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

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

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

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| PART I – FINANCIAL INFORMATION                                                                                       | PAGE   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|               ITEM 1.  FINANCIAL STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                             CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2010                                                                                                                                                                                                                                                                                                                                             |   |
|                             (UNAUDITED) AND DECEMBER 31, 2009                                                                                                                                                                                                                                                                                                                                                                | 4      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                             CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                            |   |
|                             (UNAUDITED) FOR THE THREE AND NINE MONTHS                                                                                                                                                                                                                                                                                                                                                        |   |
|                             ENDED SEPTEMBER 30, 2010 AND SEPTEMBER 30, 2009 AND                                                                                                                                                                                                                                                                                                                                              |   |
|                             PERIOD OF INCEPTION THROUGH SEPTEMBER 30, 2010                                                                                                                                                                                                                                                                                                                                                   | 6      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                             CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                                                                                                                                                                                                                                            |   |
|                             (UNAUDITED) FOR THE NINE MONTHS ENDED                                                                                                                                                                                                                                                                                                                                                            |   |
|                             SEPTEMBER 30, 2010 AND SEPTEMBER 30, 2009 AND                                                                                                                                                                                                                                                                                                                                                    |   |
|                             PERIOD OF INCEPTION THROUGH SEPTEMBER 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                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 26     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|             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     |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | September 30, 2010(Unaudited) |      |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|--------|-------------------|--------|
|                                                                        ASSETS |   |                          |      |   |              |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                          |      |   |              |   |
|    Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                             | 12,479    |   |              | $      | 28,604 |   |
|    Accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                            |   |                          | 75,433    |   |              |   | 11,532 |   |
| Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          | 87,912    |   |              |   | 40,136 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                          | 29,257    |   |              |   | 26,171 |   |
| Investment in equity-accounted investee                                                                                                                                                                                                                                                                                                                                                                                                          |   |                          | 2,939     |   |              |   | 2,459 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          | 42,782    |   |              |   | 43,686 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                             | 162,890   |   |              | $      | 112,452 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
|   Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                             | 359,022   |   |              | $      | 208,954 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                          | 359,022   |   |              |   | 208,954 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Long-term liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |      |   |              |   |   |   |
|   Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          | 1,751,163 |   |              |   | 1,421,928 |   |
|   Bank overdrafts                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          | 37,172    |   |              |   | 36,089 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | 2,147,357 |   |              |   | 1,666,971 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |      |   |              |   |   |   |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | (16,536   | )      |              |   | 2,295 |   |

----

|                                                                                                                                |   | September 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                                                                      |   |                          | (2,147,973 | )      |              |   | (1,732,351 | ) |
|    Accumulated other comprehensive loss                                                                              |   |                          | 7,032      |   |              |   | 2,527 |   |
|           Total Andain stockholders’ deficit                                |   |                          | (1,967,931 | )      |              |   | (1,556,814 | ) |
|                                                                                                                                |   |                          |       |   |              |   |   |   |
|           Total stockholders’ deficit                                       |   |                          | (1,984,467 | )      |              |   | (1,554,519 | ) |
|                                                                                                                                |   |                          |       |   |              |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                   |   | $                             | 162,890    |   |              | $      | 112,452 |   |

----

|                                                                                                   |   | Three Months Ended September 30, |       |   | Nine Months EndedSeptember 30, |   |       | Period of Inception (July 23, 2004)through |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|--------------------------------|--------|------------|-------------------------------------------------|--------|
|                                                                                                   |   | 2010                                  |       |   | 2009                           |   |       | 2010                                            |   |   | 2009 |   |   | September 30, 2010 |   |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |
| Net revenue                                                                                            |   | $                                     | --         |   |                           | $      | 603        |                                            |   | $ | 64,065 |   |   | $ | 35,462 |   |   | $ | 430,304 |   |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                    |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Depreciation                                                                         |   |                                  | (2,432     | )      |                           |   | (1,747     | )                                               |   |   | (6,582 | ) |   |   | (4,841 | ) |   |   | (25,831 | ) |
|    General and administrative                                                           |   |                                  | (121,146   | )      |                           |   | (130,159   | )                                               |   |   | (367,695 | ) |   |   | (393,297 | ) |   |   | (2,388,509 | ) |
|    Impairment of goodwill                                                               |   |                                  | --         |   |                           |   | --         |                                            |   |   | -- |   |   |   | -- |   |   |   | (75,014 | ) |
|    Research and development                                                             |   |                                  | (32,614    | )      |                           |   | --         |                                            |   |   | (124,421 | ) |   |   | -- |   |   |   | (124,421 | ) |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                                                   |   |                                  | (156,192   | )      |                           |   | (131,303   | )                                               |   |   | (434,633 | ) |   |   | (362,676 | ) |   |   | (2,183,471 | ) |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest received                                                                                      |   |                                  | --         |   |                           |   | --         |                                            |   |   | -- |   |   |   | -- |   |   |   | 19,002 |   |
| Interest expense                                                                                       |   |                                  | --         |   |                           |   | --         |                                            |   |   | -- |   |   |   | -- |   |   |   | (2,515 | ) |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                               |   |                                  | (156,192   | )      |                           |   | (131,303   | )                                               |   |   | (434,633 | ) |   |   | (362,676 | ) |   |   | (2,166,984 | ) |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Add: Net loss attributable to  non-controlling interest                                 |   |                                  | 10,475     |   |                           |   | --         |                                            |   |   | 19,011 |   |   |   | -- |   |   |   | 19,011 |   |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss and deficit accumulated  during development stage  attributable to Andain |   | $                                     | (145,717   | )      |                           | $      | (131,303   | )                                               |   | $ | (415,622 | ) |   | $ | (362,676 | ) |   | $ | (2,147,973 | ) |
|                                                                                                   |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share:                                                                                  |   |                                  |       |   |                           |   |       |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss attributable to Andain                                                      |   | $                                     | (0.02      | )      |                           | $      | (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      | )                                               |   | $ | (0.03 | ) |   | $ | (0.02 | ) |   |   |   |   |
|    Weighted average shares     Outstanding                     |   |                                  | 15,980,000 |   |                           |   | 15,980,000 |                                            |   |   | 15,980,000 |   |   |   | 15,980,000 |   |   |   |   |   |

----

|                                                                                                                                                                                               |   | Nine Months Ended September 30, |     |   | Period of Inception(July 23, 2004) through |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|----------|--------|--------------------------------------------|
|                                                                                                                                                                                               |   | 2010                       |     |   | 2009                                       |   |   |  September 30, 2010 |   |
|                                                                                                                                                                                               |   |                            |     |   |                                       |   |   |   |   |
| Operating activities:                                                                                                                                                                              |   |                            |     |   |                                       |   |   |   |   |
|                                                                                                                                                                                               |   |                            |     |   |                                       |   |   |   |   |
|   Net loss                                                                                                                                                                               |   | $                               | (434,633 | )      |                                       | $ | (362,676 | ) |   | $ | (2,166,984 | ) |
|   Adjustments to reconcile net loss to net    cash provided by (used in)    operating activities:                                                |   |                            |     |   |                                       |   |   |   |   |   |   |   |
|          Depreciation                                                                                                                                 |   |                            | 6,582    |   |                                       |   | 4,841 |   |   |   | 25,831 |   |
|          Minority interest                                                                                                                            |   |                            | 180      |   |                                       |   | 70 |   |   |   | 2,475 |   |
|          Shares issued for professional services                                                                                                      |   |                            | --       |   |                                       |   | -- |   |   |   | 1,910 |   |
|          Accrued expenses – stockholder                                                                                                         |   |                            | --       |   |                                       |   | -- |   |   |   | 37,508 |   |
|          Accrued consulting fees - stockholder                                                                                                        |   |                            | --       |   |                                       |   | -- |   |   |   | 60,000 |   |
|          Accounts payable                                                                                                                             |   |                            | 150,068  |   |                                       |   | (12,596 | ) |   |   | 354,045 |   |
|          Accounts receivable                                                                                                                          |   |                            | (63,901  | )      |                                       |   | 4,459 |   |   |   | (75,087 | ) |
|          Non-cash compensation expense                                                                                                                |   |                            | --       |   |                                       |   | -- |   |   |   | 6,000 |   |
|          Equity-settled share-based payment                                                                                                           |   |                            | --       |   |                                       |   | -- |   |   |   | 300 |   |
|          Accrued compensation                                                                                                                         |   |                            | 360,000  |   |                                       |   | 360,000 |   |   |   | 1,800,000 |   |
|          Effect of movements in foreign             exchange rates on non-cash items |   |                            | (785     | )      |                                       |   | (270 | ) |   |   | (5,474 | ) |

|                                                |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net cash provided by (used in) operating activities |   |   | 17,511 |   |   |   | (6,172 | )      |   |   | 40,524 |   |

|                                                                                             |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Investing activities:                                                                            |   |   |   |   |   |   |
|    Purchase of equipment                                                          |   |   | (8,883 | )      |   |   | (7,283 | ) |   |   | (50,795 | ) |
|    Purchase of interest in equity-accounted     investee |   |   | (480   | )      |   |   | (456 | ) |   |   | (2,939 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                                            |   |   | (9,363 | )      |   |   | (7,739 | ) |   |   | (53,734 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing activities:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Proceeds from increase in bank overdrafts                                      |   |   | 1,083  |   |   |   | 416 |   |   |   | 37,172 |   |
|    Proceeds from stock issued for cash                                            |   |   | --     |   |   |   | -- |   |   |   | 164,800 |   |
|    Proceeds (repayment) of other loans                                            |   |   | (1,247 | )      |   |   | 48,952 |   |   |   | (36,970 | ) |

----

|                                                  |   | Nine Months EndedSeptember 30, |    |   | Period of Inception(July 23, 2004) through  |   |
|-------------------------------------------------------|--------|--------------------------------|---------|--------|--------------------------------------------------|--------|
|                                                  |   | 2010                           |    |   | 2009                                             |   |   | September 30, 2010 |   |
|                                                  |   |                           |    |   |                                             |   |   |   |   |
|    Loan from majority stockholder      |   |                           | (482    | )      |                                             |   | (171 | ) |   |   | (15,001 | ) |
|    Loan from equity-accounted investee |   |                           | 4,920   |   |                                             |   | 80,629 |   |   |   | 2,769 |   |
|    Loans from key management personnel |   |                           | (33,052 | )      |                                             |   | (99,697 | ) |   |   | (134,113 | ) |
|                                                  |   |                           |    |   |                                             |   |   |   |   |   |   |   |

| Net cash provided by (used in)  financing activities |   |   | (28,778 | )      |   |   | 30,129 |   |   |   | 18,657 |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                           |   |   |    |   |   |   |   |   |   |   |   |   |

| Increase (decrease) in cash and cash  equivalents                                   |   |   | (20,630 | )      |   |   | 16,218 |   |   |   | 5,447  |   |
|-----------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |
| Effects of exchange rate changes on the  balance of cash held in foreign currencies |   |   | 4,505   |   |   |   | (236   | )      |   |   | 7,032  |   |
|                                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents,  beginning of period                                     |   |   | 28,604  |   |   |   | --     |   |   |   | --     |   |
|                                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents,  end of period                                           |   | $      | 12,479  |   |   | $      | 15,982 |   |   | $      | 12,479 |   |
|                                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |

| 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, 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                                                                                                                                                                                                                                                                                                                                                                  |   |      | 1,718     |   |      |   | 7,165     |     |   |   | --        |   |   |   | 8,883 |   |
|   Depreciation                                                                                                                                                                                                                                                                                                                                                                         |   |      | (1,006    | )      |      |   | (1,493    | )        |   |   | (4,083    | )      |   |   | (6,582 | ) |
|   Effect of foreign currency                                                                                                                                                                                                                                                                                                                                                           |   |      |      |   |      |   |      |     |   |   |      |   |   |   |   |   |
|     exchange differences                                                                                                                                                                                                                                                                                                                                                     |   |      |  122 |   |      |   |  138 |     |   |   |  525 |   |   |   | 785 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |      |      |   |      |   |      |     |   |   |      |   |   |   |   |   |
| Balance as of September 30, 2010 (unaudited)                                                                                                                                                                                                                                                                                                                                                     |   | $         | 4,913     |   |      | $      | 10,419    |     |   | $      | 13,925    |   |   | $ | 29,257 |   |

| Investment in Equity-Accounted Investee at December 31, 2009              |   | $      | 2,459     |   |
|---------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                      |   |   |      |   |
| Acquisitions                                                              |   |   |  480 |   |
|                                                                      |   |   |      |   |
| Investment in Equity-Accounted Investee at September 30, 2010 (unaudited) |   | $      | 2,939     |   |

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

|                                        |   | September 30, 2010 |        |   | December 31, 2009 |   |
|---------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                                        |   | (Unaudited)        |        |   |              |   |
|                                        |   |               |        |   |              |   |
| Other loans                                 |   | $                  | 39,610      |   |              | $      | 38,456 |   |
|                                        |   |               |        |   |              |   |   |   |
| Loans with related companies:               |   |               |        |   |              |   |   |   |
|    Equity-Accounted Investee |   |               | --          |   |              |   | 2,151 |   |
|    Related company           |   |               |  3,172 |   |              |   |  3,079 |   |
|                                        |   |               |        |   |              |   |   |   |
|                                        |   | $                  | 42,782      |   |              | $      | 43,686 |   |

|                                            |   | September 30, 2010 |         |   | December 31, 2009 |   |
|-------------------------------------------------|--------|--------------------|--------------|--------|-------------------|--------|
|                                            |   | (Unaudited)        |         |   |              |   |
|                                            |   |               |         |   |              |   |
| Key management personnel                        |   | $                  | 1,665,887    |   |              | $      | 1,338,939 |   |
| Equity-Accounted Investee                       |   |               | 2,769        |   |              |   | -- |   |
| Majority Stockholder (as defined under Note 11) |   |               |  82,507 |   |              |   |  82,989 |   |
|                                            |   |               |         |   |              |   |   |   |
|                                            |   | $                  | 1,751,163    |   |              | $      | 1,421,928 |   |

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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 |   | $      | (145,468 | )      |
|--------------------------------------|--------|--------|----------|--------|
| Valuation allowance                  |   |   | 145,468  |   |
|                                 |   |   |     |   |
| 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, 2010 |       |   | December 31, 2009 |   |
|----------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                           |   | (Unaudited)        |       |   |              |   |
|                                                           |   |               | $          |   |              |   | $ |   |
| Income statements:                                             |   |               |       |   |              |   |   |   |
|   Directors’ remuneration                      |   |               | 360,000    |   |              |   | 480,000 |   |
|                                                           |   |               |       |   |              |   |   |   |
| Balance sheets:                                                |   |               |       |   |              |   |   |   |
|   Investment in Equity-Accounted Investee            |   |               | 2,939      |   |              |   | 2,459 |   |
|   Loan – Equity-Accounted Investee             |   |               | (2,769     | )      |              |   | 2,151 |   |
|   Loan – related company                       |   |               | 3,172      |   |              |   | 3,079 |   |
|   Accounts payable – Equity-Accounted Investee |   |               | (201,459   | )      |              |   | (120,329 | ) |
|   Loan – Majority Stockholder                  |   |               | (82,507    | )      |              |   | (82,989 | ) |
|   Loans – key management personnel             |   |               | (1,665,887 | )      |              |   | (1,338,939 | ) |

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----

----

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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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----

----

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|                    | Andain, Inc.                    |
|-------------------------|---------------------------------|
|                    |                            |
| Dated: January 30, 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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