**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
 
  **FORM 10-QSB/A**
  **(Amendment
        No. 1)**
  
  x
              **QUARTERLY
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
                  ACT
                  OF 1934****For
                  the quarter ended December 31,
                  2003**
 **-OR-**
  o
              **TRANSITION
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
                  ACT
                  OF 1934****For
                  the transition period from:___________ to
                  ___________**
  **Commission
        File Number** **000-28339**
 
  **XVARIANT,
        INC.**
 **(N/K/A
        China Bionanometer Industries Corporation)**
 (Exact
        Name of Registrant as Specified in Its Charter)
  **NEVADA**
              
              **000-28339**(State
                  or other jurisdiction of
              
              (I.R.S.
                  Employer Identification No.)incorporation
                  or organization)
  **170
                  South Main Street, Suite 1050,**
                **Salt
                  Lake City, UT**
              
              **84101**(Address
                  of principal executive offices)
              
              (Zip
                  code)
 
 Registrant’s
        telephone number, including area code: (801) 536-5000
 
 (Former
        name, former address or former fiscal year, if changed since last
        report)
 
 Check
        whether the issuer: (1) filed all reports required to be filed by
        Section 13 or 15(d) of the Exchange Act during the past 12 months (or
        for such shorter period that the registrant was required to file such reports),
        and (2) has been subject to such filing requirements for the past
        90 days. Yes þ No o
 
 Indicate
        by check mark whether the registrant is a large accelerated filer, an
        accelerated filer, or a non-accelerated filer. See definition of “accelerated
        filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
        one): Large accelerated filer o Accelerated filer o Non-accelerated filer þ
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in
        Rule 12b-2 of the Exchange)  Yes o No þ
 
 -1-
  The
        number of shares outstanding of each of the Registrant’s classes of common
        stock, as of December 31, 2003 was 13,561,000 shares, all of one class of
        $0.001
        par value Common Stock.
 
 **XVARIANT,
        INC.**
 **FORM
        10-QSB**
 **Quarter
        Ended December 31, 2003**
 
 **TABLE
        OF CONTENTS**
 
 **FINANCIAL
                  INFORMATION**
              
              **PAGE**Item
                  1.    Consolidated Financial StatementsConsolidated
                  Balance Sheet as December 31, 2003 (unaudited)
              
              
              4Consolidated
                    Statement of Operations for the Three Months Ended December 31,
                    2003 and
                    December 31, 2002
              
              
              5Consolidated
                  Statement of Stockholders’ Equity/(Deficit)
              
              
              6Consolidated
                    Statement of Cash Flow for the Three Months Ended December 31,
                    2003 and
                    December 31, 2002
              
              
              7Notes
                  to Consolidated Financial Statements
              
              
              8Item
                    2.    Managements Discussion and Analysis of Financial
                    Condition or Plan of Operation
              
              
              14Item
                  3.    Controls and Procedures
              
              
              22**PART
                  II—OTHER INFORMATION**Item
                  1.    Legal Proceedings
              
              
              23Item
                  1A  Risk Factors
              
              
              23Item
                  2.    Unregistered Sales of Equity Securities and Use of
                  Proceeds
              
              
              25Item
                  3.    Defaults Upon Senior Securities
              
              
              25Item
                  4.    Submission of Matters to a Vote of Security
                  Holders
              
              
              25Item
                  5.    Other Information
              
              
              25Item
                  6.    Exhibits and Reports on Form 8-K
              
              
              25**SIGNATURES**
              
              
              **26**
  -2-
  **SPECIAL
        NOTE ON FORWARD LOOKING STATEMENTS**
 
 This
        Quarterly Report on Form 10-QSB, including "Management's Discussion and Analysis
        of Financial Condition and Results of Operations" in Item 2 of Part I of
        this
        report include forward-looking statements. These statements involve known
        and
        unknown risks, uncertainties and other factors that may cause our actual
        results, levels of activity, performance or achievements to be materially
        different from any future results, levels of activity, performance, or
        achievements expressed or implied by forward-looking statements.
 
 In
        some
        cases, you can identify forward-looking statements by terminology such as
        "may,"
        "should," "expects," "plans," "anticipates," "believes," "estimates,"
        "predicts," "potential," "proposed," "intended," or "continue" or the negative
        of these terms or other comparable terminology. You should read statements
        that
        contain these words carefully, because they discuss our expectations about
        our
        future operating results or our future financial condition or state other
        "forward-looking" information. There may be events in the future that we
        are not
        able to accurately predict or control. Before you invest in our securities,
        you
        should be aware that the occurrence of any of the events described in this
        Annual Report could substantially harm our business, results of operations
        and
        financial condition, and that upon the occurrence of any of these events,
        the
        trading price of our securities could decline and you could lose all or part
        of
        your investment. Although we believe that the expectations reflected in the
        forward-looking statements are reasonable, we cannot guarantee future results,
        growth rates, levels of activity, performance or achievements. We are under
        no
        duty to update any of the forward-looking statements after the date of this
        Quarterly Report to conform these statements to actual results.
  -3-
  **PART
        1: FINANCIAL INFORMATION**
 **XVARIANT,
                  INC.****Consolidated
                  Balance Sheets**
                **(Unaudited)****ASSETS**September
                  30,Dec
                    31, 2003
              
              2003Current
                  Assets
              
              (Unaudited)Cash
              
              $
              440
              
              $
              1,136Accounts
                  Receivable - Net
              
              
              43,960
              
              
              96,156Total
                  Current Assets
              
              
              44,400
              
              
              97,292Property
                  and Equipment, Net
              
              
              22,074
              
              
              46,345Total
                  Assets
              
              $
              66,474
              
              $
              143,637**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**Current
                  LiabilitiesTrade
                  accounts payable and accrued expenses
              
              $
              54,783
              
              $
              462,743Payable-related
                  party
              
              
              
              
              
              320,600Deferred
                  revenue
              
              
              
              
              
              12,637Short-term
                  obligations
              
              
              424,300
              
              
              303,040Cash
                  Overdraft
              
              
              
              
              
              42,494Capital
                  leases
              
              
              2,467
              
              
              4,241Total
                  Current Liabilities
              
              
              481,550
              
              
              1,145,755Long
                  Term Liabilities
              
              
              -
              
              
              -Total
                  Liabilities
              
              
              481,550
              
              
              1,145,755Stockholders'
                  EquityCommon
                  Stock,$0.001 par value, 50,000,000 shares authorized;
                  13,561 shares issued and outstanding December
                  31, 2003 and September 30, 2003 respectively
              
              
              13,561
              
              
              13,561Paid
                  in Capital
              
              
              3,301,793
              
              
              3,990,193Accumulated
                  Deficit
              
              
              (3,730,430
              )
              
              (5,005,872
              )Total
                  Stockholders' Equity
              
              
              (415,076
              )
              
              (1,002,118
              )Total
                  Liabilities and Stockholders' Equity
              
              $
              66,474
              
              $
              143,637The
                  accompanying notes are an integral part of these
                  statements
 
 -4-
  **XVARIANT,
                  INC.****Consolidated
                  Statement of Income**
                **(Unaudited)**
  For
                  the Three Months EndedDecember
                  31,
              
              December
                  31,2003
              
              2002RevenueRevenue
              
              $
              -
              
              $
              522,414Membership
                  Fees
              
              
              24,270
              
              
              -Service
                  Fees
              
              
              43,683
              
              
              -Total
                  Revenue
              
              
              67,953
              
              
              522,414Operating
                  ExpensesGeneral
                  and Administrative
              
              
              82,581
              
              
              524,388Sales
                  and Marketing
              
              
              -
              
              
              278,186Depreciation
                  and amortization
              
              
              7,969
              
              
              25,252Total
                  Operating Expenses
              
              
              90,550
              
              
              827,826Loss
                  From Operations
              
              
              (22,597
              )
              
              (305,412
              )Other
                  Income (Expense)Interest
                  expense
              
              
              (320
              )
              
              (2,702
              )Gain
                  on release of debt
              
              
              -
              
              
              19,660Write
                  off of Inv in 360 House
              
              
              (721,521
              )
              
              -Total
                  other Income (Expense)
              
              
              (721,841
              )
              
              16,958Loss
                  before income taxes
              
              
              (744,438
              )
              
              (288,454
              )Federal
                  Income Taxes
              
              
              -
              
              
              -Net
                  (Loss)
              
              $
              (744,438
              )
              $
              (288,454
              )Basic
                  and Diluted(Loss)
                  per Share
              
              
              (0.05
              )
              
              (0.02
              )Weighted
                  AverageNumber
                  of Shares
              
              
              13,561,100
              
              
              13,561,100The
                  accompanying notes are an integral part of these
                  statements
  -5-
 
 **XVARIANT,
                  INC.****Consolidated
                  Statement of Stockholders'
                  Equity/(Deficit)**(Unaudited)
  Common
                  Stock
              
              Paid
                  in
              
              Subscription
              
              Accumulated
              
              TotalShares
              
              Amount
              
              Capital
              
              Receivable
              
              (Deficit)
              
              Equity**Balance,
                  September 30, 2001**
              
              
              21,121,100
              
              $
              21,121
              
              $
              2,439,229
              
              $
              (1,215,500
              )
              $
              (1,352,731
              )
              $
              (107,881
              )Cancellation
                  of common stockin
                  conjunction with officerseparation
                  agreements
              
              
              (9,900,000
              )
              
              (9,900
              )
              
              9,900
              
              
              -
              
              
              -
              
              
              -Issuance
                  of common stockin
                  conjunction with officerseparation
                  agreements
              
              
              700,000
              
              
              700
              
              
              (700
              )
              
              -
              
              
              -
              
              
              -Issuance
                  of stock forasset
                  purchase
              
              
              450,000
              
              
              450
              
              
              69,550
              
              
              -
              
              
              -
              
              
              70,000Expense
                  incurred throughissuance
                  of stock options
              
              
              -
              
              
              -
              
              
              197,302
              
              
              -
              
              
              -
              
              
              197,302Issuance
                  of common stockfor
                  purchase of subsidiary
              
              
              1,000,000
              
              
              1,000
              
              
              1,009,000
              
              
              -
              
              
              -
              
              
              1,010,000Issuance
                  of common stockfor
                  services
              
              
              190,000
              
              
              190
              
              
              237,460
              
              
              -
              
              
              -
              
              
              237,650Payment
                  received oncommon
                  stock subscription
              
              
              -
              
              
              -
              
              
              (47,250
              )
              
              789,960
              
              
              -
              
              
              742,710Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (1,460,116
              )
              
              (1,460,116
              )
 **Balance,
                  September 30, 2002**
              
              
              13,561,100
              
              
              13,561
              
              
              3,914,491
              
              
              (425,540
              )
              
              (2,812,847
              )
              
              689,665Payment
                  received oncommon
                  stock subscription
              
              
              -
              
              
              -
              
              
              (12,600
              )
              
              425,540
              
              
              -
              
              
              412,940Stock
                  option expense
              
              
              -
              
              
              -
              
              
              88,302
              
              
              -
              
              
              -
              
              
              88,302Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (2,193,025
              )
              
              (2,193,025
              )**Balance,
                  September 30, 2003**
              
              
              13,561,100
              
              
              13,561
              
              
              3,990,193
              
              
              -
              
              
              (5,005,872
              )
              
              (1,002,118
              )Dissolution
                  of Acquisition
              
              
              
              
              
              
              
              
              (688,400
              )
              
              
              
              
              2,019,880
              
              
              1,331,480Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (744,438
              )
              
              (744,438
              )**Balance,
                  December 31, 2003**
              
              
              13,561,100
              
              $
              13,561
              
              $
              3,301,793
              
              $
              -
              
              $
              (3,730,430
              )
              $
              (415,076
              )The
                  accompanying notes are an integral part of these
                  statements
  -6-
  **XVARIANT,
                  INC.****Consolidated
                  Statements of Cash Flows**(Unaudited)
  For
                  the Three Months EndedDecember
                  31,
              
              December
                  31,2003
              
              2002Operating
                  ActivitiesNet
                  Income (Loss)
              
              $
              (744,438
              )
              $
              (288,454
              )Adjustments
                  to reconcile net income (Loss):Stock
                  issued for services
              
              
              -
              
              
              -Depreciation
              
              
              7,969
              
              
              25,252Gain
                  on Forgiveness of debt
              
              
              -
              
              
              (19,660
              )Disposal
                  of Subsidiary
              
              
              1,331,480
              
              
              -Bad
                  Debt Expense
              
              
              72,489
              
              
              -Balance
                  Sheet Adjustments:(Increase)
                  Decrease in Accounts Receivable
              
              
              (20,293
              )
              
              (1,741
              )Increase
                  (Decrease) in Accounts Payable
              
              
              (407,960
              )
              
              8,895Increase
                  (Decrease) in Payable -Related Party
              
              
              (320,600
              )
              
              -Increase
                  (Decrease) in Deferred Revenue
              
              
              (12,637
              )
              
              2,088Increase
                  (Decrease) in Accrued Liabilities
              
              
              (303,040
              )
              
              -Increase
                  (Decrease) in Capital Leases
              
              
              (1,774
              )
              
              (4,796
              )Net
                  Cash (Used) by Operating Activities
              
              
              (398,804
              )
              
              (278,416
              )Investing
                  ActivitiesDisposal/(Purchase)
                  of Equipment
              
              
              16,302
              
              
              (489
              )Cash
                  (used) in Investing Activities
              
              
              16,302
              
              
              (489
              )Financing
                  ActivitiesProceeds/(Repayment)
                  Notes -Related Parties
              
              
              423,980
              
              
              20,000Increase/(Decrease)
                  in Cash Overdraft
              
              
              (42,494
              )
              
              63,035Proceeds
                  from Sale of Common Stock
              
              
              -
              
              
              195,660Cash
                  provided by financing
              
              
              381,486
              
              
              278,695Net
                  Increase (Decrease) in Cash
              
              
              (1,016
              )
              
              (210
              )Cash,
                  Beginning of Period
              
              
              1,136
              
              
              5,127Cash,
                  End of Period
              
              $
              120
              
              $
              4,917Supplemental
                  InformationTaxes
              
              $
              -
              
              $
              -Interest
              
              $
              320
              
              $
              730The
                  accompanying notes are an integral part of these
                  statements
  -7-
  **China
        Bionanometer Industries Corporation**
 **Formerly
        Easy Groups Limited, formerly China Ethanol Corporation, formerly XVARIANT,
        INC.**
 
 **Notes
        to the Consolidated Financial Statements**
 (December
        31, 2003 and September 30, 2003)
 
 **NOTE
        1- ORGANIZATION AND BUSINESS ACTIVITY**
 
 China
        Bionanometer Industries Corporation (The Company) was incorporated under
        the
        laws of the state of Nevada on October 24, 1996, under the name Almost Country
        Productions, Inc. and changed its name to Xvariant, Inc. (Xvaraiant) in August,
        2001 and subsequent to the period reported on these statements the Company
        changed its name to China Ethanol Corporation on August 28, 2006, to Easy
        Groups
        Limited on November 17, 2006 and finally China Bionanometer Industries
        Corporation on June 20, 2007.
 
 On
        March
        15, 2001, Xvariant acquired Real Estate Federation, Inc. ("REF") in a
        transaction recorded as a recapitalization of REF with Xvariant being the
        legal
        survivor and REF being the accounting survivor and the operating entity.REF
        was
        established to provide technology for the real estate market that enhances
        the
        use of the Internet in the home-buying process. The technology allows potential
        homebuyers to search for real estate properties from all participating real
        estate brokers' listings. REF had a wholly owned subsidiary, Xvariant, Inc.
        (a
        Utah corporation) which designed web sites for real estate brokers along
        with
        other real estate related services. Xvariant (the Utah corporation) was disposed
        of in October 2001 (see Note 13).
 
 During
        January 2002, Xvariant executed the acquisition of 360House.com,Inc. (360House),
        pursuant to a stock exchange agreement. Xvariant acquired 360House by issuing
        1,000,000 shares of common stock to the shareholders of 360House in exchange
        for
        all of the issued and outstanding shares of 360House. In addition, the exchange
        agreement provides for issuance of additional shares of Xvariant's common
        stock
        based on the performance of 360House. Xvariant agreed to issue common stock,
        including the 1,000,000 shares issued upon execution of the agreement, at
        a
        price equal to either 1) a value equal to six times 360House's earnings before
        interest, taxes, depreciation, and amortization during the twelve month period
        ending December 31, 2003; or 2) the value defined by a valuation consultant
        mutually agreeable by the parties. Either party may demand an independent
        valuation. 360House provides services to the real estate industry principally
        in
        the form of photographic virtual tours of real estate properties available
        for
        viewing on the internet and other video media.
 
 During
        December 2003 the company dissolved the acquisition of 360House because
        performance was not at the expected level.
 
 The
        Company was engaged in the development of technology and Internet services
        targeted at the real estate industry and was considered to be in the development
        stage through December 31, 2001. The Company began substantial operations
        in
        January 2002 with the acquisition of 360house and became an operating company
        during the year ended September 30, 2003.
 
 The
        consolidated financial statements include Xvariant and its wholly owned
        subsidiaries, Real Estate Federation, Inc. however, with the dissolution
        of the
        acquisition of 360House.com, Inc., the financials have been restated to remove
        the activity of 360House.com, Inc. All significant intercompany accounts
        and
        transactions have been eliminated.
  **NOTE
        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
 
 a.
        Accounting Methods
 
 The
        Company's consolidated financial statements are prepared using the accrual
        method of accounting. The Company has elected a September 30, year-end. 360House
        has a December 31, year end with the accompanying consolidated financial
        statements including the results of financial position and results of operations
        of 360House as of and for the nine months ended September 30, 2002 which
        approximates the period from the date of its acquisition by Xvariant as
        discussed in Note 12.
 
 -8-
  b.
        Accounts Receivable
 
 Accounts
        receivable are shown net of an allowance for doubtful accounts of $72,489
        as of
        September 30, 2003.
 
 c.
        Property and Equipment
 
 Property
        and equipment is recorded at cost. Major additions and improvement are
        capitalized. The cost and related accumulated depreciation of equipment retired
        or sold are removed from the accounts and any differences between the
        undepreciated amount and the proceeds from the sale are recorded as gain
        or loss
        on sale of equipment. Depreciation is computed using the straight-line method
        over the estimated useful life of the assets as follows:
 
 Description
              
              Estimated
                Useful LifeFurniture
                and fixtures
              
              3-4 yearsMachinery
                  and equipment
              
              3 yearsComputers
              
              3 years
 
 d.
        Goodwill
 
 As
        of
        January 1, 2002, the Company adopted Statement of Financial Accounting Standard
        (SFAS) No. 142, "Goodwill and Other Intangible Assets" (SFAS 142). SFAS 142
        requires the accounting for goodwill on an impairment-only approach. SFAS
        142
        requires that goodwill be tested for impairment annually, or more frequently
        if
        circumstances indicate potential impairment, by comparing the fair value
        of the
        asset to its carrying amount. Such testing requires, that each of the Company's
        reporting units, as defined in SFAS 142, be identified and that the Company's
        assets and liabilities, including the existing goodwill and intangible assets,
        be assigned to those reporting units. The Company has determined that it
        has a
        single reporting unit attributable to its goodwill. SFAS 142 also requires
        the
        Company to assess the fair value of the Company. In determining fair value,
        the
        Company considered the guidance in SFAS 142, including the Company's market
        capitalization, control premiums, discounted cash flows and other indicators
        of
        fair value. Based on this analysis, goodwill totaling $1,068,047 was impaired
        at
        September 30, 2003.
 
 e.
        Estimates
 
 The
        preparation of consolidated financial statements in conformity with generally
        accepted accounting principles requires management to make estimates and
        assumptions that affect the reported amounts of assets and liabilities and
        disclosure of contingent assets and liabilities at the date of the consolidated
        financial statements and the reported amounts of revenues and expenses during
        the reporting period. Actual results could differ from those
        estimates.
 
 f.
        Advertising
 
 The
        Company follows the policy of charging the costs of advertising to expense
        as
        incurred. During the years ended September 30, 2003 and 2002, the Company
        expensed $7,208 and $0 respectively.
 
 g.
        Revenue Recognition
 
 The
        Company recognizes revenue from real estate lead commissions as escrow is
        closed. Revenue from photographic virtual tours and related services are
        recognized as projects are completed and available for viewing. Revenue is
        recognized on other services rendered as they are performed.
 
 -9-
  h.
        Stock
        Options
 
 As
        permitted by FASB Statement 123 and amended by SFAS No. 148 "Accounting for
        Stock Based Compensation" (SFAS No. 123), the Company elected to measure
        and
        record compensation cost relative to employee stock option costs in accordance
        with Accounting Principles Board ("APB") Opinion 25, "Accounting for Stock
        Issued to Employees," and related interpretations and make pro-forma disclosures
        of net income and earnings per share as if the fair value method of valuing
        stock options had been applied. Under APB Opinion 25, compensation cost is
        recognized for stock options granted to employees when the option price is
        less
        that the market price of the underlying common stock on the date of
        grant.
 
 i.
        Technology Development and Website Designs
 
 The
        costs
        of computer software developed or obtained for internal use, during the
        preliminary project phase, as defined under Statement of Position 98-1
        "Accounting for the Costs of Computer Software Developed or obtained for
        Internal use", are expensed as incurred. The costs of web site development,
        during the planning stage, as defined under Emerging Issues Task Force No.
        00-2
        "Accounting for Web Site Development Costs", are expenses as incurred. Computer
        software and web site development costs incurred during the application and
        infrastructure development stage, including external direct costs of materials
        and services consumed in developing software, creating graphics and web site
        content, payroll, and Interest costs, are capitalized and amortized over
        the
        estimated useful life, beginning when the software is ready for use and after
        all substantial testing is completed and the web site is operational. Any
        costs
        incurred since the web site and related software have become operational
        have
        been expenses as incurred.
  **NOTE
        3 - GOING CONCERN**
 
 The
        Company's consolidated financial statements are prepared using generally
        accepted accounting principles in the United States of America applicable
        to a
        going concern which contemplates the realization of assets and liquidation
        of
        liabilities in the normal course of business. The Company has incurred losses
        which have resulted in an accumulated deficit of $3,730,110 at December 31,
        2003, and has limited internal financial resources. These factors combined
        raise
        substantial doubt about the Company's ability to continue as a going concern.
        The accompanying consolidated financial statements do not include any
        adjustments relating to the recoverability and classification of asset carrying
        amounts or the amount and classification of liabilities that might result
        from
        the outcome of this uncertainty.
 
 The
        Company expects that growth in revenue from operations will continue to
        increase. Accordingly, the Company believes that based on these factors,
        it has
        the ability to sustain operations for the next twelve months. However, there
        can
        be no assurance that generation of operating revenues and collection of the
        subscription receivable will be sufficient to enable the Company to maintain
        its
        operations. If the Company's plans are not successful, it will be necessary
        for
        the Company to secure additional debt and equity financing which also cannot
        be
        assured.
  **NOTE
        4 - PROPERTY AND EQUIPMENT**
 
 Property
        and equipment consists of the following:
 
 September
                    30,2003Furniture
                    and fixtures
                
                $
                52,377Machinery
                    and equipment
                
                
                24,048Computers
                
                
                151,202227,627Accumulated
                    depreciation
                
                
                (181282
                )Net
                    property and equipment
                
                $
                46,345
 
 -10-
 **NOTE
        5 - ASSET PURCHASE**
 
 During
        November 2001, pursuant to an asset purchase agreement, the Company issued
        to an
        unrelated entity 450,000 shares of its common stock and agreed to issue up
        to an
        additional 600,000 in the form of a warrant with a term of 10 years exercisable
        at $2.00 per share. The exercise of the warrants are contingent upon gross
        revenue derived from the assets purchased as follows:
 
 If
        gross
        revenue generated from the assets purchased was greater than $200,000 for
        the
        twelve months following the acquisition, all 600,000 warrants were to be
        available for exercise. If gross revenue was less than $200,000 only 300,000
        warrants were to be exercisable and if gross revenue were less than $100,000
        none of the warrants would be exercisable. At September 30, 2003, none of
        the
        revenue thresholds had been achieved and no warrants were exercisable in
        conjunction with the asset purchase. Subsequent to September 30, 2003, and
        upon
        the expiration of the 12-month period from the date of the execution of the
        asset purchase agreement, none of the revenue thresholds had been met.
        Accordingly, no warrants to purchase shares of the Company's common stock
        pursuant to that agreement are exercisable.
 
 The
        assets purchased in connection with this transaction consisted of various
        items
        including customer contracts and software. The assets were valued at $70,000
        on
        the date of purchase based on the net present value of the contracts acquired.
        Amortization expense of $35,000 has been recorded during the year ended
        September 30, 2003.
 
 In
        February 2003, the Company purchased the assets of Virtually Anywhere in
        consideration for 20% paid to Seller for each qualified virtual tour ordered
        by
        qualified customer for a period of 24 months from closing date. With the
        purchase, the Company acquired all books and records relating to the ownership
        and operation of the business, including intangible assets.
  **NOTE
        6.**  **DISSOLUTION
        OF BUSINESS COMBINATION**
 
 During
        January 2002, Xvariant executed the acquisition of 360House.com, Inc.
        (360House), pursuant to a stock exchange agreement. Xvariant acquired 360House
        by issuing 1,000,000 shares of common stock to the shareholders of 360House
        in
        exchange for all of the issued and outstanding shares of 360House. In addition,
        the exchange agreement provides for issuance of additional shares of Xvariant's
        common stock based on the performance of 360House.
 
 Xvariant
        agreed to issue common stock, including the 1,000,000 shares issued upon
        execution of the agreement, at a price equal to either 1) a value equal to
        six
        times 360House's earnings before interest, taxes, depreciation, and amortization
        during the twelve month period ending December 31, 2003; or 2) the value
        defined
        by a valuation consultant mutually agreeable by the parties. Either party
        may
        demand an independent valuation. 360House provides services to the real estate
        industry principally in the form of photographic virtual tours of real estate
        properties available for viewing on the internet and other video
        media.
 
 Goodwill
        associated with this transaction has been recorded at $1,068,047. The Company
        assesses the amount reported as goodwill on an annual basis, or on an interim
        basis when events and circumstances warrant for possible impairment. For
        the
        year ended September 30, 2003, the Company fully impaired the goodwill of
        $1,068,047.
 
 During
        December 2003 the company dissolved the acquisition of 360House because
        performance was not at the expected level. Because of the prior impairment
        of
        goodwill the dissolution resulted in a net gain on dissolution of $1,331,480
        as
        a result of the following equity adjustments:
  Paid
                    in CapitalBefore
                    Dissolution
                
                $
                3,990,193Adjustment
                
                
                (688,400
                )Adjusted
                    Paid in Capital
                
                $
                3,301,793Accumulated
                    DeficitBefore
                    Dissolution
                
                $
                (5,005,872
                )Adjustment
                
                
                2,019,880Adjusted
                    Paid in Capital
                
                $
                (2,985,992
                )Adjustment
                    to Paid in Capital
                
                $
                (688,400Adjustment
                    to Accumulated Deficit
                
                
                2,019,880Gain
                    on dissolution
                
                $
                1,331,480
 
 -11-
  **NOTE
        7 - SHORT-TERM OBLIGATIONS**
 
 As
        of
        December 31, 2003, the Company had two outstanding short-term obligations
        to
        that provide short-term financing for a total of $423,980. These obligations
        are
        unsecured and due on demand. Interest is being imputed at 6% per annum. Interest
        expense for the period ended December 31, 2003 and the year ended September
        30,
        2003 is $9,411 and $9,091 respectively
  **NOTE
        8 - LONG-TERM OBLIGATIONS**
 
 The
        Company leases office space under a long-term operating lease agreement and
        leases equipment under long-term capital lease agreements. Minimum rentals
        on
        capital leases have been capitalized at the cost of the leased equipment
        or the
        present value of the rentals at the inception of the leases and the obligation
        for such amounts recorded as liabilities. Amortization of the capitalized
        assets, which is included in depreciation and amortization expense, is computed
        on the straight-line basis over the life of the asset or the lease term,
        whichever is shorter, and interest expense is accrued on the basis of the
        outstanding lease obligations.
 
 Future
        minimum lease payments under capital and operating leases are as
        follows:
 Capital
                
                OperatingLeases
                
                LeasesYear
                    ending September 30,2003
                
                $
                2,561
                
                $
                55,3912004
                
                
                -
                
                
                4,616Thereafter
                
                
                -
                
                
                -Total
                    minimum lease payments
                
                $
                2,561
                
                $
                60,007Less
                    amount representing interest
                
                
                94Present
                    value of net minimum lease payments
                
                
                2,467Less
                    current maturities
                
                
                2,467$
                -
  -12-
  **NOTE
        9 - CONTINGENCIES**
 
 At
        September 30, 2003, the Company has employment agreements with two of the
        officers of the Company. The agreement stipulates total annual salaries of
        $240,000 annually for the next 4 years. The agreement also provides for bonuses
        based on net income. The contingencies were terminated with the dissolution
        of
        360 House.com, Inc.
  **NOTE
        10 - COMMON STOCK TRANSACTIONS**
 
 During
        the year ended September 30, 2002, the Company cancelled 9,900,000 common
        shares
        and issued 700,000 common shares pursuant to the separation agreements with
        former officers of the Company.
 
 In
        November 2001, the Company issued 450,000 shares of common stock for the
        purchase of assets (see Note 5) and issued an additional 1,000,000 shares
        pursuant to a stock exchange agreement executed in January 2002 (see Note
        12).
 
 Additionally,
        the Company issued 165,000 shares of common stock in January 2002 to an
        unrelated individual for services rendered valued at a price of $0.91 per
        share.
        An additional 25,000 shares were issued to the same individual in July 2002
        for
        services rendered valued at $3.50 per share. The value of the shares issued
        approximated the fair market value of the shares on the date of
        authorization.
 
 **NOTE
        11 - STOCK OPTIONS AND WARRANTS**
 
 During
        November 2001, the Company approved a stock option plan authorizing the Company
        grant up to a maximum of 2,500,000 shares of qualified and nonqualified options
        to employees, officers, directors, and others.
 
 During
        November 2001, the Company granted stock options to its president to purchase
        up
        to 500,000 shares of common stock at $1.09 per share. The options vest one
        third
        upon grant, one third one year from the date of grant, and one third two
        years
        from the date of grant, contingent upon the president remaining an officer
        for
        such time. In addition, the Company granted options to purchase 100,000 shares
        of common stock to an outside consultant at $1.09 per share which vest upon
        grant. None of the contingent requirements were meet, accordingly, no related
        options are exercisable.
 
 In
        conjunction with an asset purchase agreement entered into in November 2001,
        the
        Company granted to an unrelated entity a warrant to purchase up to 600,000
        shares of common stock at an exercise price of $2.00 per share, exercisable
        at
        any time prior to November 21, 2011 based on achieving certain gross revenue
        thresholds. None of the gross revenue thresholds were achieved and, accordingly,
        no related warrants are exercisable.
 
 During
        February 2002, the Company granted stock options to an employee of the Company
        to purchase up to 2,000,000 shares of common stock at $1.08 per share. The
        options vest based on the performance of the Company and the time the employee
        remains employed by the Company. At September 30, 2002, no options had vested
        under this agreement. None of the performance requirements were meet,
        accordingly, no related options are exercisable.
 
 In
        addition, the Company granted options to purchase 500,000 shares of common
        stock
        to an outside consultant at $0.65 per share which vest one third upon grant,
        one
        third one year from the date of grant and one third two years from date of
        grant, contingent upon the consultant continuing to provide services during
        the
        vesting periods. None of the performance requirements were meet, accordingly,
        no
        related options are exercisable.
 
 During
        March 2002, the Company granted stock options to employees of the Company
        to
        purchase up to a total of 165,000 shares of common stock at $1.08 per share.
        The
        options vest one third upon grant, one third one year from the date of grant,
        and one third two years from the date of grant, contingent upon the employees
        remaining employees of the Company for such time. None of the performance
        requirements were meet, accordingly, no related options are
        exercisable.
 
 -13-
  As
        of the
        issue date of this statement none of the contingent requirements related
        to the
        above warrants and options were meet. Accordingly, the company has treated
        both
        options and warrants as having been cancelled and no longer
        outstanding.
  **NOTE
        12- SUBSEQUENT EVENTS**
 
 As
        of
        October 24, 2006 none of the criteria upon which execution of outstanding
        warrants and options were meet. Accordingly, all warrants and options have
        been
        cancelled.
 
 Effective
        August 28, 2006 the Company filed a Certificate of Amendment with the State
        of
        Nevada to change its name from XVARIANT, INC. to China Ethanol
        Corporation.
 
 On
        November 27, 2006 the Company filed a Certificate of Amendment with the State
        of
        Nevada to change its name from China Ethanol Corporation to Easy Groups
        Limited.
 
 On
        June
        20, 2007 the Company filed a Certificate of Amendment with the State of Nevada
        to change its name from Easy Groups Limited to China Bionanometer Industries
        Corporation.
  **ITEM
        2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF
        OPERATIONS OR PLAN OF OPERATION**
 
 Forward-Looking
        Information
 
 This
        report on Form 10-QSB includes "forward-looking statements" within the meaning
        of Section 27A of the Securities Act of 1933, and Section 21E of the Securities
        Exchange Act of 1934. These forward-looking statements may relate to such
        matters as anticipated financial performance, future revenues or earnings,
        business prospects, projected ventures, new products and services, anticipated
        market performance and similar matters. When used in this report, the words
        "may," "will," expect," anticipate," "continue," "estimate," "project,"
        "intend," and similar expressions are intended to identify forward-looking
        statements within the meaning of Section 27A of the Securities Act of 1933
        and
        Section 21E of the Securities Exchange Act of 1934 regarding events, conditions,
        and financial trends that may affect the Company's future plans of operations,
        business strategy, operating results, and financial position. The Private
        Securities Litigation Reform Act of 1995 provides a safe harbor for
        forward-looking statements. To comply with the terms of the safe harbor,
        we
        caution readers that a variety of factors could cause our actual results
        to
        differ materially from the anticipated results or other matters expressed
        in
        forward-looking statements. These risks and uncertainties, many of which
        are
        beyond our control, include (i) the sufficiency of existing capital resources
        and the Company's ability to raise additional capital to fund cash requirements
        for future operations; (ii) uncertainties involved in the rate of growth
        of the
        Company's business and acceptance of the Company's products and services;
        (iii)
        volatility of the stock market, particularly within the technology sector;
        and
        (iv) general economic conditions. Although the Company believes the expectations
        reflected in these forward-looking statements are reasonable, such expectations
        may prove to be incorrect.
 
 *History*
 
 China
        Bionanometer Industries Corporation, formerly Easy Groups Limited and formerly
        Xvariant, Inc. (the "Company") was organized on October 24, 1996, under the
        laws
        of the State of Nevada, as "Almost Country Productions, Inc.," for the purpose
        of producing and marketing music. In approximately March 1997, the Company
        sold
        100,000 shares of its common stock at $.30 per share in an offering pursuant
        to
        Rule 504 and Section 3(b) of the Securities Act of 1933. In November, 2000
        the
        Company discontinued its music production business and actively sought new
        business opportunities.
 
 -14-
  On
        March
        15, 2001, the Company completed the acquisition of Real Estate Federation,
        Inc.
        ("REF"), pursuant to a Stock Purchase Agreement (the "Agreement") between
        the
        Company and the shareholders of REF. (See "Acquisition of REF"
        below).
 
 The
        Company changed its name to "Xvariant, Inc.," in August, 2001.
 
 In
        January, 2002, the Company completed the acquisition of 360House.com, Inc.,
        a
        Utah corporation ("360House"), pursuant to a Stock Exchange Agreement (the
        "Exchange Agreement") among the Company, 360House, and the shareholders of
        360House. (See "Acquisition of 360House" below).
 
 The
        Company changed its name to “China Ethanol Corporation” in August
        2006.
 
 In
        September 2006, the Company completed the acquisition of Easy Groups Limited,
        a
        Hong Kong corporation (“Easy Groups”), pursuant to an Exchange Agreement among
        the Company and Easy Groups (See “Acquisition of Easy Groups”
below).
 
 The
        Company changed its name to “Easy Groups Limited” in November 2006.
 
 The
        Company changed its name to “China Bionanometer Industries Corporation” in June
        2007.
 
 *Acquisition
        of REF*
 
 The
        Company acquired REF as a wholly owned subsidiary by issuing 20,500,000 shares
        of the Company's authorized common stock, 20,000,000 of which were issued
        to the
        shareholders of REF in exchange for their interests in REF, and 500,000 of
        which
        were issued as a fee to one of the Company's shareholders. The newly issued
        shares aggregated approximately 97% of the then issued and outstanding shares
        of
        the Company, and resulted in a change in control of the Company. At the closing
        of the acquisition, REF had no liabilities other than ordinary overhead
        expenditures, a real estate lease obligation, employment agreements with
        the
        three founders of REF, and a consulting agreement with another shareholder
        of
        REF. REF had no significant assets other than its intellectual property,
        copyrights, and computers used to deliver its service. It did, however, have
        a
        subscription agreement with one of its shareholders to provide up to $2,500,000
        in capital funding over the next one-year period. To date, the full capital
        commitment has been received and utilized to pursue Company business
        operations.
 
 On
        or
        about October 12, 2001, 5,500,000 shares were cancelled in connection with
        Separation Agreements entered into by two of the founders, Messrs. Craig
        and
        Knapp. Messrs. Craig and Knapp were each reissued 100,000 shares of restricted
        common stock, and were paid $12,500 and $17,500, respectively, as reimbursement
        for all accrued salary, benefits and expenses. On or about July 12, 2002,
        Mr.
        Thomas Wright, a founder, agreed to cancel 4,400,000 shares owned by him
        pursuant to an employment arrangement of that date. Mr. Wright was paid a
        total
        of $12,500 as reimbursement for all accrued salary, benefits and expenses.
        A
        total of 500,000 shares of common stock was reissued to Mr. Wright.
 
 *Acquisition
        of Bid Trac*
 
 In
        November, 2001, the Company issued 450,000 shares of restricted common stock
        to
        Bid Trac, Inc. ("Bid Trac"), for the acquisition of certain assets and software
        that allowed the Company to provide an additional on-line service to its
        customers, and six contracts with customers subscribing to the service. In
        addition, the Company granted to Bid Trac, a warrant to purchase up to 600,000
        shares of common stock at an exercise price of $2.00 per share, exercisable
        at
        any time prior to November 21, 2011. The warrant provides that, in the event
        gross revenue derived from the Bid Trac service contracts was less than $200,000
        for the twelve months following the acquisition, only 300,000 shares could
        be
        purchased by Bid Trac, and if gross revenue was less than $100,000 for such
        twelve month period, then the warrant terminated and no shares could be
        purchased. Gross revenue from the Bid Trac contracts aggregated less than
        $100,000 for the initial twelve months following the acquisition.
 
 -15-
  *Acquisition
        of 360House*
 
 In
        January, 2002, the Company completed the acquisition of 360House.com, Inc.,
        a
        Utah corporation ("360House"), under the terms of a Stock Exchange Agreement
        (the "Exchange Agreement") among the Company, 360House, and the shareholders
        of
        360House.
 
 The
        Company acquired 360House as a wholly-owned subsidiary by initially issuing
        1,000,000 shares of the Company's authorized common stock to the shareholders
        of
        360House in exchange for all of the outstanding stock of 360House. In addition,
        the Exchange Agreement provides for the issuance of additional shares of
        the
        Company's common stock based on the performance of 360House. The Company
        has
        agreed to issue stock, including the 1,000,000 shares issued upon execution
        of
        the Agreement, at a price equal to either (a) a value equal to six times
        360House's earnings before interest, taxes, depreciation and amortization
        ("EBITDA") in the twelve month period ending December 31, 2003 ("Earnout
        Shares"); or (b) the value defined by a valuation consultant agreed to by
        the
        parties (the "Earnout"). Either party may demand an independent valuation,
        and
        the party making such demand must bear the cost. The value of the Company's
        common stock for purposes of the Earnout, shall be calculated based on the
        average closing price of the stock for the 30 trading days prior to December
        31,
        2003.
 
 At
        the
        closing of the acquisition, 360House had no significant tangible assets except
        computers, office furniture and equipment, and general files for its three
        employees. It had what it believed was, however, significant and valuable
        intellectual property, including, trademarks and internally developed software
        and web technology. 360House had no liabilities other than ordinary overhead
        expenditures, and employment agreements with Glade Jones, the President of
        360House, and Andy Evans, the founder and Chief Executive Officer of 360House.
        Although the employment agreements are obligations of 360House, the Company
        assumed the obligations to ensure that the salaries were paid for the six
        months
        following the acquisition to the extent that 360House did not have the cash
        flow
        to satisfy the salary obligations. Additionally, the Company had the obligation,
        for a period of six months from the acquisition, to ensure that 360House
        operating expenses were paid to the extent there was a cash shortfall in
        360House in meeting such expenses, which condition has been
        satisfied.
 
 The
        Exchange Agreement contains an option allowing the shareholders of 360House
        to
        unwind the transaction in certain events. In the event the shareholders of
        360House did not want to accept the Earnout Shares at December 31, 2003,
        they
        could surrender all of their shares in the Company and all of the issued
        and
        outstanding common stock of 360House shall be returned to the shareholders
        of
        360House. In such event, however, the Company has the option to retain the
        360House shares and pay the value calculated at December 31, 2003 to the
        360House shareholders in cash. Neither of the alternatives have been acceptable
        to either the Company or the shareholders. The Company and the shareholders
        are
        in the process of preparing settlement documents reflecting a position somewhere
        in between the two positions outlined in the Exchange Agreement, but the
        parties
        have not finalized their discussions.
 
 *Acquisition
        and Disposition of Easy Groups Limited*
 
 Pursuant
        to an Exchange Agreement (the "Agreement") effective September 29, 2006,
        and its
        contemplated transaction that closed October 1, 2006, (the "Closing"), the
        Registrant acquired all of the issued and outstanding capital stock and
        underlying business of Easy Groups Limited and all related companies, including
        but not limited to Easy Dynamic Advertising (Exterior Walls) Limited (herein
        referred to as “Easy Groups”) which is an outdoor advertising company (the
        "Business") in exchange for Forty Two Million Five Hundred Twenty-Seven Thousand
        (42,527,000) shares of common stock of the Registrant, which includes shares
        issued to third party consultants as a material part of this transaction
        in
        consideration of services rendered. As a result, the shareholders and affiliates
        of Easy Groups (collectively, the “Easy Groups Shareholders”) gained control of
        the Registrant.
 
 Prior
        to
        the Agreement, the Registrant had 13,561,000 shares of common stock issued
        and
        outstanding. Upon the Closing of the transaction, the Registrant had 56,088,000
        shares of common stock outstanding.
  (See
        the
        Form 8-K filed with the Commission on November 3, 2006 *.* )
 
 -16-
  On
        February 2, 2007 China Ethanol Corporation and Easy Groups Limited entered
        into
        a Rescission Agreement due to Easy Groups being unable to produce audited
        financial statements on a pro forma basis in the required filings of the
        annual
        and quarterly filings.
 
 Easy
        Groups Limited agrees to deliver to China Ethanol Corporation an aggregate
        of
        Forty-Two Million Five Hundred Twenty-Seven Thousand (42,527,000) shares
        of
        China Ethanol Corporation’s Common Stock for cancellation and return to the
        Company’s treasury.
 
 Prior
        to
        the Agreement, there was a commitment to issue 42,527,000 shares of China
        Ethanol Corporation which would have resulted in a total of 56,088,000 shares
        of
        common stock outstanding, however, no shares were issued which results in
        only
        13,561,000 shares of common stock issued and outstanding.
 (See
        Form
        8-K filed with the Commission on February 26, 2007.)
 
 *Acquisition
        of China Bionanometer Industries Corporation*
 
 Pursuant
        to an Exchange Agreement (the "Agreement") effective April 27, 2007, and
        its
        contemplated transaction that closed June 1, 2007, (the "Closing"), the
        Registrant acquired all of the issued and outstanding capital stock and
        underlying business of FullCo Industrial Limited and all related companies,
        including but not limited to Xi’an Landway Bionanometer Technology Joint-stock
        Co., Ltd. (herein referred to as “FullCo”) which specializes in research and
        development, production and sales of nanometer level health food, cosmetic,
        biologic antibacterial disinfecting product, as well as Chinese traditional
        medicine products (the "Business") in exchange for Ninety Million (90,000,000)
        shares of common stock of the Registrant, which includes shares issued to
        third
        party consultants as a material part of this transaction in consideration
        of
        services rendered. As a result, the shareholders and affiliates of FullCo
        (collectively, the “FullCo Shareholders”) gained control of the
        Registrant.
 
 Prior
        to
        the Agreement, the Registrant had 13,561,000 shares of common stock issued
        and
        outstanding. Upon the Closing of the transaction, the Registrant had 103,561,000
        shares of common stock outstanding.
  (See
        the
        Form 8-K filed with the Commission on June 22, 2007 *.* )
 
 *Business
        of Company*
 
 *Background*
 
 Technology
        allows home buyers and sellers to review property listings that interest
        them
        through the Internet instead of relying on multiple listing services' printed
        materials that were previously only available to agents. Internet listings
        generally appear only on each individual real estate company's web sites
        or on
        the site of an aggregator of real estate listings. A potential buyer or seller
        must peruse all of the major companies' sites to locate a majority of the
        available product. A real estate brokerage company may spend a significant
        amount of marketing resources to drive people to its Internet site only to
        have
        the prospect visit the site and quickly move on leaving no trace of the
        prospect. Additionally, a prospect may visit the site of an aggregator and
        see a
        listing by a company, but have no direct contact with the real estate agent
        who
        has helped the prospect get to that point.
 
 The
        Company has developed the technology and Internet search engines that allow
        a
        real estate company to overcome the shortfalls of existing technology and
        still
        take advantage of the public's desire to have ready access to information.
        The
        Company search engines unify the listings of independent brokerage firms
        enabling prospective buyers to view listings from many brokerage
        firms.
 
 In
        addition, and probably more important to real estate brokerage companies,
        the
        Company's products are designed to capture data about the prospect and store
        it
        for follow up by the Company's agents. Management believes the existence
        of
        qualified leads means more contact with interested and qualified buyers for
        the
        agents, which in turn generates more sales commissions. Both the agents and
        the
        brokerage company benefit from this collection of information.
 
 -17-
  The
        collection of information for lead generation allows a brokerage company
        to
        allocate marketing resources to drive people to their site secure in the
        knowledge that a visit by a serious buyer will result in valuable information
        being captured. The Company's products allow its broker customers to increase
        the effectiveness of the leads generated by visits to their web sites through
        capturing valuable information about the prospective buyer and giving the
        agents
        qualified leads the agent would not otherwise have had.
 
 *Services*
 
 The
        Company provides Internet-delivered lead generation, lead qualification,
        and
        digital imaging services primarily to the real estate industry and in the
        last
        year has rebranded the services acquired from its acquisitions to provide
        a
        unified suite of products for brokers and agents. The Company is marketing
        its
        lead generation services as "LeadMaxx" and its digital imaging services as
        "TourMaxx".
 
 LeadMaxx
        services include the following components:
 
 a.
        "Plug
        in" IDX/VOX search engine customized to meet the needs and desires of customer
        brokerage firms. Real estate companies can choose as little or as much as
        they
        desire to increase lead generation results.
 
 b.
        LeadMaxx has a comprehensive, integrated backend that helps to manage internet
        leads generated by using LeadMaxx and also can be used as a front desk to
        manage
        other leads the broker generates. The backend has statistical reporting to
        show
        how many views each property gets from the broker's web site and how many
        e-mail
        updates are sent to potential buyers and tracks agent performance in converting
        leads to appointments, showings and closings.
 
 c.
        LeadMaxx offers lead qualification services through both e-mail contact and
        call
        center personal contact with potential buyers, to ensure the highest percentage
        of lead conversion.
 
 d.
        LeadMaxx customizes each potential property buyer's experience to the broker's
        Internet site by providing a personalized web page to store favorite properties.
        This allows a potential customer browsing the Internet to schedule appointments
        to see properties while they are online, and the program will send automatic,
        custom e-mail updates of new listings that come with the brokerage firm's
        branding every morning to the potential customers' e-mail
        addresses.
 
 e.
        LeadMaxx personnel can also design and build, and the Company hosts and
        maintains comprehensive, sophisticated, functional, service-oriented productive
        web sites for its customers.
 
 In
        an
        attempt to reduce overhead and costs of the LeadMAXX infrastructure, the
        Company
        entered into a reseller agreement with Lantrax, Inc., a New York corporation
        ("Lantrax") in September 2003, wherein Lantrax will market and sell the LeadMaxx
        product to its existing customers and new customers, including the maintenance
        of the Company's servers used to deliver LeadMaxx products. This agreement
        will
        remove overhead previously expended to sell LeadMaxx products and the
        maintenance of its servers. The financial impact of this agreement will be
        realized in 2004. LeadMaxx, however, will retain the responsibility of providing
        lead qualification for all existing LeadMaxx customers that subscribe to
        receive
        those services from its call center.
 
 TourMaxx
        services include the following components:
 
 a.
        The
        TourMaxx principal service includes a photography service that presents a
        virtual tour of a real estate listing to better display a listed home for
        potential buyers. The virtual tour consists of 360 degree views of as many
        rooms
        of a house as the agent or broker desires to feature. The photos of the rooms
        must be shot with a 360 degree lens and then "unwrapped" with special software.
        The Company has developed and trained a network of independent photographers
        to
        take the photos in all those areas where they have contracted with real estate
        companies to provide the service. Because the photography methods are taught
        by
        360house trainers, it does not require that the Company find professionals
        to
        take the pictures. The Company has found that it has been relatively easy
        to
        locate independent contractors to provide this service. The Company currently
        has a data base of over 300 photographers serving this function and does
        not
        foresee any significant difficulty in locating sufficient photographers in
        any
        area to service their needs. As virtual tours become more in demand nationwide,
        the Company expects the market for virtual tours to grow rapidly.
 
 -18-
  b.
        TourMaxx also provides digital still photography of the exterior and interior
        of
        any home and presents it on the Internet. Management believes website
        presentation and high-resolution copies of photos taken make this an attractive
        and cost effective substitute when a virtual tour is not available. These
        still
        tours can be done on a self service basis. Agents can take their own photos
        and
        upload them onto their website using the Company interface. The Company also
        has
        a training cd-rom that explains the entire process from start to finish with
        detailed explanations and informative videos. The Company has discovered,
        however, that its customers have gravitated towards full service solutions
        as
        opposed to a smaller percentage which utilize the self service
        solution.
 
 c.
        TourMaxx allows an agent or brokerage to print advertisement flyers with
        all of
        the listing information and photos of the house and its rooms directly from
        the
        client's website. With today's sophisticated color printers the resulting
        product looks professionally printed at a fraction of the cost.
 
 d.
        TourMaxx services also include detailed statistical information concerning
        the
        number of website visits by potential purchasers to the individual listings
        and
        helps to gauge the effectiveness of the virtual tours and many other features
        to
        make an agent more successful in selling their product.
 
 e.
        TourMaxx can communicate with buyers using automated surveys to improve customer
        satisfaction. Tour data is displayed at company, employee, vendor/sub or
        customer level and is displayed in an easy to read chart, graph and text
        format.
 
 f.
        TourMaxx also includes a service to highlight community amenities, facilities,
        vacant lots and available housing inventory for a subdivision developer to
        allow
        the potential buyers to become acquainted with the area in which they intend
        to
        live.
 
 TourMaxx
        virtual tour services have been customized to provide a similar service for
        the
        construction industry, under the name "PhotoPhase." With Company software
        a
        builder can create an interactive photo scrapbook of the construction process.
        The photos can be taken by the Company photographers or by the builder at
        various stages of the construction and then the photos are uploaded to a
        web
        page to allow the builder to communicate with his potential "spec" purchaser
        or
        custom purchaser. This service comes with an automatic survey module that
        lets
        the builder know the reaction of potential customers throughout the build
        process. The Company has entered into contracts with some of the largest
        home
        builders in the United States, and will further pursue this part of the real
        estate industry during 2004.
 
 The
        Company generates its revenue by charging fees for its services. The Company
        charges a brokerage company or an individual agent a flat fee for each real
        estate listing that employs a virtual tour, which fee ranges from $79 to
        $500
        per tour, depending on volume and other factors. The Company also charges
        for
        other service transactions. The Company will enter into longer term contracts
        with real estate brokerages to provide the TourMaxx services. The contracts
        are
        generally for one to two years. Fees for the LeadMaxx services
        are a monthly service fee ranging from $500 to $5,000 based on the number
        of
        real estate offices being served by the Company and the level of service
        being
        performed. The fees generated from these services are then shared with Lantrax
        according to the following schedule: implementation fees: Company
        receives 5%; current customer monthly fees: Company receives 25%; new customer
        monthly fees: Company receives 10%; and lead qualification: Company receives
        90%. Similarly, the LeadMaxx customer contracts are for periods ranging from
        one
        to two years. The Company may also charge a per lead fee of $3 to $5 for
        each
        lead qualified by the Company customer service personnel if the customer
        chooses
        to employ that service.
 
 In
        the
        fiscal year ended September 30, 2003, approximately 90% of the revenue derived
        by the Company was from providing the TourMaxx services and 10% was derived
        from
        LeadMaxx services.
 
 -19-
  To
        date,
        the Company has marketed its services to the real estate industry primarily
        through personal contact with larger brokerage companies. The Company has
        attended major real estate trade shows since its inception as an exhibitor.
        The
        service introduction has been well received and resulted in numerous contacts
        with real estate brokerages with which the
 Company
        has been actively attempting to enter into service agreements. In addition,
        marketing literature has been selectively mailed to the largest brokerage
        companies throughout the United States. Combined, these sales efforts have
        resulted in 12 real estate brokerages in different states signing contracts
        to
        receive the LeadMaxx services which have been implemented by the Company.
        Some
        of the largest brokerage companies in the country have entered into contracts
        with the Company for the TourMaxx services. The Company provided an average
        of
        almost 2500 virtual tours per month in the 2003 fiscal year, which is an
        increase of over 800 tours per month over the previous year.
 
 The
        Company also provides web design, web development, and supporting web services
        to clients and prospective customers, and generates additional income for
        the
        services it provides.
 
 *Plan
        of Operation*
 
 The
        Company continues to target the real estate brokerage firms in the United
        States, and to actively undertake efforts to sell the Company's products
        and
        services to such firms, as a means of attempting to secure a larger share
        of the
        market in selected real estate markets in the United States. The Company
        will
        undertake active efforts to enter into contracts with the larger real estate
        brokers in each of these market areas.
 
 The
        Company's plan of operation will depend on its ability to raise substantial
        additional capital, of which there can be no assurance. The Company is a
        party
        to subscription agreements for the sale of its restricted common stock totaling
        $1,000,000. However, as of September 30, 2003, no shares have been issued
        by
        Company. Since December 31, 2003, the Company has received approximately
        $100,000 under the subscription agreements, but the funding source is under
        no
        obligation to continue making capital investments in the Company. The Company
        has used, and will continue to use, these funds to pay general and
        administrative expenses, and to develop its marketing plan, which includes
        participation in trade shows and direct marketing as well as traveling to
        meet
        one-on-one with real estate brokers. Although additional funding may be
        terminated at any time, the Company currently believes that funding will
        continue until the subscription agreement is completed. At the time that
        the
        funding is completed, if the Company has not achieved a breakeven status,
        the
        Company will begin a program of cost reduction and seek additional investment
        capital to cover any cost shortfall. It is anticipated that cost reductions
        and
        additional investment, if received, will cover the Company's working capital
        needs over the next twelve months.
 
 The
        ability of the Company's technology and the Web presentation to capture valuable
        information concerning house buying prospects is proving valuable. The Company
        has added customer service representatives who are charged with the
        responsibility of contacting all those people visiting a client web site
        and
        qualifying the prospect's present intent to engage in a real estate transaction.
        If the prospect is deemed to be an "imminent" prospect, the brokerage is
        contacted and given the "hot" lead to be presented
 to
        an
        agent for follow up. This service of qualifying prospect leads and presenting
        to
        a customer is currently being sold by the Company. The Company is charging
        its
        clients a monthly recurring service fee. To date, there are 12 brokerage
        customers that have engaged the Company to provide the lead generation services,
        which generate approximately $24,000 per month in service revenue.
 
 The
        Company's main focus is on growing TourMaxx and its accompanying virtual
        tours,
        while also making efficient the lead qualification service of LeadMaxx.
        Currently, many of the sales presentations made by the Company consist of
        the
        bundled services of the LeadMaxx and TourMaxx services. Revenue from the
        TourMaxx services constituted approximately 90% of the total revenue of the
        Company for the year ended September 30, 2003. The Company intends to continue
        to search for complementary services to offer to its customers and, if acquired,
        they will also be included in the bundle of services offered to Company
        customers.
 
 -20-
  *Intellectual
        Property Protection*
 
 The
        Company has developed certain Internet search engine technology it believes
        gives the Company a competitive advantage in servicing its customers. The
        Company has filed a preliminary patent application on the LeadMaxx search
        engine
        application, and is waiting for a response from the patent office. The Company
        is unsure of its financial ability to complete the patent process, and there
        can
        be no assurance that a patent will be issued.
 
 The
        Company protects its trade secrets through use of confidentiality agreements
        with its employees and customers.
 
 *Major
        Customers*
 
 Approximately
        43% of all Company revenue for fiscal year 2003 was derived from the Company's
        largest five customers. As more customers are added to the services it is
        expected that the percentage received from those customers will be reduced
        significantly. All five of these customers are subscribers to the
 TourMaxx
        service.
 
 *Competition*
 
 The
        Company is not aware of other competitors that provide all the same services
        to
        the real estate industry as the Company. However, there are many companies
        that
        provide general Internet delivered services to the real estate industry and
        many
        companies that provide virtual tour services. The virtual tour business has
        very
        low barriers to entry, as a result of which there are numerous local and
        regional companies in the business. To the Company's knowledge, there are
        currently only three companies on a national level, one of which is the Company.
        Many of the competitive services include portions of the services the Company
        provides and are perceived by potential customers as being competitive even
        though they do not provide all of the services the Company offers. Some or
        all
        of the competitors providing such services may have greater financial resources
        than the Company.
 
 *Employees*
 
 The
        Company and its two subsidiaries currently employ 25 people at the Company's
        executive offices in. The Company utilizes over 250 independent contractors
        who
        provide photography services for the TourMaxx services and 92 independent
        sales
        agents or affiliates in various states who coordinate sales efforts in their
        areas and act as customer liaison for brokerage customers. Such affiliates
        are
        compensated based on a percentage of the revenue generated from customers
        they
        service.
 
 *Consulting
        Agreement*
 
 In
        the
        beginning of September, 2000, Applied Technology Consultants, Inc., ("ATC")
        a
        Nevada Corporation, entered into a consulting agreement with REF under the
        terms
        of which it was to be paid $5,000 per month for a term of three years ending
        on
        August 31, 2003. ATC is a shareholder in the Company. In addition, ATC entered
        into an agreement under the terms of which it was entitled to a finder's
        fee for
        locating investment capital funding for the operations of the Company. The
        finder's fee was to be a percentage of the investment proceeds actually received
        by the Company and was to be paid as such funds were received. The finder's
        fee
        percentage was 5% of the first million dollars received, 4% of the next million
        dollars received and 3% of any additional funds received. To date, ATC has
        received $33,600 in finder's fees and $20,000 in consulting fees. All remaining
        amounts were accrued. At September 30, 2003, the Company owed ATC $320,600,
        of
        which $105,000 was for finders fees owed and the remainder for consulting
        services. Mr. Reed L. Benson, who is an officer and director of the Company,
        is
        also an officer and director of ATC and may derive income from ATC.
 
 -21-
  *Government
        Regulation*
 
 The
        Company's business activities are subject only to general governmental
        regulations.
 
 *Results
        of Operations for the three months ended December 31, 2003 and December 31,
        2002*
 
 Revenues.
        The Company generated $67,953 in revenue during the three months ended December
        31, 2003. During the same three-month period in 2002, the Company generated
        revenue of $522,414. The decrease is primarily due to the disposal of its
        subsidiary 360 House.
 
 Operating
        Expenses. Operating expenses for the three months ended December 31, 2003
        were
        $90,550 compared to $827,826 for the three months ended December 31, 2002.
        The
        decrease of approximately $737,276 is due primarily to the disposal of its
        subsidiary 360 House. The Company's sales and marketing expenses decreased
        $278,186, of which 100% of the decrease is the result of its disposal of
        its
        subsidiary 360 House.
 
 During
        the three months ended December 31, 2003, the Company had a net loss of $744,118
        compared to a net loss of $288,454 for the three months ended December 31,
        2002.
        The increase in net loss results primarily from the write off of the investment
        in 360House for a total of $721,521, described above.
 
 *Liquidity
        and Capital Resources*
 
 As
        of
        December 31, 2003, the Company had cash of $440, total current assets of
        $44,400, total current liabilities of $481,550 and total stockholder's equity
        deficit of $415,076 as compared to stockholders' equity deficit of $1,002,118
        at
        September 30, 2003. Cash decreased $696, from $1,136 on September 30, 2002.
 
 The
        Company estimates that its monthly expenses over the next several months
        will be
        between approximately $80,000 and $150,000 per month, depending on the level
        of
        activity of the Company and assuming no decrease in operating expenses. To
        date,
        the Company has met its working capital needs through payments received under
        a
        subscription agreement and borrowings from related parties. The Company expects
        that its additional cash needs after revenue, will be between $50,000 and
        $100,000 per month for the next several months. There can be no assurance
        that
        the Company will continue to receive loans or equity contributions if the
        Company does not demonstrate increased revenues and other favorable operating
        results over the next several months. In the event payments were to terminate,
        for any reason, the Company would be in immediate need of another source
        of
        capital. The dilution experienced by the existing shareholders in the event
        of
        such additional capital infusions cannot be determined at this time. There
        can
        be no assurance that, in such event, the Company will be able to locate a
        source
        of capital on terms acceptable to the Company, if at all.
 
 **ITEM
        3. CONTROLS AND PROCEDURES.**
 
 *Evaluation
        of Disclosure Controls and Procedures* .
        Our
        Chief Executive Officer Reed Benson, who is also serving as the Chief Financial
        Officer , performed an evaluation of our disclosure controls and procedures,
        which have been designed to permit us to effectively identify and timely
        disclose important information. They concluded that the controls and procedures
        were effective as of December 31, 2003 to provide reasonable assurance that
        the
        information required to be disclosed by the Company in reports it files under
        the Exchange Act is recorded, processed, summarized and reported within the
        time
        periods specified in the rules and forms of the SEC. While our disclosure
        controls and procedures provide reasonable assurance that the appropriate
        information will be available on a timely basis, this assurance is subject
        to
        limitations inherent in any control system, no matter how well it may be
        designed or administered.
  *Changes
        in* *Internal
        Controls.* There
        was no change in our internal control over financial reporting during the
        quarter ended December 31, 2003, that materially affected, or is reasonably
        likely to materially affect, our internal control over financial
        reporting.
  -22-
  **PART
        II - OTHER INFORMATION**
 
 **ITEM
        1. LEGAL PROCEEDINGS**
 
 We
        are
        not involved in any material pending legal proceedings at this time, and
        management is not aware of any contemplated proceeding by any governmental
        authority.
 
 **ITEM
        1A.**  **RISK FACTORS**
 
 The
        following factors may affect our actual operating and financial results and
        could cause results to differ materially from those in any forward-looking
        statements. There may be other factors, and new risk factors may emerge in
        the
        future. You should carefully consider the following information.
 
 ***We
        may be more sensitive to revenue fluctuations than other companies, which
        could
        result in fluctuations in the market price of our common
        stock.***
 
 A
        substantial majority of our operating expenses such as personnel and related
        costs, depreciation and rent, are relatively fixed in the short term. As
        a
        result, we may not be able to quickly reduce costs in response to any decrease
        in revenue. For example, any decision by a significant client to delay or
        cancel
        our services may cause significant variations in operating results and could
        result in losses for the applicable quarters. Additionally, the general
        condition of the United States economy has and will continue to affect our
        business. Potential new clients may defer from switching service providers
        when
        they believe economic conditions are unfavorable. Any of these factors could
        cause our quarterly results to be lower than expectations of securities analysts
        and shareholders, which could result in a decline in the price of our common
        stock.
 
 ***We
        have a risk that payments on accounts receivable or notes receivable may
        be
        slower than expected, or that amounts due on receivables or notes may not
        be
        fully collectible.***
 
 Professional
        services firms often experience higher average accounts receivable days
        outstanding compared to many other industries. If collections become slower,
        our
        liquidity may be adversely impacted. We monitor the aging of receivables
        regularly and make assessments of the ability of customers to pay amounts
        due.
        We provide for potential bad debts each month and recognize additional reserves
        against bad debts as we deem it appropriate. Notwithstanding these measures,
        our
        customers may face unexpected circumstances that adversely impact their ability
        to pay their trade receivables or note obligations to us and we may face
        unexpected losses as a result.
 
 ***We
        are dependent on the services of our executive officers and other key employees,
        the loss of any of whom may have a material adverse effect on our business,
        financial condition and results of operations.***
 
 Our
        success depends in large part upon the abilities and continued services of
        our
        executive officers and other key employees. In the course of business
        operations, employees may resign and seek employment elsewhere. Certain
        principal employees, however, are bound in writing to non-compete agreements
        barring competitive employment, client solicitation, and solicitation of
        employees for a period of between one and ten years following his or her
        resignation. We cannot assure you that we will be able to retain the services
        of
        our key personnel. If we cannot retain the services of key personnel, there
        could be a material adverse effect on our business, financial condition and
        results of operations. While we generally have employment agreements and
        non-competition agreements with key personnel, courts are at times reluctant
        to
        enforce such non-competition agreements. In addition, many of our executive
        officers and other key personnel are either participants in our stock option
        plan or holders of a significant amount of our common stock. We believe that
        these interests provide additional incentives for these key employees to
        remain
        with us. In order to support our growth, we intend to continue to effectively
        recruit, hire, train and retain additional qualified management personnel.
        Our
        inability to attract and retain necessary personnel could have a material
        adverse effect on our business, financial condition and results of operations.
 
 -23-
 
 ***Governmental
        regulations and interpretations are subject to
        changes.***
 
 Laws
        and
        regulations often result in changes in the amount or the type of business
        services required by businesses and individuals. We cannot be sure that future
        laws and regulations will provide the same or similar opportunities for us
        to
        provide services to businesses and individuals. Future regulatory action
        may
        limit or eliminate our ability to enhance revenue through all current
        compensation arrangements, and may result in a diminution of future real
        estate
        brokerage revenue from these sources. Accordingly, the Company’s ability to
        continue to operate may depend on our flexibility to modify our operational
        structure in response to these changes in regulations.
 
 ***We
        are subject to risks relating to processing customer transactions for our
        payroll, property tax management, and other transaction processing
        businesses.***
 
 The
        high
        volume of client funds and data processed by us in our transaction related
        businesses entails risks for which we may be held liable if the accuracy
        or
        timeliness of the transactions processed is not correct. We could incur
        significant legal expense to defend any claims against us, even those claims
        without merit. While we carry insurance against these potential liabilities,
        we
        cannot be certain that circumstances surrounding such an error would be entirely
        reimbursed through insurance coverage. We believe we have controls and
        procedures in place to address our fiduciary responsibility and mitigate
        these
        risks. However, if we are not successful in managing these risks, our business,
        financial condition and results of operations may be harmed.
 
 ***We
        have shares eligible for future sale that could adversely affect the price
        of
        our common stock.***
 
 Future
        sales or issuances of common stock, or the perception that sales could occur,
        could adversely affect the market price of our common stock and dilute the
        percentage ownership held by our stockholders. We have authorized 50 million
        shares, and have issued and outstanding 13,561,000 shares
        at December 31, 2003. We cannot be sure when sales by holders of our stock
        will
        occur, how many shares will be sold or the effect that sales may have on
        the
        market price of our common stock.
 
 ***We
        are reliant on information processing systems.***
 
 Our
        ability to provide business services depends on our capacity to store, retrieve,
        process and manage significant databases, and expand and upgrade periodically
        our information processing capabilities. Interruption or loss of our information
        processing capabilities through loss of stored data, breakdown or malfunctioning
        of computer equipment and software systems, telecommunications failure, or
        damage caused by fire, tornadoes, lightning, electrical power outage, or
        other
        disruption could have a material adverse effect on our business, financial
        condition and results of operations. Although we have disaster recovery
        procedures in place and insurance to protect against such contingencies,
        we
        cannot be sure that insurance or these services will continue to be available
        at
        reasonable prices, cover all our losses or compensate us for the possible
        loss
        of clients occurring during any period that we are unable to provide business
        services.
 
 ***We
        may not be able to acquire and finance additional businesses which may limit
        our
        ability to pursue our business strategy.***
 
 The
        Company acquired REF, Inc., 360House.com and Easy Groups Limited. It is our
        intention to selectively acquire businesses that are complementary in building
        out our service offerings in our target markets. However, we cannot be certain
        that we will be able to continue identifying appropriate acquisition candidates
        and acquire them on satisfactory terms. We cannot assure you that such
        acquisitions, even if completed, will perform as expected or will contribute
        significant synergies, revenues or profits. In addition, we may also face
        increased competition for acquisition opportunities, which may inhibit our
        ability to complete transactions on terms that are favorable to us. There
        are
        certain provisions under our credit facility that may limit our ability to
        acquire additional businesses. In the event that we are not in compliance
        with
        certain covenants as specified in our credit facility, we could be restricted
        from making acquisitions, restricted from borrowing funds from our credit
        facility for other uses, or required to pay down the outstanding balance
        on the
        line of credit. However, management believes that funds available under the
        credit facility, along with cash generated from operations, will be sufficient
        to meet our liquidity needs, including planned acquisition activity in the
        foreseeable future. To the extent we are unable to find suitable acquisition
        candidates, an important component of our growth strategy may not be realized.
 
 -24-
  ***The
        business services industry is competitive and fragmented. If we are unable
        to
        compete effectively, our business, financial condition and results of operations
        may be harmed.***
 
 We
        face
        competition from a number of sources in both the real-estate services industry.
        Competition has led to consolidation. Many of our competitors are large
        companies that may have greater financial, technical, marketing and other
        resources than us. In addition to these large companies, we face competition
        in
        the real-estate services industry from in-house employee services departments,
        local business services companies and independent consultants, as well as
        from
        new entrants into our markets. We cannot assure you that, as our industry
        continues to evolve, additional competitors will not enter the industry or
        that
        our clients will not choose to conduct more of their business services
        internally or through alternative business services providers. Although we
        intend to monitor industry trends and respond accordingly, we cannot assure
        you
        that we will be able to anticipate and successfully respond to such trends
        in a
        timely manner. We cannot be certain that we will be able to compete successfully
        against current and future competitors, or that competitive pressure will
        not
        have a material adverse effect on our business, financial condition and results
        of operations.
  **ITEM
        2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
        PROCEEDS**
 
 None
 
 **ITEM
        3. DEFAULTS UPON SENIOR SECURITIES**
 
 None
 
 **ITEM
        4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**
 
 None
 
 **ITEM
        5. OTHER INFORMATION**
 
 This
        Form
        10-QSB filing is being filed in the name of Xvariant, Inc. On August 28,
        2006,
        Xvariant, Inc. changed its name to China Ethanol Corporation. On November
        17,
        2006, China Ethanol Corporation changed its name to Easy Groups Limited.
        On June
        20, 2007, Easy Groups Limited changed its name to China Bionanometer Industries
        Corporation and obtained a new symbol which is CBIU.
 
 **ITEM
        6. EXHIBITS AND REPORTS ON FORM 8-K**
 
 (a)
        Exhibits
  **INDEX
        TO EXHIBITS**
 **OF**
 **XVARIANT,
        INC.**
 
 31.1
              
              Rule
                  13a-14 (a)/15d-14 (a) Certification of Chief Executive
                  Officer.31.2
              
              Rule
                  13a-14 (a)/15d-14 (a) Certification of Chief Financial
                  Officer.32
              
              Section
                  1350 Certifications.
  (b)
        None.
 
 -25-
  **SIGNATURES**
 
 Pursuant
        to the requirements of Section 13 of 15(d) of the Securities and Exchange
        Act of
        1934, the Registrant has duly caused this report to be signed on its behalf
        by
        the undersigned, thereunto duly authorized.
  **XVARIANT,
                  INC.**
                **(N/K/A
                  China Bionanometer Industries Corporation)**
                (Registrant)Date:
                August 17, 2007
              By:
              /s/
                Chen
                MinChen
                Min, President
  -26-