| Yukon                Territory, Canada                        | 0-25820                                 | 87-0810718                                       |
|---------------------------------------------------------------|-----------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation) | (Commission                file number) | (IRS                Employer Identification No.) |

----

|   | Index |
|--------|-------|

----

| Item                  1.   | Identify                  of Directors, Senior Management and Advisors                                        | 3 |
|----------------------------|---------------------------------------------------------------------------------------------------------------|---|
| Item                  2.   | Offer                  Statistics and Expected Timetable                                                      | 3 |
| Item                  3.   | Key                  Information                                                                              | 3 |
| Item                  4.   | Information                  on the Company                                                                   | 4 |
| Item                  5.   | Operating                  and Financial Review and Prospects                                                 | 5 |
| Item                  6.   | Directors,                  Senior Management and Employees                                                   | 5 |
| Item                  7.   | Major                  Shareholders and Related Party Transactions                                            | 5 |
| Item                  8.   | Financial                  Information                                                                        | 6 |
| Item                  9.   | The                  Offer and Listing                                                                        | 6 |
| Item                  10.  | Additional                  Information                                                                       | 6 |
| Item                  11.  | Quantitative                  and Qualitative Disclosures About Market Risk                                   | 7 |
| Item                  12.  | Description                  of Securities Other Than Equity Securities                                       | 7 |
| Item                  13.  | Defaults,                  Dividends Arrearages and Delinquencies                                             | 7 |
| Item                  14.  | Material                  Modifications to the Right of Security Holders and Use of                  Proceeds | 7 |
| Item                  15.  | Managements                  Annual Report on Internal Controls over Financial                  Reporting     | 7 |
| Item                  16A. | Audit                  Committee Financial Expert                                                             | 7 |
| Item                  16B. | Code                  of Ethics                                                                               | 8 |
| Item                  16C. | Principal                  Accountant Fees and Services                                                       | 8 |
| Item                  17.  | Financial                  Statements                                                                         | 8 |
| Item                  18.  | Financial                  Statements                                                                         | 8 |
| Item                  19.  | Financial                  Statements and Exhibits                                                            | 8 |
|                       | SIGNATURES                                                                                                    | 8 |
|                       | CERTIFICATION                                                                                                 | 9 |

----

----

| Statement                of Income Data:                                                                             |   | For                the Year ended |       |   | For                the year ended |   |       | For                the year ended |   |   | Cumulative                since inception |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|-----------------------------------|--------|------------|-----------------------------------|--------|--------|-------------------------------------------|--------|
|                                                                                                                 |   | December                31, 2005  |       |   | December                31, 2004  |   |       | December                31, 2003  |   |   | July                23,1993               |   |
| Revenue                                                                                                              |   | $                                 | -          |   |                              | $      | -          |                              |   | $      | -                                         |   |   | $ | 196,794 |   |
|    Subscriber                                                                                         |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 55,443 |   |
|    Equipment                Sales                                                                     |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 15,971 |   |
|                                                                                                                 |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 234,704 |   |
|    Other                                                                                              |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | - |   |
|          Total                revenue                                   |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 502,912 |   |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
| Cost                of revenue and operating expenses                                                                |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
|    Professional                service                                                                |   |                              | 4,500      |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 4,500 |   |
|    Technical                operations                                                                |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 151,687 |   |
|    Cost                of sales                                                                       |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 33,009 |   |
|    Sales                & marketing                                                               |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 347,674 |   |
|    Administration                                                                                     |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 1,174,486 |   |
|    Amortization                                                                                       |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 220,110 |   |
|        Total                cost of revenue and operating expenses                |   |                              | 4,500      |   |                              | $      | -          |                              |   | $      | -                                         |   |   | $ | 1,931,466 |   |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
| Income                (loss) before under noted                                                                      |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
|    Write                down of mortgages and loans                                                   |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | (93,555 | ) |
|    Foreign                exchange loss                                                               |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | (12,141 | ) |
|    Interest                on notes                                                                   |   |                              | 1,020      |   |                              |   | -          |                              |   |   | -                                         |   |   |   | (111,258 | ) |
|    Non-controling                interest                                                             |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 47,222 |   |
|    Forgiveness                of debts and cancellation of liabilities                                |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 3,910,238 |   |
|    Loss                on abandonment and disposal of assets and discontinued                business |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | (10,642,290 | ) |
|    Other                                                                                              |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   | 16,086 |   |
|                                                                                                                 |   |                              | 1,020      |   |                              |   | -          |                              |   |   | -                                         |   |   |   | (6,885,698 | ) |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
| Net                income (loss)                                                                                     |   |                              | (5,520     | )      |                              |   | -          |                              |   |   | -                                         |   |   |   |   |   |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
| Deferred                Income Taxes                                                                                 |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   |   |   |
| Income                Tax Benefit                                                                                    |   |                              | -          |   |                              |   | -          |                              |   |   | -                                         |   |   |   |   |   |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
| NET                INCOME                                                                                            |   | $                                 | (5,520     | )      |                              | $      | -          |                              |   | $      | -                                         |   |   | $ | (8,314,252 | ) |
| Net                income (loss) per common share - basic and diluted                                                |   | $                                 | (0.00      | )      |                              | $      | (0.00      | )                                 |   | $      | (0.00                                     | )      |   | $ |   |   |
|                                                                                                                 |   |                              |       |   |                              |   |       |                              |   |   |                                      |   |   |   |   |   |
| Weighted                average common shares outstanding                                                            |   |                              | 12,093,851 |   |                              |   | 12,093,851 |                              |   |   | 12,093,851                                |   |   |   |   |   |

----

| Balance                  Sheet Data:        | Year                  Ended                                                               |    Year                  Ended         | Year                  Ended                                                               |
|---------------------------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------------------------------------------|
|                                        | 2005                                                                                      | 2004                                                  | 2003                                                                                      |
| Working                  Capital            | $                             0.00 | $        0.00 | $                             0.00 |
| Total                  Assets               | 0.00                                                                                      | 0.00                                                  | 0.00                                                                                      |
| Long                  Term Debt             |          (5,520)                             | 0.00                                                  | 0.00                                                                                      |
| Shareholders’                  Equity |          (5,520)                             | 0.00                                                  | 0.00                                                                                      |
|                                        |                                                                                      |                                                  |                                                                                      |

1

|   | There                are no legal proceedings. |
|--------|------------------------------------------------|

----

| Name                       | Age    | Title                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|
| Ross                  Wilmott                                                                                                            | 63     | Director                  (1)                            |
| Kimberly                  Zilke                                                                                                          | 44     | President                  & Secretary/Treasurer (1) |
| Leon                  J. Danna                                                                                                           | 67     | President,                  Director & CEO (2)       |
|                                                                                                                                     |   |                                                     |

| (1)   | Served                in 2005 |
|-----------------|-------------------------------|

| (2)   | Elected                on August 15, 2007 |
|-----------------|-------------------------------------------|

----

|                          | Highs | Lows  | Highs | Lows  |
|-------------------------------|-------|-------|-------|-------|
| First                Quarter  | $0.00 | $0.00 | $0.00 | $0.00 |
| Second                Quarter | $0.00 | $0.00 | $0.00 | $0.00 |
| Third                Quarter  | $0.00 | $0.00 | $0.00 | $0.00 |
| Fourth                Quarter | $0.00 | $0.00 | $0.00 | $0.00 |

----

| A)   | Pertain                to the maintenance of records that, in reasonable detail, accurately                and                fairly reflect the transactions and dispositions of our                assets; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B)   | Provide                reasonable assurance that transactions are recorded as necessary                to permit                preparation of the financial statements in accordance with generally                accepted accounting principals, and that our receipts and expenditures                are                being made only in accordance with authorizations of our management                and                directors, and: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C)   | Provide                reasonable assurance regarding prevention or timely detection of                unauthorized acquisition, use or disposition or our assets that could                have                a material effect on the financial                statements. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)                Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Report                of Independent Auditor  (Exhibit A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 11     |
| Consolidated                Balance Sheet as of December 31, 2005 and 2004 (Exhibit B)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 12     |
| Consolidated                Statements of Operations for Each of the Years in a 2 year period                ending                December 31, 2005 (Exhibit C)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 13     |
| Consolidated                Statements of Shareholders’ Equity for Each of the Years in a 2 year                period ending December 31, 2005 (Exhibit D)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 14     |
| Consolidated                Statements of Cash Flows for Each of the Years in a 2 year period                ending                December 31, 2005 (Exhibit E)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 15     |
| Notes                to Consolidated Financial                Statements                                                                                                                (Exhibit F) | 16-18  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |

|                                    | SIPP                  INDUSTRIES, INC. (Formerly Promax Communications, Inc.) |                                                             |
|-----------------------------------------|-------------------------------------------------------------------------------|------------------------------------------------------------------|
|                                    |                                                                          |                                                             |   |
| Date:                  February 7, 2008 | By:                                                                           | /s/ Leon                J. Danna                            |   |
|                                    |                                                                          | Leon                J. Danna                                     |   |
|                                    |                                                                          | Chief                  Executive Officer, President and Director |   |
|                                    |                                                                          |                                                             |   |

----

|   | 1. | I                have reviewed this annual report on Form 20-F of SIPP Industries,                Inc.                (formerly Promax Communications, Inc.).; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Based                on my knowledge, this annual report does not contain any untrue statement                of a material fact or omit to state a material fact necessary to                make the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                quarterly report; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all respects the financial                condition, results of operations and cash flows of the Company as                of, and                for, the periods covered by this annual report; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | I                am responsible for establishing and maintaining disclosure controls                and                procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))                and                internal control over financial reporting (as defined in Exchange                Act                Rules 13a-15(f) and 15d-15(f) for the Company and have: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the small business issuer,                including                its consolidated subsidiaries, is made known to us by others within                those                entities, particularly during the period in which this report is                being                prepared; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the small business issuer's                most                recent fiscal quarter (the small business issuer's fourth fiscal                quarter                in the case of an annual report) that has materially affected, or                is                reasonably likely to materially affect, the small business issuer's                internal control over financial reporting; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | I                have disclosed, based on my most recent evaluation of internal control                over financial reporting, to the small business issuer's auditors                of the                small business issuer's board of directors (or persons performing                the                equivalent functions): |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (ii)   | the                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Stan                J.H. Lee, CPARegistered                with the Public Company Accounting Oversight Board2160                North Central Rd.  Suite 203 tFort                Lee t NJ                07024794                Broadway t Chula                Vista t CA                91910619-623-7799                Fax 619-564-3408  E-mail)                stan2u@gmail.com |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| PROMAX                COMMUNICATIONS, INC.)                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                        |              |                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              | For                the Periods ended June 30, 2005 and 2004 |              |                                                                                                                                                      |   |
|                                                                   (A                DEVELOPMENT STAGE COMPANY)          |                                                        |              |                                                                                                                                                      |   |   |
|                                                                     CONSOLIDATED                BALANCE SHEET |                                                        |              |                                                                                                                                                      |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                     As                of December 31, |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              | 2005                                                                                                                                                      |   | 2004 |   |   |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                        |              |                                                                                                                                                      |   |   |
| Current                Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $                                                           |  -           |                                                                                                                                                      |  - |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
| Total                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                       | $                                                           |  -           |                                                                                                                                                      |  - |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
| Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
|    Notes                payable - non-affiliated                                                                                                                                                                                                                                                                                                                                                                                                   | $                                                           |  4,500       |                                                                                                                                                      |  - |   |   |   |   |
|    Accrued                interest in notes payable                                                                                                                                                                                                                                                                                                                                                                                                |                                                        |  1,020       |                                                                                                                                                      |  - |   |   |   |   |
|      Total                current liabilities                                                                                                                                                                                                                                                                                                                                                                                            |                                                        |  5,520       |                                                                                                                                                      |  - |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
| Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                        |  5,520       |                                                                                                                                                      |  - |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                stock: $0.001 par value; 10,000,000 shares authorized; none issued                or                outstanding                                                                                                                                                                                                                                                                                                                          |                                                        |  -           |                                                                                                                                                      |  - |   |   |   |   |
| Common                stock: $0.001 par value; 250,000,000 shares authorized:12,093,851                issued                and outstanding as of September 30, 2005                                                                                                                                                                                                                                                                                             |  $                                                     |  1,209       |                                                                                                                                                      |  1,209 |   |   |   |   |
| Paid                in capital                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                        |  9,161,510   |                                                                                                                                                      |  9,161,510 |   |   |   |   |
| Cost                of financing                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                        |  (852,150)   |                                                                                                                                                      |  (852,150) |   |   |   |   |
| Accumulated                deficit during the development stage                                                                                                                                                                                                                                                                                                                                                                                                   |                                                        |  (8,314,252) |                                                                                                                                                      |  (8,308,732) |   |   |   |   |
| Accumulated                translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                        |  (1,837)     |                                                                                                                                                      |  (1,837) |   |   |   |   |
| Total                stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                        |  (5,520)     |                                                                                                                                                      |  - |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
| Total                Liabilities and Shareholders' Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                               | $                                                           |  -           |                                                                                                                                                      |  - |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                        |              |                                                                                                                                                      |   |   |   |   |   |

----

|                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------|
| PROMAX                COMMUNICATIONS, INC.                                                                           |
| (A                DEVELOPMENT STAGE COMPANY)                                                                         |
| CONSOLIDATED                STATEMENT OF                OPERATIONS                                                   |
|                                                                                                                 |   | For                the year ended |   | For                the year ended |   | Cumulative                since inception |
|                                                                                                                 |   | December                31, 2005 |   | December                31, 2004 |   | July                23,1993 |
| Revenue                                                                                                              | $ |  - | $ |  - | $ |  196,794 |
|    Subscriber                                                                                         |   |  - |   |  - |   |  55,443 |
|    Equipment                Sales                                                                     |   |  - |   |  - |   |  15,971 |
|                                                                                                                 |   |  - |   |  - |   |  234,704 |
|    Other                                                                                              |   |  - |   |  - |   |  - |
|          Total                revenue                                   |   |  - |   |  - |   |  502,912 |
|                                                                                                                 |   |   |   |   |   |   |
| Cost                of revenue and operating expenses                                                                |   |   |   |   |   |   |
|    Professional                service                                                                |   |  4,500 |   |  - |   |  4,500 |
|    Technical                operations                                                                |   |  - |   |  - |   |  151,687 |
|    Cost                of sales                                                                       |   |  - |   |  - |   |  33,009 |
|    Sales                & marketing                                                               |   |  - |   |  - |   |  347,674 |
|    Administration                                                                                     |   |  - |   |  - |   |  1,174,486 |
|    Amortization                                                                                       |   |  - |   |  - |   |  220,110 |
|        Total                cost of revenue and operating expenses                | $ |  4,500 |  $ |  - | $ |  1,931,466 |
|                                                                                                                 |   |   |   |   |   |   |
| Income                (loss) before under noted                                                                      |   |   |   |   |   |   |
|    Write                down of mortgages and loans                                                   |   |  - |   |  - |   |  (93,555) |
|    Foreign                exchange loss                                                               |   |  - |   |  - |   |  (12,141) |
|    Interest                on notes                                                                   |   |  1,020 |   |  - |   |  (111,258) |
|    Non-controling                interest                                                             |   |  - |   |  - |   |  47,222 |
|    Forgiveness                of debts and cancellation of liabilities                                |   |  - |   |  - |   |  3,910,238 |
|    Loss                on abandonment and disposal of assets and discontinued                business |   |  - |   |  - |   |  (10,642,290) |
|    Other                                                                                              |   |  - |   |  - |   |  16,086 |
|                                                                                                                 |   |  1,020 |   |  - |   |  (6,885,698) |
|                                                                                                                 |   |   |   |   |   |   |
| Net                income (loss)                                                                                     |   |  (5,520) |   |  - |   |  |
|                                                                                                                 |   |   |   |   |   |   |
| Deferred                Income Taxes                                                                                 |   |  - |   |  - |   |   |
| Income                Tax Benefit                                                                                    |   |  - |   |  - |   |  |
|                                                                                                                 |   |   |   |   |   |   |
| NET                INCOME                                                                                            |  $ |  (5,520) |  $ |  - |  $ |  (8,314,252) |
|                                                                                                                 |   |   |   |   |   |   |
| Net                income (loss) per common share - basic and diluted                                                |  $ |  (0.00) |  $ |  (0.00) | $ |   |
|                                                                                                                 |   |   |   |   |   |   |
| Weighted                average common shares outstanding -                                                          |   |  12,093,851 |   |  12,093,851 |   |   |

----

|                                                                  |             |
|-----------------------------------------------------------------------|------------------|
| PROMAX                COMMUNICATIONS, INC.                            |             |
| (A                DEVELOPMENT STAGE COMPANY)                          |             |
| CONSOLIDATED                STATEMENT OF STOCKHOLDERS' EQUITY         |             |
|                                                                  |             |   |   |   |   |  |   |   |   |   |   |
|                                                                       | Capital          |   | Accumulated                Deficit During Development Stage |  | Accumulated                translation adjustment |  | Total                Stockholders' Equity(Deficit) |   |   |
|                                                                       |  Shares     |  | Common                Stocks |  | Paid                in capital - net of cost of financing |   |  |  |   |   |
|                                                                  |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                January 1, 2004                               |  12,093,851 |  $ |  1,209 |  $ |  8,309,360 |  $ |  (8,308,732) |  $ |  (1,837) |  $ |  - |   |   |
|                                                                  |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss) for the year ended December 31, 2005 |  -          |   |  - |   |  - |   |  - |   |  - |   |  - |   |   |
|                                                                  |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                December 31, 2004                             |  12,093,851 |   |  1,209 |   |  8,309,360 |   |  (8,308,732) |   |  (1,837) |   |  - |   |   |
|                                                                  |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss) for the year ended December 31, 2005 |  -          |   |  - |   |  - |   |  (5,520) |   |  - |   |  (5,520) |   |   |
|                                                                  |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                June 30, 2007                                 |  12,093,851 |  $ |  1,209 | $ |  8,309,360 |  $ |  (8,314,252) |  $ |  (1,837) |  $ |  (5,520) |   |   |
|                                                                  |             |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                               |
|--------------------------------------------------------------------|
| (PROMAX                COMMUNICATIONS, INC.                        |
| (A                DEVELOPMENT STAGE COMPANY)                       |
| CONSOLIDATED                STATEMENT OF CASH                FLOWS |
| For                the Years ended June 30, 2005 and 2004          |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |  For                the year ended |   |  For                the year ended |   | Cumulative                since inception |   |   |   |   |   |
|                                                               |   |   |  December                31, 2005 |   |  December                31, 2004 |   | July                23,1993 |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Cash                flows from operating activities: |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Net                income (loss) |  $ |  (5,520) |  $ |  - |  $ |  (8,314,252) |   |   |   |   |   |
|                                                               |     Changes                in operating assets and liabilities: |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |           Items                not involving cash: |   |  - |   |  - |   |  - |   |   |   |   |   |
|                                                               |           Amortization |   |  - |   |  - |   |  220,110 |   |   |   |   |   |
|                                                               |              Cumulative                translation adjustment |   |  - |   |  - |   |  (6,840) |   |   |   |   |   |
|                                                               |   Non-controlling                interest |   |  - |   |  - |   |  (47,222) |   |   |   |   |   |
|                                                               |              Forgiveness                of debt and cancellation of liabilities |   |  - |   |  - |   |  (3,910,238) |   |   |   |   |   |
|                                                               |              Loss                on abandonment and disposal of assets and discontinued                business |   |  - |   |  - |   |  10,311,321 |   |   |   |   |   |
|                                                               |   Change                in working capital |   |  1,020 |   |  - |   |  2,007,167 |   |   |   |   |   |
|                                                               |              Net                cash used in operating activities |  $ |  (4,500) |  $ |  - | $ |  260,046 |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Cash                flows from financing activities: |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |    Issuance                of shares, net of issue costs |   |   |   |  - |   |  7,466,710 |   |   |   |   |   |
|                                                               |    Redemption                of shares |   |  - |   |  - |   |  (477,999) |   |   |   |   |   |
|                                                               |    Promissory                notes |   |  4,500 |   |  - |   |  3,804,500 |   |   |   |   |   |
|                                                               |    Dividends |   |  - |   |  - |   |  (105,815) |   |   |   |   |   |
|                                                               |    Amounts                receivable related to the issuance of shares |   |  - |   |  - |   |  (38,030) |   |   |   |   |   |
|                                                               |    Subscription                received in advance of capital stocks |   |  - |   |  - |   |  1,032,109 |   |   |   |   |   |
|                                                               |              Net                cash provided by financing activities |   |  - |   |  - |   |  11,681,475 |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Cash                flows from investment activities: |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |    Capital                assets |   |  - |   |  - |   |  (94,399) |   |   |   |   |   |
|                                                               |    Investment                in Argent Tel |   |  - |   |  - |   |  (200,000) |   |   |   |   |   |
|                                                               |    Investment                in Skylink, net of cash |   |  - |   |  - |   |  (8,487,082) |   |   |   |   |   |
|                                                               |    Mortgages                and loans receivable |   |  - |   |  - |   |  297,018 |   |   |   |   |   |
|                                                               |    Increase                in deferred development costs |   |  - |   |  - |   |  (138,023) |   |   |   |   |   |
|                                                               |    Acquisition                of equipment, net of disposals |   |  - |   |  - |   |  (115,727) |   |   |   |   |   |
|                                                               |    Business                acquisitions net of cash acquired |   |  - |   |  - |   |  (3,203,308) |   |   |   |   |   |
|                                                               |              Net                cash provided (or used) in investment activities |   |  - |   |  |   |  (11,941,521) |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Net                change in cash |   |  - |   |  - |   |  - |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Cash,                beginning of period |   |  - |   |  - |   |  - |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Cash,                end of period |  $ |  - |  $ |  - | $ |  - |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Supplemental                disclosure of cash flow information: |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |    Cash                paid for interest |  $ |  1,020 |  $ |  - | $ | - |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |  Schedule                of non-cash financing and investing activities: |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |    Issuance                of common stock |  $ |  - |  $ |  - | $ | - |   |   |   |   |   |

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| 1.   | Borrowing                from other staff members. |
|----------------|----------------------------------------------------|

| 2.   | Borrowing                from customers, benefactors or suppliers other than lending                institutions. |
|----------------|-------------------------------------------------------------------------------------------------------------------|

| 3.   | Investing,                either directly or indirectly, in a customer, benefactor or supplier                other                than those publicly traded on national                exchanges. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Selling                or leasing personal goods or services to a customer, supplier, or                benefactor. |
|----------------|---------------------------------------------------------------------------------------------------------------------|

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