U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-KSB

[X]  Annual report under Section 13 or 15(d) of the  Securities  Exchange Act of
     1934

     For  the calendar year ended December 31, 1998
                                  -----------------

[_]  Transition report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

     For  the transition period from ____________ to ______________



                       HIDENET SECURE ARCHITECTURES, INC.
                   (formerly known as Savin Electronics Inc.)
                   ------------------------------------------
                 (Name of Small Business Issuer in Its Charter)


         New Jersey                33-36670                22-3061278
         ----------                --------                ----------
       (State or other         (Commission File           (IRS Employer
       Jurisdiction of              Number)            Identification No.)
       Incorporation)


          103 Medinat Hayehudim Street, POB 837, Herzliya Israel 46733
          ------------------------------------------------------------
                     (Address of Principal Executive Office)

                               011-972-9-957-9795
                               ------------------
                (Issuer's Telephone Number, Including Area Code)

         Securities registered under Section 12(b) of the Exchange Act:

                                                      Name of Each
                                                   Exchange on Which
         Title of Each Class                            Registered
         -------------------                       ------------------
                   None


         Securities registered under Section 12(g) of the Exchange Act:

                                      None
                                (Title of Class)

     Check  whether  the issuer;  (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for past 90 days.

               Yes ( ) No (X)

(1)  This Form 10-KSB for calendar  year ended  December 31, 1998 being filed in
     November 1999 should have been filed on or about April 15, 1999.

     Check if there is no disclosure  of  delinquent  filers in response to Item
405 of Regulation S-B is not contained in this form,  and no disclosure  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.

               [X]

     State issuer's revenues for its most recent calendar year - $-0-

     The  aggregate  market value for the 591,714  shares of common  stock,  par
value $0.025 per share, held by  non-affiliates* of Registrant as of November 1,
1999 is  $1,183,428  based upon an average of $2.00  price for such stock on the
date heretofore  indicated.  See Item 5 (a) which indicates the limited, if any,
trading activity in the Registrant's  securities for the periods  indicated.  By
virtue  hereof,  it is difficult if not  impossible  to  accurately  arrive at a
completely  realistic  "aggregate  market  value" of  Registrant  shares held by
non-affiliates  as called  for  herein  especially  in view of the fact that the
existence  of limited or sporadic  quotations  should not of itself be deemed to
constitute  an  "established  public  trading  market".   The  above  statements
regarding  "aggregate  market value" and  "established  public  trading  market"
should be taken into careful  consideration  when  considering  the  information
contained herein regarding the indicated  "aggregate  market value" of shares of
voting stock held by non-affiliates.

*    Affiliates for the purpose of this item refers to the Registrant's officers
     and directors  and/or any persons or firms (excluding those brokerage firms
     and/or clearing houses and/or  depository  companies  holding  Registrant's
     securities  as  record  holders  only  for  their  respective   clienteles'
     beneficial  interest) owning 5% or more of the  Registrant's  Common Stock,
     both of record and beneficially - all as of November 1, 1999. See also Item
     1 (a) and footnote 1 thereto.

                   ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                           DURING THE PAST FIVE YEARS

     Check whether the issuer has filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes No --- C

Not  Applicable - See,  however,  Part I, Item 1 and Note 1(b) to the  Company's
audited  financial  statements with respect to its wholly owned subsidiary being
placed in receivership in August 1997.

<PAGE>

                    APPLICABLE ONLY TO CORPORATE REGISTRANTS

     State the number of shares  outstanding of each of the issuer's  classes of
common  equity,  as of the  latest  practicable  date:  4,059,600  shares  as of
November 1, 1999.

     Transitional Small Business Disclosure Format: Yes x No
                                    --- ---

                       DOCUMENTS INCORPORATED BY REFERENCE

     If the following documents are incorporated by reference,  briefly describe
them and identify the part of the Form 10-KSB (e.g., Part I, Part II, etc.) into
which the document is incorporated:  (1) any annual report to  security-holders;
(2) any proxy or information statement; and (3) any prospectus filed pursuant to
Rule 424(b) or (c) of the Securities Act of 1933, as amended ("Securities Act").
None

<PAGE>

                                TABLE OF CONTENTS

                                                                           Page
                                                                          Number
                                                                          ------
PART I

Item 1.   Description of Business ..........................................5

Item 2.   Description of Property ..........................................6

Item 3.   Legal Proceedings ................................................6

Item 4.   Submission of Matters to a Vote of Security Holders ..............6

PART II

Item 5.   Market For Common Equity and Related Stockholder Matters .........7

Item 6.   Management's Plan of Operation ...................................8

Item 7.   Financial Statements ............................................10
                                                                      F1 - F8
Item 8.   Changes in and Disagreements With  Accountants on
          Accounting and Financial Disclosure .............................11

PART III

Item 9.   Directors, Executive Officers, Promoters and Control Persons;
          Compliance With Section 16(a) of the Exchange Act                11

Item 10.  Executive Compensation ..........................................12

Item 11.  Security Ownership of Certain Beneficial Owners and Management ..13

Item 12.  Certain Relationships and Related Transactions ..................14

Item 13.  Exhibits, List and Reports on Form 8-K ..........................14

<PAGE>

ITEM 1.           DESCRIPTION OF BUSINESS

     Savin Electronics Inc.  (hereinafter  "SVPS" or the "Company") is a company
incorporated  in the State of New Jersey in August,  1990. The Company  recently
decided  to enter  the  field  of  network  data  security  and it is  currently
developing  products in such area (see Item 6  AManagement=s  Plan of Operation@
below).  On June 29,  1999,  the Company  changed  its name to  AHidenet  Secure
Architectures, Inc.@ to reflect the Company=s current business plans.

     The Company filed a Self-Underwritten  Registration Statement on Form S-18,
which Registration  Statement was declared effective on November 1, 1991 and the
offering  described  therein closed in January of 1992.  From  conclusion of its
aforesaid  public  offering of securities  through April of 1996 the Company had
been pursuing its stated business  activities  seeking to acquire  business(es);
its public offering having been a "blind pool/blank check" offering. The Company
had basically been inactive since "going public" until the closing in April 1996
of its initial  acquisition.  Information  with respect to such  acquisition  is
contained  in  Company  filings  under Form 8-K with date of report of March 21,
1996 and  Amendment  No. 1  thereto  as filed  April 4,  1996 and June 21,  1996
respectively.  Further  information  regarding such  acquisition may be found in
Item 6 of the  Company's  Form  10-KSB for its then  fiscal year ended March 31,
1996. The company acquired as a result of such acquisition,  Savin  Electronics,
Ltd., an Israeli corporation (ASavin Israel@), which was engaged (as reported in
aforesaid Form 8-K) in the development,  manufacture and marketing of electronic
power supply products for computers and other electronic  systems.  As indicated
in Note 1 to the Company's audited financial  statements,  Savin Israel incurred
losses in excess of  $1,200,000  as at December  31, 1996.  Additionally,  as at
December 31, 1996 Savin Israel current  liabilities  exceeded its current assets
by   approximately   $2,100,000  and  it  had  a  shareholders'   deficiency  of
approximately $1,300,000. Savin Israel was placed in receivership in August 1997
and remains in the process of being liquidated for the benefit of creditors.

     The Company has not had any revenues from operations from inception through
December 31, 1998.

     The Company  decided to enter the field of network  data  security,  and in
connection  therewith,  issued 73.9% of its issued and outstanding capital stock
to three  inventors  in  exchange  for all their  right,  title and  interest in
proprietary  technology in such field.  See Current Report on Form 8-K with date
of report June 11, 1999 for a more detailed description of the transaction.

     Reference is herewith made to Item 6 hereof regarding  Management's Plan of
Operations with respect to proposed future Company activities.

EMPLOYEES

     As of calendar  year ended  December  31, 1998 the Company did not have any
employees.  Currently,  the Company=s  subsidiary,  Hidenet Secure Architectures
Ltd., an Israeli company, employs two individuals.

ITEM 2.           DESCRIPTION OF PROPERTY

     As of December 31, 1998,  the Company  maintained an office,  rent free, at
the offices of its counsel (Gary B. Wolff,  P.C.) at 747 Third Avenue, New York,
New York 10017 for purposes of receipt of mail  domestically and inquiries which
in turn are  forwarded  to Company  personnel  located in  Israel.  Its  limited
business  activities  were  conducted by its current  management in the State of
Israel.  Currently,  the  Company  maintains  a  business  address  care  of its
subsidiary  at 103 Medinat  Hayehudim  Street,  Herzliya,  Israel  46733 and its
telephone number is 011-972-9-957-9795.  Such offices are maintained pursuant to
a two-year  lease at a cost of  approximately  $4,000  per  month.  The lease is
renewable  at the  option of the  Company  at a 10%  annual  increase  above the
current rent.

ITEM 3.           LEGAL PROCEEDINGS

     The  Company's  wholly  owned  subsidiary,  Savin  Israel,  was  placed  in
receivership  in August of 1997.  The  Company is not  presently  a party to any
other material  litigation nor, to the knowledge of management,  is any material
litigation threatened.


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

     (a) The Company did not hold an annual meeting of stockholders for calendar
year ended  December 31, 1998. At the end of 1998,  the  stockholders  holding a
majority of the issued and outstanding  capital stock of the Company  authorized
an  amendment to the  Company=s  certificate  of  incorporation  increasing  the
authorized  share  capital from 60,000 shares to  15,000,000  shares,  par value
$0.025 per share. On June 29, 1999, said stockholders authorized a change in the
name of the Company to AHidenet Secure Architectures, Inc.@

     (b) As  reported  in Form 8-K with date of report of March 17,  1997  under
Item 5 Other Events "On March 3, 1997, in accordance with Section 14A:5-6 of the
New Jersey  Business  Corporation  Act (the "New  Jersey  Act"),  the holders of
approximately  51.08% of the  outstanding  common  stock,  par value  $.0001 per
share,  of Savin  Electronics  Inc. (the  "Company"),  took action to remove the
existing Board of Directors of the Company,  consisting of Meir Portnoy, Yechiel
Nussbaum,  Gil Sarig and Avrum Savran, and elected Avrum Savran and Avi Pines to
serve as the sole members of the Company's Board of Directors (the  "Corporation
Action")." Such Corporate Action became  effective on March 17, 1997.  Aforesaid
Item 5 to Form 8-K further indicates "At a meeting of the new Board of Directors
held on March 17, 1997,  Meir  Portnoy was removed as President  and Chairman of
the Board of the Company and Avi Pines and Avrum Savran were elected to serve as
President and Chairman of the Board, respectively, of the Company."

     On October 28,  1998,  the Board of Directors  authorized  a 1:250  reverse
stock split so that the number of issued and outstanding  shares of Common Stock
of the Company was reduced from 8,150000 to 32,600 shares. In December 1998, the
holders of a majority of the issued and outstanding  share capital increased the
authorized  share capital of the Company to  15,000,000  shares of common stock,
par value $0.025 per share.


<PAGE>

                                     PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY
          AND RELATED STOCKHOLDER MATTERS

     (a)  Marketing Information. The following table sets forth, for the periods
indicated, the range of high and low bid prices on the dates indicated  for  the
Company's  securities indicated below for each full quarterly period within  the
two  most  recent  years (if applicable) and any subsequent interim  period  for
which financial statements are included and/or required to be included.
<TABLE>
<CAPTION>

Fiscal Year Ended March 31, 1996 (A)                   Quarterly Common Stock
            By Quarter                                     Price Ranges
------------------------------------                   ----------------------
    Quarter           Date                                High        Low
<S>                 <C>                                <C>            <C>
     1st            June 30, 1995                         (1)         (1)

     2nd            September 30, 1995                    (1)         (1)

     3rd            December 31, 1995                     (1)         (1)

     4th            March 31, 1996                        (1)         (1)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
 Calendar Year Ended December 31, 1996 By              Quarterly Common Stock
              Quarter                                      Price Ranges (2)
-----------------------------------------              ----------------------
   Quarter            Date                                High        Low
<S>                  <C>                               <C>            <C>
     1st           June 30, 1996                          $3.75       $2.75

     2nd           September 30, 1996                     $5.75       $2.125

     3rd           December 31, 1996                      $4.25       $0.8125
</TABLE>
<TABLE>
<CAPTION>
 Calendar Year Ended December 31, 1997 By              Quarterly Common Stock
              Quarter                                      Price Ranges (2)
-----------------------------------------              ----------------------

    Quarter           Date                                High        Low
<S>                  <C>                               <C>            <C>
     1st           March 31, 1997                         $1.50       $0.2500

     2nd           June 30, 1997                          $1.375      $0.3125

     3rd           September 30, 1997                     $1.46875    $0.0625

     4th           December 31, 1997                      $0.093      $0.062
</TABLE>
<TABLE>
<CAPTION>
 Calendar Year Ended December 31, 1998 By              Quarterly Common Stock
              Quarter                                      Price Ranges (2)
-----------------------------------------              ----------------------

    Quarter           Date                                 High        Low
<S>                  <C>                               <C>            <C>
     1st           March 31, 1998                         $0.40       $0.10

     2nd           June 30, 1998                          $0.10       $0.10

     3rd           September 30, 1998                     $0.10       $0.10

     4th           December 31, 1998                      $2.5        $2.50
</TABLE>

(A)  At a Special  Meeting of the Board of Directors  held in September  1996 it
     was  resolved  that  commencing  subsequent  to the close of the  Company's
     fiscal  year  ended  March 31,  1996 that its year end would be  changed to
     December 31. A Form 8-K with date of report of September 3, 1996  reporting
     such change was filed with the SEC.

     (1)  Notwithstanding closing of the Company's public offering of securities
          in  November  1991  its  securities  did not  commence  trading  until
          subsequent to application  for trading being submitted to the National
          Association of Securities  Dealers,  Inc.  ("NASD") in accordance with
          Schedule H of such  Association's  by-laws and Rule 15c2-11  under the
          Securities  Exchange  Act of  1934.  On May 16,  1996  and  acting  in
          reliance upon information filed, the NASD cleared the Company's common
          stock for quotation on the Electronic Over-the-Counter Bulletin Board.
          The opening  prices of the Company's  common stock on June 3, 1996 was
          $2.75 bid and $3.50 asked.

     (2)  The existence of limited or sporadic  quotations  should not of itself
          be deemed to constitute an "established public trading market". To the
          extent that limited  trading in the  Company's  Common Stock has taken
          place,  such  transactions  have been limited to the  over-the-counter
          market.  All prices indicated herein are as reported to the Company by
          broker-dealer(s)  making a market in its  securities  in the  National
          Quotation  Data  Service  ("pink  sheets")  and/or  in the  Electronic
          Over-the-Counter  Bulletin  Board (the latter under the symbol  SVPS).
          The  aforesaid  securities  were not traded or quoted on any automated
          quotation  system  (other  than  as  may  be  indicated  herein).  The
          over-the-counter  market quotes  indicated above reflect  inter-dealer
          prices, without retail mark-up,  mark-down or commission,  and may not
          necessarily represent actual transactions.

     (b)  Holders.   As  of  December  31,  1998  the   approximate   number  of
          stockholders  of the  Company's  Common  Stock  (as  indicated  on its
          transfer  agent's  December 31, 1998 certified  list of  stockholders)
          amounted to 20 persons  and/or  firms  (inclusive  of those  brokerage
          firms and/or clearing houses and/or  depository  companies holding the
          Company's  securities  for  their  respective  clientele  - each  such
          brokerage   house,   clearing  house  and/or   depository  firm  being
          considered  as one  record  holder).  The exact  number of  beneficial
          owners of the Company's  securities is not known but would necessarily
          exceed the number of record owners  indicated  above in that brokerage
          firms and/or clearing house and/or  depository  companies are normally
          record owners for  presumably  any number of  unidentified  beneficial
          owners.

     (c)  Dividends.  The  payment by the Company of  dividends,  if any, in the
          future rests within the  discretion of its Board of Directors and will
          depend,  among other things, upon the Company's earnings,  its capital
          requirements  and its financial  condition,  as well as other relevant
          factors.  The Company has not paid or declared any dividends  upon its
          Common  Stock  since its  inception  and,  by  reason  of its  present
          financial status and its contemplated financial requirements, does not
          currently contemplate or anticipate paying any dividends on its Common
          Stock in the foreseeable future.

ITEM 6.           MANAGEMENT'S PLAN OF OPERATION

     Cautionary Statement for Forward-Looking Information

     Certain statements contained in this report, including statements regarding
the anticipated  development of the Company=s  business,  the intent,  belief or
current  expectations of the Company,  its directors or its officers,  primarily
with  respect to the  performance  of the Company and the products it expects to
offer and other  statements  contained  herein  regarding  matters  that are not
historical  facts, are  Aforward-looking@  statements  within the meaning of the
Private Securities Litigation Reform Act (the AReform Act@). Future filings with
the Securities and Exchange Commission, future press releases and future oral or
written  statements  made by or with the  approval of the Company  which are not
statements of historical fact, may contain forward-looking  statements under the
Reform Act.  Because such  statements  include risks and  uncertainties,  actual
results may differ  materially  from those expressed or implied by such forward-
looking statements. Factors that could cause actual results to differ materially
from those  expressed  or implied by such  forward-looking  statements  include,
without limitation,  the failure of the Company to obtain additional  financing,
the  failure  of the  Company to develop a product  which is  marketable,  rapid
technological changes in the environment,  frequent new product introductions by
others in the industry with greater  resources than the Company,  competition in
the  marketplace in which the Company  decided to operate and evolving  industry
standards  and  customer  preferences  in that  market  which are  difficult  to
predict.  Not only could the Company fail to produce a marketable  product,  but
the introduction of products embodying new technologies and the emergence of new
industry standards could render the Company=s product,  if it is even developed,
as well as any potential new products, obsolete and unmarketable.  Such constant
technological  changes also make  accurate  market  predictions  difficult.  The
Company=s results depend in part upon its ability to attract,  train, retain and
motivate  qualified  management,  technical,  manufacturing,  sales and  support
personnel for its operations. The Company is in the process of filing for patent
protection  in the United  States for the product  which it is in the process of
developing.

     All forward-looking  statements speak only as of the date on which they are
made. The Company  undertakes no obligation to update such statements to reflect
events that occur or  circumstances  that exist after the date on which they are
made.

     The Company has never had any revenues since its inception.

     On June 11,  1999,  the Company  executed and  delivered an agreement  with
Royce Investment Group ("RIG"),  the Company=s exclusive  financial  consultant,
and  Uriel  Ginzberg,  Jonathan  Levin  and  John  Federman  (collectively,  the
"Inventors")  whereby the  Inventors  assigned  to the Company all their  right,
title and interest in the  proprietary  technology  in the field of network data
security  (collectively,  the  AIntellectual  Property@).  In addition,  RIG was
retained  to offer  and sell up to  approximately  $600,000  of shares of common
stock to be issued by the  Company to RIG.  See the Form 8-K with date of report
June  11,  1999  for a more  detailed  description  of  the  agreement  and  the
transactions  contemplated  thereby.  In connection with such  transaction,  the
Company changed its name to AHidenet Secure Architectures, Inc.@ See the Form 8-
K with the date of report June 29, 1999.

     The Company  currently  intends to develop and market products in the field
of network data security.  It  established  an Israeli  subsidiary in July 1999,
Hidenet Secure  Architectures  Ltd., which hired two (2) employees.  The Company
has no current  operations,  and even if the  products it is  developing  in the
networks data security field are brought to market,  there is no likelihood that
the sales of the  Company=s  products  will be sufficient to cover the costs and
expenses of the Company=s  operations.  The Company  estimates that sales of its
products will commence in the middle of 2000, but there is no assurance that its
products  will be ready for  market at such  time.  In the next  year,  RIG will
attempt to obtain equity  financing for the Company.  Failure to locate  funding
for the Company raises doubts about its ability to continue as a going concern.

     The  Company  remains  subject  to the  reporting  requirements  under  the
Securities  Exchange Act of 1934.  Notwithstanding  such requirements,  the last
report filed by the Company  (exclusive  of Forms 8-K) was a Form 10-QSB for its
quarter ended September 30, 1996. The Company,  during the third quarter of 1999
embarked upon an effort to bring itself  "current" with respect to its reporting
requirements  and in that regard has prepared and filed (or is in the process of
filing) the following reports as indicated:

               Form 8-K with date of report June 11, 1999
               Form 8-K with date of report June 29, 1999
               Form 10-KSB for calendar year ended December 31,1997
               Form 10-QSB for the quarter ended March 31, 1999
               Form 10-QSB for the quarter ended June 30, 1999

     Each of the above referenced  reports were basically  prepared at or around
the same time and forwarded for filing purposes on or about the same date.

     The  Company  currently  has no  significant  business  operations  and (as
heretofore  indicated)  its  wholly  owned  subsidiary  Savin  Israel  is  being
liquidated for the benefit of creditors.


     Year 2000 Compliance

     The AYear 2000  problem@  describes  the  world-wide  concern  that certain
computer applications, which use two digits rather than four to represent dates,
will interpret the year 2000 as the year 1900 and malfunction on January 1, 2000
or thereafter.  Since the Company has no operations,  the year 2000 problem does
not pertain to the Company.  The Company will ensure that its products,  and any
products of material  significance to the Company,  will function normally after
the year 2000.


<PAGE>

ITEM 7.           FINANCIAL STATEMENTS

     The following  financial  statements  have been prepared in accordance with
the  requirements  of  Regulation  S-B.  Such  information  appears on pages F-1
through F-8 inclusive of this Form 10-KSB, which pages follow this page.





                             SAVIN ELECTRONICS INC.


                              FINANCIAL STATEMENTS

                             AS OF DECEMBER 31, 1998


                                 IN U.S. DOLLARS




                                      INDEX




                                                                Page


  Report of Independent Auditors                                 2

  Balance Sheets                                                 3

  Statements of Operations                                       4

  Statements of Shareholders' Deficiency                         5

  Statements of Cash Flows                                       6

  Notes to Financial Statements                                7 - 9
<PAGE>
KOST FORER & GABBAY                                                ERNST & YOUNG



                         REPORT OF INDEPENDENT AUDITORS

                  To the Board of Directors and Shareholders of

                             SAVIN ELECTRONICS INC.



     We have audited the accompanying  balance sheets of Savin  Electronics Inc.
as of  December  31,  1998 and 1997 and the related  statements  of  operations,
shareholders'  deficiency and cash flows for each of the two years in the period
ended December 31, 1998. 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  generally  accepted  auditing
standards in the 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.  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 out opinion.


     In our opinion,  the financial statements referred to above present fairly,
in all material respects, the financial position of Savin Electronics Inc. as of
December 31, 1998 and 1997 and the results of its  operations and its cash flows
for each of the two years ended in the period  December  31, 1998 in  conformity
with generally accepted accounting principles in the United States.


     The accompanying  financial statements have been prepared assuming that the
Company will continue as a going  concern.  As discussed in Note 1c, the Company
has suffered recurring losses from operations,  has a working capital deficiency
and shareholders deficiency.  These conditions raise substantial doubt about its
ability to continue as a going  concern.  Management's  plans in regard to these
matters are described in Note 1c and 5. The accompanying financial statements do
not include any  adjustments to reflect future effect on the  classification  of
liabilities that might result from the outcome of this uncertainty.





  Tel-Aviv, Israel                                KOST FORER & GABBAY
  August 15, 1999                        A Member of Ernst & Young International

<PAGE>
                                                          SAVIN ELECTRONICS INC.
BALANCE SHEETS
--------------------------------------------------------------------------------
In U.S. dollars

<TABLE>
                                                           December 31,
                                                    ------------------------
                                                       1998         1997
                                                    ----------    ----------
<CAPTION>
<S>                                                        <C>           <C>

   ASSETS

INVESTMENT IN A SUBSIDIARY (Note 1) .............            1             1
                                                    ----------    ----------

                                                             1             1
                                                    ==========    ==========

   LIABILITIES AND SHAREHOLDERS' DEFICIENCY

CURRENT LIABILITIES:
Accounts payable and accrued liabilities ........       58,877        56,462
Loan payable - officer (Note 3) .................        7,835         7,000
                                                    ----------    ----------

Total current liabilities .......................       66,712        63,462
                                                    ----------    ----------

SHAREHOLDERS' DEFICIENCY:
Common stock - $ 0.025 par value:
  Authorized: 15,000,000 shares and 60,000
   shares as of December 31, 1998 and 1997,
   respectively;
  Issued  and  outstanding: 59,600 shares and
   32,600 shares as of December 31, 1998 and 1997
   respectively (Note 4) ........................        1,490           815
Additional paid-in capital ......................      943,916       924,591
Accumulated deficit .............................   (1,012,117)     (988,867)
                                                    ----------    ----------


Total shareholders' deficiency ..................      (66,711)      (63,461)
                                                    ----------    ----------

                                                             1             1
                                                    ==========    ==========
</TABLE>









The accompanying notes are an integral part of the financial statements.






<PAGE>
                                                          SAVIN ELECTRONICS INC.
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
In U.S. dollars

<TABLE>
<CAPTION>
                                                                                 Nine months
                                                         Year ended                 ended
                                                         December 31,            December 31,
                                                -----------------------------   -------------
                                                    1998            1997            1996
                                                -------------   -------------   -------------

<S>                                                       <C>             <C>             <C>

Cost and expenses:
  General and administrative ................          23,250          12,487          58,625
  Write-down of investment
   in a subsidiary (Note 1) .................            --              --           859,478
                                                -------------   -------------   -------------

Net loss ....................................          23,250          12,487         918,103
                                                =============   =============   =============

Basic and diluted net loss  per share .......            0.67            0.38           28.16
                                                =============   =============   =============

Weighted average number of shares outstanding          34,850          32,600          32,600
                                                =============   =============   =============
</TABLE>








The accompanying notes are an integral part of the financial statements.

<PAGE>
                                                       SAVIN ELECTRONICS INC.
STATEMENTS OF SHAREHOLDERS' DEFICIENCY
--------------------------------------------------------------------------------
In U.S. dollars

<TABLE>
<CAPTION>


                                             Common stock                Additional                           Total
                                     ------------------------------       paid-in         Accumulated      shareholders'
                                         Shares           Amount          capital           deficit          deficiency
                                    --------------   --------------    --------------   --------------    --------------
<S>                                            <C>              <C>               <C>              <C>               <C>
Balance as of March 31, 1996 ....            1,820            1,820            50,857          (58,277)           (5,600)


Adjustment from change of
 par  value  to $0.025 per ......             --             (1,775)            1,775             --                --
 share
Shares  issued to acquire
 foreign subsidiary .............           24,600              615              --               --                 615
Net  proceeds  from private
 placement of shares ............            6,180              155           871,959             --             872,114
Net loss ........................             --               --                --           (918,103)         (918,103)
                                    --------------   --------------    --------------   --------------    --------------


Balance as of December 31, 1996 .           32,600              815           924,591         (976,380)          (50,974)

   Net loss .....................             --               --                --            (12,487)          (12,487)
                                    --------------   --------------    --------------   --------------    --------------

  Balance as of December 31, 1997           32,600              815           924,591         (988,867)          (63,461)


   Issuance of shares ...........           27,000              675            19,325             --              20,000
   Net loss .....................             --               --                --            (23,250)          (23,250)
                                    --------------   --------------    --------------   --------------    --------------

  Balance as of December 31, 1998           59,600            1,490           943,916       (1,012,117)          (66,711)
                                    ==============   ==============    ==============   ==============    ==============
</TABLE>







The accompanying notes are an integral part of the financial statements.

<PAGE>
                                                         SAVIN ELECTRONICS INC.
STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------
In U.S. dollars

<TABLE>
<CAPTION>
                                                                                    Nine months
                                                            Year ended                 ended
                                                           December 31,             December 31,
                                                 ------------------------------    -------------
                                                      1998             1997             1996
                                                 -------------    -------------    -------------
<S>                                                        <C>              <C>              <C>
Cash flows from operating
activities:
Net loss .....................................         (23,250)         (12,487)        (918,103)
Adjustments to reconcile loss
to net cash used in
operating activities:
  Write-down of investments in a subsidiary ..            --               --            859,478

   Increase in accounts  payable and
   accrued liabilities .......................           2,415           10,487           45,375
                                                 -------------    -------------    -------------

Net cash used in operating activities ........         (20,835)          (2,000)         (13,250)
                                                 -------------    -------------    -------------


Cash flows from investing activities:
Advances to foreign subsidiary ...............            --               --           (858,864)
                                                 -------------    -------------    -------------

Net cash used in investing ...................            --               --           (858,864)
activities
                                                 -------------    -------------    -------------

Cash flows from financing activities:
Issuance of shares ...........................          20,000             --               --
Net proceeds from private placement of shares             --               --            872,114
Loan received from officer ...................             835            2,000             --
                                                 -------------    -------------    -------------

Net  cash  provided by financing .............          20,835            2,000          872,114
activities
                                                 -------------    -------------    -------------

Change in cash and cash equivalents ..........            --               --               --
Cash  and  cash  equivalents  at the beginning
  of the period ..............................            --               --               --
                                                 -------------    -------------    -------------

Cash  and  cash  equivalents  at
the end of the period ........................            --               --               --
                                                 =============    =============    =============

Supplemental information:

Common shares issued for acquired foreign
  subsidiary..................................            --               --                615
                                                 =============    =============    =============
</TABLE>








The accompanying notes are an integral part of the financial statements.

<PAGE>

                                                         SAVIN ELECTRONICS INC.
  NOTES TO FINANCIAL STATEMENTS
        In U.S. dollars


NOTE 1:-   GENERAL

     a.   Savin  Electronics  Inc. ("the  Company"),  formerly known as American
          Acquisition Corporation.

     b.   In April 1996, the Company  acquired all of the issued and outstanding
          shares  of  Savin  Electronics  Ltd.,  an  Israeli  corporation  ("the
          subsidiary"),  in exchange for 24,600 shares of the  Company's  Common
          stock. The subsidiary was engaged in the development,  manufacture and
          marketing of electronic power supply products for sensitive  computers
          and other  electronic  systems.  The Company  issued  6,180  shares of
          Common stock, in a private  placement,  and received net proceeds of $
          872,114, which were advanced to the subsidiary to be used as operating
          capital.

          As of  December  31,  1996,  the  subsidiary  incurred a  twelve-month
          operating loss which approximated $ 1.2 million.  Current  liabilities
          exceeded current assets by $ 2.1 million, and shareholders' deficiency
          approximated $ 1.3 million.

          The  subsidiary  has been  unable  to raise  additional  capital  from
          external   sources  or  from  internally   generated   profits,   and,
          accordingly,  was  forced  into  receivership  in August  1997.  It is
          currently  in the  process  of  liquidation,  for the  benefit  of its
          creditors.  Accordingly, the Company has recorded a loss for the total
          amount of the investment in and advances to the subsidiary  which,  at
          December 31, 1996, was $ 859,478.

     c.   Since its incorporation,  the Company has incurred losses amounting to
          $ 992,117 as of December 31, 1998.

          As of December 31, 1998, the Company has a working capital  deficiency
          of $ 66,712 and a shareholders'  deficiency of $ 66,711. The Company's
          ability to  continue  as a going  concern is subject to the  Company's
          ability to raise cash  through an offering,  or by  financial  support
          from  its  shareholders.  Accordingly,  there is a  substantial  doubt
          whether the Company is able to continue as a going concern.

          In June 1999,  the Company  entered into an investment  agreement,  as
          described in Note 5.

          The accompanying financial statements have been prepared assuming that
          the Company will continue as a going concern.

<PAGE>
                                                         SAVIN  ELECTRONICS INC.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
In U.S. dollars


NOTE 2:-   SIGNIFICANT ACCOUNTING POLICIES

          The  financial  statements  have  been  prepared  in  accordance  with
          generally accepted accounting principles.

     a.   Use of estimates:

          The  preparation  of the  financial  statements,  in  conformity  with
          generally accepted accounting principles,  requires management to make
          estimates  and  assumptions  that affect the  amounts  reported in the
          financial  statements  and  accompanying  notes.  Actual results could
          differ from those estimates.

     b.   Fair value of financial instruments:

          SFAS No. 107, ADisclosure About Fair Value of Financial  Instruments@,
          requires  disclosures  about the fair value of financial  instruments.
          The following  disclosures  of the  estimated  fair value of financial
          instruments have been determined by the Company using available market
          information  and valuation  methodologies  described  below.  However,
          considerable  judgment  is  required  in  interpreting  market data to
          develop  the  estimates  of fair  value.  Accordingly,  the  estimates
          presented herein may not be indicative of the amounts that the company
          could  realize  in a current  market  exchange.  The use of  different
          market  assumptions  or  valuation  methodologies  may have a material
          effect on the estimated fair value amounts.

          The financial  instruments of the Company are mainly accounts  payable
          and accruals, and loan payable - officer. In view of their nature, the
          carrying amounts of these financial instruments reasonably approximate
          their fair values.

     c.   Basic and diluted earnings (loss) per share:

          Basic  earnings  (loss) per share is  computed  based on the  weighted
          average number of common shares  outstanding during each year. Diluted
          earnings per share is computed based on the weighted average number of
          common  shares   outstanding  during  each  year,  plus  the  dilutive
          potential  common shares  considered  outstanding  during the year, in
          accordance with FASB Statement No. 128, "Earnings Per Share".

     d.   Fiscal year:

          During 1996, The Company  changed its fiscal year-end from March 31 to
          December 31.


NOTE 3:-   LOAN PAYABLE - OFFICER

     The loan does not bear interest and is payable on demand.

<PAGE>

                                                          SAVIN ELECTRONICS INC.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
In U.S. dollars


NOTE 4:-   COMMON STOCK

     a.   In October 1998,  the Company  effected a reverse stock split of 1:250
          on the nominal common stock of the existing shareholders.

          All Common stock and per Common stock amounts have been  retroactively
          adjusted to reflect this split.

     b.   In November  1998,  the Company  issued  27,000  shares to a placement
          agent in consideration of consulting services.

NOTE 5:-   SUBSEQUENT EVENT

     a.   In  June  1999,  the  Company  changed  its  name  to  Hidenet  Secure
          Architectures Inc.

     b.   In June 1999,  the Company  entered into an investment  agreement with
          several  inventors  ("Inventors") and a placement agent ("the Agent").
          Pursuant to the agreement,  the Inventors  assigned to the Company all
          of their rights, titles and interest in proprietary  technology in the
          field of network  data  security,  in exchange for the  allocation  of
          3,000,000 of the Company's shares. In addition,  the Agent will act as
          the exclusive  financial  consultant to raise capital in the aggregate
          of $ 600,000, in two stages:

          Stage  A - The  issuance  of  1,000,000  representing  24.6  % of  the
          Company's  outstanding  shares,  in  return  for  an  investment  of $
          100,000. (This stage took place in July 1999.)

          Stage B - The  issuance of 800,000  shares  representing  16.5% of the
          Company's outstanding shares, in return for an investment of $ 500,000
          within 180 days from the completion date of Stage A. This stage can be
          executed in portions that for each installment of $ 50,000 the Company
          will issue 80,000 shares of Common stock. As a  consideration  for the
          raising of capital,  the Agent will  receive $ 75,000 per year for one
          year,  for  consulting  services $ 10,000 for  expenses and 10% of the
          gross amounts raised from Investors introduced by the Agent.

          In addition, the Agent will receive options to purchase 500,000 Common
          stock of the Company,  at an exercise price of $ 0.125 per share.  The
          options are exercisable within three years from the completion date of
          Stage A.

          The agreement also states that the Company will establish a subsidiary
          in Israel. The subsidiary will engage in research and development. The
          Company  will  assign  and  transfer  to  the  subsidiary  all  of its
          intellectual  property and all funds raised by Stage A of  investment,
          net of the cost of  registration  of the shares.  The  subsidiary  was
          established in July 1999.

          In connection with acting as a consultant to the subsidiary, the Agent
          is entitled to 7% of the gross proceeds of any investment  made in the
          subsidiary, and Common stock of the subsidiary, representing 7% of the
          gross proceeds of an investment made in the subsidiary.





<PAGE>
                                 PART III

ITEM 9.   DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
          COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

     The  Directors and  Executive  Officers of the Company,  as of December 31,
1998 unless otherwise indicated, were as follows: (1)



  Name and Address               Position(s)           Age
                                    Held

  Ron Fussman                   President,             37
  52A Hanassi St.               Secretary and
  Herzllya Pituach              Director
  46448
  Israel

  Avrum Savran                  Chairman of            55
  2 Habroshim                   the Board of
  Street Ramat                  Directors and
  Efal Tel Aviv                 Treasurer
  52960
  Israel

  Avi Pines(1)                  President and          45
  Ramat Hasharon                Director
  Israel

(1) Mr. Pines resigned from all his positions with the Company November, 1997.

     Directors   are  elected  to  serve  until  the  next  annual   meeting  of
stockholders  and until their  successors  have been elected and have qualified.
Officers  are  appointed  to serve until the  meeting of the Board of  Directors
following the next annual  meeting of  stockholders  and until their  successors
have been elected and have qualified.

     RON FUSSMAN served as President,  Secretary-Treasurer and a Director of the
Company from March,  1996 until his  resignation  in April,  1996 and thereafter
served as an independent  business  consultant to the Company until assuming his
current  positions  with the Company in May of 1997.  Mr. Fussman also serves as
President and control  person of Universal  Eagle Ltd., a firm founded by him in
1988 for purposes of providing business and financial consulting services.

     AVRUM SAVRAN from 1987 to the present has managed Margolin  Marketing Ltd.,
a finance  and  economic  consulting  company as well as serving as manager  and
owner of PBA Investment,  a relatively  large Israeli  exporting firm and during
such same period of time  helped  support  Israeli  based  industrial  companies
through the raising of funds from governmental and private sources. From 1981 to
1987 Mr. Savran served as a Financing  Manager of Kibbutz  Yizreel and from 1982
to 1985 served as manager of Team USA of the United Kibbutz Movement. Mr. Savran
received  a  Bachelor  of Arts  degree in  Business  Administration  from  Haifa
University  in 1973 and  currently  serves as Chairman of the Board of Directors
and as Treasurer of the Company.

     See  Item 11  hereof  with  respect  to  security  ownership,  if  any,  of
management.

ITEM 10.          EXECUTIVE COMPENSATION

     Remuneration  paid  (and/or  accrued,  if  applicable  and so  specifically
indicated)  to officers  and/or  directors of the Company  during  calendar year
ended  December  31,  1998  is  indicated  in  the  chart   appearing   directly
hereinafter.


<TABLE>
<CAPTION>
                                                                       Securities Or
                                                Salaries, Fees,    Property, Insurance
                                               Directors' Fees,         Benefits or            Aggregate of
    Name of            Capacities In Which       Commissions          Reimbursement,     Contingent Forms of
  Individual                Served               and Bonuses        Personal  Benefits       Remuneration
-------------------   --------------------   -------------------   -------------------   -------------------
<S>                                    <C>                   <C>                   <C>                   <C>

Ron ...............   President, Secretary            $ -0-                 $ -0-                 $ -0-
Fussman               & a Director

Avrum .............   Chairman  of the                $ -0-                 $ -0-                 $ -0-
Savran                Board of Directors
                      and Treasurer
</TABLE>

     There were no written employment  agreements between the Company and any of
its officers and directors through calendar year ended December 31, 1998.

     No  compensation  of any nature  was paid to any  director  or officer  for
services rendered to the Company in such capacity  excepting for repayment made,
if any, for accountable  expenses  incurred on the Company's  behalf  throughout
calendar year ended December 31, 1998.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     (a) Security Ownership of Certain Beneficial Owners - The following persons
and/or firms are known to the Company to be the  beneficial  owners of more than
5% of the 4,059,600 shares of the Company's  outstanding $0.025 par value Common
Stock as of  November  1,  1999.  To the best of the  Company's  knowledge  each
individual  and/or  firm  has  beneficial  ownership  of  the  shares  and  each
individual  and/or firm has sole  voting  power and sole  investment  power with
respect to the number of shares beneficially owned.


<TABLE>
<CAPTION>
        Name and Address of             Amount and    Percent of
          Beneficial Owner               Nature of      Class
                                        Beneficial
                                         Ownership
<S>                                            <C>         <C>
Jonatan  Levin .......................     600,000      14.78%
c/o Hidenet Secure  Architectures Ltd.
103 Medinat Hayehudim Street
P.O.B. 837
Herzliya, Israel 46733


Uriel Ginsberg .......................     600,000      14.78%
c/o Hidenet Secure Architectures Ltd.
103 Medinat Hayehudim Street
P.O.B. 837
Herzliya, Israel 46733



John Federman ........................   1,800,000      44.34%
c/o Hidenet Secure Architectures Ltd.
103 Medinat
Hayehudim Street
P.O.B. 837
Herzliya, Israel 46733


Royce Investment  Group (1) ..........     967,886      23.84%
c/o Hidenet Secure  Architectures Ltd.
103 Medinat Hayehudim Street
P.O.B. 837
Herzliya, Israel 46733
</TABLE>

(1)  Includes  warrants to purchase up to 500,000  shares of Common  Stock at an
     exercise  price of $0.125 per share,  which are currently  exercisable  and
     expire  July 2002.  RIG was issued  1,000,000  shares of Common  Stock as a
     result of raining $100,000 for the Company, and is currently the record and
     beneficial  owner of  440,886 of said  shares.  In  addition  to the shares
     indicated above, RIG is entitled to an additional 800,000 additional shares
     of common  stock  upon  raising  capital  an  additional  $500,000  for the
     Company.  See Current  Report of Form 8-K with date of report June 11, 1999
     for a more detailed description of the transaction.

     (b)  Security Ownership of Management - The number and percentage of shares
          of Common Stock of the Company  owned of record and  beneficially,  by
          each  current  officer and  director of the Company and by all current
          officers and  directors of the Company as a group,  is as follows - as
          of  November  1, 1999.  To the best of the  Company's  knowledge  each
          individual has beneficial  ownership of the shares and each individual
          has sole voting  power and sole  investment  power with respect to the
          number of shares beneficially owned.


<TABLE>
<CAPTION>

                           Amount and Nature
 Name and Address of         of Beneficial
   Beneficial Owner            Ownership           Percent of Class
----------------------   --------------------    --------------------
<S>                                       <C>                     <C>
Ron Fussman ..........                  1,100            Less than 1%
52A Hanassl St
Herzllya Pituach 46448
Israel

Avrum Savran .........                    -0-                   -0- %
2 Habroshim Street
Ramat Efal
Tel Aviv 52960
Israel

All officers and .....                  1,100            Less than 1%
directors  as a
group (2 person)
</TABLE>

(1)  The  number  of  shares  indicated  above - 1,100 - are  owned of record by
     Universal  Eagle Ltd., a firm under the control of Mr. Fussman by virtue of
     the fact that he is President of such firm. Accordingly, Mr. Fussman may be
     considered to be the beneficial owner of such securities.

     The Company does not know of any arrangement or pledge of its securities by
persons now  considered  in control of the Company that might result in a change
of control.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     For the  calendar  year  ended  December  31,  1998 there have not been any
material  transactions between the Company and any director,  executive officer,
security  holder  or  any  member  of  the  immediate   family  of  any  of  the
aforementioned  which  exceeded  $60,000  other than as may be indicated in this
Form 10-KSB and the financial  statements and footnotes thereto which are a part
hereof.

ITEM 13.  EXHIBITS, LIST AND REPORTS ON FORM 8-K

     Reference is herewith made to page F-1 through F-8 inclusive of this 10-KSB
with respect to the financial statements and notes thereto included therein.

     No exhibits are being filed with this Form 10-KSB.

<PAGE>

                                   SIGNATURES




     In accordance  with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                              HIDENET SECURE ARCHITECTURES, INC.
                              (formerly known as Savin Electronics Inc.)


                              By   /s/Ron Fussman
                                   ----------------------
                                   Ron Fussman, President

Date: November 4, 1999



     In  accordance  with the Exchange Act, this report has been signed below by
the following  persons on behalf of the  registrant and in the capacities and on
the dates indicated.


   /s/Ron Fussman         President, Secretary and       Dated: November 4, 1999
-----------------         a Director
Ron Fussman



   /s/Avrum Savran        Chairman of the Board of       Dated: November 4, 1999
------------------        Directors and Treasurer
Avrum Savran