----

| TETRIDYN SOLUTIONS, INC.                                       |
|----------------------------------------------------------------|
| (Exact name of registrant as specified in its charter)         |
|                                                           |   |
| Nevada                                                         | 20-5081381 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |   |
| 1651 Alvin Ricken Drive                                        |   |
| Pocatello, ID                                                  | 83201 |
| (Address of principal executive offices)                       | (Zip Code) |
|                                                           |
| 208-232-4200                                                   |
| (Registrant’s telephone number, including area code)     |
|                                                           |   |
| Securities registered pursuant to Section 12(b) of the Act:    |
| Title of each class                                            | Name of each exchange on which registered |
| n/a                                                            | n/a |
|                                                           |
| Securities registered pursuant to Section 12(g) of the Act:    |
| n/a                                                            |
| (Title of Class)                                               |

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

----

----

| ExhibitNumber* |   |  Title of Document                                                                                                     |   |  Location                                                                                                                            |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                        |   |                                                                                                                                      |
| Item 3.        |   | Articles of Incorporation and Bylaws                                                                                        |   |                                                                                                                                      |
| 3.01           |   | Articles of Incorporation of TetriDyn Solutions, Inc. dated May 15, 2006                                                    |   | Incorporated by reference from the current report on Form 8-K filed June 7, 2006.                                                    |
| 3.02           |   | Bylaws of TetriDyn Solutions, Inc. adopted May 26, 2006                                                                     |   | Incorporated by reference from the current report on Form 8-K filed June 7, 2006.                                                    |
| 3.03           |   | Designation of Rights, Privileges, and Preferences of Series A Preferred Stock                                         |   | Incorporated by reference from the annual report on Form 10-K filed March 31, 2010.                                                       |
|           |   |                                                                                                                        |   |                                                                                                                                      |
| Item 4.        |   | Instruments Defining the Rights of Security Holders, Including Debentures                                                   |   |                                                                                                                                      |
| 4.01           |   | Specimen stock certificate                                                                                                  |   | Incorporated by reference from the current report on Form 8-K filed June 7, 2006.                                                         |
|           |   |                                                                                                                        |   |                                                                                                                                      |
| Item 10.       |   | Material Contracts                                                                                                          |   |                                                                                                                                      |
| 10.01          |   | Technology License Agreement, effective October 16, 2001, by Bechtel B WXT Idaho, LLC, and TetriDyn Solutions, Inc.    |   | Incorporated by reference from the current report on Form 8-K filed March 28, 2006.                                                       |
| 10.02          |   | Lease Document between Idaho State University and TetriDyn Solutions, Inc. dated September 1, 2004                     |   | Incorporated by reference from the current report on Form 8-K filed March 28, 2006.                                                       |
| 10.03          |   | Employment Agreement between TetriDyn Solutions, Inc. and David W. Hempstead dated January 21, 2006**                  |   | Incorporated by reference from the current report on Form 8-K filed March 28, 2006.                                                       |
| 10.04          |   | Employment Agreement between TetriDyn Solutions, Inc. and Antoinette R. Knapp dated January 21, 2006**                 |   | Incorporated by reference from the current report on Form 8-K filed March 28, 2006.                                                       |
| 10.05          |   | Debt Resolution Agreement between TetriDyn Solutions, Inc. and David W. Hempstead signed April 24, 2007                |   | Incorporated by reference from the current report on Form 8-K filed April 27, 2007.                                                       |
| 10.06          |   | Amendment dated October 9, 2009, to Consulting Agreement dated July 17, 2007, with Southfork Solutions, Inc., also included |   | Incorporated by reference from the quarterly report on Form 10-Q for the quarter ended September 30, 2009, filed November 10, 2009.  |

----

| ExhibitNumber* |   |  Title of Document                                                                                                                                                       |   |  Location                                                                                                             |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|
| 10.07          |   | Loan Agreement between TetriDyn Solutions, Inc., and Southeast Idaho Council of Governments, Inc., together with related promissory notes, dated December 23, 2009       |   | Incorporated by reference from the annual report on Form 10-K filed March 31, 2010.                                        |
| Item 14.       |   | Code of Ethics                                                                                                                                                                |   |                                                                                                                       |
| 14.01          |   | TetriDyn Solutions, Inc., Code of Ethics                                                                                                                                      |   | Incorporated by reference from the annual report on Form 10-KSB for the year ended December 31, 2006, filed April 2, 2007. |
|           |   |                                                                                                                                                                          |   |                                                                                                                       |
| Item 16.       |   | Letter on Change of Certifying Accountant                                                                                                                                     |   |                                                                                                                       |
| 16.01          |   | Letter from Hansen, Barnett & Maxwell to Securities and Exchange Commission                                                                                               |   | Incorporated by reference from the current report on Form 8-K filed January 22, 2007.                                      |
|           |   |                                                                                                                                                                          |   |                                                                                                                       |
| Item 21.       |   | Subsidiaries of the Small Business Issuer                                                                                                                                     |   |                                                                                                                       |
| 21.01          |   | Schedule of subsidiaries                                                                                                                                                      |   | Incorporated by reference from the annual report on Form 10-KSB filed March 31, 2008.                                      |
|           |   |                                                                                                                                                                          |   |                                                                                                                       |
| Item 31.       |   | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                       |   |                                                                                                                       |
| 31.01          |   | Certification of Principal Executive Officer  and Principal Financial Officer Pursuant to Rule 13a-14                                                               |   | This filing.                                                                                                               |
|           |   |                                                                                                                                                                          |   |                                                                                                                       |
| Item 32.       |   | Section 1350 Certifications                                                                                                                                                   |   |                                                                                                                       |
| 32.01          |   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | This filing.                                                                                                               |

| * | The number preceding the decimal indicates the applicable SEC reference number in Item 601, and the number following the decimal indicating the sequence of the particular document.  Omitted numbers in the sequence refer to documents previously filed with the SEC as exhibits to previous filings, but no longer required. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Identifies each management contract or compensatory plan or arrangement required to be filed as an exhibit, as required by Item 15(a)(3) of Form 10-K. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              | TETRIDYN SOLUTIONS, INC. |
|-----------------------------------|--------------------------|
|                              |                     |   |
|                              |                     |   |
| Date:  October 22, 2010 | By:                      | /s/David W. Hempstead |
|                              |                     | David W. Hempstead, President |

----

|                                                                                                  | Page   |
|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   |
| Report of Independent Registered Public Accounting Firm                                               | F-1    |
|                                                                                                  |   |
| Consolidated Balance Sheets – December 31, 2009 and December 31, 2008                           | F-2    |
|                                                                                                  |   |
| Consolidated Statements of Operations for the Years Ended December 31, 2009 and 2008                  | F-3    |
|                                                                                                  |   |
| Consolidated Statements of Stockholders’ Deficit for the Years Ended December 31, 2009 and 2008 | F-4    |
|                                                                                                  |   |
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2009 and 2008                  | F-5    |
|                                                                                                  |   |
| Notes to Consolidated Financial Statements for the Years Ended December 31, 2009 and 2008             | F-6    |

----

----

| TETRIDYN SOLUTIONS, INC. AND SUBSIDIARIES                                        |
|----------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                      |
|                                                                             |   |   |   |   |   |
|                                                                             |   |   | December 31, |   |   |  December 31, |
|                                                                             |   |   | 2009 |   |   | 2008 |
| ASSETS                                                                           |   |   |   |   |   |   |
| Current Assets                                                                   |   |   |   |   |   |   |
|    Cash                                                           |   |  $       123,784 |   |   |  $        77,914 |
|    Accounts receivable, current portion                           |   |          132,706 |   |   |            17,492 |
|    Prepaid expenses and other current assets                      |   |            17,545 |   |   |            12,445 |
|    Current assets of discontinued operations                      |   |                    - |   |   |          279,243 |
| Total Current Assets                                                             |   |   |          274,035 |   |   |          387,094 |
| Property and Equipment, net                                                      |   |            43,005 |   |   |            45,625 |
| Property and Equipment of Discontinued Operations, net                           |   |                    - |   |   |              7,179 |
| Accounts receivable, net of current portion                                      |   |              3,088 |   |   |              6,604 |
| Total Assets                                                                     |   |   |  $       320,128 |   |   |  $       446,502 |
|                                                                             |   |   |   |   |   |   |
| LIABILITIES                                                                      |   |   |   |   |   |   |
| Current Liabilities                                                              |   |   |   |   |   |   |
|    Accounts payable                                               |   |   |  $       217,135 |   |   |  $          3,771 |
|    Accrued liabilities                                            |   |   |            64,970 |   |   |            60,892 |
|    Unearned revenue                                               |   |   |            33,084 |   |   |            62,885 |
|    Notes payable, current portion                                 |   |          113,181 |   |   |          119,014 |
|    Current liabilities of discontinued operations                 |   |                    - |   |   |                622 |
| Total Current Liabilities                                                        |   |   |          428,370 |   |   |          247,184 |
| Long-Term Liabilities                                                            |   |   |   |   |   |   |
|    Notes payable, net of current portion                          |   |          322,905 |   |   |          216,909 |
| Total Long-Term Liabilities                                                      |   |   |          322,905 |   |   |          216,909 |
| Total Liabilities                                                                |   |   |          751,275 |   |   |          464,093 |
|                                                                             |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                    |   |                    - |   |   |                    - |
|                                                                             |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT                                                            |   |   |   |   |   |
| Preferred stock - $0.001 par value                                               |   |   |   |   |   |
| Authorized:                                                                      | 5,000,000 shares |   |   |   |   |   |
| Issued and outstanding:                                                          | 1,200,000 shares and |   |   |   |   |   |
|                                                                             | no shares, respectively |   |              1,200 |   |   |                    - |
| Common stock - $0.001 par value                                                  |   |   |   |   |   |
| Authorized:                                                                      | 100,000,000 shares |   |   |   |   |   |
| Issued and outstanding:                                                          | 21,881,863 shares and |   |   |   |   |   |
|                                                                             | 21,381,863 shares, respectively |   |            21,882 |   |   |            21,382 |
| Additional paid-in capital                                                       |   |   |        2,810,330 |   |   |        2,730,575 |
|     Non-controlling interest in discontinued operations |   | -   |   |   | 876,453  |
| Accumulated deficit                                                              |   |   |      (3,264,559) |   |   |      (3,646,001) |
| Total Stockholders' Deficit                                                      |   |   |         (431,147) |   |   |         (17,591) |
|                                                                             |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Deficit                                      |   |  $       320,128 |   |   |  $       446,502 |
|                                                                             |   |   |   |   |   |   |
| See the accompanying notes to consolidated financial statements.                 |

----

| TETRIDYN SOLUTIONS, INC. AND SUBSIDIARIES                        |
|------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                            |
|                                                             |   |   |   |   |   |
|                                                             |   |  For the Years Ended |
|                                                             |   |  December 31, |
|                                                             |   | 2009 |   |   | 2008 |
| Revenue                                                          |   |  $     867,341 |   |   |  $  1,310,584 |
| Cost of Revenue                                                  |   |         336,974 |   |   |         466,117 |
| Gross Profit                                                     |   |         530,367 |   |   |         844,467 |
| Operating Expenses                                               |   |   |   |   |   |
| General and administrative                                       |   |         518,974 |   |   |         483,959 |
| Professional fees                                                |   |          53,793 |   |   |          70,079 |
| Selling and marketing                                            |   |         112,035 |   |   |         157,483 |
| Research and development                                         |   |         194,003 |   |   |         111,435 |
| Total Operating Expenses                                         |   |         878,805 |   |   |         822,956 |
| Net Profit (Loss) from Operations                                |   |       (348,438) |   |   |          21,511 |
| Other Income (Expenses)                                          |   |   |   |   |   |
| Other Income (Expense)                                           |   |                64 |   |   |               278 |
| Interest Income                                                  |   |            1,200 |   |   |            1,119 |
| Interest Expense                                                 |   |         (30,946) |   |   |         (30,861) |
| Total Other Income (Expenses)                                    |   |         (29,682) |   |   |         (29,464) |
| Net Profit (Loss) from Continuing Operations before              |   |   |   |   |   |
| Provision for Income Taxes                                       |   |       (378,120) |   |   |           (7,953) |
| Provision for Income Taxes                                       |   |                   - |   |   |                   - |
| Net Loss from Continuing Operations                              |   |  $   (378,120) |   |   |  $       (7,953) |
| Discontinued Operations                                          |   |   |   |   |   |
| Loss from Operations of Discontinued Subsidiary                  |   |  $   (241,748) |   |   |  $   (383,572) |
| Gain on Disposal of Discontinued Operations                      |   |  $  1,001,310 |   |   |  $                 - |
| Income (Loss) from Discontinued Operations                       |   |  $     759,562 |   |   |  $   (383,572) |
| Net Profit (Loss)                                                |   |  $     381,442 |   |   |  $   (391,525) |
|                                                             |   |   |   |   |   |
| Basic and Diluted Profit (Loss) Per Common Share                 |   |   |   |   |   |
| Continuing operations                                            |   |  $        (0.02) |   |   |  $                 - |
| Discontinued operations                                          |   |  $          0.04 |   |   |  $        (0.02) |
| Total Basic and Diluted Profit (Loss) Per Common Share           |   |  $          0.02 |   |   |  $        (0.02) |
|                                                             |   |   |   |   |   |
| Basic and Diluted Weighted-Average                               |   |   |   |   |   |
| Common Shares Outstanding                                        |   | 21,387,239 |   |   | 21,267,780 |
|                                                             |   |   |   |   |   |
| See the accompanying notes to consolidated financial statements. |

----

| TETRIDYN SOLUTIONS INC. AND SUBSIDIARIES                         |
|------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT           |
| For the Years Ended December 31, 2009 and December 31, 2008      |
|                                                             |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   | Additional | Deferred |   | Total |
|                                                             |   | Common Stock | Preferred Stock | Paid In | Stock | Accumulated | Stockholders' |
|                                                             |   | Shares | Amount | Shares | Amount | Capital | Compensation | Deficit | Deficit |
| Balance, December 31, 2007                                       |   |  21,011,863 |  $ 21,012 |               - |  $         - |  $ 2,576,710 |  $        (13,286) |  $   (3,254,476) |  $     (670,040) |
| Deferred stock compensation,                                     |   |   |   |   |   |   |   |   |   |
| January 2008                                                     |   |                - |             - |               - |             - |                 - |              13,286 |                    - |            13,286 |
| Issuance for outside director                                    |   |   |   |   |   |   |   |   |   |
| services, $0.10 per share,                                       |   |   |   |   |   |   |   |   |   |
| April 2008                                                       |   |      120,000 |         120 |               - |             - |         11,880 |                      - |                    - |            12,000 |
| Issuance for consultant services,                                |   |   |   |   |   |   |   |   |
| $0.10 per share, April 2008                                      |      250,000 |         250 |               - |             - |         24,750 |                      - |                    - |            25,000 |
| Stock options                                                    |   |                - |             - |               - |             - |       117,235 |                      - |                    - |           117,235 |
| Net profit (loss)                                                |   |                - |             - |               - |             - |                 - |                      - |         (391,525) |         (391,525) |
| Balance, December 31, 2008                                       |   |  21,381,863 |  $ 21,382 |               - |  $         - |  $ 2,730,575 |  $                  - |  $   (3,646,001) |  $     (894,044) |
| Issuance for executive services,                                 |   |   |   |   |   |   |   |   |
| $0.0445 per share,                                               |   |   |   |   |   |   |   |   |   |
| November 2009                                                    |   |                - |             - |   1,200,000 |      1,200 |         52,255 |                      - |                    - |            53,455 |
| Issuance for outside director                                    |   |   |   |   |   |   |   |   |   |
| services, $0.056 per share,                                      |   |   |   |   |   |   |   |   |   |
| December 2009                                                    |   |      300,000 |         300 |               - |             - |         16,500 |                      - |                    - |            16,800 |
| Issuance for employees' services,                                |   |   |   |   |   |   |   |   |
| $0.056 per share,                                                |   |   |   |   |   |   |   |   |   |
| December 2009                                                    |   |      200,000 |         200 |               - |             - |         11,000 |                      - |                    - |            11,200 |
| Net profit (loss)                                                |   |                - |             - |               - |             - |                 - |                      - |          381,442 |           381,442 |
| Balance, December 31, 2009                                       |   |  21,881,863 |  $ 21,882 |   1,200,000 |  $  1,200 |  $ 2,810,330 |  $                  - |  $   (3,264,559) |  $     (431,147) |
|                                                             |   |   |   |   |   |   |   |   |   |
| See the accompanying notes to consolidated financial statements. |

----

| TETRIDYN SOLUTIONS, INC. AND SUBSIDIARIES                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                             |
|                                                                                                                                                              |   |   |   |
|                                                                                                                                                              |  For the Years Ended |
|                                                                                                                                                              |  December 31, |
|                                                                                                                                                              | 2009Restated( See Note 1) |   | 2008Restated(See Note 1) |
| Cash Flows from Operating Activities                                                                                                                              |   |   |   |
| Net Profit (Loss)                                                                                                                                                 |  $         381,442 |   |  $       (391,525) |
| Less: Net profit (loss) from discontinued operations                                                                                                              |  $         759,562 |   |  $       (383,572) |
| Loss from Continuing Operations                                                                                                                                   |  $       (378,120) |   |  $           (7,953) |
| Adjustments to reconcile net loss from continuing operations to net cash provided by    (used in) operating activities from continuing operations: |
| Depreciation                                                                                                                                                      |               13,636 |   |               11,187 |
| Loss on disposal of asset                                                                                                                                         |                    109 |   |                         - |
| Common stock issued for services                                                                                                                                  |               28,000 |   |               50,286 |
| Preferred stock issued for services                                                                                                                               |               53,455 |   |   - |
| Granted stock options                                                                                                                                             |                         - |   |             117,235 |
| Changes in operating assets and liabilities:                                                                                                                      |   |   |   |
| Accounts receivable                                                                                                                                               |             (22,839) |   |             (23,278) |
| Inventory                                                                                                                                                         |                  (739) |   |                         - |
| Prepaid expenses                                                                                                                                                  |               (4,361) |   |               (2,261) |
| Accrued expenses                                                                                                                                                  |             (26,824) |   |             (12,577) |
| Accounts payable                                                                                                                                                  |             118,940 |   |             (53,030) |
| Unearned revenue                                                                                                                                                  |             (29,801) |   |                 5,082 |
| Net Cash Provided by (Used in) Operating Activities from Continuing Operations                                                                                    |           (248,544) |   |               84,691 |
| Net Cash Provided by (Used in) Operating Activities from Discontinued Operations                                                                                  |             203,799 |   |             347,740 |
| Net Cash Provided by (Used in) Operating Activities                                                                                                               |             (44,745) |   |             432,431 |
| Cash Flows from Investing Activities                                                                                                                              |   |   |   |
| Purchase of property and equipment for continuing operations                                                                                                      |             (11,125) |   |             (11,548) |
| Purchase of property and equipment for discontinued operations                                                                                               | -  |   | (7,405)  |
| Cash increase (decrease) due to deconsolidation of subsidiary                                                                                                | 1,577  |   | (279,243)  |
| Net Cash Used in Investing Activities from Continuing Operations                                                                                                  |             (11,125) |   |             (11,548) |
| Net Cash Provided by (Used in) Investing Activities from Discontinued Operations                                                                                  |                 1,577 |   |           (286,648) |
| Net Cash Used in Investing Activities                                                                                                                             |               (9,548) |   |           (298,196) |
| Cash Flows from Financing Activities                                                                                                                              |   |   |   |
| Proceeds from borrowing under notes payable                                                                                                                       |             200,000 |   |                         - |
| Principal payments on notes payable                                                                                                                               |             (99,837) |   |           (205,255) |
| Net Cash Provided by (Used in) Financing Activities from Continuing Operations                                                                                    |             100,163 |   |           (205,255) |
| Net Cash Provided by (Used in) Financing Activities from Discontinued Operations                                                                                  |                         - |   |                         - |
| Net Cash Provided by (Used in) Financing Activities                                                                                                               |             100,163 |   |           (205,255) |
| Net Increase (Decrease) in Cash                                                                                                                              |               45,870 |   |             (71,020) |
| Cash at Beginning of Period                                                                                                                                       |               77,914 |   |             148,934 |
| Cash at End of Period                                                                                                                                             |  $         123,784 |   |  $           77,914 |
|                                                                                                                                                              |   |   |   |
| Supplemental Disclosure of Cash Flow Information:                                                                                                                 |   |   |   |
| Cash paid for income taxes                                                                                                                                        |  $                     - |   |  $                     - |
| Cash paid for interest expense and lines of credit                                                                                                                |  $           28,172 |   |  $           31,425 |
|                                                                                                                                                              |   |   |   |
|  See the accompanying notes to consolidated financial statements.                                                                                            |

----

----

----

----

----

|                                                                             | As Originally |      |       |   |        |
|----------------------------------------------------------------------------------|---------------|-----------|------------|--------|-------------|
| Year Ended December 31, 2008                                                     | Reported      |      | Adjustment |   | As Restated |
| Net Cash Provided by (Used in) Operating Activities from Continuing Operations   | $             | 84,691    |       | $      |        |   | $ | 84,691 |
| Net Cash Provided by (Used in) Operating Activities from Discontinued Operations |          | 347,740   |       |   |        |   |   | 347,740 |
| Net Cash Provided by (Used in) Operating Activities                              |          | 432,431   |       |   |        |   |   | 432,431 |
|                                                                             |          |      |       |   |        |   |   |   |
| Cash increase (decrease) due to deconsolidation of subsidiary                    |          | -         |       |   | (279,243)   |   |   | (279,243) |
| Net Cash Used in Investing Activities from Continuing Operations                 |          | (11,548)  |       |   |        |   |   | (11,548) |
| Net Cash Used in Investing Activities from Discontinued Operations               |          | (7,405)   |       |   |        |   |   | (286,648) |
| Net Cash Used in Investing Activities                                            |          | (18,953)  |       |   |        |   |   | (298,196) |
|                                                                             |          |      |       |   |        |   |   |   |
| Net Cash Provided by (Used in) Financing Activities from Continuing Operations   |          | (205,255) |       |   |        |   |   | (205,255) |
| Net Cash Provided by (Used in) Financing Activities from Discontinued Operations |          | -         |       |   |        |   |   | - |
| Net Cash Provided by (Used in) Financing Activities                              |          | (205,255) |       |   |        |   |   | (205,255) |
|                                                                             |          |      |       |   |        |   |   |   |
| Net Increase (Decrease) in Cash                                                  |          | 208,223   |       |   | (279,243)   |   |   | (71,020) |
|                                                                             |          |      |       |   |        |   |   |   |
| Cash at Beginning of Period                                                      |          | 148,934   |       |   |        |   |   | 148,934 |
|                                                                             |          |      |       |   |        |   |   |   |
| Cash at End of Period                                                            | $             | 357,157   |       | $      | (279,243)   |   | $ | 77,914 |

----

|                                                                             | As Originally |      |       |   |        |
|----------------------------------------------------------------------------------|---------------|-----------|------------|--------|-------------|
| Year Ended December 31, 2009                                                     | Reported      |      | Adjustment |   | As Restated |
| Net Cash Provided by (Used in) Operating Activities from Continuing Operations   | $             | (248,544) |       | $      |        |   | $ | (248,544) |
| Net Cash Provided by (Used in) Operating Activities from Discontinued Operations |          | (73,867)  |       |   | 277,666     |   |   | 203,799 |
| Net Cash Provided by (Used in) Operating Activities                              |          | (322,411) |       |   |        |   |   | (44,745) |
|                                                                             |          |      |       |   |        |   |   |   |
| Cash increase (decrease) due to deconsolidation of subsidiary                    |          | -         |       |   | 1,577       |   |   | 1,577 |
| Net Cash Used in Investing Activities from Continuing Operations                 |          | (11,125)  |       |   |        |   |   | (11,125) |
| Net Cash Used in Investing Activities from Discontinued Operations               |          | -         |       |   |        |   |   | 1,577 |
| Net Cash Used in Investing Activities                                            |          | (11,125)  |       |   |        |   |   | (9,548) |
|                                                                             |          |      |       |   |        |   |   |   |
| Net Cash Provided by (Used in) Financing Activities from Continuing Operations   |          | 100,163   |       |   |        |   |   | 100,163 |
| Net Cash Provided by (Used in) Financing Activities from Discontinued Operations |          | -         |       |   |        |   |   | - |
| Net Cash Provided by (Used in) Financing Activities                              |          | 100,163   |       |   |        |   |   | 100,163 |
|                                                                             |          |      |       |   |        |   |   |   |
| Net Increase (Decrease) in Cash                                                  |          | (233,373) |       |   | 279,243     |   |   | 45,870 |
|                                                                             |          |      |       |   |        |   |   |   |
| Cash at Beginning of Period                                                      |          | 357,157   |       |   | (279,243)   |   |   | 77,914 |
|                                                                             |          |      |       |   |        |   |   |   |
| Cash at End of Period                                                            | $             | 123,784   |       |   |        |   | $ | 123,784 |

| December 31,                    | 2009   | 2008   |
|---------------------------------|------------------|------------------|
| Computer & office equipment | $ 41,587         | $ 71,784         |
| Company vehicle                 | 33,981           | 33,981           |
| Accumulated depreciation        | (32,563)         | (60,140)         |
|                            | $ 43,005         | $ 45,625         |

----

|                                                         |  December 31,                                                                   |   |  December 31,                                                                                                              |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|                                                         | 2009                                                                                 |   | 2008                                                                                                                            |
| Note payable to third party, due in monthly payments of      |                                                                                 |   |                                                                                                                            |
| $2,000 through September 2015, bearing interest at 7%        |                                                                                 |   |                                                                                                                            |
| per annum, secured by certain assets and shares of           |                                                                                 |   |                                                                                                                            |
| common stock                                                 |  $         113,168                 |   |  $         128,460                                                            |
| Note payable to third party, due in monthly payments of      |                                                                                 |   |                                                                                                                            |
| $979 through January 2013, bearing interest at 6.25%         |                                                                                 |   |                                                                                                                            |
| per annum, guaranteed by two shareholders, secured by assets |              31,985 |   |              41,385                                            |
| Note payable to third party, due in monthly payments of      |                                                                                 |   |                                                                                                                            |
| $1,742 through December 2014, bearing interest at 7.00%      |                                                                                 |   |                                                                                                                            |
| per annum, guaranteed by two shareholders, secured by        |                                                                                 |   |                                                                                                                            |
| shareholders' personal property                              |            150,000            |   |                      - |
| Note payable to third party, due in full September 2010,     |                                                                                 |   |                                                                                                                            |
| bearing interest up to 5.00%, unsecured                      |              50,000 |   |                      - |
| Note payable to bank, bearing interest at 5.75%, originally  |                                                                                 |   |                                                                                                                            |
| due April 2009 and extended during 2009 until April 2010,    |                                                                                 |   |                                                                                                                            |
| guaranteed by two shareholders, secured by the               |                                                                                 |   |                                                                                                                            |
| shareholders' personal property                              |              19,035 |   |              87,729                                            |
| Line of credit agreements with a bank, interest at prime     |                                                                                 |   |                                                                                                                            |
| plus 3%, unsecured                                           |              49,634 |   |              49,736                                            |
| Note payable to credit union, bearing interest at 6.29%, due |                                                                                 |   |                                                                                                                            |
| January 2013, guaranteed by two shareholders, secured        |                                                                                 |   |                                                                                                                            |
| by certain asset                                             |              22,264 |   |              28,613                                            |
| Total Notes Payable                                          |  $         436,086                 |   |  $         335,923                                                            |
| Less: Current Portion                                        |            113,181            |   |            119,014                                                       |
| Long-Term Notes Payable                                      |  $         322,905                 |   |  $         216,909                                                            |
|                                                         |                                                                                 |   |                                                                                                                            |

| Years Ending December 31: |     |
|---------------------------|----------|
| 2010                      | $113,181 |
| 2011                      | 59,609   |
| 2012                      | 62,764   |
| 2013                      | 46,763   |
| 2014                      | 136,514  |
| Thereafter                | 17,255   |
| Total                     | $436,086 |

----

|                     |   | For the Year Ended December 31, 2009 |
|--------------------------|--------|--------------------------------------|
|                     |   | Employees                            |   | Executives |   | Directors |
| Expected term (in years) |   | N/A                                  |   | N/A |   | N/A |
| Expected volatility      |   | N/A                                  |   | N/A |   | N/A |
| Expected dividend yield  |   | N/A                                  |   | N/A |   | N/A |
| Risk-free interest rate  |   | N/A                                  |   | N/A |   | N/A |

|                     |   | For the Year Ended December 31, 2008 |
|--------------------------|--------|--------------------------------------|
|                     |   | Employees                            |   | Executives |   | Directors |
| Expected term (in years) |   | 1                                    |   | 1 |   | N/A |
| Expected volatility      |   | 178%                                 |   | 178% |   | N/A |
| Expected dividend yield  |   | 0%                                   |   | 0% |   | N/A |
| Risk-free interest rate  |   | 1.53%                                |   | 1.53% |   | N/A |

----

| Weighted Average Fixed Options                                                   |   | Shares |            | Exercise Price |   |
|----------------------------------------------------------------------------------|--------|--------|-----------------|----------------|--------|
| Outstanding at beginning of year                                                 |   |   | 3,520,500  |           | $      | 0.10 |   |
| Expired                                                                          |   |   | (16,000)        |           |   | 0.09 |   |
| Expired                                                                          |   |   | (7,500)         |           |   | 0.10 |   |
| Outstanding at December 31, 2009                                                 |   |   | 3,497,000       |           |   |   |   |
| Exercisable at December 31, 2009                                                 |   |   | 3,497,000       |           |   |   |   |
| Weighted average exercise price of options granted to employees at Dec. 31, 2009 |   | $      | 0.10            |           |   |   |   |

| Exercise Price |   | NumberOutstandingat December 31, 2009 |      | WeightedAverageRemainingContractual Life |   | WeightedAverageExercise Price |   | NumberExercisable atDecember 31, 2009 |   | WeightedAverageExercise Price |   |
|----------------|--------|---------------------------------------|-----------|------------------------------------------|--------|-------------------------------|--------|--------------------------------------------|--------|-------------------------------|--------|
| $0.09          |   |                                  | 257,000   |                                     |   | 5.04                          |   | $                                          | 0.09   |                          |   | 257,000 |   | $ | 0.09 |   |
| $0.10          |   |                                  | 1,440,000 |                                     |   | 2.74                          |   |                                       | 0.10   |                          |   | 1,440,000 |   |   | 0.10 |   |
| $0.11          |   |                                  | 1,800,000 |                                     |   | 3.32                          |   |                                       | 0.11   |                          |   | 1,800,000 |   |   | 0.11 |   |
|           |   |                                  |      |                                     |   |                          |   |                                       |   |                          |   | 3,497,000 |   |   |   |   |

| Weighted Average Fixed Options                                                   |   | Shares |      | Exercise Price |   |
|----------------------------------------------------------------------------------|--------|--------|-----------|----------------|--------|
| Outstanding at beginning of year                                                 |   |   | 1,633,000 |           | $      | 0.10 |   |
| Issued                                                                           |   |   | 87,500    |           |   | 0.10 |   |
| Issued                                                                           |   |   | 1,800,000 |           |   | 0.11 |   |
| Outstanding at December 31, 2008                                                 |   |   | 3,520,500 |           |   |   |   |
| Exercisable at December 31, 2008                                                 |   |   | 3,520,500 |           |   |   |   |
| Weighted average exercise price of options granted to employees at Dec. 31, 2008 |   | $      | 0.10      |           |   |   |   |

| Exercise Price |   | NumberOutstandingat December 31, 2008 |      | WeightedAverageRemainingContractual Life |   | WeightedAverageExercise Price |   | NumberExercisable atDecember 31, 2008 |   | WeightedAverageExercise Price |   |
|----------------|--------|---------------------------------------|-----------|------------------------------------------|--------|-------------------------------|--------|--------------------------------------------|--------|-------------------------------|--------|
| $0.09          |   |                                  | 273,000   |                                     |   | 6.18                          |   | $                                          | 0.09   |                          |   | 273,000 |   | $ | 0.09 |   |
| $0.10          |   |                                  | 1,447,500 |                                     |   | 3.77                          |   |                                       | 0.10   |                          |   | 1,447,500 |   |   | 0.10 |   |
| $0.11          |   |                                  | 1,800,000 |                                     |   | 4.32                          |   |                                       | 0.11   |                          |   | 1,800,000 |   |   | 0.11 |   |
|           |   |                                  |      |                                     |   |                          |   |                                       |   |                          |   | 3,520,500 |   |   |   |   |

----

----

| December 31,                      | 2009                      | 2008           |
|-----------------------------------|---------------------------|----------------|
| General and administrative        | $  12,070  | $112,513  |
| Professional fees                 | 46,504               | 46,130    |
| Selling and marketing             | 11,850               | -         |
| Less non-controlling interest     | (364,497)                 | (602,257)      |
| Total Discontinued Operating Loss | $241,748             | $383,572  |

----

| December 31,                     | 2009                                                                                               | 2008                                                                                               |
|----------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Unearned revenue                 | $     13,252                                                              | $     26,160                                                              |
| Operating loss carry forwards    | 1,312,168                                                                                          | 1,055,662                                                                                          |
| Depreciation                     | 2,000                                                                                              |                                                                                               |
| Other                            | -                                                                                                  | -                                                                                                  |
| Total Deferred Income Tax Assets | 1,323,420                                                                                          | 1,081,822                                                                                          |
| Valuation allowance              | (1,323,420)                                                                                        | (1,081,822)                                                                                        |
| Net Deferred Income Tax Asset    | $                - | $                - |

| For the Years Ended December 31,      | 2009                                                                         | 2008                                    |
|---------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Benefit at statutory rate (34%)       | $ 129,690                                                                              | $(133,119)                                                                 |
| Non-deductible permanent differences  | (405,329)                                                                              | 106,748                                                                    |
| Change in valuation allowance         | 256,506                                                                                | 46,240                                                                     |
| State tax benefit, net of federal tax | 19,133                                                                                 | (19,869)                                                                   |
| Benefit from Income Taxes             | $              - | $            - |

----