UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2007

                                      or

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
         For the transition period from _____________ to ___________


                         Commission file number 0-25658

                       SECURED DIGITAL APPLICATIONS, INC.
             (Exact name of Registrant as specified in its Charter)


                 DELAWARE                                84-1357927
     (State or other jurisdiction of                 (I.R.S. Employer
      incorporation or organization)                 Identification No.)


                230, PARK AVENUE, 10TH FLOOR, NEW YORK, NY 10169
               (Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code (212) 551 1747

Securities registered pursuant to Section 12(b) of the Act: None

           Securities registered pursuant to Section 12(g) of the Act:

                   Common Stock, $0.00001 per share par value
           -----------------------------------------------------------
                                (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.
                                                                [_] Yes  [X] No


Indicate by check mark whether the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act.
                                                                [_] Yes  [X] No


Indicate by check mark if the registrant (1) has filed all reports required to
be filled by Section 13 or Section 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 [_] No



<PAGE>


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (ss.229.405) is not contained herein, and will not be
contained, to the best of registrant's knowledge, indefinitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendments to this Form 10-K. [_]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [_]                                Accelerated filer [_]

Non-accelerated filer [_] (Do not check if a smaller reporting company)

Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act).
                                                                [_] Yes  [X] No

The aggregate market value of the voting stock of the Company held by
non-affiliates, computed by reference to the closing trade price of the
registrant's common stock on December 31, 2007 as reported on the
Over-the-Counter Bulletin Board of the National Association of Securities
Dealers Automated Quotation system was $17,375,500.

At April 11, 2008, there were 138,046,814 outstanding shares of the issuer's
Common Stock

Documents Incorporated By Reference

The registrant has not incorporated by reference into this annual report on Form
10-K (1) any annual report to the registrant's securities holders, (2) any proxy
or information statement or (3) any prospectus filed pursuant to Rule 424(b) or
(c) of the Securities Act.



<PAGE>


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>  <C>                                                                                            <C>
PART I
Item 1    Business                                                                                   4
Item 1A   Risk Factors                                                                              11
Item 2    Properties                                                                                13
Item 3    Legal Proceedings                                                                         13
Item 4    Submission of Matters to a Vote of Security Holders                                       13

PART II
Item 5    Market for Registrant's Common Equity, Related Stockholder Matters
          And Issuer Purchases of Equity Securities                                                 14
Item 6    Selected Financial Data                                                                   16
Item 7    Management's Discussion and Analysis of Financial Condition and Results of Operations     16
Item 7A   Quantitative and Qualitative Disclosures about Market Risk                                23
Item 8    Financial Statements and Supplementary Data                                               24
Item 9    Changes in and Disagreements with Accountants on Accounting
          and Financial Disclosure                                                                  24
Item 9A(T)Controls and Procedures                                                                   24
Item 9B   Other Information                                                                         25

PART III
Item 10   Directors, Executive Officers and Corporate Governance                                    26
Item 11   Executive Compensation                                                                    28
Item 12   Security Ownership of Certain Beneficial Owners and Management
          and Related Stockholder Matters                                                           32
Item 13   Certain Relationships and Related Transactions, and Director Independence                 33
Item 14   Principal Accountant Fees and Services                                                    34

PART IV
Item 15   Exhibits and Financial Statement Schedules
</TABLE>

SAFE HARBOR STATEMENT

    This  annual  report on Form 10-K and other  reports  filed by the Company
from time to time with the Securities and Exchange  Commission  (the "SEC"),  as
well as the Company's  press  releases,  contain or may contain  forward-looking
statements,  within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Information is provided that
is based upon beliefs of, and information  currently available to, the Company's
management,  as  well  as  estimates  and  assumptions  made  by  the  Company's
management.  The Company is including this  cautionary  statement in this annual
report Form 10-K to make  applicable  and to take  advantage  of the safe harbor
provisions  of the  Private  Securities  Litigation  Reform  Act of 1995 for any
forward-looking  statements made by or on behalf of us.  Statements that are not
statements of historical  fact may be deemed to be  forward-looking  statements.
Forward-looking  statements  can be  identified  by the  use of  forward-looking
terminology  such as "believes,"  "may," "should,"  "anticipates,"  "estimates,"
"expects,"  "future,"  "intends," "hopes," "plans,"  "projects," or the negative
thereof.  Such  forward-looking  statements  involve  known and  unknown  risks,
uncertainties  and other factors that could cause actual  results of the Company
to vary materially from historical  results or from any future results expressed
or implied in such forward-looking statements.

    These factors include, among others, the following: the inability of the
Company to successfully implement its business plans, the cancellation or
postponement of contracts that the Company has entered into in connection with
its business, the inability to obtain services provided by other companies or
service providers, the inability of the Company to raise capital on a timely
basis, the inability of the Company to meet certain covenants contained in trade
financing agreements, existing and future government regulations, changes and
fluctuation in foreign currency exchange rates, the failure to retain qualified
personnel, competitive pressures and potentially adverse tax and cash flow
consequences resulting from operations in multiple countries with different laws
and regulations, and the general economic and business conditions in Malaysia,
China, the United States and the other countries in which we do business,
primarily in Asia. The Company does not undertake to update, revise or correct
any forward-looking statements.


                                       3
<PAGE>


Introductory Note
-----------------



The information contained in this annual report on Form 10-K reflects the effect
of  a  reorganization   during  2006  of  the  Company's   principal   operating
subsidiaries   and  the  disposition  of  certain  other  assets  and  operating
subsidiaries  in June 2007. As a result,  certain  results of prior periods have
been restated to reflect certain  operations,  previously reported as continuing
operations,  as having been  discontinued.  The restatement of these operations,
primarily  related to the Company's former  operations as the operator of retail
computer stores and a secured shipping subsidiary,  are described in more detail
in  the  financial  statements  and  notes  thereto,  as  well  as  in  Item  7.
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations.

ITEM 1.   BUSINESS.

OVERVIEW

      Secured Digital Applications,  Inc. ("SDA" or the "Company") is a provider
of a  comprehensive  range of  mobile  communication,  outsourced  business  and
information  technology  consulting  services.  We generate  revenue through our
majority or wholly-owned subsidiary  companies  located in the United States and
Malaysia.

      Our  business is  organized  under two  divisions.  The first  division is
involved in multimedia production,  information technology, computing consulting
services and the sale of smarthome and biometric security products and services.
The new second division handles the sale of Bluetooth, Global Positioning System
(GPS) and Radio Frequency Identification (RFID)-enabled applications. During the
fourth  quarter  of  2007,  we  secured  contracts  for the sale of RFID and GPS
applications  in the new second  division and revenues from these  contracts are
expected to be generated in the second  quarter of 2008. In line with our policy
of maintaining low overheads and remaining competitive with quality products and
services,   contracts  secured  by  SDA  or  its  subsidiaries  are  customarily
outsourced to third parties.

      SDA  became a  publicly  held  company  through a reverse  merger in 1999.
Following  poor economic  conditions  in the  telecommunications  industry,  the
Company  pursued a strategy of expanding its  operations  by acquiring  majority
interests  in  companies  believed  to have  superior  potential  for growth and
profitability.  As a result  of these  acquisitions  and  through  the  internal
development  of new lines of  business,  SDA has  focused  its  activities  as a
supplier of outsourcing and consulting services.

      During 2006, we reorganized  our business and sold the Company's  interest
in a chain of  computer  retail  stores  and a  secured  shipping  company.  The
reorganization  was the  result  of our  strategy  to focus  our  activities  on
outsourcing and consulting, particularly, in the areas of multimedia production,
information technology and computing,  smarthome,  biometric security and mobile
communication applications utilizing Bluetooth, GPS and RFID technologies.

      Our growth has been underpinned by the sale of our smarthome and biometric
security  systems  that laid the  foundation  for our entry  into the  provision
development  and of  Bluetooth,  GPS  and  RFID-enabled  applications.  We  have
combined our know-how in Bluetooth,  GPS and RFID  technologies and expertise in
the production of multimedia  content to create new compelling  applications for
the retailing,  logistics and  warehousing,  telecommunication,  transportation,
healthcare,  security and manufacturing industries.  Management intends to focus
on the  Company's  core  strength  in the  development  of  Bluetooth,  GPS  and
RFID-enabled  applications and provision of outsourcing and consulting  services
and  continue to build on its business  model of  outsourcing  its  contracts to
third parties.


                                       4
<PAGE>


BUSINESS DEVELOPMENT

      SDA began  operations as a business  organized  under the law of Malaysia.
Following a merger with a Colorado  corporation in 1999, we began to do business
as Digital Broadband  Networks,  Inc. On June 5, 2002, we  reincorporated  under
Delaware law by merging the existing Digital Broadband  Networks,  Inc. with and
into a wholly-owned  subsidiary  organized  under  Delaware  law. On January 28,
2004,  we changed  our name to Secured  Digital  Applications,  Inc. in order to
reflect the changed focus of the Company.

      SDA's  corporate  office is located at 230 Park  Avenue,  10th Floor,  New
York,  New York 10169.  We also maintain an  administrative  office at 11, Jalan
51A/223, 46100 Petaling Jaya, Selangor, Malaysia.



BUSINESS OF ISSUER

Operations of the SDA Group of Companies

      SDA is a  provider  of mobile  communication  and  information  technology
consulting  services.  Our  strategy  is to  provide  business  services  to our
customers in a manner that is both  superior in quality and more cost  efficient
than the customer can provide themselves.  Our services are focused in the areas
of  multimedia  production,  information  technology  and  computing  consulting
services,  smarthome,  biometric  security and Bluetooth,  GPS and  RFID-enabled
applications.  As a supplier and consultant, we rely on a combination of current
technologies to provide high-quality services at competitive prices.

      The Company has provided outsourced  information technology and multimedia
content production services since 2000. We began to provide services in security
applications, particularly biometric security applications, during 2003.

      SDA continues to seek to add to its holdings with  acquisitions  that meet
management's  criteria for inclusion in the group of SDA companies.  In general,
we continue to seek out regional  businesses with strong  management  willing to
remain in considerable  positions of  responsibility as minority equity holders.
We also seek  businesses  that are operating at a profit or near  break-even and
which provide a superior  opportunity for high rates of growth after integration
into the SDA group of companies.  In  considering  potential  acquisitions,  SDA
evaluates such factors as

     o    the  "fit"  of  the  potential   acquisition   among  SDA's   existing
          subsidiaries,  in particular  whether the acquisition is complementary
          to SDA's existing operating subsidiaries;
     o    the  capabilities  of  existing  management  and  the  willingness  of
          existing  management to continue with the  enterprise as employees and
          minority equity holders;
     o    whether the  enterprise  provides,  in  management's  view, a superior
          potential for growth and profitability after acquisition;
     o    whether the enterprise,  in management's view, can be successfully and
          beneficially integrated with SDA's existing business processes;
     o    the terms  under  which  existing  management  is prepared to convey a
          majority interest to SDA; and
     o    the  demonstrated  ability  of  existing  management  to  operate  the
          enterprise profitably.


                                       5
<PAGE>


         SDA's  acquisitions and the growth of its operating  subsidiaries  have
been a significant  factor in the rapid growth of the Company's  revenues  since
2000,  from  approximately  $4.2 million for the year ended December 31, 2000 to
approximately  $47.7 million for the year ended December 31, 2007.  There can be
no  assurance,  however,  of  SDA's  continuing  success  with its  strategy  of
acquiring and integrating regional business enterprises.

         Since 2000, we have succeeded in financing our  acquisitions  primarily
with internally  generated funds and with the issuance of our common stock. This
strategy has permitted the Company to maintain a low debt to equity ratio. There
can be no  assurance,  however,  that we will  be  able to  continue  to pay for
acquisitions  with  internally  generated  funds and it is  likely  that we will
require  additional  funding,  which may result in the  issuance  of  additional
equity or debt.


Areas of Operation - Overview

      SDA's  principal  operations  are  largely in the  information  technology
industry,  in  which  its  companies,  either  independently  or  through  joint
projects,  seek to develop and commercialize  practical  applications of digital
technology that are provided to third party  customers on a contract basis.  Our
current  revenues  are  generated  from  multimedia  production,   security  and
logistics applications and information technology consulting.

      During the third quarter of 2006,  the Company  determined  that it was in
the best  interests of SDA and its  stockholders  to  restructure  the Company's
operating  subsidiaries.  The  intent  of  the  reorganization  was  to  improve
administrative   efficiency  and  profit  margins,   to  dispose  of  assets  or
subsidiaries that did not meet management's  criteria for continued inclusion in
the SDA  group  of  companies  and to  focus on  those  activities  believed  by
management to constitute the core businesses of the Company.  In particular,  we
determined that our subsidiaries  involved in the developing business of secured
shipping and in the established  business of operating  retail computer  outlets
did not meet the  Company's  criteria  for  profitability  and/or fit within the
Company's organization.  Under the reorganization plan, a substantial portion of
the  assets and  liabilities  of our  principal  operating  subsidiary,  Secured
Digital  Applications (M) Sdn Bhd ("SDAM"),  were transferred to a newly created
subsidiary,  DigitalApps  Sdn Bhd  ("DASB").  DASB  thus  became  our  principal
operating  subsidiary with  substantially the same assets and liabilities as the
former SDAM.

      On  June  27,  2007,  the  Company  sold  its  wholly-owned   subsidiary,
DigitalApps   Technologies  Sdn  Bhd  ("DAT"),   which  included  its  55%-owned
subsidiary,  Ispec Sdn Bhd ("ISS"),  to a third party  and  recognized a gain on
disposal of $22,984.  Both DAT and ISS were operating at a loss and did not meet
the Company's criteria for return on investment.  The Company determined that it
was in its  best  interest  to  dispose  of DAT and ISS to allow  its  available
resources  and  infrastructure  to be  better  utilized  in the  Company's  core
businesses   that  include   systems   integration  of  RFID  enabled   tracking
applications.

      In November  2007,  the Company  acquired the right to the source code for
the  Bluetooth  cell  integration,   cell  management  and  proximity  marketing
software. Since acquiring the right, the Company has utilized the source code to
develop a host of  applications  for the retailing,  logistics and  warehousing,
telecommunication,   transportation,   healthcare,  security  and  manufacturing
industries.


                                       6
<PAGE>


Operations During 2007

      The  Company's  principal   operations  during  2007  included  multimedia
production,  information technology and computing services,  sales of smarthome,
biometric security and Bluetooth, GPS and RFID-enabled applications. We marketed
hardware and software as well as consulting services to a number of companies in
the public and  private  sectors.  Our  hardware  products  included  the EyStar
SmartHome Management System,  biometric systems and Internet-based  cameras. SDA
sells its products in connection with  consulting  contracts that are awarded to
the Company.  We presently  provide these  services  principally to customers in
Southeast Asia.

      At December 31, 2007, the Company and its  subsidiaries  had a total of 17
employees,  all of whom are  employed  full-time  in  Malaysia.  In an effort to
reduce its  operating  costs,  the Company has  outsourced  its  labor-intensive
content  production  work to  third  parties.  The  Company  plans  to  continue
recruiting   additional   employees   in  2008   to   further   strengthen   its
administrative, sales and marketing divisions.


The SDA Group of Companies Business Activities

Content Production and Information Technology Consulting Services

      The  Company is  involved in the design,  development  and  production  of
interactive multimedia content, websites,  e-commerce programs and applications.
Our business includes the following activities:

      o     Designing,   producing,  hosting  and  distribution  of  interactive
            multimedia content, websites, programs and applications;

      o     Developing  and  producing  e-commerce  programs and  Internet-based
            security applications and solutions; and

      o     Providing project consulting services on broadband communication and
            networking systems for property development projects.

      We continue to pursue  opportunities to provide  technical  consulting and
technical  services  to  commercial  businesses.  Further,  we  continue to seek
opportunities  to combine the  Company's  expertise in supply  chain  management
solutions  with  wireless  technologies  like  Bluetooth,  RFID and GPS tracking
systems  and  biometric  security  systems  for  the  retailing,  logistics  and
warehousing,   telecommunication,   transportation,   healthcare,  security  and
manufacturing industries.

EyStar SmartHome Management System

      We market and distribute a second generation of the multi-protocol  EyStar
SmartHome Management System. The EyStar SmartHome Management System is a gateway
device that bridges external data networks such as the Internet to internal home
networks like Ethernet, telephone line, power line and the 802.11b wireless LAN,
eliminating the need for any additional  wiring in the home. The Console has the
capacity  to enable  value-added  services to be offered to  subscribers.  These
services  include home  healthcare  in  conjunction  with  hospitals  and health
advisors,  interconnection  and  control of  appliances  produced  by  different
manufacturers and security applications that allow subscribers to check on their
homes  remotely.  This  console  is  designed  to operate on both the narrow and
broadband  fixed  line/wireless  networks  and can be  linked  to the  SmileCAM,
another product marketed by the Company.


                                       7
<PAGE>


      The Company markets the EyStar SmartHome Management System directly to its
customers but has entered into various agreements with marketing  consultants to
expand the marketing of the EyStar  SmartHome  Management  System and with value
added resellers to provide enhanced features to purchasers of the console.

Biometric Security Products and Solutions

      SDA is engaged in the development,  commercialization  and installation of
biometric security products and solutions.  Through licenses obtained from third
parties,  we sell  biometric  security  products and  solutions  directly and in
connection  with  consulting  and  service  contracts.  We  develop  value-added
applications  incorporating  biometrics  technology  as part of our  information
technology and wireless technology consulting  activities.  A significant aspect
of our business is secured in connection with new construction of commercial and
residential properties.

      As part of our biometric security business,  we sell SmileCAM remote video
surveillance  cameras in Malaysia under a renewable  license from Sintec Inc. We
also distribute biometric security products under an agreement with Testech Inc.
Our biometric  products and  solutions,  sold directly and in  conjunction  with
consulting and installation contracts, include:

     o    access control systems,
     o    time and attendance systems;
     o    door lock and fingerprint  authentication module; and o remote cameras
          with automatic motion detection and tracking.

      Our biometric  security products and solutions utilize Internet  protocols
and  multiple  authentication  modes  such  as  fingerprint,   voice  or  facial
recognition,  retinal scans and proximity readers.  We have attempted to license
products that incorporate innovative technology and are competitively priced for
the mass market in order to have a wide range of security  products  that can be
customized to meet our customers' individual needs.

      We have also integrated our biometric security products and solutions with
the EyStar Smarthome Management System to reach a broader market base. We market
our biometric security products and solutions directly to real estate developers
and architects.

Bluetooth Proximity Marketing System

      We have  utilized the  Bluetooth  source code that we acquired in November
2007 to develop the Bluetooth  Proximity  Marketing System  ("BPMS").  BPMS is a
method of sending  advertisements to Bluetooth-enabled cell phones utilizing the
unlicensed  universally  recognised  2.4GHz  ISM  (industrial,   scientific  and
medical)  radio   frequency  (RF)  band.  This  RF  band  is  allocated  by  the
Geneva-based  International  Telecommunication Union and is not subjected to any
licensing  requirement  by its members  that include the United  States,  China,
Malaysia  and  Australia  where  the  Company  conducts  its  business.  With  a
transmission  range  between  3cm to 300m,  our BPMS can handle  105  concurrent
transmissions per cell.


                                       8
<PAGE>


      We secure  customers  through our  marketing  consultants.  Our  marketing
consultants  will work with our  customers  on an action  plan to  localize  and
customize their requirement for their intended campaign. For example, we produce
the  advertisement  content and set a specific date and time for the contents to
be transmitted to selected  Bluetooth  cells. Our customers are either owners or
operators of airports, bus stations, train stations, billboards, shopping malls,
cinemas, restaurants, sports arenas, concert halls and exhibition centers.

      BPMS  does  not  transmit  the same  files  to the same  Bluetooth-enabled
devices within a certain  campaign  period.  It has the  incidental  benefits of
conserving  bandwidth for other  legitimate  need to transmit files to the other
queued devices.

RFID Applications

      Significant  resources  have also been  utilized to integrate the RFID and
Bluetooth  technologies to give the Company a competitive  edge for the delivery
of value  added  applications  to  customers  in the  retailing,  logistics  and
warehousing,   telecommunication,   transportation,   healthcare,  security  and
manufacturing  industries.  Our  applications  are sold  through  our  marketing
consultants who specialize in their specific industries.

      We purchase the  customized  multiband  (13.56 MHz to 2.45 GHz) RFID chips
from third  parties to meet our specific  requirements.  Measuring 0.5 x 0.5 cm,
the RFID chip does not require  line-of-sight to be detected thus enabling it to
be embedded into almost any material  including paper. A RFID system consists of
a  transponder,  or the RFID chip,  a reader and an  antenna  for  communication
between the RFID chip and the reader.

EyStar Personal and Vehicle GPS Tracker

      Our EyStar  Personal and Vehicle GPS tracker  operates under the worldwide
GSM/GPRS network featuring  quad-bands  (850/900/1800/1900  MHz) and uses a high
sensitivity  GPS  receiver  for  near-indoor  tracking.  It  can be  used  as an
emergency  cellular  phone with speed dialing for two-way  voice  communication,
place a silent call to an emergency  number or police using a digital  voice and
text to report  location,  date and time. Any navigation or Google Earth map can
be used for the tracking.

      The EyStar  Personal  and  Vehicle GPS tracker can operate in both SMS and
GPRS modes.  This gives our tracker  the ability to transmit  its  position as a
text message or it can be monitored in real-time via the  Internet.  The tracker
has a unique  "electronic  fence"  feature  that can  trigger  an alert when the
device enters or exits a pre-defined  area.  This is ideal for school  security,
field  trips,  correctional  departments,  car  dealerships,  VIPs and  security
guards.  The EyStar  Personal and Vehicle GPS tracker's  primary  function is to
help locate missing  children,  reduce  kidnapping and provide help for critical
situations where immediate assistance is required.  The portable device measures
80 x 47.5 x 25 mm and has a built-in Lithium-Ion rechargeable battery.

      Our EyStar  Personal  and  Vehicle  GPS  Tracker is  marketed  through our
marketing consultants to individual vehicle owners.

MARKETING AND SALES STRATEGY

      We market our products and services  through  direct sales  efforts of our
Chief  Executive  Officer,  one of our full time  executives  and a  network  of
marketing  consultants.  Our objective is to sell our products and services into
the growing market for mobile  communication,  outsourced business,  information
technology  and biometric  security.  We believe that we will be able to compete
favorably  in the  market  because  we always  ensure  that the  quality  of our
products and services  exceed our  customers'  expectations,  are  competitively
priced and delivered to our customers in a timely manner.


                                       9
<PAGE>

      We began  offering  our  EyStar  Personal  and  Vehicle  GPS  Tracker  and
RFID-enabled  applications  for sale in the second  quarter  of 2007.  Our sales
efforts yielded  contracts for our GPS tracker and RFID applications in both the
United States and China.  In October 2007, we secured a contract valued at $16.0
million  for  the  sale  of the GPS  tracker  to a  company  based  in  Memphis,
Tennessee. This was followed by a contract in December 2007 from China valued at
$2.825  million  for the supply of a  real-time  GPS fleet  tracking  management
system to a logistics operator in Guandong Province,  China. Revenues from these
contracts are expected to commence during the second quarter of 2008.

      The Company operates in a highly competitive marketplace, in which many of
its competitors are longer  established and financially  sound.  The markets for
our products and applications are particularly competitive.

      Although the Company  remains  optimistic  that its products and services
will find  acceptance  in a competitive  marketplace,  there can be no assurance
that it will be able to compete  successfully  with such  entities.  We have two
major long term  customers who have been doing business with the Company for the
past seven years.  The Company is continuously  seeking to increase its customer
base to reduce its dependency on the two major customers.

      Our  business  plan and  operations  rely on our  ability  to  obtain  and
incorporate  products and services  provided by our suppliers  into the products
and services that we provide to our own customers. One of our principal supplier
is Ultimate Series Sdn Bhd, ("USSB") which provides  information  technology and
security related products.  USSB is a company  wholly-owned by a former director
and shareholder of our subsidiary, Perwimas Telecommunications Sdn Bhd ("PTSB").
The failure of one or more of our  suppliers  to meet our needs could  adversely
affect  SDA's  business  and  results  of  operations.  In  cognizance  of  this
dependence,  the  Company has started to invest on  developing  its  proprietary
technologies  and purchase  technologies  and source  codes for its  application
development.  For example,  we purchased the  Bluetooth  source code in November
2007 to develop the Bluetooth Proximity Marketing System.

GOVERNMENT REGULATION

      We do not rely on any  government  licenses or approvals to provide any of
our services.

ENVIRONMENTAL LAWS

      To date,  the Company has not incurred any material  costs for  compliance
with any prevailing environmental laws of Malaysia, China or the United States.

PATENTS AND TRADEMARKS

      The Company has no patents. The Company's subsidiary, PTSB, has registered
the name  "VISIONET" as its service  tradename and trademark  with the Malaysian
Registry  of Trade  Marks  and  Patents.  In June  2002,  the  Company's  former
subsidiary,  SDAM  registered  the name  "EyStar" as its service  tradename  and
trademark with the Malaysian  Registry of Trade Marks and Patents.  In September
2006,  SDAM assigned the tradename and trademark to DASB. No other  intellectual
property registration is pending.

RESEARCH AND DEVELOPMENT

      The Company  develops new  applications  utilizing the Bluetooth,  GPS and
RFID technologies. Consistent with the Company's policy of being less reliant on
third parties' licenses,  we have acquired the Bluetooth source code in November
2007 to develop  applications  for  customers in the  retailing,  logistics  and
warehousing,   telecommunication,   transportation,   healthcare,  security  and
manufacturing industries.  Our development activities are generally conducted in
connection  with  specific  contracts  and the  Company is  compensated  for its
development efforts.


                                       10
<PAGE>


      The  Company  will  provide  copies of its  annual  report  on Form  10-K,
including  audited financial  statements to its security  holders.  We also file
periodic  reports  with  the SEC as well  as  reports  on  Form  8-K,  proxy  or
information  statements  and other reports  required of publicly held  reporting
companies. The public may read and copy any materials the Company files with the
SEC at the SEC's Public Reference Room at 100 F Street, N.E.,  Washington,  D.C.
20549 on  official  business  days  during the hours of  10:00am to 3:00pm.  The
public may obtain  information on the operation of the Public  Reference Room by
calling the SEC at 1-800-SEC-0330.  The SEC also maintains an Internet site that
contains the reports,  proxy and information  statements,  and other information
that the Company files  electronically  with the SEC,  which is available on the
Internet at  http://www.sec.gov.  Further  information about the Company and its
subsidiaries  may  be  found  at   www.digitalapps.net,   www.sdawmedia.com  and
www.eystar.com.  The  information on each of these websites is not  incorporated
into, and is not part of, this annual report on Form 10-K.

ITEM 1A.  RISK FACTORS

      The  Company  faces  a  significant  number  of  risks  and  uncertainties
associated  with executing its business plan, only some of which the Company can
currently anticipate. Chief among these risks are the Company's need for working
capital  and the  potential  need to  raise  additional  funds  to  satisfy  the
Company's cash requirements during 2008.

      These risks and uncertainties,  discussed in more detail below, may impair
the Company's progress and profitability. The risks described below are intended
to highlight risks that are specific to the implementation of its business plan,
but are not the  only  risks  that  the  Company  faces.  Additional  risks  and
uncertainties,  including  those  generally  affecting the global  economy,  the
political and economic climate in Malaysia and the rest of Asia, the industry in
which the Company  operates,  the public securities  market,  and risks that the
Company  currently  deems  immaterial  may  ultimately  impair its  business and
results of operations.


                     RISKS RELATED TO THE COMPANY'S BUSINESS

IF THE  COMPANY IS UNABLE TO  SUCCESSFULLY  IMPLEMENT  ITS  BUSINESS  PLAN,  THE
COMPANY'S FINANCIAL CONDITION WOULD BE IMPAIRED.

      If the Company is unable to successfully  implement its business plan, the
Company's financial  condition and performance would be impaired.  The Company's
business plan and strategy  include  numerous  elements that may be difficult or
costly to execute,  and the Company may not be successful in implementing  these
elements and can provide no assurance  that it will do so. The Company  seeks to
exploit  technology  that often does not have  well-established  markets  and in
which  there is great  competition.  The  Company's  ability to develop  its new
businesses,  including its business process outsourcing  services and consulting
services in the United  States is  unproven.  Even if the  Company  successfully
implements  its  business  plans,  there  may be  insufficient  demand  for  the
Company's  products and  services,  in which event the Company will not generate
sufficient revenues to offset the Company's planned expenditures, thereby having
an adverse effect on the Company's business operations and financial condition.

THE FAILURE OF THIRD PARTIES WITH WHOM THE COMPANY DOES  BUSINESS  COULD
ADVERSELY AFFECT THE COMPANY'S BUSINESS.

      The Company utilizes remote data storage and  telecommunications  services
to  obtain  access  to its data and to  provide  access to the same data for its
customers.  The telecommunications  services that are relied on may not function
properly,  service may be interrupted,  or costs may increase.  The data centers
used to host the Company's  applications and data may fail. Although the Company
maintains a daily backup and replication program, there can be no assurance that
the data are secure from catastrophic  events.  The Company's  business plan and
operations  rely on the Company's  ability to obtain  products and services,  as
well as the  intellectual  property  incorporated in those products,  from other
third party providers. For example, the Company relies on software licensed from
third  parties,  information  technology  services  that are  leased  from third
parties and on third party providers for Internet  connections.  The third party
providers  also may not be able to provide  products or  services in  sufficient
amounts  or of the  necessary  quality  to meet the  needs of the  Company.  The
failure of one or more of these third parties to meet the Company's  needs could
adversely affect the Company's business and results of operations. Some of these
companies may also be the Company's competitors and, accordingly, in the future,
they may be  unwilling  to provide the Company  with the products or services it
requires.  The failure of any of these third parties to perform could prevent or
delay the  implementation  of the Company's  business  plan,  limit the types of
services the Company can provide to its customers  and  potential  customers and
adversely  impact the Company's  relationship  with its customers.  Any of these
occurrences could have an adverse effect on the Company's  business,  results of
operations and financial condition.

FAILURE TO RAISE  CAPITAL IN THE FUTURE ON A TIMELY BASIS MAY  ADVERSELY  AFFECT
OUR ABILITY TO FUND OUR OPERATIONS.

      The Company will require  substantial  capital to fund its planned capital
expenditures and operations.  The Company does not expect to be able to generate
sufficient cash from operations to provide the necessary  capital to execute all
aspects of the  Company's  business  plan.  To the extent that the Company  does
require addition funding,  it is likely to issue additional shares of its common
stock, which would dilute interests of existing stockholders.  If the Company is
unable to  generate  sufficient  cash from its  operations  or raise  capital as
needed, the Company will likely be unable to fully pursue or execute its current
business plan and may have difficulty funding its operations.

FAILURE TO HIRE OR RETAIN  QUALIFIED  PERSONNEL COULD HURT THE COMPANY'S
BUSINESS.

      The Company's  future success and  performance is dependent on its ability
to  identify,  hire,  train  and  retain  experienced  technical  and  marketing
personnel.  The Company faces  significant  competition  for employees  with the
skills  required for its  business.  There can be no assurance  that the Company
will  succeed  in  attracting  and  retaining  the  services  of  qualified  and
experienced technical and marketing personnel.

THE  MARKETS  IN  WHICH  THE  COMPANY   OPERATES  ARE   VOLATILE,   VERY
COMPETITIVE  AND  INCREASED   COMPETITION  COULD  ADVERSELY  AFFECT  THE
COMPANY.

      The  markets  for the  products  and  services  offered by the Company are
highly  competitive.  For broadband  services,  the Company expects to encounter
competition from other businesses  offering similar products and services,  many
of  which  can be  expected  to have  greater  financial,  marketing  and  other
resources than the Company.

      For security  products and applications,  the Company expects  competition
from companies that offer conventional security products and solutions like card
access  system.  In addition the developing  market for security  products using
biometric identification technology is highly competitive with larger and better
financed companies offering similar products.  No assurance can be given that we
will be able to compete successfully with these entities.

      The Company faces competition in its information technology consulting and
multi-media production business processing outsourcing products from both United
States  and  overseas  competitors.  Numerous  competitors  from  India  and the
Philippines,  as well as in Malaysia, offer labor for back-office functions such
as data entry. In addition, there are a significant number of competitors in the
United States seeking to develop businesses as business process outsourcers.

      In the area of international  trade, we compete with  experienced,  larger
and well-established  businesses.  The business of international trade is highly
dependent   on  overall   economic   conditions   including   such   factors  as
transportation costs,  materials costs, labor costs and currency exchange rates.
While the overall  environment for international  trade is presently believed to
be  favorable,  changes in  conditions  would  negatively  impact the  Company's
attempt to establish this line of business.

THE INTERNATIONAL  NATURE OF THE COMPANY'S OPERATIONS EXPOSE THE COMPANY
TO SPECIAL RISKS.

      The Company currently intends to operate primarily in Malaysia and perhaps
elsewhere  in Asia.  The  Company  therefore  faces  special  risks  related  to
operating  in  international  markets,  which  the  Company  may  not be able to
overcome.  The  following  are some of the risks  inherent in doing  business in
Malaysia and other non-U.S. markets:

    -  Unanticipated  changes  in  regulatory   requirements,   tariffs,
       customs, duties and other trade barriers;
    -  Limitations on the Company's flexibility in structuring foreign
       investments imposed by regulatory authorities;
    -  Longer  payment  cycles  and  problems  in  collecting   accounts
       receivable;
    -  Political and economic risks;
    -  Translation  and  transaction   exposure  from   fluctuations  in
       exchange rates of other currencies; and
    -  Potentially  adverse  tax  and  cash  flow  consequences  resulting  from
       operating in multiple countries with different laws and regulations; and
    -  Labor or political  disputes that adversely impact the Company's  ability
       to secure sources of competent foreign labor.

                                       11
<PAGE>

FLUCTUATIONS IN THE INTERNATIONAL  CURRENCY EXCHANGE RATE MAY AFFECT THE
COMPANY'S SALES AND EARNINGS.

      Substantially  all of the  Company's  sales  presently  occur in Malaysian
Ringgit  and the  Company's  sales and  earnings  will be affected by the recent
decision of the Malaysian  government  to allow the currency  exchange rate with
the United  States dollar to  fluctuate.  The exchange rate had been  previously
fixed at 3.8 Ringgit to the dollar.  Since the  exchange  rate was  permitted to
float,  the  exchange  rate has  dropped  to 3.3151  Ringgit to the US dollar at
December 31, 2007, which has been favorable to the Company's revenue as reported
in US dollars.  The Company has inter-company  debt denominated in U.S. dollars,
whereas the functional  currency of the Company's  subsidiaries  is in Malaysian
Ringgit,  which results in the Company  recording other  income/loss  associated
with the U.S.  dollar as a function  of  relative  changes  in foreign  exchange
rates. The Company is unable to predict whether it will experience  future gains
or  future  losses  from  such  exchange-related  risks on the  receivables  and
payables.  The Company does not have a program in place to manage the volatility
relating  to these  exposures.  As a result  of our  operations  and  activities
presence  in  Malaysia,  a huge  portion  of our costs  will be  denominated  in
Malaysian  Ringgit.  Consequently,  fluctuations  in the  exchange  rates of the
Malaysian  Ringgit to the U.S.  dollar  will also affect our costs of goods sold
and operating margins and could result in exchange losses.  Currently, we do not
enter into foreign  exchange  hedge  transactions,  although we may do so in the
future as our business grows.

WE  RELY  HEAVILY  ON TWO  SIGNIFICANT  CUSTOMERS  AND IF WE LOSE  ANY OF  THESE
SIGNIFICANT CUSTOMERS OUR BUSINESS MAY BE HARMED.

      A small number of customers account for a large percentage of our revenue.
Sales revenues from our two largest customers accounted for approximately 93% of
total  revenues for the year ended  December 31, 2007 and 96% of total  revenues
for the year ended December 31, 2006. The two largest  customers in 2007 are the
same as the two largest  customers in 2006.  Any material  reduction in revenues
generated  from  any  of  our  largest  customers  could  harm  our  results  of
operations,  financial  condition and liquidity.  Our largest  customers may not
continue to purchase our services and may decrease  their level of purchase.  To
the extent  that our  largest  customer  terminates  its  relationship  with us,
revenues would decline substantially,  which would harm our business,  unless we
can replace that customer with another similarly large customer.

WE RELY ON  THREE  MAIN  SUPPLIERS  AND IF THEY  FAIL TO  DELIVER  PRODUCTS  AND
SERVICES, OUR BUSINESS MAY BE HARMED.

      Our business  rely on our ability to obtain and  incorporate  products and
services  provided by three major  suppliers  into products and services that we
provide to our own customers.  One of our principal suppliers is USSB, a company
wholly-owned by a former  director and shareholder of our subsidiary,  PTSB. The
failure of one or more of our suppliers to meet our needs would adversely affect
the Company's business and results of operations.

WE RELY ON THE EFFORTS OF A KEY EXECUTIVE

      Our  largest  stockholder,  Patrick  Lim,  is  also  the  Company's  Chief
Executive Officer and Chairman of the Company's Board of Directors.  Mr. Lim has
not executed an employment  contract  with the Company and his  departure  could
have a material adverse impact on our business.

DELAYS IN THE  IMPLEMENTATION OR CANCELLATION OF CONTRACTS MAY IMPACT ON
OUR REVENUE AND PROFITABILITY

      We obtain contracts in which we sell our smarthome and biometric  security
system  to  new  commercial  and  residential  constructions.  We  also  provide
consulting services on RFID,  Bluetooth and GPS applications to our customers in
the retailing,  logistics and  warehousing,  telecommunication,  transportation,
healthcare,  security and manufacturing industries. Our contracts may be subject
to significant delay or cancellation due to financial  difficulties faced by our
customers  and delays or problems  in our  customers'  construction  projects or
operations.


RISKS RELATED TO THE COMPANY'S COMMON STOCK

      The market for our stock is limited and our stock  price may be  volatile.
The average daily  trading  volume for our stock has varied  significantly  from
week to week and from month to month, and the trading volume often varies widely
from day to day.  Due to these  limitations  there is  volatility  in the market
price and tradability of our stock, which may cause our stockholders  difficulty
in selling their shares in the market place.

                                       12
<PAGE>


ITEM 2.  PROPERTIES.

      The Company's  principal  executive offices are located at No. 11, Jalan
51A/223,  46100  Petaling  Jaya,  Selangor,  Malaysia.  This  office  space is
leased from an unaffiliated party.  This lease expires on March 14, 2009.

      The Company  maintains  its  corporate  office at 230,  Park Avenue,  10th
Floor, New York, New York 10169. The lease expires on May 31, 2008.

      The Company believes that its existing and planned facilities are adequate
for  its  current  requirements  and  that  suitable  additional  space  will be
available as needed to accommodate future expansion of its operations.


ITEM 3. LEGAL PROCEEDINGS.

None.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.


                                       13
<PAGE>


                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S  COMMON EQUITY,  RELATED  STOCKHOLDER  MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES.

      The Company's common stock trades on the  Over-the-Counter  ("OTC") market
under the symbol  "SDGL"  and  published  quotations  are  available  on the OTC
Bulletin Board. Prior to February 3, 2004 and June 6, 2002, the Company's common
stock traded under the symbol "DBBD" and "DBBN", respectively.

      The table below sets forth the range of high and low bid quotations of the
Company's common stock as publicly reported by Market guide during the Company's
2007 and 2006 fiscal years. The following bid price market quotations  represent
prices  between  dealers  and  do  not  include  retail  markup,   markdown,  or
commissions; hence, they may not represent actual transactions.

Year  2007      High      Low
               ------    -----

First Quarter  $ 0.08   $ 0.05
Second Quarter $ 0.07   $ 0.06
Third Quarter  $ 0.12   $ 0.07
Fourth Quarter $ 0.23   $ 0.10

Year  2006      High      Low
               -----     -----

First Quarter  $ 0.11   $ 0.07
Second Quarter $ 0.10   $ 0.07
Third Quarter  $ 0.09   $ 0.06
Fourth Quarter $ 0.07   $ 0.05

      As of April 11, 2008,  138,046,814  shares of the  Company's  common stock
were issued and  outstanding,  5,125,780 shares of the common stock were held in
treasury and the number of record holders of the Company's  common stock at that
date was  approximately  82. We believe that a significant  number of beneficial
owners of the  Company's  common stock are held in "street  names." On April 11,
2008,  the closing  trade price for the  Company's  common  stock was $0.112 per
share.

      Under the  Company's  Articles  of  Incorporation,  the  Company's  common
stockholders  are entitled to receive  such  dividends as may be declared by the
Company's  Board of Directors.  No dividends on the Company's  common stock were
paid by the Company during the periods reported herein.

Equity Compensation Plan Information

The following  table sets forth,  as of December 31, 2007,  certain  information
relating to our equity compensation plan.


                                       14
<PAGE>

<TABLE>
<CAPTION>
<S>                                                 <C>        <C>                                   <C>


                                                                                            Number of
                                                                                       securities remaining
                                         Number of                                     available for future
                                      Securities to be                                      Issuance
                                         Issued upon                                       under equity
                                         Exercise of            Weighted average         compensation plans
                                         Outstanding            exercise price of      (excluding securities
                                      options, warrants       outstanding options,         reflected in
                                         and rights            warrants and rights          column (a))
         Plan category                       (a)                       (b)                      (c)
-------------------------------- --------------------------- ----------------------- -------------------------

    Equity compensation plan
     approved by stockholders                       500,000    $                0.06                 9,500,000

    Equity compensation plan not
     approved by stockholders                   2,830,000(1)   $                0.10                        --
                                 --------------------------- ----------------------- -------------------------
                                                  3,330,000    $                0.10                 9,500,000
                                 =========================== ======================= =========================
</TABLE>


(1) Comprised  of (i)  2,100,000  shares of our common stock  issuable  upon the
    exercise of warrants issued in October 2006 to our Chief Executive  Officer,
    (ii) 360,000  shares of our common stock  issuable upon the exercise of plan
    options issued in August 2004 to our Secretary,  (iii) 100,000 shares of our
    common stock  issuable  upon the  exercise of plan options  issued in August
    2004 to a former  director  and (iv)  270,000  shares  of our  common  stock
    issuable  upon the  exercise  of plan  options  issued in August 2004 to our
    former Chief Accounting Officer.

Sale of Unregistered Securities

      All  securities  that have been issued or sold by the  Company  during the
past three years,  but were not registered  under the Securities Act of 1933, as
amended,  have been reported in the Company's previously filed quarterly reports
on Form 10-Q and previously  filed current  reports on Form 8-K.  Following is a
summary of the sales and  issuances of  unregistered  securities  by the Company
during the fourth quarter 2007.

      The Company  signed a  compensation  agreement with a consultant on August
20, 2007 under  which the  Company  agreed to issue an  aggregate  of  1,000,000
shares of its common stock to the consultant for services to be rendered for the
12 month period  ending July 14, 2008. On October 17, 2007,  the Company  issued
250,000 shares of common stock to the consultant  pursuant to this agreement for
aggregate consideration in the form of services rendered by the consultant equal
to $39,000.

      The Company  signed a  compensation  agreement with a consultant on May 1,
2007 under which the Company  agreed to issue an aggregate of 400,000  shares of
its  common  stock  to the  consultant  for  services  to be  rendered  for  the
12 month  period  ending  April 30, 2008.  On October 22, 2007,  the Company
issued  100,000  shares  of  common  stock to the  consultant  pursuant  to this
agreement for aggregate  consideration  in the form of services  rendered by the
consultant equal to $17,500.

      On November  23,  2007,  the Company  entered  into an  agreement  with an
investor in a private  placement to sell 1,000,000 shares of its common stock at
$0.125 per share, for total consideration of $125,000.

      The  Company  relied upon the  exemptions  from  registration  provided by
Section  4(2) of the  Securities  Act of 1933,  as  amended,  and  Regulation  D
promulgated thereunder for the issuances of these securities.


                                       15
<PAGE>


Purchase of Equity Securities

      There were no repurchases of equity  securities  during the fourth quarter
of 2007.


ITEM 6.   SELECTED FINANCIAL DATA

      The Company is a smaller reporting company as defined by Rule 12b-2 of the
Exchange Act and is not required to provide the information  required under this
item.


ITEM 7.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND
RESULTS OF OPERATIONS

Overview

      During  2007,   the  Company   increased  its  revenues  from   continuing
operations,  to  $47,727,254,  compared to  $36,643,833  in 2006,  and  achieved
positive  earnings from continuing  operations for the sixth  consecutive  year.
These revenues were mainly derived from the design,  development  and production
of interactive multimedia websites and content and from the provision of project
consulting services.

      Net income for the year ended  December  31, 2007 and 2006 was  $1,622,621
and $657,384 respectively. The Company's net income in 2007 included recognition
of a  deferred  gain of  $110,881  and a gain from  discontinued  operations  of
$6,009. The Company's net income in 2006 included recognition of a deferred gain
of $85,692 and a gain from discontinued operations of $83,396.  Excluding these
items, the Company would have earned a net income of $1,505,731 and $488,296 for
2007 and 2006, respectively.


Plan of Operations

      During 2007, we generated revenue from the following activities:

1.   Designing,  producing,  hosting and distribution of interactive  multimedia
     content, websites, programs and applications.

2.   Developing and producing  e-commerce  programs and Internet-based  security
     applications and solutions; and

3.   Providing  project  consulting  services  on  EyStar  SmartHome  Management
     System,  biometric security and mobile communication  services for property
     development projects.

      The Company anticipates that these activities will continue to provide the
principal sources of the Company's revenue in 2008. During 2008, revenue is also
expected to be generated from  multimedia  production,  provision of outsourcing
and consulting  services,  sales of biometric  security  products and solutions,
sales of the EyStar  SmartHome  Management  System and  delivery of  value-added
Bluetooth,  GPS and RFID enabled  applications  (collectively  "wireless  mobile
applications") for the retailing, logistics and warehousing,  telecommunication,
transportation, healthcare, security and manufacturing industries.

      The Company  presently  conducts  its  principal  operations  in Malaysia.
According to the Asian  Development  Bank,  Malaysia's  growth in Gross Domestic
Product (GDP) for 2008 and 2009 is projected at 5.5% and 5.9%  respectively.  In
view of the positive growth,  we will continue to use Malaysia as our bridgehead
to other Asian countries primarily, the People's Republic of China and Australia
during  2008.  With  its  close  proximity  to  other  Asian   countries,   good
telecommunication  infrastructure and access to a large  multilingual  (English,
Mandarin and Malay) labor force,  Malaysia is well positioned to serve customers
both in China and Australia.


                                       16
<PAGE>


      The Company  secured its first  contract in China  during  December  2007,
valued at $2.825 million, to install and maintain a real-time GPS fleet tracking
management  system for 1,100  trucks  owned by a leading  operator in  Guangdong
Province. Continued negotiations are being conducted with potential customers to
deliver  our  wireless  mobile  applications  in China  and we  expect  to close
additional contracts during the second quarter of 2008.

      Negotiations  are  underway in Australia  with  marketing  consultants  to
secure contracts for the delivery of our Bluetooth and RFID-enabled applications
for the mining,  healthcare,  public utilities and entertainment  industries. We
anticipate contracts to be executed in the third and fourth quarter of 2008.


      In October 2007, we secured our first contract in the United States valued
at $16.0  million for the supply of personal and vehicle  trackers to a Memphis,
Tennessee  based  company.  We hope that it will be a  precursor  to the sale of
other  value added  wireless  mobile  applications  to  companies  in the United
States.

      The Company  intends to  aggressively  pursue these  opportunities  during
2008.

Significant Business Developments and Plan of Operation

Bluetooth Applications

      We are in the process of introducing  wireless mobile  applications  built
around the Bluetooth and Web  technologies  for  Bluetooth-enabled  cell phones,
personal    digital    assistants    (PDAs)    and    notebooks    (collectively
"Bluetooth-enabled  devices") in China, United States and Australia.  Sitting at
the core of service  delivery  lies our crucial  ability to deliver  rich,  live
multimedia  experience to the users.  In other words,  we engage users to enable
them to experience rich videos, photos and voice communication.

      Applications that we have developed include:

a)   Data communication between  Bluetooth-enabled  devices from Bluetooth cells
     established by the Company or in  collaboration  with third parties.  It is
     the intention of the Company to give users of Bluetooth devices the ability
     to communicate with each other without incurring  telecommunication carrier
     charges.
b)   Mobile Asset Tracking and Inventory  System to track valuable  assets using
     mobile scanners. As an alternative to RFID tags, we affix Bluetooth tags to
     movable or immovable assets; and
c)   Proximity Marketing System to drive traffic to websites and retail stores.

      The Company had  successfully  developed the above  applications  after it
secured  the  right to the  source  code for  Bluetooth  cell  management,  cell
integration  and proximity  marketing in November 2007. We will be marketing our
Bluetooth applications under the "Bluber" brand name.

Business Process Outsourcing

      Our  Business  Process  Outsourcing  (BPO)  service is being  promoted  to
companies  in the United  States,  Asia and  Australia.  We licensed or acquired
technologies  from various sources and utilized the  technologies to develop our
integrated  online  financial  accounting  and RFID  tracking BPO  service.  Our
integrated BPO service is marketed as EyStar Station.

      The EyStar Station  provides a single point of entry,  through a graphical
user interface  available on the Internet,  into a customer's  most  significant
business  operations,  including  custom  tailored  financial  reports,  work in
progress,  inventory,  accounts  payable and  receivable,  expenses,  and source
documents. EyStar Station consists of a web-based financial accounting BPO suite
integrated  with RFID enabled  tracking  applications  that  include  inventory,
document and people tracking.

      Our BPO service will combine the technology  available  through the EyStar
Station with labor performed at competitive rates at our work center in Petaling
Jaya, Malaysia.


                                       17
<PAGE>


RESULTS OF OPERATIONS

            The following discussion and analysis of our financial condition and
results  of  operations  should  be read in  conjunction  with the  consolidated
financial  statements  and  notes  to  the  consolidated  financial  statements,
included elsewhere in this annual report on Form 10-K.

      The following table sets forth certain  operating data for the Company and
its subsidiaries for the periods as indicated below.


                                                 Year Ended December 31,
                                              ------------------------------
                                                   2007           2006

Revenues                                        $  47,727,254  $  36,643,833
Gross profit                                        4,326,436      2,799,462
Sales and marketing                                   577,690        625,034
General and administrative                          2,068,600      1,957,112
Gain on disposal of assets-related parties            110,881         85,692
Income from continuing operations                   1,616,612        573,988
Net income                                          1,622,621        657,384


                                       18
<PAGE>


Year ended December 31, 2007 compared to year ended December 31, 2006

      Total revenue increased by $11,083,421 or 30%, to $47,727,254 for the year
ended December 31, 2007, as compared to $36,643,833  for the year ended December
31, 2006.


      The  increase  in total  revenue for 2007 was mainly due to an increase in
fees earned from the production of multimedia  programs and business  contracts.
The increase in revenue from the production of multimedia  programs was a result
of  increased  sub-contract  work from the  clients of the  Company's  two major
customers.  Revenue for project  consulting  services  was  generated  from four
project consulting contracts that the Company secured in 2001, 2002 and 2003. In
the year ended December 31, 2007,  two  customers,  accounted for 48% and 45% of
total revenue. In the year ended December 31, 2006, the same two customers, each
accounted for 48% of total revenue.

Gross Profit

      Gross profit increased to $4,326,436 for the year ended December 31, 2007,
compared to  $2,799,462  for the year ended  December 31,  2006,  an increase of
$1,526,974 or 55%. Gross profit margin  increased to 9.1% in 2007 versus 7.6% in
2006.

      The  increase  in  gross  profit  in  2007  was  due  to  higher  revenue,
particularly  consulting revenue, which has a much higher margin than production
work. As a result of higher revenue, cost of revenues increased by $9,556,447 or
28%, to  $43,400,818  in 2007 from  $33,844,371 in 2006. The increase in cost of
revenue was primarily due to the Company requiring additional external resources
in  order  to  fulfill  the  higher  demand  for  the  Company's  services.  The
outsourcing of content  production work enabled the Company to develop a team of
contractors  that will assist the Company in  producing  multimedia  content and
applications that are crucial to its future business operation.

Sales and marketing expenses

      Sales and marketing  expenses decreased by $47,344 or 7.6% to $577,690 for
the year ended  December 31, 2007 from $625,034 for the year ended  December 31,
2006.  Reduction  in  sales  and  marketing  expenses  in 2007  was due to lower
marketing and promotion expenses incurred to introduce the Company's products to
customers in Malaysia during year 2007.

General and administrative expenses

      General  and  administrative   expenses  involving   non-related   parties
increased by $109,738 or 6% to $1,920,751  for the year ended December 31, 2007,
as compared to $1,811,013 for the year ended December 31, 2006.

      The increase was primarily  attributable to an increase in depreciation of
tangible  assets,  salaries,  consulting  fees,  investor  relations and general
office expenses.  For the year ended December 31, 2007, of the total general and
administrative  expenses of  $1,920,751,  20% was for  depreciation  of tangible
assets, 4% was for consulting fees and 10% was for employee payroll. Another 16%
was for  fees  for  professional  and  auditing  services,  3% was for  investor
relations  expenses,  24% was for both employee and stock compensation  expenses
and  approximately  23%  was  for  rent,  utilities,  general  office  supplies,
communications and corporate insurance expenses. For the year ended December 31,
2006, out of the total general and  administrative  expenses of $1,811,013,  14%
was for depreciation of tangible  assets,  1% was for consulting fees and 8% was
for employee  payroll.  Another 36% was for fees for  professional  and auditing
services,  1% was for  investor  relations  expenses,  34% was for  compensation
expenses and approximately 6% was for rent, utilities,  general office supplies,
communications and corporate insurance expenses.


                                       19
<PAGE>

      General and  administrative  expenses - related parties for the year ended
December 31, 2007 and 2006 was  $147,849  and  $146,099 per year,  respectively.
General and administrative  expenses - related parties included  management fees
and  administrative  expenses  payable by the  Company to a company in which Mr.
Patrick Lim, the President  and Chief  Executive  Officer of the Company,  has a
financial  interest.  For the year ended December 31, 2007, the related company,
LSH Assets Holdings Sdn Bhd ("LSH"),  billed the Company's Malaysian subsidiary,
DASB  $27,849 and,  for the year ended  December 31, 2006,  billed DASB and SDAM
$26,099, for administration and clerical fees incurred by LSH on behalf of DASB.
The Company also incurred  management  fees of $120,000 per year for each of the
years ended  December 31, 2007 and 2006.  The  management fee was charged on the
basis of time spent for the administration  and management  services provided to
the Company.

Interest expense

      Interest  expense  increased  by $7,665,  or 384%,  to $9,659 for the year
ended  December  31, 2007 as compared to $1,994 for the year ended  December 31,
2006. Interest expense in 2007 relates to capital lease obligations.

Gain on disposal of assets - related parties

      For the years  ended  December  31, 2007 and 2006,  the  Company  included
recognition of a previously deferred gain of $110,881 and $85,692,  respectively
related to a similar amount the Company received from its long-term  receivable,
related party. The receivable balance and total deferred gain was $108,247 as of
December 31, 2006. These amounts arose in the year ended December 31, 1998, when
the Company  sold assets used in the  operations  of a  subsidiary  to a related
company.  Due to the  uncertainty  of  collection of the related  receivable,  a
related gain on the sale of the assets was deferred and is to be recognized only
after  all  costs  have been  recovered  and to the  extent  the  receivable  is
collected.  During the year ended  December 31, 2002,  payments  received by the
Company  exceeded all remaining  costs.  As a result,  the  Company's  long-term
receivable,  related  party and deferred  gain balances were fully settled as of
December 31, 2007.

Reversal of bad debt provision

            In 2006,  the Company  collected an accounts  receivable of $135,932
that had been  previously  written off in a prior year.  There were no bad debts
recovered for the year 2007.

Liquidity and Capital Resources

      As of December 31, 2007, the Company had net cash of $40,385.

      For the year ended December 31, 2007,  operations  were  primarily  funded
from internally  generated funds and working capital  advanced from time to time
by Mr. Patrick Lim, the principal stockholder, the Chairman of the Board and the
Chief Executive Officer of the Company. These advances bear no interest and have
no fixed terms of repayment.

      As of December 31, 2007,  the Company  owed Mr.  Patrick Lim,  $88,632 for
short-term cash advances made to subsidiaries of the Company for working capital
purposes from time to time. Additionally,  at December 31, 2007, the amount owed
to a company in which Mr. Lim has a financial interest was $23,668.  This amount
was for short-term  cash advances made to the Company and its  subsidiaries  for
working capital purposes from time to time and for management and administrative
fees.  These amounts are unsecured,  bear no interest and have no fixed terms of
repayment.


                                       20
<PAGE>

      The net cash provided by operating  activities for the year ended December
31, 2007 was  $2,911,918  and was  primarily  the result of income and  non-cash
expenses.

      Cash  used in  investing  activities  of  $2,957,390  for the  year  ended
December  31,  2007 was  primarily  attributable  to the  purchase  of  computer
software  and  equipment.  We have  utilized the  Bluetooth  source code that we
acquired in November 2007 to develop the Bluetooth  Proximity  Marketing  System
("BPMS").  BPMS is a method of sending  advertisements to Bluetooth-enabled cell
phones  utilizing the unlicensed  frequency  spectrum at 2.4GHz ISM (industrial,
scientific and medical) radio  frequency (RF) band. This RF band is allocated by
the Geneva-based  International  Telecommunication Union and is not subjected to
any licensing  requirement by its members that include the United States, China,
Malaysia  and  Australia  where  the  Company  conducts  its  business.  With  a
transmission  range  between  3cm to 300m,  our BPMS can handle  105  concurrent
transmissions per cell. We secure customers  through our marketing  consultants.
Our  marketing  consultants  will work with our  customers  on an action plan to
localize and  customize  their  requirement  for their  intended  campaign.  For
example,  we produce the advertisement  content and set a specific date and time
for the contents to be transmitted to selected  Bluetooth  cells.  Our customers
are either  owners or operators  of  airports,  bus  stations,  train  stations,
billboards,  shopping malls, cinemas, restaurants,  sports arenas, concert halls
and exhibition centers.

      Cash generated from financing activities of $369,887 in 2007 resulted from
proceeds  received  from three  private  placements  and the  exercise  of stock
options  totaling  $287,300 and loan  proceeds  from a director and an affiliate
totaling $82,587.

      In addition to internally  generated  funds and  financial  support from a
director and major  stockholder,  Mr. Patrick Lim, the Company may seek to raise
additional  funds from equity or debt financing for its future  working  capital
requirements.

      The Company will be expanding into new businesses  that include  provision
of Radio  Frequency  Identification  (RFID),  Global  Positioning  System (GPS),
outsourced  business support and supply chain management  services.  The Company
expects to incur further expenses to acquire  technologies  that are synergistic
to the new businesses and will help the Company to rollout the new businesses in
the shortest  time  possible.  The Company  estimates  that it will require $3.5
million to finance  the set-up  cost of its new  businesses.  The  Company  also
expects  that it will  require a further $2.0 million to finance the set-up cost
and working capital of its new businesses.

      The Company will continuously evaluate its financing  requirements and may
decide to consider alternative modes of financing.

      No  dividends on the  Company's  common stock were paid by the Company for
the two years reported herein.

Critical Accounting Policies

      Financial  Reporting  Release  No.  60,  which  was  released  by the SEC,
requires all companies to include a discussion of critical  accounting  policies
or methods used in the preparation of financial  statements.  Note 2 Significant
Accounting Policies to the Consolidated  Financial Statements includes a summary
of the  significant  accounting  policies and methods used in the preparation of
the  Company's  Consolidated  Financial  Statements.  The  following  is a brief
discussion of the more significant  accounting  policies and methods used by the
Company.


                                       21
<PAGE>

Revenue Recognition


   Revenue represents the net invoiced value of:

o    goods sold;

o    fees earned from the  production of  multimedia  programs,  management  and
     consulting services; and

o    fees earned  from rental and  servicing  of  material  handling  equipment,
     provision  of  land  transportation,   engineering  and  industrial  moving
     services.

      The Company  recognizes revenue from the sales of goods in the period when
significant  risks and rewards of ownership  have  transferred to its customers.
The Company recognizes revenue from the services provided in the period in which
the  services  are  performed  and  when  there  is no  significant  uncertainty
regarding  the  consideration  to be  received  and the  associated  costs to be
incurred.

Accounts Receivable

      The Company grants credit, generally without collateral, to its customers.
The Company  continuously  monitors  collections and payments from its customers
and  maintains an allowance  for  estimated  uncollectible  accounts  based upon
historical  experience and specific customer  collections  issues that have been
identified.

Stock-Based Compensation

      Effective January 1, 2006, the Company adopted SFAS No. 123(R) Share Based
Payment ("SFAS 123(R)") utilizing the "modified prospective" method as described
in SFAS 123(R).  In the  "modified  prospective"  method,  compensation  cost is
recognized for all share-based payments granted after the effective date and for
all unvested awards granted prior to the effective date. In accordance with SFAS
123 (R), prior period  amounts were not restated.  SFAS 123(R) also requires the
tax benefits  associated  with these  share-based  payments to be  classified as
financing  activities in the Statement of Cash Flows, rather than operating cash
flows as required under previous regulations.

      Stock options granted to  non-employees  are recorded at their fair value,
as  determined in  accordance  with SFAS No. 123 and Emerging  Issues Task Force
Consensus No. 96-18,  and recognized over the related  service period.  Deferred
charges for options granted to non-employees are periodically re-measured as the
options vest.


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

      In June 2006, the Financial  Accounting Standards Board (FASB) issued FASB
Interpretation  No. 48 (FIN 48),  Accounting for  Uncertainty in Income Taxes an
interpretation  of FASB Statement No. 109,  Accounting  for Income Taxes,  which
clarifies the  accounting for  uncertainty in income taxes.  FIN 48 prescribes a
recognition  threshold and  measurement  attribute  for the financial  statement
recognition and measurement of a tax position taken or expected to be taken in a
tax  return.  The  Interpretation  requires  that the Company  recognize  in the
financial  statements,  the impact of a tax  position,  if that position is more
likely than not of being  sustained on audit,  based on the technical  merits of
the position.  FIN 48 also provides  guidance on  de-recognition of a previously
recognized tax position,  classification,  interest and penalties, accounting in
interim  periods  and  disclosures.  The  provisions  of FIN  48  are  effective
beginning January 1, 2007 with the cumulative effect of the change in accounting
principle recorded as an adjustment to the opening balance of retained earnings.
The Company does not expect this  pronouncement to have a material effect on the
financial position or results of operations of the Company.

      In  September  2006,  the  FASB  issued  Statement  No.  157,  Fair  Value
Measurements.  This  Statement  defines fair value,  establishes a framework for
measuring  fair value in generally  accepted  accounting  principles and expands
disclosure about fair value measurement.  The implementation of this guidance is
not  expected  to  have  any  impact  on the  Company's  consolidated  financial
statements.


                                       22
<PAGE>


      In September 2006, the SEC issued Staff  Accounting  Bulletin  ("SAB") No.
108,  Considering  the  Effects of Prior  Year  Misstatements  when  Quantifying
Misstatements  in  Current  Year  Financial  Statements  (SAB  108),  to provide
guidance  on the  consideration  of the effects of prior year  misstatements  in
quantifying  current  year  misstatements  for  the  purpose  of  a  materiality
assessment. Under SAB 108, companies should evaluate a misstatement based on its
impact on the current year income statement, as well as the cumulative effect of
correcting  such  misstatements  that  existed in prior  years  existing  in the
current  year's  ending  balance  sheet.  SAB 108 will become  effective for the
Company in its fiscal year ending June 30, 2007. The  implementation  of SAB 108
is not  expected  to have any  impact on the  Company's  consolidated  financial
statements.

      In February  2007, the FASB issued SFAS No. 159, The Fair Value Option for
Financial  Assets and  Financial  Liabilities  ("SFAS  159").  SFAS 159  permits
entities to choose to measure eligible financial  instruments at fair value. The
unrealized  gains and losses on items for which the fair  value  option has been
elected  should be reported in  earnings.  The  decision to elect the fair value
options is determined on an instrument by instrument basis, it should be applied
to an entire instrument, and it is irrevocable.  Assets and liabilities measured
at fair value pursuant to the fair value option should be reported separately in
the balance sheet from those  instruments  measured  using  another  measurement
attributes.  SFAS 159 is effective as of the  beginning of the first fiscal year
that begins  after  November 15, 2007.  The Company is currently  analyzing  the
potential  impact  of  adoption  of  SFAS  159  to  its  consolidated  financial
statements.

      In December 2007, the FASB issued SFAS No. 160,  Noncontrolling  Interests
in Consolidated  Financial Statements - an amendment of ARB No. 51 ("SFAS 160").
SFAS 160 requires  companies  with  noncontrolling  interests  to disclose  such
interests  clearly as a portion of equity but separate from the parent's equity.
The  noncontrolling  interest's  portion  of net  income  must  also be  clearly
presented  on  the  income  statement.  SFAS  160  is  effective  for  financial
statements  issued for fiscals years  beginning after December 15, 2008 and will
be adopted by the Company in the first quarter of fiscal year 2009.  The Company
does not expect that the adoption of SFAS 160 will have a material impact on our
financial condition or results of operation.

      In December 2007, the FASB issued SFAS No. 141(R),  Business  Combinations
(revised 2007) (SFAS  141(R)).  SFAS 141(R)  applies the  acquisition  method of
accounting  for  business  combinations  established  in  SFAS  No.  141  to all
acquisitions  where the acquirer  gains a  controlling  interest,  regardless of
whether  consideration was exchanged.  Consistent with SFAS No. 141, SFAS 141(R)
requires the acquirer to fair value the assets and  liabilities  of the acquiree
and record goodwill on bargain  purchases,  with main difference the application
to all  acquisitions  where  control is achieved.  SFAS 141(R) is effective  for
financial  statements  issued for fiscal years beginning after December 15, 2008
and will be adopted by the Company in the first quarter of fiscal year 2009. The
Company  does not expect  that the  adoption of SFAS 141(R) will have a material
impact on our financial condition or results of operation.


ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      Market  risk  represents  the risk of loss that may impact  our  financial
position due to adverse changes in financial  market prices and rates. We do not
hold or issue financial  instruments for trading purposes or have any derivative
financial instruments



                                       23
<PAGE>

Interest Rates


      We are exposed to market  risks  relating  to changes in  interest  rates.
Although we do not currently have any borrowings  with variable  interest rates,
fluctuations  in  interest  rates  may  have a  negative  impact  to any  future
borrowings.

Foreign Currency Exchange Rates

      The Company has inter-company  debt denominated in U.S.  dollars,  whereas
the functional  currency of the Company's  subsidiaries is in Malaysian Ringgit,
which results in the Company  recording other  income/loss  associated with U.S.
dollars as a function of relative changes in foreign exchange rates. The Company
is unable to predict  whether it will  experience  future gains or future losses
from such  exchange-related  risks on the receivables and payables.  The Company
does not have a program  in place to manage  the  volatility  relating  to these
exposures.

      As a result of our operations and activities presence in Malaysia,  a huge
portion of our costs will be  denominated  in Malaysian  Ringgit.  Consequently,
fluctuations  in the exchange rates of the Malaysian  Ringgit to the U.S. dollar
will also affect our costs of goods sold and operating  margins and could result
in exchange  losses.  Currently,  we do not enter into  foreign  exchange  hedge
transactions, although we may do so in the future as our business grows.


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

      The audited  financial  statements  of the Company as of December 31, 2007
being furnished in response to this Item are contained in a separate  section of
this annual report on Form 10-K following the signature page.


ITEM 9.  CHANGES IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
FINANCIAL DISCLOSURE.

      There were no disagreements  on accounting and financial  disclosures with
the Company's present independent accountants,  Rotenberg Meril Solomon Bertiger
& Guttilla, P.C., during the reporting period.


ITEM 9A(T). CONTROLS AND PROCEDURES.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.

      We maintain disclosure controls and procedures that are designed to ensure
that  information  required  to be  disclosed  in our  Exchange  Act  reports is
recorded,  processed,  summarized and reported within the time periods specified
in the SEC's  rules and forms,  and that such  information  is  accumulated  and
communicated  to  management,  including our Chief  Executive  Officer and Chief
Accounting Officer, timely decisions regarding required disclosure based closely
on the definition of "disclosure controls and procedures" in Rule 13a-15(e).

      As of the end of the period  covered  by this  report,  we carried  out an
evaluation,   under  the  supervision  and  with  participation  of  management,
including  our Chief  Executive  Officer and Chief  Accounting  Officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures.  Based on the  foregoing,  our  Chief  Executive  Officer  and Chief
Accounting  Officer  concluded that our disclosure  controls and procedures were
effective.


                                       24
<PAGE>

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING; CHANGES
IN INTERNAL CONTROLS OVER FINANCIAL REPORTING.

      Our management is responsible for  establishing  and maintaining  adequate
internal  control over  financial  reporting.  Internal  control over  financial
reporting is a process designed to provide  reasonable  assurance  regarding the
reliability of financial  reporting and the preparation of financial  statements
for  external  reporting  purposes  in  accordance  with  accounting  principles
generally  accepted  in the  United  States.  Because of  inherent  limitations,
internal   control  over   financial   reporting   may  not  prevent  or  detect
misstatements.  Our management has conducted an evaluation of the  effectiveness
of our  internal  control over  financial  reporting  based on the  framework in
Internal  Control - Integrated  Framework  issued by the Committee of Sponsoring
Organizations  of  the  Treadway  Commission.   Based  on  our  evaluation,  our
management has concluded that our internal control over financial  reporting was
effective as of December 31, 2007.

      This annual report on Form 10-K does not include an attestation  report of
the Company's  registered public accounting firm regarding internal control over
financial  reporting.  Management's report was not subject to attestation by the
company's  registered  public accounting firm pursuant to temporary rules of the
SEC that permit the Company to provide only  management's  report in this annual
report on Form 10-K.

      During the quarter ended December 31, 2007,  there have been no changes in
our internal controls over financial reporting that have materially affected, or
are reasonably likely to materially affect, these controls.


ITEM 9B.  OTHER INFORMATION

None


                                       25
<PAGE>


                                    PART III

ITEM 10.   DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

      The  members  of the  Company's  Board  of  Directors  and  the  Company's
executive officers, and their respective ages and positions held in the Company,
as of April 14, 2008 are as follows:-

      NAME               AGE   POSITION HELD
---------------------- ------ --------------------------------------------------

Patrick Soon-Hock Lim    58   Chairman of the Board and Chief Executive Officer

Valerie Hoi-Fah Looi     49   Secretary and Director

Chee Hong Leong          42   Director

Kelvin Choon-Huat Ng     30   Chief Accounting Officer

All of the directors of the Company will serve in such  capacity  until the next
annual meeting of the Company's stockholders or until their successors have been
elected and  qualified.  The executive  officers  serve at the discretion of the
Company's  Board of  Directors.  There  are no  family  relationships  among the
Company's executive officers and the members of the Board of Directors,  nor are
there  any  arrangements  or  understandings  between  any of the  directors  or
executive  officers  of the  Company or any other  person  pursuant to which any
executive  officer or director was or is to be selected as an executive  officer
or director.

      MR.  PATRICK  SOON-HOCK  LIM,  58,  has  served  as the  President,  Chief
Executive  Officer and director of the Company  since April 1999.  In June 2002,
Mr. Lim was  appointed  as Chairman of the Board.  Mr. Lim has been the Managing
Director at SDAM since 1988 and has been involved in the multimedia industry for
over 12 years.  Mr. Lim earned his Masters of Science from  Reading  University,
United Kingdom in 1973.

      MS. VALERIE  HOI-FAH LOOI, 49, has served as the Secretary and director of
the Company  since  April 1999 and, in such  position,  she is  responsible  for
corporate  affairs and human resources of the Company.  Ms. Looi has also served
as the Senior Vice President, Corporate Affairs at SDAM, a position she has held
since  joining SDAM in 1990.  She has over 10 years of  experience  in corporate
affairs.  Ms.  Looi  received  her  Diploma  in  Management  from the  Malaysian
Institute of Management.

      MR.  CHEE HONG  LEONG,  42, has served as an  independent  director of the
Company since September 12, 2007. He is currently based in China and will be our
lead advisor for business in China.  Mr. Leong  received his Bachelor of Arts in
Accounting from Ulster  University,  Northern Ireland in 1989. He is a Fellow of
the Association of Chartered Certified  Accountants,  United Kingdom.  Mr. Leong
served as the Company's Chief  Financial  Officer from  December 1999 until his
resignation from that position in November 2005. Prior to joining the Company in
1999, he held a senior  position with  Industrial  Concrete  Products from April
1994 to December 1999.

      MR. KELVIN CHOON-HUAT NG, 30, joined the Company as an Accounts  Executive
in January  2006 and was promoted to Finance  Manager in August 2007.  Effective
February 2, 2008, he was appointed the Chief Accounting  Officer of the Company.
He is a  Chartered  Certified  Accountant  and a member  of the  Association  of
Chartered Certified  Accountants,  United Kingdom. In addition to his day-to-day
financial and accounting  tasks,  Mr. Ng is responsible for daily operations and
Sarbanes-Oxley  Act of 2002 compliance.  He brings over nine years of financial,
accounting  and auditing  experience in local and  international  firms that are
involved in manufacturing,  trading,  media production,  real estate development
and information technology.


                                       26
<PAGE>


COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934

Section 16(A) Beneficial Ownership Reporting Compliance

      Section 16(a) of the  Securities  Exchange Act of 1934,  as amended,  (the
"Exchange  Act"),  requires the Company's  executive  officers and directors and
persons who own beneficially more than ten percent of the Company's common stock
to file  initial  reports of ownership  and changes in  ownership  with the SEC.
Based solely on a review of copies of the Section 16(a) reports furnished to the
Company and written  representations by certain reporting  persons,  the Company
believes  that all of the  Company's  officers  and  directors,  and all persons
owning  more than ten  percent  of the  Company's  common  stock  have filed the
subject reports,  if required,  on a timely basis during and with respect to the
fiscal year ended December 31, 2007.

Director Independence

      As the Chief  Executive  Officer  of the  Company,  Chairman  of the Board
Patrick Lim is not considered  "independent"  based on the listing  standards of
the NASDAQ Stock Market if the  securities  of the Company were so listed (which
they are not).  The Board of  Directors of the Company has  concluded  that each
other  director  is  "independent"  based  on  such  listing  standards,  having
concluded that any  relationship  between such director and the Company,  in its
opinion,  does not  interfere  with the  exercise  of  independent  judgment  in
carrying out the  responsibilities of a director.  The Board of Directors of the
Company has also  concluded  that  director  Mustaffar  Bin Yacob serving on the
audit  committee  was  "independent"  based on the more  stringent  independence
standard of the NASDAQ Stock  Market  applicable  to directors  serving on audit
committees  until his  resignation.  Chee-Hong  Leong,  who was appointed to the
Audit Committee on April 8, 2008, is  "independent"  based on the more stringent
independence standard of the NASDAQ Stock Market applicable to directors serving
on audit committees.

Audit Committee Composition

      The  Company  has  a  separately   designated   standing  audit  committee
established in accordance with Section  3(a)(58)(A) of the Exchange Act. Patrick
Soon-Hock  Lim  (Chairman),  and  Mustaffar  Bin Yacob were members of the audit
committee at December 31, 2007.  The Board of Directors has  determined  that at
least one person on the Audit Committee,  Patrick Soon-Hock Lim,  qualified as a
"financial  expert"  as  defined by SEC rules  implementing  Section  406 of the
Sarbanes-Oxley Act, but he is not considered  "independent" based on the listing
standards of the NASDAQ Stock  Market if the  securities  of the Company were so
listed (which they are not).  Mustaffar  Bin Yacob met the SEC  definition of an
"independent"  director.  On February 4, 2008, Mustaffar Bin Yacob resigned from
the board of  directors  and Audit  Committee.  On April 8,  2008,  the Board of
Directors  approved the  appointment of Chee-Hong Leong as a member of the Audit
Committee.  Chee Hong Leong has served as an independent director of the Company
since September 12, 2007.

Code of Ethics

      The  Company  has  adopted a Code of Ethics  (as  defined  in Item 406) of
Regulation S-K that applies to its directors and executive officers. The Company
will provide a copy of its Code of Ethics,  without charge, to any investor that
requests it. Requests should be addressed in writing to Ms. Valerie Looi,  No.11
Jalan 51A/223, 46100 Petaling Jaya, Selangor, Malaysia.


                                       27
<PAGE>


Code of Conduct for Purchases and Sales of Company Securities

      The  Company  has  adopted a Code of Conduct  for  Purchases  and Sales of
Company  Securities  that applies to its directors and executive  officers.  The
Company  will provide a copy of its Code of Conduct for  Purchases  and Sales of
Company  Securities,  without charge, to any investor that requests it. Requests
should be addressed in writing to Ms. Valerie Looi, No. 11, Jalan 51A/223, 46100
Petaling Jaya, Selangor, Malaysia.


ITEM 11. EXECUTIVE COMPENSATION

Compensation Committee


      We  currently  do not  have a  compensation  committee  of  the  Board  of
Directors.  The Board of  Directors  as a whole  will  determine  the  executive
compensation.  Salary is currently the only type of  compensation  we utilize in
our compensation  program. We utilize this form of compensation  because we feel
that it is adequate to retain and motivate our executive  officers.  The amounts
we deem appropriate to compensate our executive  officer are determined upon the
level of  responsibility,  expertise and  experience of the executive and market
forces.  While we have  deemed  that our  current  compensatory  program and the
decisions  regarding  compensation are easy to administer and are  appropriately
suited  for our  objectives,  we may  expand  our  compensation  program  to any
additional   future   employees  to  include  options  and  other   compensatory
incentives.


Compensation Table

      The following Summary  Compensation  Table sets forth certain  information
concerning the compensation  earned by the Company's Chief Executive Officer and
any other executive  officers who were serving as executive  officers at the end
of the last completed  fiscal year and whose salary and bonus aggregated were in
excess of $100,000. No other compensation not covered in the following table was
paid or distributed  by the Company to such persons  during the period  covered.
Employee  directors receive no additional  compensation for service on the Board
of Directors of the Company. Outside directors received no compensation from the
Company  and the  Company  presently  has no plans to do so in the  future.  The
Company grants stock options to members of the Board from time to time.

      The Company has no other retirement, pension, profit sharing, insurance or
other similar programs.

                                       28
<PAGE>

                           SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>
<S>                                               <C>  <C>          <C>       <C>      <C>      <C>        <C>
                                                                                                   All
                                                                      Stock    Option  Warrant    Other
                                                          Salary     Awards    Awards   Awards     Comp
            Name and Position                 Year         (1)         (2)      (3)      (4)       (5)         Total

Patrick Soon-Hock Lim                             2007 $    120,000 $  86,500 $      - $168,768 $      177 $     375,445
-Chairman of the Board
and Chief Executive Officer                       2006 $    120,000 $  33,000 $  9,703 $ 35,160 $      429 $     198,292
</TABLE>

(1)   Represents  the  management  fee paid to LSH  Asset  Holdings  Sdn Bhd,  a
      company wholly-owned by Patrick Lim and his wife.

(2)   Represents the total fair market value of stock awarded during the year.
      Amount  listed does not  represent  the actual  current  fair value of the
      share awarded. See Stock Awards section below.

(3)   Represents fair market value options  granted during the year,  calculated
      using the Black Scholes  option  pricing model and related  assumptions as
      disclosed  in  Note  2,  Share  Based  Compensation,  of our  consolidated
      financial statements.

(4)   Represents  fair  market  value  of  warrants  granted  during  the  year,
      calculated  using the Black Scholes option pricing model.  One-third of he
      warrants  issued vest each year for three years on the  anniversary of the
      grant date.  Amounts listed do not represent the actual current fair value
      of the share granted.

(5)   Represents medical premiums paid for the year.

      The following  tables set forth  information  concerning  the  outstanding
equity awards granted to the named directors and executive  officers at December
31, 2007.


                                       29
<PAGE>

<TABLE>
<CAPTION>
<S>                            <C>            <C>            <C>          <C>       <C>
                                                       Warrant Awards
                              -----------------------------------------------------------------
                                Number of Securities                   Warrant
                               Underlying Unexercisable    Equity       Exercise
Name and Position                    Warrant (#)          Incentive      Price
                                                         Plan Awards:
                              Exercisable Unexercisable   Number of     ($/Sh)
                                                          Securities
                                                          Underlying
                                                         Unexercised,               Warrant
                                                           Unearned                Expiration
                                                          Warrant (#)                 Date
----------------------------- ----------- ------------- -------------- --------- --------------
Patrick Soon-Hock Lim
- Chairman of the Board and
 Chief Executive Officer        2,100,000     4,200,000      4,200,000    0.0649     10/20/2011

</TABLE>


                                       30
<PAGE>


Stock Awards

      On October 21, 2006,  the Company  approved stock awards of 500,000 shares
of common  stock to be granted  annually  on December  31, of each year,  to the
Company's Chief Executive Officer.  The stock grants are issuable subject to the
condition that Company maintains an annual minimum rate of compound growth of 15
percent.  This Agreement  will remain  effective for so long as the Chairman and
Chief Executive Officer is able to meet his target.

Employment Agreements

      The Company has no employment agreements with its Chief Executive Officer.
However,  its  wholly-owned  subsidiary,  Digital Image ID Sdn Bhd ("DID"),  has
entered into employment agreements with other executive officers of the Company.

      DID and Voon-Fui  Yong entered  into a letter  agreement,  dated August 1,
2006 with respect to Mr. Yong's  employment as DID's Chief  Accounting  Officer.
Under the letter agreement,  Mr. Yong will receive a basic salary of $36,000 per
year subject to review by DID from time to time.  He is also entitled to options
to  purchase  the  Company's  common  stock to be awarded by the  Company in the
future.  Either  party may  terminate  the letter  agreement by giving the other
party one month's prior written notice. Mr. Yong resigned on February 2, 2008.

      DID and Kelvin Choon-Huat Ng entered into a letter agreement, dated August
1, 2006, with respect to Mr. Ng's employment as Accounts Executive of DID. Under
the  letter  agreement,  Mr.  Ng will  receive a basic  salary of  approximately
$13,000 per year subject to review by DID from time to time. He is also entitled
to stock  option  grants to be awarded by SDA in the  future.  Either  party may
terminate  the letter  agreement  by giving the other  party one  month's  prior
written  notice.  On February 2, 2008,  Mr. Ng was promoted to Chief  Accounting
Officer and his basic annual salary was increased to $23,162.

      DID and Ms.  Valerie  Hoi-Fah Looi entered into a letter  agreement  dated
August 1, 2006 with  respect  to Ms.  Looi's  employment  as DID's  Director  of
Corporate  Affairs.  Under the letter  agreement,  Ms. Looi will receive a basic
salary of $50,000  per year  subject to review by DID from time to time.  She is
also entitled to stock option grants to be awarded by SDA in the future.


                                       31
<PAGE>


ITEM 12. SECURITY  OWNERSHIP OF CERTAIN  BENEFICIAL  OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS.

      The  following  sets  forth the number of shares of the  Company's  common
stock beneficially owned by (i) each person who, as of April 14, 2008, was known
by the Company to own  beneficially  more than five  percent  (5%) of its common
stock;  (ii) each of the members of the Company's Board of Directors and each of
the  executive  officers of the Company and (iii) the  directors  and  executive
officers of the Company as a group.


NAME AND ADDRESS                       NUMBER OF SHARES OF        PERCENT OF
OF BENEFICIAL OWNER (1)             BENEFICIAL OWNER (2) (3)        CLASS

Patrick Soon-Hock Lim                              54,330,400 (4)          33.93

Valerie Hoi-Fah Looi                                5,490,000 (5)           3.97

Mustaffar Bin Yacob                                         0                  *

Chee Hong Leong                                        30,000                  *

Voon-Fui Yong                                         307,000 (6)              *
                                      -----------------------    ---------------
All Officers and Directors as
a Group (5 persons)                                60,157,400 (7)          37.47
                                      =======================    ===============
*   Less than 1%.


(1)  The address of each  person  listed is c/o  Secured  Digital  Applications,
     Inc., No. 11, Jalan 51A/223, 46100 Petaling Jaya, Selangor, Malaysia.

(2)  Beneficial  ownership is determined in accordance with the rules of the SEC
     and  generally   includes  voting  or  investment  power  with  respect  to
     securities.  In accordance with SEC rules,  shares of common stock issuable
     upon the exercise of options or warrants which are currently exercisable or
     which become exercisable within 60 days following April 14, 2008 are deemed
     to be beneficially owned by, and outstanding with respect to, the holder of
     such option or warrant.

(3)  The inclusion  herein of any shares of common stock as  beneficially  owned
     does not  constitute an admission of beneficial  ownership of those shares.
     Unless  otherwise  indicated,  each person listed above has sole investment
     and voting power with respect to the shares listed.

(4)  Includes  (a)  8,000,000  shares  directly  owned by Mr.  Lim's  wife,  (b)
     8,000,000  shares  directly owned by Mr. Lim's son, (c)  25,245,000  shares
     owned by First Asset  Holdings Ltd, a  corporation  controlled by Mr. Lim's
     son, (d) 5,245,000  shares owned by LSH,  company  wholly-owned by Mr. Lim,
     (e) 20,000,000  shares of common stock issuable upon conversion of Series B
     Voting Convertible Preferred Stock owned by LSH and (f) 2,100,000 shares of
     common stock underlying warrants to purchase common stock.


                                       32
<PAGE>


(5)  Includes  360,000  shares of common  stock  underlying  options to purchase
     common stock.

(6)  Includes  150,000  shares of common  stock  underlying  options to purchase
     common stock.

(7)  Includes  510,000  shares of common  stock  underlying  options to purchase
     common stock, 20,000,000 shares of common stock issuable upon conversion of
     Series B Voting Convertible  Preferred Stock and 2,100,000 shares of common
     stock underlying warrants to purchase common stock.


ITEM  13.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS,   AND  DIRECTOR
INDEPENDENCE.

      During  the  year  ended  December  31,  2007,  the  Company  had  related
transactions with the following parties:

LSH ASSET HOLDINGS SDN BHD ("LSH"):

      LSH is a company wholly-owned by the Company's Chief Executive Officer and
his wife. LSH billed the Company  management  fees totaling  $120,000 and billed
DASB  $27,849  for the year  ended  December  31,  2007 for  administrative  and
clerical charges.  LSH also made short term advances to the Company from time to
time for working capital  purposes.  As of December 31, 2007, the amount owed to
LSH by the Company was $23,668. This amount is unsecured, bears no interest, has
no fixed terms of  repayment,  and is recorded in the  financial  statements  as
"Amount due to an affiliated company."

SYNERVEST SDN BHD ("SSB")

      Mustaffar Bin Yacob, a former director of PTSB (resigned February 4, 2008)
is a director of SSB and holds a 60% equity  interest in SSB. As of December 31,
2007, long-term receivables, related parties, was fully recovered from SSB. This
amount  primarily  arose in the year ended  December 31, 1998,  when the Company
sold to SSB  assets  used  in the  operations  of a  subsidiary.  These  assets,
comprised  of analog  video  hardware  and  peripherals  and a patent  for image
display,  were sold to SSB for $1,661,175.  Due to the uncertainty of collection
of the related receivable, a related gain on the sale of the assets was deferred
and is to be recognized only after all costs have been recovered and as payments
are received.  During the year ended December 31, 2002, payments received by the
Company  exceeded all  remaining  costs.  The Company  received  $110,881 of the
outstanding  receivable during the year ended December 31, 2007,  resulting in a
realization of gain on sale of assets,  related party for the year. The deferred
gain  included in the balance sheet has been reduced  accordingly.  The deferred
gain on sale of  assets  totaled  $108,247  at  December  31,  2006,  was  fully
recognized as gain during the year ended  December 31, 2007 as all payments have
been fully recovered.

MY ARCHITECT ("MYA")

      Mustaffa Bin Yacob,  a former  director of PTSB is a principal  partner of
MYA.  During the year ended  December 31,  2007,  the Company  received  fees of
$2,500,073 from consulting contracts that it entered into with MYA. The terms of
repayment  for the amount  due from MYA are  similar  to terms  accorded  to the
Company's other existing  customers.  At December 31, 2007, there was no balance
owed by MYA.


                                       33
<PAGE>


ULTIMATE SERIES SDN BHD ("USSB")

      USSB is wholly-owned by Mustaffa Bin Yacob, a former director of PTSB. For
the years ended December 31, 2007, the Company  incurred fees of $10,502,451 for
sub-contractor  work that it entered into with USSB.  The terms of repayment for
the amount due to USSB are  similar to terms  accorded  to the  Company's  other
existing suppliers. At December 31, 2007, there was no balance owed to USSB.

CHIEF EXECUTIVE OFFICER

      As of December 31, 2007, the Company owed Patrick Lim, the Chief Executive
Officer of the Company, $88,632 for short-term cash advances made to the Company
for working  capital  purposes  from time to time.  The amount owed to the Chief
Executive  Officer  is  unsecured,  bears no  interest,  has no  fixed  terms of
repayment  and is  recorded  in the  financial  statements  as "Amount  due to a
director."

DIRECTORS OF MALAYSIAN SUBSIDIARY

      On September  18, 2006,  DASB acquired  1,150,000  shares of PTSB from its
directors,  Mr.  Mustaffar  Bin Yacob  and  Dato'  Wan  Abdul  Razak for a total
consideration of RM567,500 (approx.  $154,000 U.S. dollars). The balance was due
in one year or less from the date of purchase unless extended by the parties and
such debt bears no interest.  At December 31, 2007,  DASB owed Mr. Yacob and Mr.
Razak RM354,500 ($106,935 at December 31, 2007) and is recorded in the financial
statements as "Amount due to directors of subsidiary".

      The amounts  owed to Mr.  Yacob and the estate of Mr. Razak have yet to be
fully settled as at December 31, 2007.  Mr. Razak died intestate and the Company
is waiting for instructions from his estate. Mr. Mustaffar  originally  extended
the payment  term by another six months to March 18,  2008.  The Company and Mr.
Mustaffar are currently in negotiation to extend the payment term further.


ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

      Our  principal  auditor  during  fiscal 2006 and 2007 is  Rotenberg  Meril
Solomon Bertiger & Guttilla,  P. C. Aggregate fees were billed or expected to be
billed in the following categories and amounts:

                                             Years Ended December 31,
                                                 2007         2006
                                             -----------  -----------
Audit Fees                                  $    152,000 $    160,000
Audit Related Fees                                    --           --
Tax Fees                                           8,000       21,238
All Other Fees                                        --           --

      Audit fees include fees billed for professional  services  rendered by our
principal  auditor  for the audit of annual  financial  statements,  reviews  of
quarterly  financial  statements  and  services  that are  normally  provided in
connection with statutory and regulatory filings.

      Tax fees for 2006  included  include  fees billed for tax  compliance  and
preparing the tax returns for 2003, 2004, 2005 and 2006.


                                       34
<PAGE>


      Our Audit Committee  pre-approves  all services,  including both audit and
non-audit services, provided by our independent accountants. For audit services,
each  year  the  independent  auditor  provides  our  Audit  Committee  with  an
engagement  letter  outlining  the scope of the audit  services  proposed  to be
performed  during  the  year,  which  must be  formally  accepted  by the  Audit
Committee  before the audit commences.  The independent  auditor also submits an
audit services fee proposal,  which also must be approved by the Audit Committee
before the audit commences.

      All of the services  described  above were approved by the Company's audit
committee  prior to  performance.  The audit  committee has determined  that the
payments made to its  independent  accountants for these services are compatible
with maintaining such auditors' independence.


                                       35
<PAGE>


ITEM 15.   EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

3.1  Amended  and  Restated  Certificate  of  Incorporation  of Secured  Digital
     Applications,  Inc.  (incorporated  by  reference  to  Exhibit  3.1  to the
     Company's annual report on Form 10-K filed with the SEC on April 15, 2005)

3.2  Certificate of Ownership of Digital  Broadband  Networks,  Inc. (a Delaware
     Corporation) and Secured Digital Applications Inc. (a Delaware Corporation)
     (incorporated by reference to Exhibit 3.2 to the Company's annual report on
     Form 10-K filed with the SEC on April 15, 2005)

3.3  Certificate  of Amendment to the  Certificate of  Incorporation  of Secured
     Digital Applications, Inc. (incorporated by reference to Exhibit 3.2 to the
     Company's annual report on Form 10-K filed with the SEC on April 15, 2005)

3.4  Certificate of Designation  for Series B Preferred Stock  (incorporated  by
     reference to Exhibit 3.6 to the Company's  annual report on Form10-K  filed
     with the SEC on April 17, 2007)

3.5  Amended and Restated  Bylaws of Secured  Digital  Applications,  Inc. as of
     July 3, 2007  (incorporated  by reference  to Exhibit 3.1 to the  Company's
     current report on Form 8-K filed with the SEC on July 5, 2007)

10.1 Agreement and Plan of  Reorganization,  dated April 20, 1999, between Kalan
     Gold Corporation and Animated Electronic Industries Sdn. Bhd. (Incorporated
     by reference to Exhibit 2.1 to the Company's  Current  Report on Form 8-K/A
     dated April 20, 1999, as filed with the SEC on July 2, 1999)

10.2 Employment  Agreement dated August 1, 2006 between Digital Image ID Sdn Bhd
     and Yong  Voon Fui.  (Incorporated  by  reference  to  Exhibit  10.3 to the
     Company's annual report on Form 10-K filed with the SEC on April 17, 2007)

10.3 Employment  Agreement dated August 1, 2006 between Digital Image ID Sdn Bhd
     and  Valerie  Looi.  (Incorporated  by  reference  to  Exhibit  10.4 to the
     Company's annual report on Form 10-K filed with the SEC on April 17, 2007)

10.4 Stock  Award  Agreement  dated  October 21, 2006  between  Secured  Digital
     Applications, Inc. and Patrick Soon-Hock Lim. (Incorporated by reference to
     Exhibit 10.5 to the Company's annual report on Form 10-K filed with the SEC
     on April 17, 2007)

10.5 Employment  Agreement dated August 1, 2006 between Digital Image ID Sdn Bhd
     and Kelvin Choon-Huat Ng.

10.6 Supply   Agreement   dated  October  27,  2007  between   Secured   Digital
     Applications , Inc. and Collier Consulting Inc.  (incorporated by reference
     to Exhibit 10.1 to the Company's  current report on Form 8-K filed with the
     SEC on November 1, 2007)


                                       36
<PAGE>


21.1 List of Subsidiaries

31.1 Certification by Chief Executive  Officer pursuant to Rule 13A-14 or 15D-14
     of the Securities Exchange Act of 1934

31.2 Certification by Chief Accounting Officer pursuant to Rule 13A-14 or 15D-14
     of the Securities Exchange Act of 1934

32.1 Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350

32.2 Certification by Chief Accounting Officer pursuant to 18 U.S.C. 1350


                                       37
<PAGE>


                                   SIGNATURES

        Pursuant to the  requirements  of Section 13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                    Secured Digital Applications, Inc.

Dated: April 14, 2008          By:   /s/ Patrick Soon-Hock Lim
                                     -------------------------
                                     Patrick Soon-Hock Lim
                                     Chairman  and  Chief  Executive Officer


    Pursuant to the  requirements  of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities and on the dates indicated.

           SIGNATURE                          TITLE                   DATE
-------------------------------- ------------------------------- ---------------


/s/ Patrick Soon-Hock Lim           Chairman, Chief Executive    April 14, 2008
--------------------------------
Patrick Soon-Hock Lim                 Officer and Director
                                  (Principal Executive Officer)



/s/ Kelvin Choon-Huat Ng            Chief Accounting Officer     April 14, 2008
--------------------------------
Kelvin Choon-Huat Ng                 (Financial Officer and
                                  Principal Accounting Officer)



/s/ Valerie Hoi-Fah Looi             Secretary and Director      April 14, 2008
--------------------------------
Valerie Hoi-Fah Looi



/s/ Chee Hong Leong                         Director             April 14, 2008
--------------------------------
Chee Hong Leong


                                       38
<PAGE>


             SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                     YEARS ENDED DECEMBER 31, 2007 AND 2006
                  INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



Report  of  independent  registered  public  accounting  firm           F-1
Consolidated financial statements:
      Balance sheets                                                    F-2
      Statements of income                                              F-4
      Statements of changes in stockholders'
        equity and comprehensive income                                 F-6
      Statements of cash flows                                          F-10
      Notes to consolidated financial statements                        F-13



<PAGE>


           REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors
Secured Digital Applications, Inc. and Subsidiaries

We have audited the accompanying consolidated balance sheets of Secured Digital
Applications, Inc. and subsidiaries (the "Company") as of December 31, 2007 and
2006, and the related consolidated statements of income, changes in
stockholders' equity and comprehensive income and cash flows for the years then
ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Company is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the Company as of
December 31, 2007 and 2006, and the results of their operations and their cash
flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.




/s/ ROTENBERG, MERIL, SOLOMON, BERTIGER & GUTTILLA, P.C.

ROTENBERG, MERIL, SOLOMON, BERTIGER & GUTTILLA, P.C.

Saddle Brook, New Jersey
 April 14, 2008


                                      F-1
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                                                    <C>                      <C>
                                                                               2007             2006
                                                                               ----             ----

                               ASSETS

Current assets:
<CAPTION>
<S>                                 <C>                           <C>    <C>
     Cash                                                              $         40,385             7,644
     Trade and other accounts receivable,
       less allowance for doubtful accounts of $27,699 and $26,006,           8,902,465         8,327,515
            respectively
     Prepaid expenses                                                            18,539            14,142
     Current assets of discontinued operations                                       --           220,540
                                                                        --------------- -----------------
              Total current assets                                            8,961,389         8,569,841
Property and equipment, net                                                   3,718,150           990,590
Goodwill                                                                        471,260           471,260
Long-term receivables, related parties                                               --           108,247
Non-current assets of discontinued operations                                        --            28,351
                                                                        --------------- -----------------
                                                                       $     13,150,799        10,168,289
                                                                        =============== =================


                         LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Capital lease obligations                                         $         35,634            33,455
     Accounts payable                                                           424,198           678,511
     Accrued expenses                                                           209,877            65,595
     Amount due to an affiliated company                                         23,668            17,927
     Amount due to a director                                                    88,632            10,578
     Amount due to directors of subsidiary                                      106,935           100,396
     Income tax payable                                                          47,151            11,045
     Current liabilities of discontinued operations                                  --           254,150
                                                                        --------------- -----------------
              Total current liabilities                                         936,095         1,171,657

     Deferred income tax                                                        461,525           208,723
     Deferred gain                                                                   --           108,247
                                                                        --------------- -----------------
              Total liabilities                                               1,397,620         1,488,627
                                                                        --------------- -----------------
</TABLE>

                                   (continued)


                                       F-2
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                           DECEMBER 31, 2007 AND 2006



<TABLE>
<CAPTION>
<S>                                                                       <C>               <C>
Minority interest                                                         $      218,016 $         180,866
                                                                           -------------  ----------------
Commitments

Stockholders' equity:
     Series B convertible preferred stock, $0.10 par value;
      1,000,000 shares authorized; 100,000 shares issued and outstanding,
      liquidation preference $2,500,000                                           10,000            10,000
     Common stock, $.00001 par value;
       350,000,000 shares authorized; 143,172,594 shares issued and
       137,796,814 shares outstanding in 2007 and 141,572,594 shares
       issued and 128,721,391 shares outstanding in 2006                           1,375             1,287
     Additional paid-in capital                                                7,665,244         6,746,129
     Common treasury stock - at cost, 5,375,780 shares costing 2007
       and 12,851,203 shares in 2006                                                  --                --
     Options                                                                      73,561           101,904
     Warrants                                                                    953,643           784,875
     Deferred compensation                                                            --           (48,175)

     Retained earnings                                                         2,280,005           657,384

     Accumulated other comprehensive income                                      551,335           245,392
                                                                           -------------  ----------------
              Total stockholders' equity                                      11,535,163         8,498,796
                                                                           -------------  ----------------
                                                                          $   13,150,799 $      10,168,289
                                                                           =============  ================
</TABLE>

                See notes to consolidated financial statements


                                       F-3
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                          <C>              <C>
                                                      Year ended
                                                      December 31,
                                                 2007              2006
                                           ----------------- ----------------
Revenues:
Services:
  Related parties                            $    2,500,073   $      743,414
  Others                                         45,227,181       35,900,419
                                           ----------------- ----------------
                                                 47,727,254       36,643,833
                                           ----------------- ----------------

Cost of Revenues:
Services:
  Related parties                                   750,022          223,372
  Others (includes related party of
   $10,502,451 and $9,314,920,
   respectively.)                                42,650,796       33,620,999
                                           ----------------- ----------------
                                                 43,400,818       33,844,371
                                           ----------------- ----------------
Gross Profit                                      4,326,436        2,799,462
                                           ----------------- ----------------
Operating Expenses:
  Sales and marketing                               577,690          625,034
  General and administrative:
    Related parties                                 147,849          146,099
    Others                                        1,920,751        1,811,013
                                           ----------------- ----------------
Total Operating Expenses                          2,646,290        2,582,146
                                           ----------------- ----------------
Income from Operations                            1,680,146          217,316
                                           ----------------- ----------------
Other Income (expenses):
  Interest Expense                                   (9,659)          (1,994)
  Gain on foreign currency transactions             108,100           50,815
  Previously deferred gain on sales of
   technology, related parties                      110,881           85,692
  Reversal of bad debt provision                         --          135,932
  Write-off of old vendor payables                       --          152,644
  Other income                                       16,006           55,953
                                           ----------------- ----------------
                                                    225,328          479,042
                                           ----------------- ----------------
Income before provision for income taxes
 and minority interest                            1,905,474          696,358
Provision for income taxes                         (264,463)         (81,831)
                                           ----------------- ----------------
Income before minority interest                   1,641,011          614,527
Minority interest                                   (24,399)         (10,008)
Purchased pre-acquisition income                         --          (30,531)
                                           ----------------- ----------------
Income from continuing operations                 1,616,612          573,988
                                           ----------------- ----------------
</TABLE>

                                   (continued)


                                       F-4
<PAGE>



             SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                                   <C>                 <C>
                                                                     Year ended
                                                                  December 31,
                                                            2007               2006
                                                      ------------------ -----------------
Discontinued operations:
  Income (loss) from discontinued operation - net of
   minority interest and income taxes                           (17,310)            36,924
  Gain on disposal of discontinued operations                    23,319             46,472
                                                      ------------------ -----------------

Income from discontinued operations                               6,009             83,396
                                                      ------------------ -----------------
Net income                                              $     1,622,621    $       657,384
                                                      ================== =================

Net income per common share:
  Basic **                                              $          0.01    $          0.01
                                                      ================== =================
  Diluted**                                             $          0.01    $             *
                                                      ================== =================
Weighted average shares outstanding:
  Basic                                                     132,630,909        132,021,168
                                                      ------------------ -----------------
  Diluted                                                   157,010,611        156,550,307
                                                      ------------------ -----------------
</TABLE>


* Less than $0.01 per share
** Net income per common share for  discontinued  operations  is less than $0.01
   per share and not presented separately.

                 See notes to consolidated financial statements


                                       F-5
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                            AND COMPREHENSIVE INCOME
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                               <C>        <C>           <C>            <C>           <C>        <C>
                                      Preferred stock          Common stock           Additional
                                                Par                       Par          paid-in       Treasury
                                     Shares    Value       Shares        Value         capital        stock
                                    -------- --------- -------------- ------------ --------------- ------------
Balances, January 1, 2006                 --  $     --   128,884,430   $    1,289     $ 5,253,842   $        --

Common stock issued for
 private placement                        --        --     5,800,000           58         375,142            --
Issuance of common shares as
 compensation for professional fees       --        --    12,367,595          123         892,395            --
Issuance of warrants to employee          --        --            --           --              --            --
Issuance of common stock for
  vendor payable                          --        --       983,607           10          59,990            --
Employee stock options exercised          --        --       500,000            5          54,070            --
Stock compensation expenses               --        --            --           --              --            --
Issuance of stock options                 --        --            --           --              --            --
Working capital call in subsidiary        --        --       185,759            2          14,998            --
Conversion of common stock           100,000    10,000   (20,000,000)        (200)         (9,800)
Effect of sale of accounting parent       --        --            --           --         105,492            --
Comprehensive income:
 Net income for the year
  ended December 31, 2006                 --        --            --           --              --            --
Foreign currency translation
 adjustment                               --        --            --           --              --            --
 Comprehensive income
                                    -------- --------- -------------- ------------ --------------- ------------
Balances, December 31, 2006          100,000  $ 10,000   128,721,391   $    1,287     $ 6,746,129   $        --
                                    ======== ========= ============== ============ =============== ============
</TABLE>

                                   (continued)


                                       F-6
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                            AND COMPREHENSIVE INCOME
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                         <C>      <C>                 <C>          <C>          <C>            <C>
                                            Preferred stock                 Common stock            Additional
                                                          Par                            Par         paid-in       Treasury
                                         Shares          Value           Shares         Value        capital        stock
                                     -------------- --------------- ---------------- ------------ -------------- ------------

Balances December 31, 2006                  100,000  $       10,000      128,721,391  $     1,287  $   6,746,129  $        --
Common stock issued for
   private placement                             --              --        2,000,000           20        192,280           --
Common stock issued to
   employees                                     --              --          500,000            5         31,495           --
Issuance of common shares as
   compensation for professional
   fees                                          --              --        5,725,423           57        586,346           --
Issuance of warrants to employee                 --              --               --           --             --           --
Consultant stock options exercised               --              --          250,000            2         24,998           --
Employee stock options exercised                 --              --          350,000            4         83,996           --
Stock compensation expenses                      --              --               --           --             --           --
Issuance of stock options                        --              --               --           --             --           --
Comprehensive income:
Net income for the year
   ended December 31, 2007                       --              --               --           --             --           --
Foreign currency translation
   adjustment                                    --              --               --           --             --           --
Comprehensive income
                                     -------------- --------------- ---------------- ------------ -------------- ------------
Balances, December 31, 2007                 100,000  $       10,000      137,546,814  $     1,375  $   7,665,244  $        --
                                     ============== =============== ================ ============ ============== ============
</TABLE>


                                   (continued)


                                       F-7
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                      AND COMPREHENSIVE INCOME (CONTINUED)
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                      <C>              <C>             <C>        <C>             <C>      <C>
                                                                                                Accumulated
                                                            Deferred                                Other
                                                          Compensation               Retained   Comprehensive
                                            Options           Cost        Warrants   Earnings      Income       Total
                                        ---------------- --------------- ---------- ----------- ------------- ----------

Balances, January 1, 2006                $       62,372   $          --   $ 749,715  $       --      $ 32,503 $6,099,721

Common stock issued for
   private placement                                 --              --          --          --            --    375,200
Issuance of common shares as
   compensation for professional
   fees                                              --         (48,175)         --          --            --    844,343
Issuance of warrants to employee                     --              --      35,160          --            --     35,160
Issuance of common stock for
   vendor payable                                    --              --          --          --            --     60,000
Employee stock options exercised                (23,898)             --          --          --            --     30,177
Stock compensation expenses                      15,867              --          --          --            --     15,867
Issuance of stock options                        47,563              --          --          --            --     47,563
Working capital call in subsidiary                   --              --          --          --            --     15,000
Conversion of common stock                           --              --          --          --            --         --
Effect of sale of accounting parent                  --              --          --          --            --    105,492
Comprehensive income
Net income for the year
  ended December 31, 2006                            --              --          --     657,384            --    657,384
Foreign currency translation
   adjustment                                        --              --          --          --       212,889    212,889
Comprehensive income                                                                                             870,273
                                        ---------------- --------------- ---------- ----------- ------------- ----------
Balances, December 31, 2006
                                         $      101,904   $     (48,175)  $ 784,875  $657,384        $245,392 $8,498,796
                                        ================ =============== ========== =========== ============= ==========
</TABLE>


                                   (continued)


                                       F-8
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                      AND COMPREHENSIVE INCOME (CONTINUED)
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                 <C>              <C>               <C>          <C>           <C>            <C>
                                                                                                    Accumulated
                                                        Deferred                                     Other
                                                      Compensation                   Retained    Comprehensive
                                       Options            Cost         Warrants      Earnings        Income         Total
                                   ---------------- ---------------- ------------- ------------- -------------- -------------

Balances December 31, 2006          $      101,904   $      (48,175)   $   784,875  $    657,384  $     245,392  $  8,498,796
Common stock issued for
  private placement                             --               --             --            --             --       192,300
Common stock issued to
  employees                                     --               --             --            --             --        31,500
Issuance of common shares as
  compensation for professional
  fees                                     (23,875)          48,175             --            --             --       610,703
Issuance of warrants to employee                --               --        168,768            --             --       168,768
Consultant stock options
   exercised                                    --               --             --            --             --        25,000
Employee stock options
   exercised                               (14,000)              --             --            --             --        70,000
Stock compensation expenses                  8,560               --             --            --                        8,560
Issuance of stock options                      972               --             --            --             --           972
Comprehensive income
Net income for the year
   ended December 31, 2007                      --               --             --     1,622,621             --     1,622,621
Foreign currency translation
   adjustment                                   --               --             --            --        305,943       305,943
Comprehensive income                                                                                                1,928,564
                                   ---------------- ---------------- ------------- ------------- -------------- -------------
Balances December 31, 2007          $       73,561   $           --    $   953,643  $  2,280,005  $     551,335  $ 11,535,163
                                   ================ ================ ============= ============= ============== =============
</TABLE>

                See notes to consolidated financial statements


                                       F-9
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     YEARS ENDED DECEMBER 31, 2007 AND 2006

<TABLE>
<CAPTION>
<S>                                                  <C>            <C>
                                                        2007            2006
                                                   -------------- ---------------

CASH FLOWS FROM OPERATING ACTIVITIES

   Net income                                        $ 1,622,621    $    657,384
   Adjustments to reconcile net income to net cash
      provided by operating activities:
    Minority interest                                     24,399          10,008
    Purchased pre-acquisition income                          --          30,531
    Depreciation and amortization                        389,018         250,568
    Deferred income taxes                                239,208          40,215
    Allowance for slow moving inventories                     --           4,882
    Stock compensation expenses                          789,003         957,933
    Disposal of subsidiaries                             (22,984)        (46,472)
    Previously deferred gain on sale of technology,
     related party                                      (115,296)        (89,266)
    Loss on disposal of property and equipment                --          54,092
    Changes in operating assets and liabilities
         Trade and other accounts receivable              28,604      (1,782,578)
         Prepaid expenses                                 (3,673)          9,132
         Inventories                                          --          31,016
         Accounts payable and accrued expenses           (90,018)        217,613
         Income tax liability                             35,387         (12,242)
                                                   -------------- ---------------
   Change in operating assets and liabilities of
    continuing operations                              2,896,269         332,816
   Change in operating assets and liabilities of
    discontinued operations                               15,649         (70,584)
                                                   -------------- ---------------
   Net cash provided by operating activities           2,911,918         262,232
                                                   -------------- ---------------


CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of equipment                              (2,957,390)       (304,707)
   Purchase of equipment of discontinued operations           --          (1,056)
   Proceeds from sale of equipment of discontinued
    operations                                                --          29,181
                                                   -------------- ---------------
   Net cash used in investing activities              (2,957,390)       (276,582)
                                                   -------------- ---------------
</TABLE>

                                   (continued)


                                      F-10
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     YEARS ENDED DECEMBER 31, 2007 AND 2006



<TABLE>
<CAPTION>
<S>                                                       <C>            <C>
                                                              2007          2006
                                                          ------------- --------------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from issuance of shares of common stock          287,300        375,200
     Proceeds from affiliated company                            5,055             --
     Repayments to affiliated company                               --        (93,787)
     Proceeds from loans from a director                        77,532             --
     Repayments to a director                                       --        (62,619)
     Proceeds from exercise of stock options                        --         30,177
     Payment of obligations under capital leases                    --        (11,185)
     Financing activities of discontinued operations                --        (63,652)
                                                          ------------- --------------
     Net cash provided by financing activities                 369,887        174,134
                                                          ------------- --------------


FOREIGN CURRENCY TRANSLATION ADJUSTMENT
     - continuing activities                                  (293,750)      (300,143)
     - discontinued activities                                   2,076        111,444
                                                          ------------- --------------
Net increase (decrease) in cash                                 32,741        (28,915)

Cash, beginning of year                                          7,644         36,559
                                                          ------------- --------------
Cash, end of year                                          $    40,385   $      7,644
                                                          ============= ==============
</TABLE>

                                   (continued)


                                      F-11
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     YEARS ENDED DECEMBER 31, 2007 AND 2006


                                                     2007          2006
                                                   ----------- --------------


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid for interest during the year            $      --  $       1,994
                                                   =========== ==============
   Cash paid for income taxes during the year        $      --  $       6,854
                                                   =========== ==============

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
        FINANCING ACTIVITIES:

Conversion of common stock to preferred stock        $      --  $      10,000
                                                   =========== ==============

Issuance of common stock for vendor payable          $      --  $      60,000
                                                   =========== ==============

                 See notes to consolidated financial statements


                                      F-12
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED DECEMBER 31, 2007 AND 2006


NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION

Secured Digital Applications, Inc. and its subsidiaries (the "Company" or "SDA")
are  involved in the business of  specializing  in the design,  development  and
implementation of wireless applications and electronic solutions.  The Company's
revenues for 2007 and 2006 were primarily  derived from the design,  development
and  production  of  interactive  multimedia  websites  and  content and sale of
information technology products and services.


During the third quarter of 2006, the Company determined that it was in the best
interest of SDA and its  stockholders  to  restructure  the Company's  operating
subsidiaries.  The intent of the  reorganization  was to improve  administrative
efficiency  and profit  margins,  as well as to  dispose  of  certain  assets or
subsidiaries that did not meet management's  criteria for continued inclusion in
the SDA group of companies.  In particular,  we determined that our subsidiaries
involved in the developing  business of secured  shipping and in the established
business  of  operating  retail  computer  outlets  did not meet  the  Company's
criteria for profitability and/or fit within the Company's  organization.  Under
the reorganization plan,  substantially all of the assets and liabilities of our
principal  operating  subsidiary,  Secured  Digital  Applications  (M)  Sdn  Bhd
("SDAM"),  were transferred to a newly created  subsidiary,  DigitalApps Sdn Bhd
("DASB"). DASB thus became our principal operating subsidiary with substantially
the same assets and liabilities as the former SDAM.

Through reorganization,  we reduced the number of our operating subsidiaries and
disposed of the  subsidiaries  associated with our Gallant IT operations,  which
operated retail computer stores in metropolitan  Kuala Lumpur.  We also disposed
off the subsidiaries  through  which we had been  seeking  to  develop a secured
shipping business.

In connection with the reorganization, we incorporated the new subsidiary, DASB,
which  will  act as the  principal  holding  company  for  the  Company's  three
Malaysian operating subsidiaries:  Perwimas Telecommunications Sdn Bhd ("PTSB");
Digital  Image ID Sdn Bhd ("DID") and  DigitalApps  Media Sdn Bhd  ("DAM").  DID
owned 100  percent of  Digital  Kiosk  Technologies  Sdn Bhd  ("DKT")  (formerly
known as Century Jubilee Sdn Bhd).

On June 27,  2007,  the Company sold its wholly-owned subsidiary,  DigitalApps
Technologies Sdn Bhd ("DAT"), which included its 55%-owned subsidiary, Ispec Sdn
Bhd ("ISS"), to a third party and recognized a gain on disposal of $22,984. Both
DAT and ISS were operating at a loss and did not meet the Company's criteria for
return on investment. The Company determined that it was in its best interest to
dispose of DAT and ISS to allow its available resources and infrastructure to be
better utilized in the Company's core businesses that include  Business  Process
Outsourcing  ("BPO")  services and systems  integration of RFID enabled tracking
applications.

      SDA's core line of business is media production and information technology
applications,  which  account for the  majority of our  revenue.  Our  operating
subsidiaries   offer  products  in  diverse  lines  of  business  including  the
development of Internet  content,  digital security and biometric  products.  We
conduct our principal  operations in Malaysia.  Our  subsidiaries as of December
31, 2007 are:


                                      F-13
<PAGE>


NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED)


-     China Sea Trade Company,  Inc. ("CST"),  a wholly-owned  subsidiary of SDA
      Worldwide,  Inc., is  incorporated  under Delaware law and is based in New
      York, New York. CST offers consulting and management  services to regional
      firms in Asia  seeking to develop  markets  in the  United  States.  These
      include  contract  sales  representation,   management  of  joint  venture
      companies,  advice and consulting on funding and mergers and  acquisitions
      within the United States.  CST began  operations in early 2006 and did not
      generate any revenue in 2007 and 2006.


-     SDA Worldwide, Inc. ("SDAW") a wholly-owned subsidiary, incorporated under
      Delaware  law  and  based  in New  York,  New  York is in the  process  of
      developing and  commercializing a platform of outsourced business services
      that will be  offered  primarily  to small and medium  enterprises  in the
      United  States.  SDAW began  operations  in 2005 and did not  generate any
      revenue in 2007 and 2006.

-     DigitalApps Sdn Bhd ("DASB"),  is a wholly-owned Malaysian subsidiary that
      designs,  develops and produces multimedia content and provides consulting
      services  for  website   development,   network  engineering  and  project
      management  in IT related  projects.  In addition to its  activities  as a
      multimedia   developer  and  IT  consultant,   DASB  provides  centralized
      management and back-office  support to SDA's other  subsidiaries  from its
      office in Petaling Jaya, Malaysia.

-     Perwimas  Telecommunications  Sdn  Bhd  ("PTSB"),  a 95%  owned  Malaysian
      subsidiary of DASB, provides multimedia content production and application
      services.

-     Digital Image ID Sdn Bhd ("DID")  (f/k/a Vista  Positive Sdn Bhd),  DASB's
      wholly-owned subsidiary, from the date of acquisition on July 5, 2006;

-     Digital Kiosk  Technologies  Sdn Bhd ("DKT")  (f/k/a  Century  Jubilee Sdn
      Bhd),  DID's  wholly-owned  subsidiary,  from the date of  acquisition  on
      September 4, 2006;

-     DigitalApps Media Sdn Bhd ("DAM"), DASB's wholly-owed subsidiary, from the
      date of incorporation on July 7, 2006.


                                      F-14
<PAGE>


NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED)


On September  18,  2006,  the Company sold the  following  Malaysian  subsidiary
companies to an unrelated party:

1.   Secured  Digital  Applications  Sdn Bhd  ("SDAM"),  wholly-owned  Malaysian
     subsidiary from the date of acquisition on April 20, 1999;

2.   Armor  Multi  Systems  Sdn  Bhd  ("AMS"),  SDAM's  wholly-owned  Malaysian
     subsidiary from the date of incorporation on November 10, 2003;

3.   Armor Multi  Services Sdn Bhd ("AMSSB")  (f/k/a  Asiaco  Services Sdn Bhd),
     AMS's 60%  owned  Malaysian  subsidiary;  from the date of  acquisition  on
     December 9, 2003;

4.   Gallant Service Centre (M) Sdn Bhd ("GSC"), SDAM's wholly-owned subsidiary,
     from the date of acquisition on September 29, 2004;

5.   Gallant IT Holdings Sdn Bhd ("GIH"),  GSC's 55% owned subsidiary,  from the
     date of acquisition on September 29, 2004; and

6.   Gallant Zone (M) Sdn Bhd ("GZ"),  Eystar Distribution Sdn Bhd ("ED") (f/k/a
     Gallant IT Distribution  (M) Sdn Bhd) and Gallant Focus (M) Sdn Bhd ("GF"),
     all  wholly-owned  subsidiaries  of GIH from the  date of  acquisition  on
     September  29,  2004 and,  including  GSC and GIH,  such  subsidiaries  may
     sometimes collectively be referred to as the "Gallant group of companies."

On June 27, 2007, the Company sold the following Malaysian  subsidiary companies
to an unrelated party:

1.   DigitalApps   Technologies   Sdn  Bhd  ("DAT")  ,  wholly-owned   Malaysia
     subsidiary; and

2.   Ispec Sdn Bhd ("ISS"), 55% owned subsidiary of DAT.

See Note 3 - Discontinued Operations for a further discussion of the sale of all
of the entities mentioned above.

The accompanying consolidated financial statements include:

1.   SDA, CST, SDAW, DASB, PTSB, DID, DAM and DKT for 2007 and 2006;

2.   DAT and ISS, as  discontinued  operations,  through the  effective  date of
     disposal.

All  significant  inter-company  account  balances  and  transactions  have been
eliminated in consolidation.


                                      F-15
<PAGE>


NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

REVENUE RECOGNITION

Revenue represents the net invoiced value of:

o    goods sold;
o    fees earned from the  production  of  multimedia  programs and intranet and
     management and consulting services; and
o    fees earned  from rental and  servicing  of  material  handling  equipment,
     provision  of  land  transportation,   engineering  and  industrial  moving
     services.

The  Company  recognizes  revenue  from the  sales of goods in the  period  when
significant  risks and rewards of ownership  have  transferred to its customers.
The Company recognizes revenue from the services provided in the period in which
the  services  are  performed  and  when  there  is no  significant  uncertainty
regarding  the  consideration  to be  received  and the  associated  costs to be
incurred.

ACCOUNTS RECEIVABLE AND CREDIT POLICIES

The Company grants credit,  generally without collateral,  to its customers. The
Company  continuously  monitors  collections and payments from its customers and
maintains  an  allowance  for  estimated   uncollectible   accounts  based  upon
historical  experience and specific  customer  collection  issues that have been
identified.

INVENTORIES

Inventories,  which are comprised of peripherals for  surveillance  and wireless
communication,  information technology hardware,  software and accessories,  are
stated at the lower of cost or net  realizable  value.  Cost is  determined on a
first-in-first-out basis. The value of the inventories was written down to $0 in
2006 as it was deemed to be unsaleable.

PROPERTY AND EQUIPMENT AND DEPRECIATION

Property and equipment  are stated at cost less  depreciation.  Depreciation  is
calculated  on the  straight-line  method over the expected  useful lives of the
assets. The principal annual rates of depreciation are:

<TABLE>
<CAPTION>
<S>                                                       <C>                        <C>
                                                                  Business Segments
                                                 Broadband, Multimedia           Material Handling
                                                           and
                                                  Biometric Security/           Equipment and Apple
Asset Classification                              Computer Sales and             Computer Division
                                                        Services
                                                                                  (Discontinued)
----------------------------------------------- ------------------------ ---------------------------------
Office equipment, furniture and fixtures,
  computer software                                       20%                        10% - 25%
Video communication hardware
  and peripherals, office renovation                      10%                            -
Tools and equipment                                       10%                        10% - 12%
Material handling equipment                                -                            10%
Motor vehicles                                             -                         10% - 20%
</TABLE>


                                      F-16
<PAGE>


NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY AND EQUIPMENT AND DEPRECIATION (CONTINUED)

Routine   expenses  for   maintenance  and  repair  are  expensed  as  incurred.
Expenditures  that result in  enhancement  of the value or in  extension  of the
useful life of fixed assets are capitalized.

Long-lived  assets are reviewed  for  impairment  whenever  events or changes in
circumstances  indicate that the related carrying amount may be impaired.  Under
the provisions of Statement of Financial  Accounting  Standards  (SFAS) No. 144,
Accounting  for the  Impairment  or Disposal of Long-Lived  Assets,  the Company
records an impairment loss if the undiscounted future cash flows are found to be
less than the carrying  amount of the asset. If an impairment loss has occurred,
a charge is recorded to reduce the  carrying  amount of the asset to fair value.
Long-lived assets to be disposed of are reported at the lower of carrying amount
or fair value less cost to sell. There has been no impairment for the years 2007
or 2006.

GOODWILL

Goodwill  consists of the excess of cost over net assets acquired of PTSB. Under
the provisions of SFAS No. 142, Goodwill and Other Intangible  Assets,  goodwill
is not  amortized,  but is  tested  at  least  annually  for  impairment,  or if
circumstances change that will more likely than not reduce the fair value of the
reporting unit below its carrying  amount.  The Company  performs its impairment
test annually  during the fourth quarter of each fiscal year and determined that
there was no impairment during the years ended December 31, 2007 and 2006.


INCOME TAXES

Income taxes are provided  for the tax effects of  transactions  reported in the
financial  statements  and consist of taxes  currently due plus  deferred  taxes
related  primarily to differences  between the recorded book basis and tax basis
of assets and liabilities  for financial and income tax reporting.  The deferred
tax assets and liabilities represent the future tax return consequences of those
differences,  which will  either be taxable  or  deductible  when the assets and
liabilities  are recovered or settled.  Deferred  taxes are also  recognized for
operating  losses that are  available to offset  future  taxable  income and tax
credits that are available to offset future federal income taxes.


COMPREHENSIVE INCOME

The Company has adopted  SFAS No. 130,  Reporting  Comprehensive  Income,  which
establishes  requirements  for  disclosure  of  comprehensive  income  including
certain items previously not included in the statements of operations, including
minimum  pension   liability   adjustments  and  foreign  currency   translation
adjustments, among others. The Company's only components of comprehensive income
are foreign currency translation adjustments.

The functional  currency of the Company's  subsidiaries is the Malaysian Ringgit
("RM").  The financial  statements of these  subsidiaries  are  translated  into
United States  dollars  ("USD") using  year-end rates of exchange for assets and
liabilities, and average rates of exchange for the year for revenues, costs, and
expenses.   Translation   gains  and  losses  are  treated  as  a  component  of
stockholders' equity. The reporting currency used in the financial statements is
USD unless otherwise stated.


                                      F-17
<PAGE>


NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


TREASURY STOCK

The Company  records  treasury stock  purchases at cost. The excess of cost over
par value is allocated to additional paid-in capital. The Company reissues stock
from the treasury on a first-in, first-out basis.


EARNINGS PER SHARE

The Company  computes  earnings per share in accordance  with the  provisions of
SFAS No. 128,  Earnings per Share.  Under the  provisions of SFAS No. 128, basic
net income per share is computed by dividing net income by the weighted  average
number of common shares  outstanding  during the period  presented.  Diluted net
income per share  reflects the  potential  dilution that could occur from common
stock  issuable  through  stock  based  compensation  including  stock  options,
restricted  stock  awards,  warrants  and  other  convertible  securities.   The
calculation of basic and diluted earnings per share is as follows (in thousands,
except per-share amounts):

                                                  Year ended December 31,
                                         ---------------------------------
                                                2007             2006
                                         ---------------------------------

Net income                                 $           1,623  $        657
                                         =================================
Weighted average shares outstanding -
 basic                                               132,631       132,021
                                         =================================
Net income per share - basic**             $            0.01  $       0.01
                                         =================================

Weighted average shares outstanding -
 basic                                               132,631       132,021
Common stock issuable to consultant                    3,698         3,532
Convertible preferred stock                           20,000        20,000
Dilutive stock options and warrants                      682           997
                                         ---------------------------------
Weighted average shares outstanding -
 diluted                                             157,011       156,550
                                         =================================
Net income per share - diluted**           $            0.01  $          *
                                         =================================

*      less than $0.01
** Net income per common share for discontinued operations is less than $.01 per
share and not presented  separately.

For the years ended December 31, 2007 and 2006, 730,000 and 1,080,000 options to
purchase  common stock,  respectively,  were excluded  from the  calculation  of
earnings per share as their issuance prices were in excess of the average market
price for the period. For the years ended December 31, 2007 and 2006,  4,600,000
warrants to purchase  common stock were excluded in the  calculation of earnings
per share as their  issuance  prices were in excess of the average  market price
for the period.


                                      F-18
<PAGE>


NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FAIR VALUE OF FINANCIAL INSTRUMENTS

The  Company's  financial  instruments  consist  of cash,  accounts  receivable,
accounts  payable  and  accrued  expenses.  The  carrying  amounts of all other,
non-related  party  financial  instruments  approximate  fair value due to their
short maturities. The fair values of amounts due to and from related parties are
not  practicable to estimate,  due to the related party nature of the underlying
transactions.   The  Company  has  no  material   off-balance   sheet  financial
instruments.

STOCK-BASED COMPENSATION

Effective  January 1, 2006,  the Company  adopted  SFAS No.  123(R)  Share Based
Payment utilizing the "modified prospective" method as described in SFAS 123(R).
In the "modified  prospective"  method,  compensation cost is recognized for all
share-based  payments  granted  after the  effective  date and for all  unvested
awards  granted  prior to the effective  date. In accordance  with SFAS 123 (R),
prior  period  amounts  were not  restated.  SFAS 123(R) also  requires  the tax
benefits  associated  with  these  share-based  payments  to  be  classified  as
financing  activities in the Statement of Cash Flows, rather than operating cash
flows as required under previous regulations.

Stock  options  granted to  non-employees  are recorded at their fair value,  as
determined  in  accordance  with SFAS No.  123 and  Emerging  Issues  Task Force
Consensus No. 96-18,  and recognized over the related  service period.  Deferred
charges for options granted to non-employees are periodically re-measured as the
options vest.

The Company recognized stock compensation expense of $730,611 for the year ended
December 31, 2007 of which $396,875 has been recognized as selling and marketing
expenses  and  $333,736  as general  and  administrative  expenses.  The Company
recognized  stock  compensation  expense of $940,733 for the year ended December
31,  2006,  all of which  has been  recognized  as  general  and  administrative
expenses.  Total unvested  stock based  compensation  expense  totaled $5,385 at
December 31, 2007 and had a total weighted average remaining term of 1.67 years.
See Note 9.

ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the balance sheet and the reported  amounts of revenues and expenses  during the
reporting periods. Actual results could differ from those estimates.


                                      F-19
<PAGE>


NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 2006, the Financial  Accounting  Standards  Board  ("FASB")  issued FASB
Interpretation  No. 48 (FIN 48),  Accounting for  Uncertainty in Income Taxes an
interpretation  of FASB Statement No. 109,  Accounting  for Income Taxes,  which
clarifies the  accounting for  uncertainty in income taxes.  FIN 48 prescribes a
recognition  threshold and  measurement  attribute  for the financial  statement
recognition and measurement of a tax position taken or expected to be taken in a
tax  return.  The  Interpretation  requires  that the Company  recognize  in the
financial  statements,  the impact of a tax  position,  if that position is more
likely than not of being  sustained on audit,  based on the technical  merits of
the position.  FIN 48 also provides  guidance on  de-recognition of a previously
recognized tax position,  classification,  interest and penalties, accounting in
interim  periods  and  disclosures.  The  provisions  of FIN  48  are  effective
beginning January 1, 2007 with the cumulative effect of the change in accounting
principle recorded as an adjustment to the opening balance of retained earnings.
The Company does not expect this  pronouncement to have a material effect on the
financial position or results of operations of the Company.
..
In September 2006, the FASB issued  Statement No. 157, Fair Value  Measurements.
This  Statement  defines fair value,  establishes a framework for measuring fair
value in generally accepted  accounting  principles and expands disclosure about
fair value  measurement.  The implementation of this guidance is not expected to
have any impact on the Company's consolidated financial statements.

In September  2006, the SEC issued Staff  Accounting  Bulletin  ("SAB") No. 108,
Considering   the  Effects  of  Prior  Year   Misstatements   when   Quantifying
Misstatements  in  Current  Year  Financial  Statements  (SAB  108),  to provide
guidance  on the  consideration  of the effects of prior year  misstatements  in
quantifying  current  year  misstatements  for  the  purpose  of  a  materiality
assessment. Under SAB 108, companies should evaluate a misstatement based on its
impact on the current year income statement, as well as the cumulative effect of
correcting  such  misstatements  that  existed in prior  years  existing  in the
current  year's  ending  balance  sheet.  SAB 108 will become  effective for the
Company in its fiscal year  ending June 30,  2007.  The  implementation  of this
guidance  is not  expected  to have any  impact  on the  Company's  consolidated
financial statements.

In  February  2007,  the FASB issued  SFAS No.  159,  The Fair Value  Option for
Financial  Assets and Financial  Liabilities.  SFAS No. 159 permits  entities to
choose to measure eligible  financial  instruments at fair value. The unrealized
gains and  losses on items for which  the fair  value  option  has been  elected
should be reported in earnings.  The decision to elect the fair value options is
determined  on an instrument  by  instrument  basis,  it should be applied to an
entire  instrument,  and it is irrevocable.  Assets and liabilities  measured at
fair value  pursuant to the fair value option  should be reported  separately in
the balance sheet from those  instruments  measured  using  another  measurement
attributes.  SFAS No. 159 is effective  as of the  beginning of the first fiscal
year that begins after November 15, 2007. The implementation of this guidance is
not  expected  to  have  any  impact  on the  Company's  consolidated  financial
statements.


                                      F-20
<PAGE>


NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In December  2007,  the FASB issued SFAS No. 160,  Noncontrolling  Interests  in
Consolidated  Financial  Statements - an amendment of ARB No. 51 (SFAS No. 160).
SFAS No. 160 requires companies with  noncontrolling  interests to disclose such
interests  clearly as a portion of equity but separate from the parent's equity.
The  non-controlling  interest's  portion  of net  income  must also be  clearly
presented  on the income  statement.  SFAS No. 160 is  effective  for  financial
statements  issued for fiscals years  beginning after December 15, 2008 and will
be adopted by the Company in the first quarter of fiscal year 2009.  The Company
does not expect that the adoption of SFAS No. 160 will have a material impact on
our financial condition or results of operation.

In  December  2007,  the FASB  issued  SFAS No.  141(R),  Business  Combinations
(revised 2007) (SFAS No. 141(R)). SFAS No. 141(R) applies the acquisition method
of  accounting  for  business  combinations  established  in SFAS No. 141 to all
acquisitions  where the acquirer  gains a  controlling  interest,  regardless of
whether  consideration  was  exchanged.  Consistent  with SFAS No. 141, SFAS No.
141(R)  requires  the acquirer to fair value the assets and  liabilities  of the
acquiree and record  goodwill on bargain  purchases,  with main  difference  the
application to all  acquisitions  where control is achieved.  SFAS No. 141(R) is
effective  for  financial  statements  issued for fiscal years  beginning  after
December  15,  2008 and will be adopted by the  Company in the first  quarter of
fiscal  year 2009.  The Company  does not expect  that the  adoption of SFAS No.
141(R)  will have a material  impact on our  financial  condition  or results of
operation.

NOTE 3: DISCONTINUED OPERATIONS

During the third quarter of 2006, the Company determined that it was in the best
interests of SDA and its  stockholders  to reorganize  the  Company's  operating
subsidiaries.  Under  the  reorganization  plan,  the  assets  of our  principal
operating subsidiary SDAM were sold to an unrelated third party in September 18,
2006.

Through reorganization, the Company reduced the number of operating subsidiaries
of the companies  involved in the retail computer and secured shipping business.
The assets and  liabilities  of GSC,  through which the Company owned a majority
interest in the  Gallant  group of  companies,  and AMS and AMSSB were sold to a
third party in September 18, 2006.

On  September  18,  2006,  DASB sold all the shares of SDAM which  included  its
subsidiary companies, AMS, AMSSB, a 60% owned subsidiary of AMS, GSC, GIT, a 55%
owned subsidiary of GSC and GIT's wholly owned  subsidiaries GZ, GF and GID to a
third party and recognized a gain on disposal of $46,472.  The  receivable  from
the sale is due in one year or less from the date of sale unless extended by the
parties and the receivable bears no interest. At December 31, 2007 and 2006, the
Company was owed $0 and  $46,472,  respectively,  and such amount is included in
trade and other accounts receivable.

On June 27, 2007,  the Company sold its wholly owned  subsidiary  company,  DAT,
which included its 55%-owned subsidiary,  ISS, to a third party and recognized a
gain on disposal of $22,984.  Both DAT and ISS were  operating at a loss and did
not meet the Company's criteria for return on investment.


                                      F-21
<PAGE>


NOTE 3: DISCONTINUED OPERATIONS (CONTINUED)

The  results  of  operations  of  SDAM  and  its  subsidiaries  and  DAT and its
subsidiary have been retroactively restated as discontinued  operations pursuant
to SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.

Results of discontinued operations are as follows for the years
ended December 31, :


                                    2007                2006
                              -------------------- ------------------
Revenue                         $              --    $     1,957,860

Cost of revenues                               --          1,255,116
                              -------------------- ------------------
Gross profit                                   --            702,744

Operating expenses                          7,404            526,802
                              -------------------- ------------------
Income (loss) from operations              (7,404)           175,942
Other income (expense)                     (9,906)            24,983
                              -------------------- ------------------

Income (loss) before tax                  (17,310)           200,925

Income tax                                     --           (219,603)
                              -------------------- ------------------
Loss before minority interest             (17,310)           (18,678)

Minority interest                              --             55,602
                              -------------------- ------------------
Income (loss) from
 discontinued operations        $         (17,310)   $        36,924
                              ==================== ==================

NOTE 4: PROPERTY AND EQUIPMENT

Property and equipment consists of the following at December 31, :

                                             2007             2006
                                       ---------------- ----------------

     Office equipment                   $        87,262  $        66,463
     Furniture and fixtures                      48,980           44,628
     Tools and equipment                        174,108          163,462
     Video communication hardware and
      peripherals                             2,350,128        2,206,432
     Computer software                        3,700,948          613,838
     Office renovation                            9,176            8,615
                                       ---------------- ----------------
                                              6,370,602        3,103,438
     Less accumulated depreciation            2,652,452        2,112,848
                                       ---------------- ----------------
                                        $     3,718,150  $       990,590
                                       ================ ================


                                      F-22
<PAGE>


NOTE 4: PROPERTY AND EQUIPMENT (CONTINUED)

Depreciation expense for the years ended December 31, 2007 and 2006 was $389,018
and $250,568, respectively.


NOTE 5: RELATED PARTY TRANSACTIONS

During the years ended December 31, 2007 and 2006, the Company had related party
transactions with the following entities:

LSH ASSET HOLDINGS SDN BHD ("LSH"):

LSH is a company wholly-owned by the Company's Chief  Executive  Officer and his
wife.  LSH  billed  the  Company  management  fees  totaling  $120,000  for  the
respective  years ended December 31, 2007 and 2006. LSH also billed DASB $27,849
for the year ended  December  31,  2007 and DASB and SDAM  $26,099  for the year
ended December 31, 2006, for administrative and clerical charges.  LSH also made
short  term  advances  to the  Company  from  time to time for  working  capital
purposes.  As of December  31, 2007 and 2006,  the amount due to LSH was $23,668
and $17,927,  respectively.  This amount is unsecured, bears no interest, has no
fixed terms of repayment, and is recorded in the financial statements as "Amount
due to an affiliated company."

SYNERVEST SDN BHD ("SSB")

Mustaffa Bin Yacob, a former director of PTSB (resigned February 4, 2008)
is a director of SSB and holds a 60% equity  interest in SSB. As of December 31,
2007, long-term receivables, related parties, was fully recovered from SSB. This
amount  primarily  arose in the year ended  December 31, 1998,  when the Company
sold to SSB  assets  used  in the  operations  of a  subsidiary.  These  assets,
comprised  of analog  video  hardware  and  peripherals  and a patent  for image
display, were sold to SSB for a total sum of $1,661,175.  Due to the uncertainty
of  collection  of the  related  receivable,  a related  gain on the sale of the
assets  was  deferred  and is to be  recognized  only  after all costs have been
recovered and as payments are received. During the year ended December 31, 2002,
payments  received by the Company  exceeded  all  remaining  costs.  The Company
received  $110,881 and $85,692 of the  outstanding  receivable  during the years
ended  December 31, 2007 and 2006,  respectively,  resulting in a realization of
gain on sale of assets, related party for both years. The deferred gain included
in the balance sheet has been reduced accordingly.  The deferred gain on sale of
assets  totaled  $108,247 at December 31,  2006,  was fully  recognized  as gain
during  the year  ended  December  31,  2007 as all  payments  have  been  fully
recovered.

MY ARCHITECT ("MYA")

Mustaffa Bin Yacob, a former director of PTSB, is a principal partner of
MYA.  During the years ended December 31, 2007 and 2006, the Company earned fees
of $2,500,073  and $743,414,  respectively,  from  consulting  contracts that it
entered into with MYA.  The terms of  repayment  for the amount due from MYA are
similar  to or are the same  terms  accorded  to the  Company's  other  existing
customers. At December 31, 2007 and 2006, there was no balance owed by MYA.


                                      F-23
<PAGE>


NOTE 5: RELATED PARTY TRANSACTIONS (CONTINUED)

ULTIMATE SERIES SDN BHD ("USSB")

USSB is wholly-owned by Mustaffa Bin Yacob, a former director of PTSB. For
the years  ended  December  31,  2007 and 2006,  the  Company  incurred  fees of
$10,502,451  and  $9,314,920,  respectively,  for  sub-contracting  work that it
entered into with USSB.  The terms of  repayment  for the amount due to USSB are
similar to terms accorded to the Company's other existing suppliers. At December
31, 2007 and 2006, there was no balance owed to USSB.

CHIEF EXECUTIVE OFFICER

As of December 31, 2007 and 2006, the Company owed Patrick Lim, the Chief
Executive  Officer  of  the  Company  $88,632  and  $10,578,  respectively,  for
short-term cash advances made to the Company for working  capital  purposes from
time to time.  The amount  owing to the Chief  Executive  Officer is  unsecured,
bears no  interest,  has no fixed  terms of  repayment  and is  recorded  in the
financial statements as "Amount due to a director".

DIRECTORS OF MALAYSIAN SUBSIDIARY

On September 18, 2006, DASB acquired 1,150,000 shares of PTSB from its
directors,  Mr.  Mustaffar  Bin Yacob  and  Dato'  Wan  Abdul  Razak for a total
consideration of RM567,500 (approx.  $154,000 U.S. dollars). The balance was due
in one year or less from the date of purchase unless extended by the parties and
such debt bears no interest.  At December  31, 2007 and  December 31, 2006,  the
Company owed the directors RM354,500 ($106,935 at December 31, 2007 and $100,396
at December 31, 2006) and is recorded in the financial statements as "Amount due
to directors of subsidiary".

The amounts owed to  Mustaffar  Yacob and the estate of Wan Abdul Razak have yet
to be fully settled as at December 31, 2007.  Wan Abdul Razak died intestate and
the  Company  is  waiting  for  instructions  from  his  estate.  Mr.  Mustaffar
originally  extended  the payment  term by another six months to March 18, 2008.
the Company and Mr. Mustaffar are currently in negotiation to extend the payment
term further.


NOTE 6: CAPITAL LEASE OBLIGATIONS

Certain  telecommunications  and other  assets  are leased  from a lessor  under
various  equipment lease financing  facilities.  Such leases have been accounted
for as capital leases. At the Company's request, a lessor agreed to an extension
on the  repayment  period in 1998 to enable  the  Company  to secure  additional
working capital  financing.  The rescheduled  lease terms for all capital leases
commenced in December  1998 and were  payable on a monthly  basis with the final
payment due November  2006.  The Company will acquire  title to all assets under
capital leases, upon payment of the final lease payment.

Assets under these capital leases,  which are included in property and equipment
at December 31, 2007, are as follows:


                                      F-24
<PAGE>


NOTE 6: CAPITAL LEASE OBLIGATIONS (CONTINUED)


                                              Original    Accumulated     Net
                                                Cost      Depreciation   Value
                                            ------------ -------------- -------
Video communication hardware and peripherals $   466,201  $   (466,201)   $   -
                                            ============ ============== =======

The Company has not made regular principal and interest payments due under three
capital lease  agreements  since  November  2006. The total overdue amount as of
December 31, 2007 is $38,831,  which  includes  unpaid  principal of $35,634 and
unpaid  interest of $3,197.  Unpaid  principal is included in current portion of
capital lease  obligations on the balance sheet.  Unpaid interest is included in
accrued  expenses on the balance sheet.  The Company's Chief  Executive  Officer
("CEO"),  who is also a  stockholder,  has personally  guaranteed  payment under
these capital lease agreements. Pursuant to the terms of the guarantee agreement
dated  December 3, 1998,  the CEO has guaranteed to pay all amounts which become
due under the terms of the capital lease agreements.  Subsequent to December 31,
2007 and through the date of this report,  the Company has not made any payments
to the lessor.

NOTE 7: INCOME TAXES

For 2007 and 2006,  all income of the Company was derived from its activities in
Malaysia  and the United  States.  SDA and its American  subsidiaries  file as a
consolidated group. The Malaysian companies file on an entity-by-entity basis.

Provision  for income tax  liability  for the years ended December  31, 2007 and
2006, respectively, is as follows:

                                                  Year ended December 31,
                                                    2007           2006
                                              ---------------- --------------
Current tax expense                            $        34,415  $      43,226
Deferred tax expense                                   230,048         38,605
                                              ---------------- --------------
Provision for Malaysian income tax expense
on the Company and its subsidiaries' income    $       264,463  $      81,831
                                              ================ ==============

The  difference  between  current  income tax  expense and  expected  income tax
expense  computed  applying the United States  Federal income tax rate of 34% to
income from  continuing  operations  before income tax and minority  interest is
explained as follows:


                                      F-25
<PAGE>


NOTE 7: INCOME TAXES (CONTINUED)

                                                 Year ended December 31,
                                                 2007              2006
                                           ----------------  ----------------
Expected income tax expense                $        641,609  $        251,333
Effect of lower Malaysian tax rate                  (95,598)          (29,655)
Benefit of operating loss carry forwards           (177,276)          (83,291)
Permanent differences - Malaysia                   (114,272)          (56,556)
Alternative minimum tax - US                         10,000                --
                                           ----------------  ----------------
Income tax expense                         $        264,463  $         81,831
                                           ================  ================

Temporary  differences  and carry forwards that give rise to deferred tax assets
and liabilities as of December 31, are as follows:

                                                        December 31,
                                                   2007            2006
                                             --------------- ---------------
Deferred tax assets
       Net operating loss carry forward       $     223,957   $     451,197
       Allowance for doubtful accounts                7,541          23,506
        Accrued expenses                             55,557              --
        Stock compensation                          125,165              --
                                             --------------- ---------------
                                                    412,220         474,703

       Less: valuation allowance                   (404,679)       (451,197)
                                             --------------- ---------------
       Deferred tax asset net of allowance            7,541          23,506

Deferred tax liability
       Depreciation                                (469,066)       (232,229)
                                             --------------- ---------------
Total net deferred tax liability              $    (461,525)  $    (208,723)
                                             =============== ===============

The valuation  allowance  offsets the net deferred tax assets for which recovery
is not  considered  more likely than not. The  valuation  allowance is evaluated
considering positive and negative evidence about whether the deferred tax assets
will be realized. At that time of evaluation,  the allowance is either increased
or reduced;  reduction could result in the complete elimination of the allowance
if positive  evidence  indicates that the value of the deferred tax assets is no
longer  impaired and the  allowance is no longer  required.  The decrease in the
valuation  allowance  of  approximately  $46,500 was due to the  decrease in net
operating  loss of SDA and its American  subsidiaries,  net of increases  due to
accrued expenses and stock compensation incurred in 2007.


                                      F-26
<PAGE>


NOTE 7: INCOME TAXES (CONTINUED)

The  Company's  total net  operating  loss carry forward at December 31, 2007 is
$942,000,  of which $15,000 relates to the Company's  activities in Malaysia and
$927,000  relates to the  Company's  activities  in the United  States.  The net
operating  loss carry  forward  that  relates to  activities  in Malaysia can be
carried forward  indefinitely,  on an entity basis, while the net operating loss
carry  forward that relates to the  Company's  activities  in the United  States
expires  through  the year 2027.  The United  States  net  operating  loss carry
forward may be subject to annual  limitations  based on ownership changes in the
Company's  common  stock as provided by in section 382 of the  Internal  Revenue
Code.

We  recognize  interest and  penalties  related to  uncertain  tax  positions in
general  and  administrative  expense.  As of  December  31,  2007,  we have not
recorded any provisions for accrued interest and penalties  related to uncertain
tax positions.

The Company  filed its U.S.  federal tax returns for the years 2003 through 2006
on or about  September  15, 2007.  Those years remain open to  examination,  and
possible adjustment,  by the major taxing jurisdictions to which we are subject,
through September 15, 2010.

Tax returns filed by our Malaysian  subsidiaries  are open to examination by the
Malaysian  taxing  authority for seven years.  The tax for the 2006 tax year has
not been paid by DASB. The amount due is approximately $16,000.


NOTE 8: STOCKHOLDERS' EQUITY

PREFERRED STOCK

On October 23, 2006, the Company  executed a share  exchange  agreement with LSH
whereby LSH exchanged  20,000,000  shares of the Company's  common stock held by
LSH in exchange  for 100,000  shares of the  Company's  newly  created  Series B
Voting  Convertible   Preferred  Stock  (the  "Voting   Preferred"),   which  is
convertible into shares of common stock at a fixed ratio of 200 shares of common
stock for 1 share of Voting Preferred stock. The 20,000,000 shares were returned
to treasury and are  available  for  re-issuance  at a future  date.  The Voting
Preferred  stock is entitled to receive  dividends in preference to any dividend
on the common  stock,  as,  when and upon such terms as may be  declared  by the
Company.

COMMON STOCK

The Company signed a  compensation  agreement with a consultant on July 15, 2005
under which the Company is to issue an aggregate of 960,000 shares of its common
stocks to the consultant for services to be rendered for the twelve-month period
ending July 14,  2006.  The Company  reissued  from its treasury  stock  240,000
shares of common stock on each of the following dates; August 9, 2005, September
27, 2005, February 6, 2006 and May 3, 2006. The Company recognized  compensation
expense of $47,120 for the year ended December 31, 2006.


                                      F-27
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)

COMMON STOCK (CONTINUED)

On October 4, 2005 and February 21, 2006, the Company reissued from its treasury
stock  1,000,000  shares  of  common  stock  to  a  consultant   pursuant  to  a
compensation  agreement dated September 12, 2005,  under which the Company is to
issue an aggregate of 2,000,000 shares of its common stock to the consultant for
services  to be  rendered to the  Company  for the  twelve-month  period  ending
September 12, 2006. On June 12, 2006 and August 10, 2006, the Company issued the
remaining 1,000,000 shares of common stock. The Company recognized  compensation
expense of $143,000 for the year ended December 31, 2006.

On January 4, 2006, the Company  reissued from its treasury stock 800,000 shares
of common stock to an investor at $0.10 per share for a total  consideration  of
$80,000 in a private placement exercise.

On February 8, 2006, the Company reissued  2,000,000 shares of common stock from
its treasury stock to a consultant  pursuant to a compensation  agreement  dated
January 30, 2006 as payment  for  services  rendered to the Company to develop a
shopping  portal for a duration  of  twelve-months  with effect from the date of
agreement. For the year ended December 31, 2006, the Company recognized $168,667
as compensation expense and $15,333 as deferred compensation based on the market
value of $0.092 per share on the date of agreement.

On March 8, 2006, the Company  reissued  447,058 shares of common stock from its
treasury  stock to a consultant as payment for services  rendered to the Company
for total  consideration of $40,235 based on the market value of $0.09 per share
on the date of issuance.  On June 12, 2006, the Company issued  1,345,495 shares
of common stock to a consultant as payment for services  rendered to the Company
for total  consideration  of  $116,308  based on the market  value of $0.086 per
share.

On June 12,  2006,  the  Company  issued  185,759  shares of  common  stock to a
consultant  as payment for  advance of working  capital to a  subsidiary  of the
Company for total consideration of $15,000 based on the market value of $0.08075
per share on the date of issuance.

On July 27, 2006, the Company issued 650,457  restricted  shares of common stock
and 650,457  shares of common  stock to a  consultant  as payment  for  services
rendered to the Company for a total consideration of $96,268 based on the market
value of $0.074 per share on the date of issuance.

On August 23, 2006, the Company  reissued from its treasury stock 350,000 shares
of common stock to a consultant as payment for services rendered to the Company.
The Company recognized $24,150 as compensation expense based on the market value
of $0.069 per share on the date of issuance.

On October 23,  2006,  the Company  reacquired  20,000,000  shares of its common
stock pursuant to a share exchange  agreement with LSH, an entity  controlled by
its Chairman  and Chief  Executive  Officer,  Mr.  Patrick Lim,  whereby Mr. Lim
exchange 20,000,000 shares of the Company's common stock held by LSH in exchange
for 100,000  shares of the Company's  newly created Voting  Preferred,  which is
convertible into shares of common stock at a fixed ratio of 200 shares of common
stock for 1 share of Voting  Preferred  stock.  These  shares  were  returned to
treasury and are available for re-issuance at a future date.


                                      F-28
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)

COMMON STOCK (CONTINUED)

The Company signed a compensation  agreement with a consultant on April 15, 2006
under  which the Company is to issue an  aggregate  of  1,000,000  shares of its
common stocks to the consultant for services to be rendered for the twelve-month
period ending April 15, 2007.  The Company issued 250,000 shares of common stock
on each of the following dates;  October 16, 2006, November 22, 2006 and January
15, 2007. The Company  recognized  compensation  expense of $31,396 for the year
ended  December  31, 2006.  The Company is scheduled to issue the final  250,000
shares on or about April 17, 2007.

On November 28, 2006, the Company issued  1,500,000  shares of common stock to a
consultant  pursuant to a compensation  agreement dated November 1, 2006,  under
which the Company is to issue an  aggregate  of  2,000,000  shares of its common
stock for  services to be rendered  for the  six-month  period  ending April 30,
2007.  For the years ended  December 31, 2007 and 2006,  the Company  recognized
compensation expense of $81,000 and $41,000, respectively.

On November 29, 2006, the Company reissued from its treasury stock
2,000,000 shares of common stock to an investor at $0.0558 per share for a total
consideration of $111,600 in a private placement exercise. On December 29, 2006,
the Company also issued  3,000,000  shares of its common stock to an investor at
$0.0612 per share for a total consideration of $183,600 in a private placement.

On December 4, 2006,  the Company  issued  504,048  shares of common  stock to a
consultant   as  payment  for  services   rendered  to  the  Company  for  total
consideration  of $29,235  based on the market  value of $0.058 per share on the
date of issuance.  On December 22, 2006, the Company  reissued from its treasury
stock  1,040,080  shares of common stock to a consultant as payment for services
rendered to the Company for total  consideration  of $64,485 based on the market
value of $0.062 per share on the date of issuance.

On December 5, 2006, the Company reissued from its treasury stock 200,000 shares
of common  stock to a  consultant  pursuant to a  compensation  agreement  dated
December 4, 2006,  under which the Company is to issue an  aggregate  of 600,000
shares of its common  stock to the  consultant  as payment  for  services  to be
rendered  to the  Company  for the  six-month  period  ending  June 4, 2007.  On
February 9, 2007, the Company reissued from its treasury stock 100,000 shares of
common  stock.  This  agreement was  terminated on March 30, 2007.  For the year
ended December 31, 2007 and 2006, the Company recognized compensation expense of
$17,733 and $6,333, respectively.

On December 22, 2006,  the Company  reissued  from its  treasury  stock  983,607
shares of common stock at $0.061 per share for a total  consideration of $60,000
to one of the directors of PTSB as a partial  settlement for the  acquisition of
PTSB shares from such director. See Note 3.

On February 22, 2006, the Company reissued 200,000 shares of common stock
from its treasury  stock to a consultant  pursuant to a  compensation  agreement
with an effective date of November 19, 2005 as payment for services  rendered to
the Company over a two year period with effect from the date of  agreement.  For
the years ended  December 31, 2007 and 2006, the Company  recognized  $7,175 and
$9,225, respectively, as compensation expense.


                                      F-29
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)

COMMON STOCK (CONTINUED)

The Company signed a compensation  agreement with a consultant on April 15, 2006
under  which the Company is to issue an  aggregate  of  1,000,000  shares of its
common stocks to the consultant for services to be rendered for the twelve-month
period ending July 14, 2007.  The Company  issued 250,000 shares of common stock
on each of the following dates;  October 16, 2006, November 22, 2006 and January
15, 2007.  The Company  issued the final 250,000  shares on April 20, 2007.  The
Company  recognized  compensation  expense of $37,104  and  $31,396 for the year
ended December 31, 2007 and 2006 respectively.

On February 6, 2007,  the Company issued 425,423 shares of common stock from its
treasury  stock to a consultant as payment for services  rendered to the Company
for a total  consideration  of $26,376  based on the market  value of $0.062 per
share on the date of issuance.

On June 12,  2006,  the Company  issued  1,000,000  shares of common  stock to a
consultant pursuant to a compensation  agreement dated April 23, 2006 as payment
for services rendered to the Company over a one-year period with effect from the
date of agreement.  For the year ended December 31, 2006, the Company recognized
$51,333  as   compensation   expense  and   $25,667  as  deferred   compensation
respectively  based on the  market  value of $0.077 per share on the date of the
agreement.  For the year ended December 31, 2007, the Company recognized $25,667
as compensation expense.

The Company signed a compensation agreement with a consultant on August 20, 2007
under  which the Company is to issue an  aggregate  of  1,000,000  shares of its
common stocks to the consultant for services to be rendered for the twelve-month
period  ending July 14,  2008.  The Company will issue stock  250,000  shares of
common stock on each of the following dates; October 14, 2007, January 14, 2008,
April 14, 2008 and July 14, 2008. The Company recognized compensation expense of
$61,875 for the year ended December 31, 2007.

On June 1, 2007, the Company  reissued from its treasury stock 1,000,000  shares
of common stock to a consultant pursuant to a compensation  agreement dated June
1, 2007, under which the Company is to issue an aggregate of 2,000,000 shares of
its common stock to the consultant for services to be rendered for the six-month
period ending  November 30, 2007.  The Company  reissued from its treasury stock
the balance of 1,000,000  shares of its common  stock on September 4, 2007.  For
the year ended December 31, 2007, the Company recognized compensation expense of
$151,000.

On June 13, 2007 and October 22, 2007,  the Company  reissued  from its treasury
stock  100,000  shares  of  common  stock  each to a  consultant  pursuant  to a
compensation agreement dated May 1, 2007, under which the Company is to issue an
aggregate of 400,000  shares of its common stock to the  consultant for services
to be rendered to the Company for the twelve-month period ending April 30, 2008.
The  Company  recognized  compensation  expense  of  $39,000  for the year ended
December 31, 2007.

On June 13, 2007, the Company reissued from its treasury stock 1,000,000
shares of common  stock to a  consultant  pursuant to a  compensation  agreement
dated  June 11,  2007,  under  which the  Company  is to issue an  aggregate  of
2,000,000  shares of its  common  stock to the  consultant  for  services  to be
rendered for the six-month period ending December 10, 2007. The Company reissued
from its treasury  stock the balance of 1,000,000  shares of its common stock on
September 11, 2007. For the year ended December 31, 2007, the Company recognized
compensation expense of $145,000.


                                      F-30
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)

COMMON STOCK (CONTINUED)

On August 10, 2007, the Company  reissued from its treasury stock 540,000 shares
of common stock to an investor at $0.065 per share for a total  consideration of
$35,100 in a private placement exercise.

On August 30, 2007, the Company  reissued from its treasury stock 460,000 shares
of common stock to an investor at $0.07 per share for a total  consideration  of
$32,200 in a private placement exercise.

On November 23, 2007,  the Company  reissued from its treasury  stock  1,000,000
shares  of  common  stock  to an  investor  at  $0.125  per  share  for a  total
consideration of $125,000 in a private placement exercise.

On December 28, 2007, the Company issued 250,000 of common stock to a consultant
for the  exercise of stock  options.  The  Company  received  proceeds  totaling
$25,000.

On December  31,  2007,  the Company  issued  250,000  shares of common stock to
Patrick Lim, the Company's  Chief Executive  Officer,  for the exercise of stock
options. The Company received proceeds totaling $50,000.

On December  31,  2007,  the Company  issued  100,000  shares of common stock to
Valerie Looi, the Company's  Secretary,  for the exercise of stock options.  The
Company received proceeds totaling $20,000.


STOCK AWARDS

On October 21, 2006, the Company approved an award of incentive  compensation to
the Chief Executive Officer and Chairman Patrick Lim of 500,000 shares of common
stock per year if the Company in that year  achieves a  compounded  growth of at
least fifteen (15) percent.  In 2007,  the Company  achieved the growth rate and
accrued  compensation  expense of $86,500 for the year ended  December 31, 2007.
The shares will be issued in 2008.


STOCK OPTION PLAN

On June 9, 2005,  the  stockholders  approved  the 2005  Employee,  Officer  and
Director  Stock Plan (the "2005  Plan").  An aggregate  of 10 million  shares of
common stock are reserved for issuance and  available  for awards under the 2005
Plan.  Awards  under  the 2005 Plan may  include  non-qualified  stock  options,
incentive stock options,  stock appreciation rights ("SARs"),  restricted shares
of  common  stock,  restricted  units  and  performance  awards.  The 2005  Plan
continues  in effect for ten years  unless  terminated  earlier.  For a complete
description of the 2005 Plan, see the Company's Definitive Proxy Statement filed
with the SEC on June 9, 2005.


                                      F-31
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)

STOCK OPTION ISSUANCES

On August 3, 2004, the Company granted certain officers, directors and employees
of the Company options to purchase up to an aggregate of 2,000,000 shares of the
Company's common stock at $0.20 per share.  The options are exercisable  through
August     2009,     contingent     upon     continuous     service    by    the
officers/directors/employees  through  specified  dates.  500,000  options  were
exercisable on October 3, 2004,  200,000 options were exercisable on February 3,
2005,  500,000  options are  exercisable  on August 3, 2005,  and the  remaining
800,000  options were  exercisable in equal numbers on each of February 3, 2006,
2007, 2008 and 2009, respectively.

On January  31,  2006,  100,000 and 300,000  options,  which were  granted to an
independent  director with an option to purchase the  Company's  common stock at
$0.12 and $0.20 per share,  respectively,  were  forfeited when he resigned from
the Company.

On December 4, 2006,  203,000  options were granted to an officer of the Company
with an option to purchase the Company's  common stock at $0.0638 per share, and
297,000 options were granted to two other officers of the Company with an option
to purchase the  Company's  common stock at $0.058 per share  respectively.  All
grants were made from the 2005 Plan.  Black-Scholes valuations were performed on
the options based on the  following  assumptions;  term - five years;  risk-free
rate - 4.76%;  volatility  - 117.6%  and a  dividend  yield of 0%.  The  Company
recognized compensation expense of $23,898 for the year ended December 31, 2006.
The options were exercised immediately for cash consideration of $30,177.

On November 20, 2007 and November  26,  2007,  250,000 and 100,000  options were
exercised  by the  directors  for cash  consideration  of  $50,000  and  $20,000
respectively.


                                      F-32
<PAGE>



STOCK OPTION ISSUANCES (CONTINUED)

A summary of the status of the  Company's  stock options as of December 31, 2007
and 2006, and changes during 2007 and 2006, is presented below:

<TABLE>
<CAPTION>
<S>                                   <C>         <C>                    <C>         <C>
        Options Outstanding                      2007                             2006
                                  -------------------------------- ---------------------------------
                                      Shares      Exercise Price        Shares       Exercise Price
                                  -------------- ----------------- ---------------- ----------------
For officers and employees:
 Beginning of the year                1,080,000   $           0.20       1,080,000   $         0.200
 Granted                                      -                            500,000   $        0.0603
 Exercised                             (250,000)  $           0.20        (203,000)  $        0.0638
 Exercised                             (100,000)  $           0.20        (297,000)  $         0.058
                                  -------------                    ---------------
 End of the year                        730,000   $           0.20       1,080,000   $         0.200
                                  =============                    ===============
 Options exercisable at year end        570,000   $           0.20         840,000   $         0.200
                                  =============                    ===============

For consultants:
 Beginning of the year                        -                                  -
 Granted                                250,000   $           0.10               -
 Exercised                             (250,000)  $           0.10               -
                                  -------------                    ---------------
 End of the year                              -                                  -
                                  =============                    ===============

 Options exercisable at year end              -                                  -
                                  =============                    ===============
</TABLE>

The following table summarizes information about options outstanding at December
31, 2007 and 2006.

<TABLE>
<CAPTION>
<S>                                 <C>                           <C>    <C>
                                               Options Outstanding
                             --------------------------------------------------------------
                                Number      Weighted Average Remaining  Weighted Average
                               Outstanding       Contractual Life         Exercise Price
                             -------------- -------------------------- --------------------
As of December 31, 2007:
 For officers and employees         730,000                       1.67   $             0.20
 For consultants                          -                          -                    -
                             -------------- -------------------------- --------------------
Total                               730,000                       1.67   $             0.20
                             ============== ========================== ====================
As of December 31, 2006:
 For officers and employees       1,080,000                       2.67   $             0.20
 For consultants                          -                          -                    -
                             -------------- -------------------------- --------------------
Total                             1,080,000                       2.67   $             0.20
                             ============== ========================== ====================
</TABLE>


                                      F-33
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)

STOCK OPTIONS (CONTINUED)

On April 5, 2007, the Company signed an agreement with a consultant  under which
the Company  granted stock  options for an aggregate of 2,000,000  shares of its
common stock to the  consultant  as a  performance  incentive for services to be
rendered for a two year period ending April 4, 2009. The options are exercisable
on a quarterly  basis over the two year term of the  contract  in the  following
manner;

<TABLE>
<CAPTION>
<S>                                 <C>                  <C>           <C>           <C>
                                    Market                                          Exercise
       Trading Period           capitalization      Vesting Date   No. of options    Price
                                  ($'Million)                                     Per Share
                                                                                     ($/sh)
                                                                   ---------------
   April 5 - July 4, 2007           13.53           July 5, 2007       250,000       0.10
  July 5 - October 4, 2007          20.29         October 5, 2007      250,000       0.125
 October 5 - January 4, 2008        30.44         January 5, 2008      250,000       0.15
  January 5 - April 4, 2008         45.63          April 5, 2008       250,000       0.175
   April 5 - July 4, 2008           57.04           July 5, 2008       250,000       0.20
  July 5 - October 4, 2008          71.30         October 5, 2008      250,000       0.225
 October 5 - January 4, 2009        89.12         January 5, 2009      250,000       0.25
  January 5 - April 4, 2009         111.40         April 5, 2009       250,000       0.30
</TABLE>


The stock options may only be exercisable  subject to the consultant meeting the
following conditions:

(1)  progressively  increasing SDA's market capitalization between April 5, 2007
     and April 4, 2008 by at least 50% over the previous trading period;
(2)  progressively  increasing SDA's market capitalization between April 5, 2008
     and April 4, 2009 by at least 25% over the previous  trading  period.  This
     increase  shall be maintained  for at least five  consecutive  trading days
     during the trading period; and
(3)  SDA's average daily trading  volume  exceeding  500,000  shares during each
     trading period.

The Company  recognized  $972 in total  compensation  expense for the year ended
December 31, 2007. The options have a total weighted  average  remaining term of
1.25 years.

On October 5, 2007,  the  Company  and the  consultant  executed a stock  option
agreement to purchase  250,000 shares of the Company's common stock at $0.10 per
share pursuant to the agreement  described  above.  The Company agreed to extend
the initial  trading  period from April 5 - July 4, 2007 to April 5 - October 4,
2007. The Company achieved a minimum market capitalization of $13.53 million for
at  least  five  consecutive  trading  days  during  said  trading  period.  The
expiration date of the stock option is five years from the date of grant. All or
any part of the option  shares with  respect to which the right to purchase  has
vested may be purchased,  subject to the provisions of the option agreement,  at
the time of such  vesting or at any time or from time to time during the balance
of the term of the option.


                                      F-34
<PAGE>


NOTE 8: STOCKHOLDERS' EQUITY (CONTINUED)


WARRANTS

On October 21, 2006,  the Company  approve the  issuance to the Chief  Executive
Officer warrants to purchase 6,300,000 shares of the Company at price at $0.0649
per share (110  percent of the market  price at the close of business on October
23,  2006),  such warrants to be issued in three equal annual  installments  and
which may be exercised on or before October 21, 2011.  Black-Scholes  valuations
were  performed on the warrants.  The initial value of the warrants was $257,518
based on the following assumptions; term - three to five years; risk-free rate -
4.76% to 4.8%;  volatility  - 84.1% to 118.5% and a dividend  yield of 0%. These
costs are being amortized over three years based on the estimate of the expected
term. The Company  recognized  compensation  expense of $168,768 and $35,160 for
the years ended December 31, 2007 and 2006, respectively.


NOTE 9: SIGNIFICANT CONCENTRATIONS

Two customers  accounted for the following  revenue for the years ended December
31, 2007 and 2006:

                                        December 31,
                                2007                 2006

                        -------------------- ---------------------

Customer 1                      48%                   48%
Customer 2                      45%                   48%

                        -------------------- ---------------------
Total                           93%                   96%
                        ==================== =====================


At December 31, 2007 and 2006, two customers  accounted for substantially all of
the trade accounts receivable.

Three  suppliers  accounted for  substantially  all cost of revenues  during the
years ended  December 31, 2007 and 2006.  The Company is not dependent  upon one
supplier to provide the services that it requires but made a strategic  decision
to engage the  services of only a small  number of  suppliers  after taking into
consideration  the quality of service and  competitive  pricing  being  offered.
Should the need arise, the Company could utilize  alternative  suppliers for the
services that it requires.


                                      F-35
<PAGE>


NOTE 10: COMMITMENTS

Operating Leases

The Company  maintains its  corporate  office in New York.  The lease  agreement
expires on May 31, 2008 and is not subject to automatic renewal.

The Company leases its principal  executive offices in Malaysia under a two-year
operating  lease  from an  unaffiliated  party at a monthly  rental of  RM14,000
(approximately  $4,200).  The lease expires on March 14, 2009 and is not subject
to automatic renewal.

Rent  expense  under  these  leases was  $49,911 and $40,616 for the years ended
December 31, 2007 and 2006, respectively.

<TABLE>
<CAPTION>
   No.  Location of Property                Leased by   Lease Commenced On  Lease Expires On
----------------------------------------- ------------ ------------------- -----------------
<S>                                         <C>               <C>                <C>
  1.   Petaling Jaya, Selangor, Malaysia      DASB               3/15/2007         3/14/2009
  2.   New York                               SDA                6/01/2007         5/31/2008
</TABLE>


Future minimum lease payments under the  non-cancelable  lease agreements are as
follows:

 Year ending December 31:
-------------------------------
2008                            $           52,300
2009                                         8,400
                               -------------------
                                $           60,700
                               ===================


                                      F-36