional services                                                                                                      |   |                                 | --       |   |                                       |   | -- |   |   |   | 1,910 |   |
|          Accrued expenses – stockholder                                                                                                         |   |                                 | --       |   |                                       |   | -- |   |   |   | 37,508 |   |
|          Accrued consulting fees - stockholder                                                                                                        |   |                                 | --       |   |                                       |   | -- |   |   |   | 60,000 |   |
|          Accounts payable                                                                                                                             |   |                                 | (12,596  | )      |                                       |   | 28,488 |   |   |   | 102,714 |   |
|          Accounts receivable                                                                                                                          |   |                                 | 4,459    |   |                                       |   | 1,368 |   |   |   | (7,591 | ) |
|          Non-cash compensation expense                                                                                                                |   |                                 | --       |   |                                       |   | -- |   |   |   | 6,000 |   |
|          Equity-settled share-based payment                                                                                                           |   |                                 | --       |   |                                       |   | -- |   |   |   | 300 |   |
|          Accrued compensation                                                                                                                         |   |                                 | 360,000  |   |                                       |   | 360,000 |   |   |   | 1,320,000 |   |
|          Effect of movements in foreign             exchange rates on non-cash items |   |                                 | (270     | )      |                                       |   | (3,519 | ) |   |   | (4,681 | ) |
|                                                                                                                                                                                               |   |                                 |     |   |                                       |   |   |   |   |   |   |   |
| Net cash provided by (used in)  operating activities                                                                                                                                     |   |                                 | (6,172   | )      |                                       |   | 13,282 |   |   |   | (95,518 | ) |

|                                                                                             |   |   |   |   |   |   |    |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Investing activities:                                                                            |   |   |   |   |   |   |    |   |   |
|    Purchase of equipment                                                          |   |   | (7,283 | )      |   |   | --      |   |   |   | (39,840 | ) |
|    Purchase of interest in equity-accounted     investee |   |   | (456   | )      |   |   | (523    | )      |   |   | (2,279 | ) |
|                                                                                             |   |   |   |   |   |   |    |   |   |   |   |   |
| Net cash used in investing activities                                                            |   |   | (7,739 | )      |   |   | (523    | )      |   |   | (42,119 | ) |
|                                                                                             |   |   |   |   |   |   |    |   |   |   |   |   |
| Financing activities:                                                                            |   |   |   |   |   |   |    |   |   |   |   |   |
|    Proceeds from increase in bank overdrafts                                      |   |   | 416    |   |   |   | (1,886  | )      |   |   | 36,252 |   |
|    Proceeds from stock issued for cash                                            |   |   | --     |   |   |   | --      |   |   |   | 164,800 |   |
|    Proceeds (repayment) of other loans                                            |   |   | 48,952 |   |   |   | (35,666 | )      |   |   | (36,559 | ) |

----

|                                                  |   |   | Nine Months EndedSeptember 30, |   |   |   | Period of Inception(July 23, 2004) through  |   |
|-------------------------------------------------------|--------|--------|--------------------------------|--------|--------|--------|--------------------------------------------------|--------|
|                                                  |   |   | 2009                           |   |   |   | 2008                                             |   |   |   | September 30, 2009 |   |
|                                                  |   |   |                           |   |   |   |                                             |   |   |   |   |   |
|                                                  |   |   |                           |   |   |   |                                             |   |   |   |   |   |
|    Loan from majority stockholder      |   |   | (171                           | )      |   |   | (1,669                                           | )      |   |   | (13,405 | ) |
|    Loan from equity-accounted investee |   |   | 80,629                         |   |   |   | 523                                              |   |   |   | 82,452 |   |
|    Loans from key management personnel |   |   | (99,697                        | )      |   |   | 25,119                                           |   |   |   | (81,562 | ) |
|                                                  |   |   |                           |   |   |   |                                             |   |   |   |   |   |

| Net cash provided by (used in)  financing activities |   |   | 30,129 |   |   |   | (13,579 | )      |   |   | 151,978 |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                                           |   |   |   |   |   |   |    |   |   |   |    |   |

| Increase (decrease) in cash and cash  equivalents                                   |   |   | 16,218 |   |   |   | (820   | )      |   |   | 14,341 |   |
|-----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Effects of exchange rate changes on the  balance of cash held in foreign currencies |   |   | (236   | )      |   |   | 820    |   |   |   | 1,641  |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents,  beginning of period                                     |   |   | --     |   |   |   | --     |   |   |   | --     |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents,  end of period                                           |   | $      | 15,982 |   |   | $      | --     |   |   | $      | 15,982 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

| 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 September 30, 2009 |
|-----------------------------|--------|--------------------------------------------------------------------------|--------|----------------------------------------|--------|----------------------------------------------------------------------------|
|                        |   |                                                                     |   |                                   |   |                                                                       |
| Impact Active Team Ltd.     |   | Consulting                                                               |   | Israel                                 |   | 100%                                                                       |
| TPDS Ltd.                   |   | Medical                                                                  |   | Israel                                 |   | 69%                                                                        |

|                                         |   |   | Computers |   |   |   | Furniture |   |   |   | Location |   |   |   | Total        |   |
|----------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|--------|--------------|--------|
|                                         |   |   |      |   |   |   |      |   |   |   |     |   |   |   |         |   |
| Balance as of December 31, 2008              |   | $      | 273       |   |   | $      | 198       |   |   | $      | 22,607   |   |   | $      | 23,078       |   |
|                                         |   |   |      |   |   |   |      |   |   |   |     |   |   |   |         |   |
| Capital expenditure                          |   |   | 5,128     |   |   |   | 2,155     |   |   |   | --       |   |   |   |   7,283 |   |
|   Depreciation                     |   |   | (632      | )      |   |   | (227      | )      |   |   | (3,982   | )      |   |   | (4,841       | )      |
|   Effect of foreign currency       |   |   |      |   |   |   |      |   |   |   |     |   |   |   |         |   |
|     exchange differences |   |   |  3   |   |   |   | 2         |   |   |   | 265      |   |   |   | 270          |   |
| Balance as of September 30, 2009(unaudited)  |   | $      | 4,772     |   |   | $      | 2,128     |   |   | $      | 18,890   |   |   | $      | 25,790       |   |

| Investment in Equity-Accounted Investee at December 31, 2008              |   | $      | 1,823     |   |
|---------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                      |   |   |      |   |
| Acquisitions                                                              |   |   |  456 |   |
|                                                                      |   |   |      |   |
| Investment in Equity-Accounted Investee at September 30, 2009 (unaudited) |   | $      | 2,279     |   |

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

|                              |   | 2009   |        |   | 2008   |   |
|-----------------------------------|--------|--------|-------------|--------|--------|--------|
|                              |   |   |        |   |   |   |
| Other loans                       |   | $      | 38,629      |   |   | $      | 87,616 |   |
|                              |   |   |        |   |   |   |   |   |
| Loans with related companies:     |   |   |        |   |   |   |   |   |
|    Related company |   |   |  3,093 |   |   |   |  3,058 |   |
|                              |   | $      | 41,722      |   |   | $      | 90,674 |   |

|                                            |   |   | September30, 2009 |   |   |   | December 31, 2008 |   |
|-------------------------------------------------|--------|--------|-------------------|--------|--------|--------|-------------------|--------|
|                                            |   |   | (Unaudited)       |   |   |   |              |   |
|                                            |   |   |              |   |   |   |              |   |
| Key management personnel                        |   | $      | 1,238,438         |   |   | $      | 978,135           |   |
| Equity-Accounted Investee                       |   |   | 82,452            |   |   |   | 1,823             |   |
| Majority Stockholder (as defined under Note 11) |   |   | 84,103            |   |   |   | 84,274            |   |
|                                            |   |   |              |   |   |   |              |   |
|                                            |   | $      | 1,404,993         |   |   | $      | 1,064,232         |   |

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

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

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

| · | 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 |   | $      | (126,937       | )      |
|--------------------------------------|--------|--------|----------------|--------|
| Valuation allowance                  |   |   |   126,937 |   |
|                                 |   |   |           |   |
| Total                                |   | $      | --        |   |

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| 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 |

----

|               |                          |   | September 30, 2009 |    |   |   | December 31, 2008 |    |
|--------------------|-------------------------------|--------|--------------------|---------|--------|--------|-------------------|---------|
|               |                          |   | (Unaudited)        |    |   |   | $                 |    |
|               |                          |   | $                  |    |   |   |              |    |
|               |                          |   |               |    |   |   |              |    |
| Income statements: |                          |   |               |    |   |   |              |
|               | Compensation expenses         |   |  --           |    |   |   | 2,000             |    |
|               | Directors’ remuneration |   |               | 360,000 |   |   |              | 480,000 |   |
|               |                          |   |               |    |   |   |              |    |   |

| Balance sheets: |   |   |   |   |   |   |   |   |   |
|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Investment in Equity-Accounted Investee        |   |   | 2,279      |   |   |   | 1,823    |   |
|--------|------------------------------------------------|--------|--------|------------|--------|--------|--------|----------|--------|
|   | Loan - Equity-Accounted Investee               |   |   | (82,452    | )      |   |   | (1,823   | )      |
|   | Loan - related company                         |   |   | 3,093      |   |   |   | 3,058    |   |
|   | Accounts payable - Equity - Accounted Investee |   |   | (29,935    | )      |   |   | --  |   |
|   | Loan - Majority Stockholder                    |   |   | (84,103    | )      |   |   | (84,274  | )      |
|   | Loans - key management personnel               |   |   | (1,238,438 | )      |   |   | (978,135 | )      |

----

----

----

----

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

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

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

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

----

----

----

----

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

----

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

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

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

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

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

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

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

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

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

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

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

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

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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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----