----

----

| Nevada                                 |   | 001-28099         |   | 77-0571784               |
|----------------------------------------|--------|-------------------|--------|--------------------------|
| (State      or Other Jurisdiction      |   | (Commission       |   | (I.R.S.      Employer    |
| of      Incorporation or Organization) |   | File      Number) |   | Identification      No.) |

| Securities      registered pursuant to Section 12(b) of the Act: |
|------------------------------------------------------------------|
|                                                             |   |   |
| Title      of each class                                         |   | Name      of each exchange on which registered |
| Common      Stock, $0.001 Par Value                              |   | OTC.BB |
|                                                             |   |   |
| Securities      registered pursuant to Section 12(g) of the Act: |
|                                                             |   |   |
| Common      Stock                                                |
|                                                             | (Title      of Class) |   |

| Indicate      by check mark if the registrant is a well-known seasoned issuer, as      defined in Rule 405 of the Securities Act. |
|----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                   | o |  Yes | x |  No |
|                                                                                                                                   |

----

| Indicate      by check mark if the registrant is not required to file reports pursuant      to Section 13 or Section 15(d) of the Act.                                                                                                                                                                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                      | o |  Yes | x |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 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.                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                      | x |  Yes | o |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate      by check mark whether the registrant has submitted electronically and      posted on its corporate Web site, if any, every Interactive Data File      required to be submitted and posted pursuant to Rule 405 of Regulation S-T      (¤ 232.405 of this chapter) during the preceding 12 months (or for such      shorter period that the registrant was requiredto      submit and post such files). |
|                                                                                                                                                                                                                                                                                                                                                                                                                      | o |  Yes | x |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate      by check mark if disclosure of delinquent filers pursuant to Item 405 of      Regulation S-K (§229.405 of this chapter)      is not contained herein, and will not be contained, to the best of      registrant’s knowledge, in definitive proxy or information statements      incorporated by reference in Part III of this Form 10-K or any amendment      to this Form      10-K.            |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |        o |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Large      accelerated filer                                                                                                                                                                                                                                                                                                                                                                                              |        o |   |   | Accelerated      filer |        o |   |
| Non-accelerated      filer                                                                                                                                                                                                                                                                                                                                                                                                |        o |   |   | Smaller      reporting company | x |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act).                                                                                                                                                                                                                                                                                                         | x |  Yes |        o |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| As      of June 30, 2009 the aggregate value of the voting common stock held by      non-affiliates of the registrant was approximately $1,873,814 based on the      closing market price of the registrants common stock of $0.08 on that      day.                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| As      of April 15, 2010 there were 23,422,663 shares outstanding with a par      value of $0.001.                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| APPLICABLE      ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY                                                                                                                                                                                                                                                                                                                                                                |
| PROCEEDINGS      DURING THE PRECEDING FIVE YEARS:                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate      by check mark whether the registrant has filed all documents and reports      required to be filed by Section 12, 13 or 15(d) of the Securities Exchange      Act of 1934 subsequent to the distribution of securities under a plan      confirmed by a court.                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |        o |  Yes |        o |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

----

----

|                     |                                                                                                                                            |           Page |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|
| PART      I              |                                                                                                                                            |                                                             |
|                     |                                                                                                                                            |                                                             |
| Item      1.             | Business                                                                                                                                        | 4                                                                |
| Item      1A.            | Risk      Factors                                                                                                                               | 6                                                                |
| Item      1B.            | Unresolved      Staff Comments                                                                                                                  | 6                                                                |
| Item      2.             | Properties                                                                                                                                      | 6                                                                |
| Item      3.             | Legal      Proceedings                                                                                                                          | 6                                                                |
| Item      4.             | Submission      of Matters to a Vote of Security Holders                                                                                        | 6                                                                |
|                     |                                                                                                                                            |                                                             |
| PART      II             |                                                                                                                                            |                                                             |
|                     |                                                                                                                                            |                                                             |
| Item      5.             | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities                    | 7                                                                |
| Item      6.             | Selected      Financial Data                                                                                                                    | 7                                                                |
| Item      7.             | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                           | 7                                                                |
| Item      7A.            | Quantitative      and Qualitative Disclosures about Market Risk                                                                                 | 9                                                                |
| Item      8.Item      9. | Financial      Statements and Supplementary DataChanges      in and Disagreements With Accountants on Accounting and Financial      Disclosures | 10                                                               |
| Item      9A(T).         | Controls      and Procedures                                                                                                                    | 10                                                               |
| Item      9B             | Other      Information                                                                                                                          |           11                                 |
|                     |                                                                                                                                            |                                                             |
| PART      III            |                                                                                                                                            |                                                             |
|                     |                                                                                                                                            |                                                             |
| Item      10.       | Directors,      Executive Officers and Corporate Governance                                                                                     | 12                                                               |
| Item      11.            | Executive      Compensation                                                                                                                     | 13                                                               |
| Item      12.            |    Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                      | 13                                                               |
| Item      13.            | Certain      Relationships and Related Transactions, and Director      Independence                                                             | 14                                                               |
| Item      14.            | Principal      Accounting Fees and Services.                                                                                                    | 14                                                               |
| Item      15.            | Exhibits,      Financial Statement Schedules                                                                                                    | 14                                                               |
| SIGNATURES               |                                                                                                                                            |                                                             |

----

| Item      1. | Business. |
|--------------|-----------|

----

| ·   | Potential      for growth and profitability, indicated by new technology, anticipated      market expansion, or new products; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      perception of how any particular business opportunity will be received by      the investment community and by our  stockholders; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Whether,      following the business combination, the financial condition of the      business opportunity would be, or would have a significant prospect in the      foreseeable future of becoming sufficient to enable our securities to      qualify for listing on a exchange or on a national automated securities      quotation system, such as the stockmarket. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Capital      requirements and anticipated availability of required funds, to be      provided by us or from operations, through the sale of additional      securities, through joint ventures or similar arrangements, or from other      sources; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      extent to which the business opportunity can be  advanced; |
|--------------------|---------------------------------------------------------------------|

| ·   | Competitive      position as compared to other companies of similar size and experience      within the industry segment as well as within the industry as a      whole; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strength      and diversity of existing management, or management prospect that are      scheduled for recruitment; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | The      cost of our participation as compared to the perceived tangible and      intangible values and potential;and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | The      accessibility of required management expertise, personnel, raw materials,      services, professional assistance, and other required    items. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      1A. | Risk      Factors. |
|---------------|--------------------|

| Item      1B. | Unresolved      Staff Comments. |
|---------------|---------------------------------|

| Item      2. | Properties. |
|--------------|-------------|

| Item      3. | Legal      Proceedings. |
|--------------|-------------------------|

| Item      4. | Submission      of Matters to a Vote of SecurityHolders. |
|--------------|----------------------------------------------------------|

----

| Item      5. | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------|

|                      |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|
| Common      Stock         |   | High   |   |   | Low    |   |
| 2009                      |   |   |   |   |   |   |
| First      Quarter        |   | $      | 0.019  |   |   | $      | 0.006 |   |
| Second      Quarter       |   |   | 0.095  |   |   |   | 0.01 |   |
| Third      Quarter   |   |   | 0.25   |   |   |   | 0.06 |   |
| Fourth      Quarter       |   |   | 0.20   |   |   |   | 0.10 |   |
|                      |   |   |   |   |   |   |   |   |
| 2008                      |   |   |   |   |   |   |   |   |
| First      Quarter        |   | $      | 0.145  |   |   | $      | 0.06 |   |
| Second      Quarter       |   | $      | 0.25   |   |   | $      | 0.055 |   |
| Third      Quarter   |   | $      | 0.14   |   |   | $      | 0.05 |   |
| Fourth      Quarter       |   | $      | 0.10   |   |   | $      | 0.01 |   |

| Item      6. | Selected      Financial Data. |
|--------------|-------------------------------|

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results of      Operation. |
|--------------|-------------------------------------------------------------------------------------------------------|

----

----

| Item      7A. | Quantitative      and Qualitative Disclosures About MarketRisk. |
|---------------|-----------------------------------------------------------------|

| Item      8. | Financial      Statements and Supplementary Data. |
|--------------|---------------------------------------------------|

| Item      9. | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure. |
|--------------|-------------------------------------------------------------------------------------------------|

----

| Item      9A(T) | Controls      and Procedures. |
|-----------------|-------------------------------|

| a.   | The      deficiency was identified as the Company’s limited segregation of duties      amongst the Company’s employees with respect to the Company’s control      activities. This deficiency is the result of the Company’s limited number      of employees. This deficiency may affect management’s ability to determine      if errors or inappropriate actions have taken place.  Management      is required to apply its judgment in evaluating the cost-benefit      relationship of possible changes in our disclosure controls and      procedures. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | The      deficiency was identified with respect to the Company’s Board of      Directors.  This deficiency is the result of the Company’s      limited number of external board members.  This deficiency may      give the impression to the investors that the board is not independent      from management.  Management and the Board of Directors are      required to apply their judgment in evaluating the cost-benefit      relationship of possible changes in the organization of the Board of      Directors. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      9B. | Other      Information. |
|---------------|-------------------------|

----

| Item      10. | Directors,      Executive Officers and CorporateGovernance. |
|---------------|-------------------------------------------------------------|

| Name              |   | Age |   | Position(s)                                       |
|-------------------|--------|-----|--------|---------------------------------------------------|
| Paul      Goodman |   | 48  |   | President,      Secretary, Treasurer and Director |

|   | · | any      breach of the director's duty of loyalty to us or our      stockholders, |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | acts      or omission not in good faith or that involve intentional misconduct or a      knowing violation of law, |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | payments      of dividends or approval of stock repurchases or redemptions that are      prohibited by Delaware law, or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | any      transaction from which the director derives an improper personal      benefit. |
|--------|--------|-----------------------------------------------------------------------------------------|

----

| Item      11. | Executive      Compensation. |
|---------------|------------------------------|

| Name      and Address of Beneficial Owners              |                           | Number      ofShares      ofCommon      Stock(1) |                           | Percentageof      Class |
|---------------------------------------------------------|--------------------------------|--------------------------------------------------|--------------------------------|-------------------------|
| Officers and Directors                                  |                           |                                             |                           |                    |
|                                                    |                           |                                             |                           |                    |
| Paul      Goodman                                       |                           | 140,000                                          |                           | *                       |
|                                                    |                           |                                             |                           |                    |
| All      officers and directors as a group (one person) |                           | 140,000                                |                           | *                       |
|                                                    |                           |                                             |                           |                    |
| Baytree      Capital Associates, LLC                    |       |   6,200,000      (2)                   |                           | 30.5      %             |
|                                                    |                           |                                             |       |                    |
|                                                    |                           |                                             |                           |                    |
|                                                    |                           |                                             |                           |                    |
|                                                    |                           |                                             |                           |                    |
|                                                    |                           |                                             |                           |                    |

|   | * -      Less than 1.0% |
|--------|-------------------------|

| (1) | Unless      otherwise indicated, we believe that all persons named in the table have      sole voting and investment power with respect to all securities      beneficially owned by them. Beneficial ownership exists when a person has      either the power to vote or sell our Common Stock.  A person is      deemed to be the beneficial owner of securities that can be acquired by      such person within 60 days whether upon the exercise of options, warrants      or otherwise.   |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      shares of Common Stock held by Michael Gardner. Mr. Gardner is the      managing member of Baytree Capital Associates,  LLC. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      13. | Certain      Relationships and Related Transactions, and Director      Independence. |
|---------------|--------------------------------------------------------------------------------------|

|   | None |
|--------|------|

| Item      14. | Principal      Accounting Fees and Services. |
|---------------|----------------------------------------------|

| Item      15. | Exhibits,      Financial Statement Schedules. |
|---------------|-----------------------------------------------|

|   | (a) | Documents      filed as part of the report. |
|--------|-----|---------------------------------------------|

|   | (1) | All      Financial Statements |
|--------|-----|-------------------------------|

|   | (2) | Financial      Statements Schedule |
|--------|-----|------------------------------------|

|   | (3) | Exhibits |
|--------|-----|----------|

| Exhibit      Number |                           | Description                                                                             |
|---------------------|--------------------------------|-----------------------------------------------------------------------------------------|
|                |       |                                                                                    |
| 3.1                 |                           | Articles      of Incorporation of the Registrant.*                                      |
|                |                           |                                                                                    |
| 3.2                 |                           | Certificate      of Amendment to the Articles of Incorporation of the      Registrant.* |
|                |                           |                                                                                    |

----

| 3.3    |   | By-Laws      of Registrant.*                                                                                                                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                   |
| 4.1    |   | Form      of Common Stock Certificate *                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                   |
| 10.1   |   | 1999      Stock Option Plan (Incorporated by reference to Exhibit 4.1 to the      Registrant's Registration Statement on Form S-8 (Commission File Number      333-46712) filed with the SEC on September 27,2000).*** |
|   |   |                                                                                                                                                                                                                   |
| 10.2   |   | 2005      Equity Compensation Plan (incorporated by reference to the Company's      definitive proxy statement filed with the SEC on April 5,      2005).***                                                           |
|   |   |                                                                                                                                                                                                                   |
| 10.3   |   | Form      of Option Agreement.***                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                   |
| 14     |   | Code      of Ethics.**                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                   |
| 21.1   |   | Subsidiaries      of Registrant                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                   |
| 23.2   |   | Consent      of Friedman, LLP                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                   |
| 31     |   | CEO      and CFO certifications required under Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                      |
|   |   |                                                                                                                                                                                                                   |
| 32     |   | CEO      and CFO certifications required under Section 906 of the Sarbanes-Oxley      Act of 2002                                                                                                                      |
|   |   |                                                                                                                                                                                                                   |
| *      |   | Incorporated      into this Report by reference to the Registrant's Registration Statement      on Form 10 dated November 15, 1999.                                                                                    |
|   |   |                                                                                                                                                                                                                   |
| **     |   | Incorporated      into this Report by reference to Exhibit 99 to the Registrant's Annual      Report on Form-10KSB filed April 14, 2005.                                                                               |
|   |   |                                                                                                                                                                                                                   |
| ***    |   | Incorporated      into this Report by reference to the Registrant's Annual Report on      Form-10KSB filed April 12, 2007.                                                                                             |

----

|           | BAY      ACQUISITION CORP. |
|--------------------------------------------------------|----------------------------|
|                                              |                       |    |
|                                              |                       |   |
|                                                   | By:              | /s/      Paul Goodman |
|                                                   |                       | Paul      Goodman |
|                                                   |                       | President      (Principal Executive Officer andPrincipal      Financial Officer) |

| Signature             |   | Title    |   | Date                |
|-----------------------|--------|----------|--------|---------------------|
|                  |   |     |   |                |
| /s/      Paul Goodman |   | Director |   | April      15, 2010 |
| Paul      Goodman     |   |     |   |                |
|                  |   |     |   |                |
|                  |   |     |   |                |
|                  |   |     |   |                |
|                  |   |     |   |                |
|                  |   |     |   |                |
|                  |   |     |   |                |

----

|                                                                                           | Page   |
|------------------------------------------------------------------------------------------------|--------|
|                                                                                           |   |
| Reports of      Independent Registered Public Accounting Firms                            | 18-19  |
|                                                                                           |   |
| Financial      Statements:                                                                     |   |
|                                                                                           |   |
| Balance Sheets as of      December 31, 2009 and 2008                                      | 20     |
|                                                                                           |   |
| Statement of      Operations for the years ended December 31, 2009 and 2008               | 21     |
|                                                                                           |   |
| Statement of      Shareholders’ Equity for the years ended December 31, 2009 and    2008 | 22     |
|                                                                                           |   |
| Statements of Cash      Flows for the years ended December 31, 2009 and 2008                   | 23     |
|                                                                                           |   |
| Notes to Financial      Statements                                                             | 24     |
|                                                                                           |   |

----

----

----

|                                                                                                       |   | December      31, |   |   | ConsolidatedDecember      31, |   |
|------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------------------|--------|
|                                                                                                       |   | 2009              |   |   | 2008                          |   |
|                                                                                                       |   |              |   |   |                          |   |
| Assets                                                                                                     |   |              |   |   |                          |   |
| Current      assets:                                                                                       |   |              |   |   |                          |   |
|   Cash                                                                                           |   | $                 | 4      |   |                          | $      | 215 |   |
|   Loan      to shareholder                                                                       |   |              | 171    |   |                          |   | - |   |
|   Interest      receivable                                                                       |   |              | 11     |   |                          |   | - |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|         Total      current assets                                  |   |              | 186    |   |                          |   | 215 |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|         Total      assets                                          |   | $                 | 186    |   |                          | $      | 215 |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
| Liabilities and Shareholders'      Equity                                                                  |   |              |   |   |                          |   |   |   |
| Current      liabilities:                                                                                  |   |              |   |   |                          |   |   |   |
|   Trade      payables                                                                            |   | $                 | 36     |   |                          | $      | 16 |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|         Total      current liabilities                             |   |              | 36     |   |                          |   | 16 |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
| Commitments      and contingencies                                                                         |   |              |   |   |                          |   |   |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
| Shareholders'      equity:                                                                                 |   |              |   |   |                          |   |   |   |
|   Common      stock $0.0001 par value; 100,000,000 shares authorized,                            |   |              |   |   |                          |   |   |   |
|     23,422,663      issued and outstanding at December 31, 2009 and 2008               |   |              | 23     |   |                          |   | 23 |   |
|   Additional      paid-in capital                                                                |   |              | 14,247 |   |                          |   | 14,247 |   |
|   Treasury      stock (32,899,667 shares) at cost                                                |   |              | (4,957 | )      |                          |   | (4,957 | ) |
|   Accumulated      deficit                                                                       |   |              | (9,163 | )      |                          |   | (9,114 | ) |
|   Accumulated      other comprehensive income                                                    |   |              | -      |   |                          |   | - |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|         Total      shareholders'  equity                 |   |              | 150    |   |                          |   | 199 |   |
|                                                                                                       |   |              |   |   |                          |   |   |   |
|         Total      liabilities and shareholders'  equity |   | $                 | 186    |   |                          | $      | 215 |   |

----

|                                      |   | Year      Ended   |       |
|-------------------------------------------|--------|-------------------|------------|
|                                      |   | December      31, |       |   | ConsolidatedDecember      31, |   |
|                                      |   | 2009              |       |   | 2008 |   |
|                                      |   |              |       |   |   |   |
| Revenue                                   |   | $                 | -          |   |   | $ | - |   |
|                                      |   |              |       |   |   |   |   |   |
| Cost      of revenue                      |   |              | -          |   |   |   | - |   |
|                                      |   |              |       |   |   |   |   |   |
| Gross      profit                         |   |              | -          |   |   |   | - |   |
|                                      |   |              |       |   |   |   |   |   |
| General      and administrative expenses  |   |              | 60         |   |   |   | 39 |   |
|                                      |   |              |       |   |   |   |   |   |
| Loss      from continuing operations      |   |              | (60        | ) |   |   | (39 | ) |
|                                      |   |              |       |   |   |   |   |   |
| Interest      income                      |   |              | 11         |   |   |   | - |   |
|                                      |   |              |       |   |   |   |   |   |
|                                      |   |              |       |   |   |   |   |   |
| Net      loss from continuing operations  |   |              | (49        | ) |   |   | (39 | ) |
|                                      |   |              |       |   |   |   |   |   |
| Loss      from discontinued operations    |   |              | -          |   |   |   | (251 | ) |
|                                      |   |              |       |   |   |   |   |   |
|                                      |   |              |       |   |   |   |   |   |
| Net      loss applicable to common shares |   | $                 | (49        | ) |   | $ | (290 | ) |
|                                      |   |              |       |   |   |   |   |   |
|                                      |   |              |       |   |   |   |   |   |
| Net      loss per share:                  |   |              |       |   |   |   |   |   |
|  Continuing      Operations          |   | $                 | (0.00      | ) |   | $ | (0.01 | ) |
|  Discontinued      Operations        |   | $                 | (0.00      | ) |   | $ | (0.01 | ) |
|                                      |   |              |       |   |   |   |   |   |
| Weighted      average shares outstanding  |   |              |       |   |   |   |   |   |
|    Basic      and Diluted  |   |              | 23,422,663 |   |   |   | 39,434,523 |   |

----

|                                        |   |   |        |   |   |   |   | Additional |   |   |     |   |   |        |   |   | Other              |   |   |               |   |   |   |   |
|---------------------------------------------|--------|--------|-------------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|--------|--------|
|                                        |   | Common |        |   | Par    |   |   | Paid-in    |   |   | Treasury |   |   | Accumulated |   |   | Comprehensive      |   |   | Comprehensive      |   |   |   |   |
|                                        |   | Stock  |        |   | Value  |   |   | Capital    |   |   | Stock    |   |   | Deficit     |   |   | Income      (loss) |   |   | Income      (loss) |   |   | Total  |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |
| Consolidated      Balance December 31, 2007 |   |   | 55,947,331  |   |   | $      | 56     |       |   | $      | 7,366    |   |   | $           | -      |   |               | $      | (8,824 | )                  |   | $      | (95    | )      |   |   |   |   | $ | (1,497 | ) |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Reversal      of May 2005 acquisition |   |   | (32,524,668 | )      |   |   | (33    | )          |   |   | 6,881    |   |   |        | (4,957 | )      |               |   |   |               |   |   |   |   |   |   |   |   |   | 1,891 |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Net      Loss                         |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   | (290   | )                  |   |   |   |   |   |   | (290 | ) |   |   | (290 | ) |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Translation      adjustment                 |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   | 95     |   |   |   | 95 |   |   |   | 95 |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                     |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   | $ | (195 | ) |   |   |   |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      Balance December 31, 2008 |   |   | 23,422,663  |   |   | $      | 23     |       |   | $      | 14,247   |   |   | $           | (4,957 | )      |               | $      | (9,114 | )                  |   | $      | -      |   |   |   |   |   |   | $ | 199 |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      Loss                         |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   | (49    | )                  |   |   |   |   |   |   |   |   |   |   | (49 | ) |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Translation      adjustment                 |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   | -      |   |   |   |   |   |   |   | - |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                     |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |        |   |   |   |   |       |   |   |     |   |   |        |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2009              |   |   | 23,422,663  |   |   | $      | 23     |       |   | $      | 14,247   |   |   | $           | (4,957 | )      |               | $      | (9,163 | )                  |   | $      | -      |   |   |   |   |   |   | $ | 150 |   |

----

|                                                                                                |   | Years      Ended  |   |
|-----------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                |   | December      31, |   |   | ConsolidatedDecember      31, |   |
|                                                                                                |   | 2009              |   |   | 2008 |   |
| Cash      flows from operating activities:                                                          |   |              |   |   |   |   |
|   Net      loss                                                                           |   | $                 | (49    | ) |   | $ | (39 | ) |
|   Adjustments      to reconcile net loss to net cash (used in) operating      activities: |   |              |   |   |   |   |   |   |
|   Increase      in interest receivable                                                    |   |              | (11    | ) |   |   | - |   |
|   Increase      in accounts payable                                                       |   |              | 20     |   |   |   | 16 |   |
| Net      cash (used in) continuing operations                                                       |   |              | (40    | ) |   |   | (23 | ) |
|                                                                                                |   |              |   |   |   |   |   |   |
| Discontinued      Operations                                                                        |   |              |   |   |   |   |   |   |
| Loss      from discontinued operations                                                              |   |              | -      |   |   |   | (251 | ) |
|   Adjustments      to reconcile net cash provided by discontinued operations              |   |              | -      |   |   |   | 359 |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Net      cash provided by operating activities - discontinued      operations                       |   |              | -      |   |   |   | 108 |   |
| Net      cash provided by (used in) operating activities                                            |   |              | (40    | ) |   |   | 85 |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                          |   |              |   |   |   |   |   |   |
| Discontinued      Operations                                                                        |   |              |   |   |   |   |   |   |
|   Adjustments      to reconcile net cash (used in) discontinued operations                |   |              | -      |   |   |   | (119 | ) |
| Net      cash used in investing activities                                                          |   |              | -      |   |   |   | (119 | ) |
|                                                                                                |   |              |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                          |   |              |   |   |   |   |   |   |
|   Loan      to stockholder                                                                |   |              | (171   | ) |   |   | - |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                      |   |              | (171   | ) |   |   | - |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Effect      of exchange rates changes on cash                                                       |   |              | -      |   |   |   | 95 |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Net      increase (decrease) in cash                                                                |   |              | (211   | ) |   |   | 61 |   |
| Cash      at beginning of year                                                                      |   |              | 215    |   |   |   | 154 |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Cash      at end of year                                                                            |   | $                 | 4      |   |   | $ | 215 |   |
|                                                                                                |   |              |   |   |   |   |   |   |
|                                                                                                |   |              |   |   |   |   |   |   |
| Supplemental Cash Flow      Information                                                             |   |              |   |   |   |   |   |   |
| During      the period, cash was paid for the following:                                            |   |              |   |   |   |   |   |   |
|     Interest                                                                    |   | $                 | -      |   |   | $ | - |   |
|     Income      taxes                                                           |   | $                 | -      |   |   | $ | - |   |
| The      accompanying note are an integral part of these financial      statements.            |   |

----

| NOTE      2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES |
|---------------------------------------------------------------|

----

|                    |   | YEAR      ENDED DECEMBER 31, |   |
|-------------------------|--------|------------------------------|--------|
|                    |   | 2009                         |   |   | 2008 |   |
| Operating      expenses |   |                         | -      |   |   |   | 95 |   |
| Total                   |   | $                            | -      |   |   | $ | 95 |   |

----

----

|                             |   | Six      Months |   |
|----------------------------------|--------|-----------------|--------|
|                             |   | Ended           |   |
|                             |   | June      30,   |   |
|                             |   | 2008            |   |
|                             |   |            |   |
| Revenues                         |   | $               | 1,793  |   |
| Cost      of Revenues            |   |            | 1,057  |   |
| Gross      Profit                |   |            | 736    |   |
| Operating      Expenses          |   |            | 819    |   |
| Operating      Loss              |   |            | (83    | ) |
| Other      Income (Expense), net |   |            | (3     | ) |
| Provision      for Taxes         |   |            | 216    |   |
| Net      Income (Loss)           |   | $               | 130    |   |

----

|                                  |   | December      31, |       |
|---------------------------------------|--------|-------------------|------------|
|                                  |   | 2009              |       |   | 2008 |   |
| Deferred      tax asset:              |   |              |       |   |   |   |
|                                  |   |              |       |   |   |   |
| Net      operating loss carryforwards |   | $                 | 3,207,000  |   |   | $ | 3,190,000 |   |
| Less:      Vaulation allowance        |   |              | (3,207,000 | ) |   |   | (3,190,000 | ) |
|                                  |   |              |       |   |   |   |   |   |
| Net      Deferred Tax Asset           |   | $                 | -          |   |   | $ | - |   |

----