**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, DC 20549

**Form 10-KSB**

 

(Mark one) 

[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIESEXCHANGE ACT OF 1934 

            For the fiscal year ended: December 31, 2003

Commission file number:0-26307 

 

 

**Nettel Holdings, Inc.**

(Exact name of small business issuer as specified in its charter)

 

 

                                   Florida                                                                                                                                                                             65-0827278 

(State or other jurisdiction of incorporation or organization)                                                                                                    (IRS Employer Identification No.)

 

 

610 SW Broadway, Suite 405, Portland, OR                                                        97205

         (Address of principal executive offices)                                                      (Zip Code)

503-222-6018

(Issuer’s telephone number)

 

 

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

Common Stock, Par Value $.01

(Title of class)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (orfor such shorter period as the registrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days. YES [X] NO [ ] 

 

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-Bcontained in this form, and no disclosure will be contained, to the best of the registrant'sknowledge, in definitive proxy or information statements incorporated by reference in Part III ofthis Form 10-KSB or any amendment to this Form 10-KSB. [ ] 

 

Issuer’s revenues for its most recent fiscal year: none

 

As of March 31, 2004, there were 19,897,116 shares of the issuer's common stock issued andoutstanding. There is only a limited trading market in the shares of the issuerÆs common stock atthe date of the filing of the Form 10-KSB. Affiliates of the Issuer own 13,346,294 shares of theIssuerÆs issued and outstanding common stock. 6,550,826 shares are held by non-affiliates.Affiliates for the purposes of this Annual Report refer to the officers, directors and/or persons orfirms owning 5% or more of IssuerÆs common stock, both of record and beneficially andaffiliates thereof. 

If the following documents are incorporated by reference, briefly describe them and identify thepart of the Form 10-KSB (e.g., PartI, Part II, etc.) into which the document is incorporated: (1)any annual report to security holders; (2) any proxy or information statement; and (3) anyprospectus filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933 ("Securities Act").The listed documents should be clearly described for identification purposes (e.g., annual reportto security holders for fiscal year ended December 31, 2003). No documents are incorporated byreference. 

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**TABLE OF CONTENTS**

 

**PART I**

Item 1. Description of Business

Item 2. Description of Property

Item 3. Legal Proceedings

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

 

**PART II**

 

Item 5. Market for Common Equity and Related Stockholder Matters

Item 6. Management's Discussion and Analysis

Item 7. Financial Statements

Item 8. Changes In and Disagreements With Accountants on Accounting and FinancialDisclosure 

 

**PART III**

Item 9. Directors, Executive Officers, Promoters and Control Persons 

Item 10. Executive Compensation

Item 11. Security Ownership of Certain Beneficial Owners and Management

Item 12. Certain Relationships and Related Transactions

Item 13. Exhibits and Reports on Form 8-K

Item 14. Control and Procedures

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**PART I**

**ITEM 1.    DESCRIPTION OF BUSINESS.**

 

Safe Harbor Statement

 

This Form 10-KSB contains forward-looking statements. Forward-looking statements includestatements concerning plans, objectives, goals, strategies, future events or performance andunderlying assumptions that are not statements of historical facts. This document and any otherwritten or oral statements made by us or on our behalf may include forward-looking statements,which reflect our current views with respect to future events and financial performance. Thewords "believe," "expect," "anticipate," "intends," "estimates," "forecast," "project" and similarexpressions identify forward-looking statements. 

 

The forward-looking statements in this document are based upon various assumptions, many ofwhich are based on management's discussion and analysis or plan of operation and elsewhere inthis report. Although we believe that these assumptions were reasonable when made, thesestatements are not guarantees of future performance and are subject to certain risks anduncertainties, some of which are beyond our control, and are difficult to predict. Actual resultscould differ materially from those expressed in forward-looking statements. Readers arecautioned not to place undue reliance on any forward-looking statements, which reflectmanagement's view only as of the date of this report. The Company undertakes no obligation topublicly revise these forward-looking statements to reflect subsequence events or circumstances.Readers are also encouraged to review the Company's publicly available filings with theSecurities and Exchange Commission.

 

General

 

On May 1, 2003, the Board of Directors declared a fifty to one reverse stock split of theCompany's common stock. An amount equal to the par value of the common shares affected bythe reverse split was transferred from the common stock account to the additional paid-in capitalaccount. All references to number of shares, except shares authorized, and to per shareinformation in the consolidated financial statements have been adjusted to reflect the reversestock split on a retroactive basis.

On May 23, 2003, the Company entered into an Agreement of Merger with NetTelGlobalcommunication, Inc. ("NetTel"), a Delaware corporation. Pursuant to the MergerAgreement, the Company issued 10,596,290 shares of its common stock to the NetTel'sshareholders in exchange for all the issued and outstanding shares of the NetTel's commonstock and issued 2,250,000 shares of its common stock to consultants facilitating the mergertransaction.

The merger of the Company with NetTel has been accounted for as a reverse acquisition underthe purchase method of accounting since the shareholders of NetTel obtained control of theconsolidated entity. Accordingly, the merger of the two companies has been recorded as arecapitalization of the NetTel, with NetTel being treated as the continuing entity. The continuingcompany has retained December 31 as its fiscal year end. The historical results for the year endedDecember 31, 2003 include NetTel and the Company (from the acquisition date), while thehistorical results for the year ended December 31, 2002 include only the NetTel.

At a board meeting duly called and held on May 23, 2003, authorized and approved the changeof the name of the Company from Bio Standard Corporation to Nettel Holdings, Inc. TheCompany's new symbol "NTTL" became effective on May, 2003.

NetTel began operations in March 2001 selling wireless communication devices and serviceactivation with various providers.  During 2002, the Company began reselling used computerequipment and providing retail internet access. In April 2003, the Company discontinued retailwireless and internet access sales. Additionally, the Company began development oftelecomummications software as well as a web security and financial software packages. In July2003, the Company began marketing telecommunication minutes to a limited test market. InOctober 2003, in response to requests from customers concerned about technical support andcustomer service, the Company suspended telecommunication sales and marketing efforts toupgrade the infrastructure.

 

**The Company is currently pursuing three businesses areas:**

***Voice over Internet Protocal ("VoIP")***

The Company is a cutting edge telephony company in the exploding VoIP industry. Plannedproducts and services include residential and commercial long distance, prepaid calling card, PCto phone, unified messaging, and teleconferencing. 

 

The VoipXchange.net division of the Company has partnered with over 1,600 major VoIPnetwork termination partners worldwide to access their network infrastructure. This allowsVoipXchange.net to provide high-quality, low-cost ôany-distance'' call termination to over 250countries and territories. We operate our own, or in cooperation with other providers, a networkof VoIP gateways throughout the world. These gateways are located mostly in difficult-to-reachcountries or regions and provide local termination of international calls. VoipXchange.net offersthis service to any international carrier, which is interested in reliable and inexpensive completionof its traffic to the VoipXchange.net's On-Net destinations.

In October 2003, in response to requests from customers concerned about technical support andcustomer service, the Company suspended telecommunication sales and marketing efforts toupgrade the infrastructure.

 

In April, we successfully completed the upgrading of our customer service and technical supportcenter. In the second quarter of 2004, we will begin filling orders received in the third quarter of2003 and accepting new customers.

Telecommunication Products and Service Summary:

Gateway Termination for ITSP

The Company plans to market its IP telephony services to other international long distancecarriers and wholesale customers that have a need for large blocks of long distance telephonetime between selected locations. Although margins at the wholesale level are lower than retailmargins, the sale of blocks of long distance time to other carriers will enable The Company togenerate revenues with only a limited number of Gateways installed. The company is in theprocess of pre-marketing its services and has identified several potential wholesale resellers ofblock minutes. 

Products and Services expected to be available in 2004:

2.9 cents per minute Residential & Business Long Distance (phone-to-phone)

Customers pay a one-time activation fee and are assigned a PIN. To use the service from withinone of the company's service areas, the customer simply dials the gateway from a telephone (alocal call number), enters the PIN, and then dials in the long distance number in the usual way.Customers are not required to own computer equipment of any kind, nor do they need their ownInternet access to use Access Power's phone-to-phone service. The Company plans to billcustomers at the end of each month by charging their credit card. 

2.9 cents Prepaid Calling Cards

The Company is marketing prepaid calling cards to persons traveling to destinations such asMexico, Central and South America, Asia, Europe and other regions where long distancetelephone calls are substantially more expensive than domestic long distance telephone calls. Thecompany plans to market its prepaid calling cards through travel agents, tourist agencies, airlineticketing offices, tour companies, car rental agencies and hotel personnel in denominations of$15, $25, $30 and $50. The Company plans to have an automated voice response system toenable cardholders to add time to their calling cards by charging their credit card while on thephone. 

PC-to-Phone

The Company's PC-to-phone service offers customers the ability to call a regular telephoneutilizing software installed on their multi-media personal computer. To initiate the service, thecustomer registers on the company's Web site and downloads the software. 

International Callback

A customer outside the U.S. dials a U.S. number (which never answers) and hangs up after oneor two rings. The U.S. callback computer immediately calls back the caller utilizing a U.S. line.The caller then makes his call as usual. He may dial a U.S. number or a number in any othercountry, using the U.S. lines and is then billed at the Company's super low Callback rates. TheCompany International Callback Service can save its customers up to 85% on international longdistance calling and can be used from any touch tone telephone worldwide. Once customers areconnected to the Callback Network, they can make international calls at low rates. The Companybelieves its callback rates to be the lowest in the world.

Local Call Forwarding (LCF)

With LCF customers can place and receive calls anywhere in the world, regardless of time,location, or communications device. With real-time access to messages, including all of theirvoicemails, e-mails and faxes, customers are finally in control of how and when people reachthem.

Web click2Talk

The application of Web click2Talk software may differentiate The Company from manycommunications companies. Having Web click2Talk on their Web site offers tremendouselectronic commerce benefits to any company with a traditional call center. This technologyallows consumers using their multi-media PC to view a company's Web site to click the Webclick2Talk icon which (once installed on the consumer's PC) instantly dials a designatedrepresentative of that company, usually someone providing sales or support services. TheCompany believes Web click2Talk is the most advanced product of its kind. Its size (100KB) issmall and thus able to be quickly installed and easy to use. It is downloaded and installed uponthe first attempt to use it. 

 

What sets The Company apart from other companies is its depth of experience and expertise inthe integration of data and voice communications. A crucial aspect of The Company's potential totake the lead in VoIP is the ability to move fluidly between voice and data technologies. ExistingVoIP solutions face the daunting challenge of transmitting high-volume communicationssmoothly between data-based networks and traditional voice-based networks. To date, none ofthe previously dominant telecom carriers has been able to effectively implement VoIP on aworldwide scale. They lack the ability to integrate voice and data cost-effectively at high volumesand high quality levels.

Strategic Objective

The Company major objective is to market consistent "toll quality" long distance telephoneservice at a flat monthly rate utilizing Internet Protocol (IP) technology.

While there have been a large number of VoIP companies formed in recent years, with more tocome, primary focus has been on the build out and development of international VoIP networksattempting to capture wholesale termination traffic. The Company believes that, in this verycompetitive landscape that offers many voice and data transmission options, leasing time (orpurchasing minutes) on VoIP networks will quickly become a commodity business as the variouscompetitors whittle away margin to gain market share. Recognizing this trend, the company feelsit is imperative to not only offer a quality, nationwide network but, additionally to be anaggressive marketing organization constantly in search of value added products and services. Aspart of the Company's reintroduction of service in 2004, the Company is actively researchingother related products and services to add to current products.

***Computer Equipment Sales***

 

The Nettel Trading division of the Company is currently exporting qualified computer electronicsequipment. During the past year, the Company established excellent connections and cooperativerelations with over 1,000 companies in more than 40 countries and regions in the world. Throughthese important connections the Company plans to expand into other importing and exportingactivities, but has no agreements or contracts at this time.

***Software Programing***

 

The Entec division is currently developing Accounting, Finance, Project Management, InventorySystem, Database Management, Presentation Tools, E-mail, Voice Recognition, and WordProcessing software that will have an entry level price point ranging from $9.95 to$49.95 U.S.dollars.

 

Entec Voice XML is a next generation telecom application service provider. The Company willprovide customers with value-added voice services that are unique in their user utility, ease ofapplication and use, presentation to users and cost advantage. Talking Technologies is makingIVR technology more affordable and accessible to customers through standards-basedtechnology. Talking Technologies next-generation IVR -- using VoiceXML enables companies toeasily and quickly deploy automated phone services that can improve employee productivity,reduce costs, increase customer satisfaction, and create new revenue opportunities. This IVRallows companies to extend existing or new Web applications to be accessible by any phone atthe lowest total cost of ownership .  Entec games division is a developer of interactiveentertainment software and technology for a variety of consoles and computer platforms.

***Employees***

 

As of December 31, 2003, the Company had 10 employees:  4 administrative, 3 engineers and 3sales representatives.  The Company contracts engineers for software development throughcompanies in the US, Vietnam, Russia and India.

**RISK FACTORS**

 

You should carefully consider the following risks relating to our business and our common stock,together with the other information described elsewhere in this Form 10-KSB. If any of thefollowing risks actually occur, our business, results of operations and financial condition could bematerially affected, the trading price of our common stock could decline, and you might lose allor part of your investment. We have experienced losses and we expect future losses and we maynot become profitable.

 

       *  We may not be able to expand our revenue and achieve profitability.

            Our future success depends on the growth in the use of the internet as a means ofcommunications.

       *  If we fail to establish marketing relationships that provide us visibility, we may not be able tosufficiently increase our sales.

       *  We may be unable to manage our expansion and anticipated growth effectively.

       *  Intense competition could reduce our market share and harm our financial performance.

       *  Our network may not be able to accommodate our capacity needs.

       *  We face a risk of failure of computer and communications systems used in our business. Ourcomputer systems and operations may be vulnerable to security breaches.

       *  Our services may infringe on the intellectual property rights of others.

       *  Operating internationally exposes us to additional and unpredictable risks.

** ITEM 2.    DESCRIPTION OF PROPERTY**

 

During the first half of fiscal year 2002, the Company maintained its administrative offices at2500 Columbia House Blvd., Vancouver, WA 98661. On July 1, 2003, the Company moved itsoffices to 610 SW Broadway, Suite 405, Portland, OR  97205. We believe that our office space isadequate for our current needs. 

**ITEM 3.    LEGAL PROCEEDINGS**

 

There are no legal proceedings presently pending or threatened against the Company.

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

 

None. 

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**PART II**

**ITEM 5.    MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMONEQUITY AND OTHER SHAREHOLDER MATTERS**

 

(A) Market Information

 

Our shares of common stock are traded over-the-counter in what is referred to as theOTC:Bulletin Board under the symbol BSTN. As of March 31, 2003, there were 10 marketmakers submitting quotations on the OTC:BB. However, the trading volume during the pastmonths has been sporadic. The following information with respect to the high and low bid priceof our shares was obtained from the National Quotation Bureau. The quotations reflectinter-dealer prices, without retail mark-up, mark-down or commission and may not representactual transactions. In May 2002, our shares were subject to a one for ten recapitalization and inMay 2003, our shares were subject to one for fifty recapitalization. The table below reflects suchinformation. 

 

|                               | High    | Low    |
|------------------------------------|---------|--------|
|                               |    |   |
| Fiscal Year 2002                   |    |   |
| First Quarter Ending March 31,     | $500.00 | $40.00 |
| Second Quarter Ending June 30,     | $85.00  | $5.00  |
| Third Quarter Ending September 30, | $65.00  | $8.00  |
| Period Ending December 31,         | $15.00  | $5.00  |
| Fiscal Year 2003                   |    |   |
| First Quarter Ending March 31,     | $1.00   | $0.50  |
| Second Quarter Ending June 30,     | $75.00  | $0.19  |
| Third Quarter Ending September 30, | $1.05   | $0.35  |
| Period Ending December 31,         | $0.95   | $0.30  |
| Fiscal Year 2004                   |    |   |
| First Quarter Ending March 31,     | $0.72   | $0.51  |

 

(B) Holders

 

As of March 31, 2004, there were 69 shareholders.

 

(C) Dividends

 

Holders of common stock are entitled to dividends when, as, and if declared by the Board ofDirectors, out of funds legally available therefore. The Company has never paid cash dividendson its common stock. The Board of Directors does not anticipate paying cash dividends in theforeseeable future as it intends to retain future earnings to finance the growth of the Company'sbusinesses. 

 

*Recent Sales of Unregistered Securities*

 

The following information is given with regard to unregistered securities sold by the Companyduring the past three years, including the dates and amounts of securities sold; the persons towhom we sold the securities; the consideration received in connection with such sales and if thesecurities were issued or sold other than for cash, the description of the transaction and the typeand amount of consideration received. 

 

| **Date** | **Title**    | **Amount of Securities		Sold** | **Persons**                | **Cash or Non-Cash consideration**                                 |
|----------|--------------|--------------------------------|----------------------------|--------------------------------------------------------------------|
| 01/02/01 | Common Stock | 76                             | William Tavertise          | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Leo Bloom                  | Non-cash compensation for consulting services                      |
| 01/02/01 | Common Stock | 2                              | Norma Mirsky               | Non-cash compensation for consulting services                      |
| 01/02/01 | Common Stock | 10                             | Ernest Washington          | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 14                             | Gary C. Evans              | Non-cash compensation for consulting services                      |
| 01/02/01 | Common Stock | 50                             | Lydia Salas                | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Clara Fernandez            | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Rolando Fernandez          | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Robert A. Carnavil         | Non-cash compensation for consulting services                      |
| 01/02/01 | Common Stock | 50                             | Jesse McGowan              | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 5                              | Kristy I. Gorman           | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 20                             | Patricia Herter            | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Maryluz Sell               | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Olga Olivares              | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 100                            | Maria Companiony           | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 500                            | Christopher Thompson       | Non-cash compensation to employee                                  |
| 01/02/01 | Common Stock | 400                            | Ray G. Clark               | Non-cash compensation for consulting services                      |
| 01/02/01 | Common Stock | 4,000                          | CR Capital Services, Inc.  | Non-cash compensation for corporate securities and		legal services |
| 01/03/01 | Common Stock | 2,000                          | Leon P. Wilde              | Non-cash compensation for services provided                        |
| 02/20/01 | Common Stock | 2,000                          | Jennifer Hanson            | Non-cash compensation for consulting services                      |
| 03/08/01 | Common Stock | 2,000                          | Jennifer Hanson            | Non-cash compensation for consulting services                      |
| 03/08/01 | Common Stock | 1                              | Patty Brick                | Non-cash compensation for website consulting services              |
| 03/08/01 | Common Stock | 100                            | Bill Dominguez             | Non-cash compensation to employee                                  |
| 03/20/01 | Common Stock | 50                             | Bill Dominguez             | Non-cash compensation to employee                                  |
| 03/20/01 | Common Stock | 1,000                          | Deborah Ferretti           | Non-cash compensation for consulting services                      |
| 03/20/01 | Common Stock | 2,000                          | Jeanette Dunn              | Non-cash compensation for consulting services                      |
| 04/16/01 | Common Stock | 80                             | Martin Bolodian            | Non-cash compensation for services provided                        |
| 04/16/01 | Common Stock | 80                             | Eric Anderson              | Non-cash compensation for services provided                        |
| 04/16/01 | Common Stock | 80                             | Sherry Muller              | Non-cash compensation for services provided                        |
| 04/16/01 | Common Stock | 80                             | Lisa Wilde                 | Non-cash compensation for services provided                        |
| 04/16/01 | Common Stock | 80                             | Douglas Meyers             | Non-cash compensation for services provided                        |
| 04/16/01 | Common Stock | 40                             | Leon Wilde                 | Non-cash compensation for services provided                        |
| 08/15/01 | Common Stock | 1,000                          | Deborah Ferretti           | Non-cash compensation for consulting services                      |
| 08/17/01 | Common Stock | 200                            | Richard P. Greene          | Non-cash compensation for legal consulting services                |
| 09/12/01 | Common Stock | 300                            | The Research Works, Inc.   | Non-cash compensation for consulting services                      |
| 12/26/01 | Common Stock | 80                             | Patricia Herter            | Non-cash compensation to employee                                  |
| 04/22/02 | Common Stock | 49,600                         | Thomas J. Craft, Jr.       | Non-cash compensation for serving as officer and		director.        |
| 04/22/02 | Common Stock | 49,600                         | Richard Rubin              | Non-cash compensation for serving as officer and		director         |
| 04/22/02 | Common Stock | 24,800                         | Ivo Heiden                 | Non-cash compensation for services provided                        |
| 04/30/02 | Common Stock | 76,923                         | Trico Bancorp.             | Private Placement at $0.013                                        |
| 07/11/02 | Common Stock | 300                            | Lydia Salas                | Non-cash compensation to employee                                  |
| 09/19/02 | Common Stock | 20,000                         | Joe Raich                  | Share Exchange Agreement                                           |
| 09/19/02 | Common Stock | 20,000                         | Glenn Stephanos            | Share Exchange Agreement                                           |
| 12/10/02 | Common Stock | 12,740                         | Barry Gross                | Settlement of debt                                                 |
| 12/10/02 | Common Stock | 80,000                         | Thomas J. Craft, Jr.       | For legal services                                                 |
| 12/10/02 | Common Stock | 100,000                        | CR Capital Services, Inc.  | Non-cash compensation for securities compliance		services at $0.02 |
| 21/10/02 | Common Stock | 50,000                         | CR Capital Services, Inc.  | Private Placement at $0.01                                         |
| 05/22/03 | Common Stock | 500,000                        | Tam Bui, Director          | Non-cash compensation for consulting services                      |
| 05/22/03 | Common Stock | 500,000                        | Tina Phan                  | Non-cash compensation for consulting services                      |
| 05/23/03 | Common Stock | 10,596,290                     | Michael Nguyen             | Non-cash stock exchange in merger transaction                      |
| 05/23/03 | Common Stock | 2,250,000                      | Providential Capital, Inc. | Non-cash compensation for merger consulting services               |

 

( 1) We relied upon Section 4(2) of the Act as the basis for the exemption from the registrationrequirements of the Act and there was no public solicitation involved. The shares of restrictedcommon stock were sold to private investors. All recipients either received adequate informationabout the Company or had access, through employment or other relationships, including businessand personal relationships with the Company's management to such information.

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**ITEM 6.    MANAGEMENT'S DISCUSSION AND ANALYSIS**

 

Results of Operations

 

*The Year Ended December 31, 2003 Compared to the Year Ended December 31, 2002*

The Company's net revenues for the year ended December 31, 2003 were $1,312,220compared to $79,648 for the same period ended December 31, 2002.  Used equipment sales forthe period ended December 31, 2003 were $908,700 compared to $31,380 for the same period in2002.  The Company discontinued retail wireless and internet access in April 2003; revenue fromthese sources decreased by 63% from $17,894 for the year ended December 31, 2003 to $48,268for the same period ended December 31, 2002.  The Company began test marketingtelecommunication minutes to the wholesale market and facilitating equipment sales for acommission in July 2003, The revenue for the year ended December 31, 2003 was $113,948 fortelecommunication minutes and $271,327 for commissions compare to $0 in the same periodended December 31, 2002.

Gross margin was 61 percent of revenue for the year ended December 31, 2003 compared to 35percent for the same period ended December 31, 2002.  The gross margins increase is relatedprimarily to the commission revenues that have minimal costs. Gross margin for the year endedDecember 31, 2003, excluding commission revenues was 51%.

Operating expenses consisting primarily of research and development expense and general andadministrative expense increased $1,973,293, to $2,122,163 for the year ended December 31,2003 compared to $148,870 for the same period ended December 31, 2002. Research anddevelopment expense was $1,652,455for the year ended December 31, 2003 compared to $0 inthe same period in 2002. These costs are primarily personnel costs. $1,508,061 of this expensewas a non-cash charge for the market value of the Company's common stock issued toengineers for their services during the period. The valuation reserve on inventory decreased from$80,000 for the year ended December 31, 2002 to $0 for the same period ended December 31,2003. General and administrative expense increased $470,920 to $468,826 in the period endedDecember 31, 2003 compared to the same period ended December 31, 2002.  This was primarilyrelated to increases in salaries and wages of $37,000, a provision for doubtful accounts of155,000, an increase in depreciation expense of $11,000, and an increase in professional andconsulting fees of $203,000 which includes a $35,000 non-cash charge for the market value ofstock issued for consulting service and a $125,000 non-cash charge for the fair market value ofstock issued to former officers of the Company for consulting services.

Liquidity and Capital Resources

For the year ended December 31, 2003, the Company's primary source of cash was fromoperations. During this period $97,176 was generated from operating activities compared to cashused for operating activities of $81,805 during the same period ended December 31, 2002.  Thepositive cash flow from operations for the year ended December 31, 2003 is primarilyattributable to the net loss offset by $1,768,000 of non-cash stock issues for consulting fees andan increase in accounts payable and accrued liabilities of $143,000, reduced by an increase inaccounts receivable and inventory of $490,000. The negative cash flow from operations duringthe year ended December 31, 2002 was mainly attributable to the net loss for the period offset byan increase in accounts payable and accrued liabilities.

The Company used cash in the amount of $62,064 for investing activities during the year endedDecember 31, 2003 compared to $4,119 for the same period ended December 31, 2002.

Cash flow provided by financing activities was $0 during the year ended December 31, 2003compared to $83,000 during the same period in the prior year. The Company secured a NotePayable to finance inventory purchases in period ended December 31, 2002.

The Company has incurred an accumulated deficit as of December 31, 2003 of $1,663,955. Asshown in the accompanying consolidated financial statements, the Company has incurred lossesin years ended December 31, 2003 and 2002. The future of the Company is dependent on itsability to generate cash from operations. There can be no assurance that the Company will be ableto implement it current operating plan.

----

**ITEM 7.    FINANCIAL STATEMENTS.**

 

**INDEPENDENTAUDITORS' REPORT**

To the Stockholders and Board of Directors

Nettel Holdings, Inc.

We have audited the accompanying consolidated balance sheet of Nettel Holdings, Inc.(formerly, Bio Standard Corporation), a Florida Corporation and subsidiary, as of December 31,2003 and the related consolidated statements of operations, stockholders' deficit and cash flowsfor each of the two years in the period ended December 31, 2003. These consolidated financialstatements are the responsibility of the Company's management.  Our responsibility is toexpress an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statementpresentation. 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 allmaterial respects, the financial position of Nettel Holdings, Inc. and subsidiary as of December31, 2003 and the results of its operations and its cash flows for each of the two years in the periodended December 31, 2003, in conformity with accounting principles generally accepted in theUnited States of America.

The Company's consolidated financial statements are prepared using the generally acceptedaccounting principles applicable to a going concern, which contemplates the realization of assetsand liquidation of liabilities in the normal course of business. The Company has accumulateddeficit of $1,663,955 including net losses of $1,329,587 and $124,091 for the years endedDecember 31, 2003 and 2002, respectively. These factors as discussed in Note 13 to the financialstatements raise substantial doubt about the Company's ability to continue as a going concern.Management's plans in regard to these matters are also described in Note 13. The financialstatements do not include any adjustments that might result from the outcome of this uncertainty.

KABANI & COMPANY, INC.

CERTIFIED PUBLIC ACCOUNTANTS

Fountain Valley, California

March 31, 2004

 

 

**NETTEL HOLDINGS, INC.**

**(formerly BIO STANDARD CORPORATION)**

**CONSOLIDATED BALANCE SHEET**

**DECEMBER 31, 2003**

 

| **ASSETS**                                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------|
| **CURRENT ASSETS:**                                                                                                                |   |
|     		Cash and cash equivalents                                                                                | $                      		36,721 |
|     		Accounts receivable, net                                                                                 | 493,760 |
|     		Prepaid expenses                                                                                         | 9,686 |
|          		Total current assets                                                       | 540,167 |
|                                                                                                                               |   |
| **PROPERTY AND EQUIPMENT, net**                                                                                                    | 54,249 |
| **Deposits**                                                                                                                       | 2,200 |
|                                                                                                                               | $                   		596,616 |
|                                                                                                                               |   |
| **LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                                           |
| **CURRENT LIABILITIES:**                                                                                                           |   |
|     		Accounts payable                                                                                         | $                      		81,792 |
|     		Accounts payable-related party                                                                           | 6,392 |
|     		Payroll liabilities                                                                                      | 105,833 |
|     		Accrued expenses                                                                                         | 62,813 |
|     		Note payable                                                                                             | 83,000 |
|          		Total current liabilities                                                  | 339,830 |
|                                                                                                                               |   |
| **STOCKHOLDERS' EQUITY**                                                                                                           |   |
|     		Preferred stock, $10 par value; 1,000 shares authorized; 1,000 shares		issued and outstanding            | 10,000 |
|     		Common stock, $0.001 par value; 250,000,000 shares authorized;		18,016,127 shares issued and outstanding | 18,016 |
|     		Common stock, $0.001 par value; to be cancelled                                                          | 293 |
|     		Additional paid-in capital                                                                               | 1,920,432 |
|     		Less: Stock subscription receivable                                                                      | (28,000) |
|     		Deficit accumulated                                                                                      | (1,663,955) |
|          		Total stockholders' equity                                                 | 256,786 |
|                                                                                                                               |   |
|                                                                                                                               | $                    		596,616 |

 

 

**NETTEL HOLDINGS, INC.**

**(formerly BIO STANDARD CORPORATION)**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002**

 

|                                  | **2003**                                                                                                                                   | **2002**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Net revenues**                      |                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|     		Sales       | $                     		1,040,893 | $                     		79,648                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  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|     		Commissions | 271,327                                                                                                                                    | -         		Total net revenues1,312,22079,548   **Cost of revenues**514,66451,489   **Gross profit**797,55628,159   **Operating expenses:**      		Research and development1,652,455
-    		Sales and marketing8827,964    		Valuation reserve for equipment inventory468,82660,906         		Total operating expenses2,122,163148,870   **Operating Loss**(1,324,607)(120,711)   **Other Income (Expense)**      		Interest Expense(4,980)(3,380)   **Net loss**$                 		(1,329,587)$                		(124,091)   **Basic and diluted net loss per share ***$                        		(0.085)$                    		(0.009)   **Basic and diluted weighted average shares outstanding**15,613,37313,115,997      *The basic and diluted net loss per share has been stated to		retroactively effect 50:1 reverse split on May 1, 2003.
*Weighted		average number of shares used to compute basic and diluted loss per		share is the same since the effect of dilutive securities is		anti-dilutive.

 

 

**NETTEL HOLDINGS, INC.**

**(formerly BIO STANDARD CORPORATION)**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY		(DEFICIT)**

**FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002**

 
 **Preferred Stock****Common Stock**
**Share to Cancel****Paid in Capital****Subscription Receivable****Accumulated deficit****Total Stockholder's Equity (deficit)** **Number of Shares****Amount****Number of Shares****Amount**
**Number of Shares****Amount****Balance at January 1, 2002** 
$12,846,290$12,846
-
$      -$187,154
$        				-$    (210,277)$       (10,277)           Recapitalization of the company1,00010,0001,613,3931,613293,239293(30,905)(28,000) (46,999)           Net loss for the year        (124,091)(124,091)           **Balance at December 31, 2002**1,00010,00014,459,68314,459293,239293156,249(28,000)(334,368)(181,367)           Shares issued for services  3,556,4443,557 1,764,183   1,767,740           Net loss for the year----    (1,329,587)(1,329,587)           **Balance at December 31, 2003**1,000$10,00018,016,127$18,016293,239$      293$1,920,432$    (28,000)$(1,663,955)$       256,786
 

 

**NETTEL HOLDINGS, INC.**

**(formerly BIO STANDARD CORPORATION)**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002**

 
 **2003****2002****CASH FLOWS FROM OPERATING ACTIVITIES:**      		Net loss$      (1,329,5897)$     (124,091)    		Adjustments to reconcile net loss to net cash provided by (used in)		operating activities:           		Depreciation and amortization12,127851         		Common shares issued for services1,767,740
-         		(Increase) decrease in current assets:                		Accounts receivables(490,122)(1,095)              		Inventory4,113(4,113)              		Prepaid expenses(9,186)(345)              		Deposits(2,200)500         		Increase (decrease) in current liabilities:                		Accounts payable60,2659,470              		Accrued payroll and expense83,02637,018    		Total adjustments1,425,76342,286         		Net cash provided by (used in) operating activities96,176(81,805)   **CASH FLOWS FROM INVESTING ACTIVITIES:**      		Acquisition of property & equipment(62,064)(4,119)   **CASH FLOWS FROM FINANCING ACTIVITIES:**      		Proceeds from note payable
-83,000   **NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS**34,112(2,924)   **CASH & CASH EQUIVALENTS, BEGINNING BALANCE**2,6095,533   **CASH & CASH EQUIVALENTS, ENDING BALANCE**$              		36,721$         2,609   **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:**      		Interest paid$            -
$           		-    		Income taxes
$           		-$            500   **SUPPLEMENTAL DISCLOSURE FO NON-CASH INVESTING AND FINANCING		ACTIVITIES:**      		Common shares issued for services$          1,767,740
$           		-
 

**NETTEL GLOBALCOMMUNICATION, INC.**
**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**
 
**1.  DESCRIPTION OF BUSINESS**
NetTel Globalcommunication, Inc. ("NetTel") was incorporated on December 10, 1999 in thestate of Delaware.  The Company began operations in March 2001 selling wirelesscommunication devices and service activation with various providers.  During 2002, theCompany began refurbishing and reselling used computer equipment and providing retail internetaccess. In April 2003, the Company discontinued retail wireless and internet access sales, beganselling used computer equipment. 

On May 23, 2003, the NetTel entered into an Agreement of Merger with Nettel Holdings, Inc.(formerly Bio Standard Corporation), ("the Company"), a Florida corporation. Pursuant to theMerger Agreement, the Company issued 10,596,290 shares of its common stock to the NetTel'sshareholders in exchange for all the issued and outstanding shares of the NetTel's commonstock and issued 2,250,000 shares of its common stock to consultants facilitating the mergertransaction.

The merger of the Company with NetTel has been accounted for as a reverse acquisition underthe purchase method of accounting since the shareholders of NetTel obtained control of theconsolidated entity. Accordingly, the merger of the two companies has been recorded as arecapitalization of the NetTel, with NetTel being treated as the continuing entity. The continuingcompany has retained December 31 as its fiscal year end. The historical results for the year endedDecember 31, 2003 include NetTel and the Company (from the acquisition date), while thehistorical results for the year ended December 31, 2002 include only the NetTel.

Nettel Holdings, Inc. (formerly Bio Standard Corporation), ("the Company") was incorporated inthe State of Florida on October 22, 1998.  During 2002 the Company ceased all operations.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS**
 
**Use of estimates**

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reportingperiod. Actual results could differ from those estimates.

**Cash and cash equivalents**

The Company considers all liquid investments with a maturity of three months or less from thedate of purchase that are readily convertible into cash to be cash equivalents. The Companymaintains its cash in bank deposit accounts that may exceed federally insured limits. Thecompany has not experienced any losses in such accounts.

**Allowance for doubtful accounts**

In determining the allowance to be maintained, management evaluates many factors includingindustry and historical loss experience.  The allowance for doubtful accounts is maintained at anamount management deems adequate to cover estimated losses. Allowance for doubtful accountsis $155,000 and $0 for the years ended December 31, 2003 and 2002, respectively.

**Property & Equipment**

Capital assets are stated at cost. Depreciation of equipment is provided using the straight-linemethod over the estimated useful lives (3 years) of the assets. Expenditures for maintenance andrepairs are charged to expense as incurred. Expenditures for maintenance and repairs are chargedto expense as incurred.

**Long-lived assets**

Effective January 1, 2002, the Company adopted Statement of Financial Accounting StandardsNo.  144,  "Accounting  for  the Impairment or Disposal of Long-Lived Assets" ("SFAS 144",which addresses financial accounting and reporting for the impairment  or  disposal  oflong-lived  assets  and  supersedes SFAS No. 121, "Accounting for the Impairment ofLong-Lived Assets and for Long-Lived Assets to be  Disposed Of," and the accounting andreporting provisions of APB Opinion No. 30,  "Reporting  the  Results  of  Operations  for  aDisposal of a Segment of a Business."  The Company periodically evaluates the carrying value oflong-lived assets to be held and used in accordance with SFAS 144.  SFAS 144 requiresimpairment losses to be recorded on long-lived assets used in operations when indicators ofimpairment are present and the undiscounted cash flows estimated to be generated by thoseassets are less than the assets' carrying amounts.  In that  event,  a  loss  is  recognized  based onthe amount by which the carrying amount  exceeds  the  fair  market  value  of  the  long-livedassets.  Loss on long-lived assets to be disposed of is determined in a similar manner, except thatfair market values are reduced for the cost of disposal.  Based on its review,  the Companybelieves  that,  as  of  December 31,  2002,  there  were  no significant impairments  of  itslong-lived  assets.

**Revenue Recognition**

Revenue Recognition Revenue is recognized when earned. The Company's revenue recognitionpolicies are in compliance with Staff accounting bulletin (SAB) 104. The Company recognizesrevenue from telecommunications and internet services as services are provided; the Companyrecognizes sales from equipment when title transfers. Payments received before all of the relevantcriteria for revenue recognition are satisfied are recorded as deferred revenue.  Cost of salesincludes the cost of equipment sold and the cost of capacity for internet and wholesale minutesassociated with the revenue recognized within the corresponding time period.

 

**Advertising**

The Company expenses advertising costs as incurred. Advertising expenses for the year endedDecember 31, 2003 and 2002 were $0 and $291, respectively.

**Research and Development**

Expenditures for software development costs and research are expensed as incurred. Such costsare required to be expensed until the point that technological feasibility is established. The periodbetween achieving technological feasibility and the general availability of such software has beenshort. Consequently, costs otherwise capitalizable after technological feasibility is achieved aregenerally expensed because they are insignificant. 

 

**Issuance of shares for service**

The Company accounts for the issuance of equity instruments to acquire goods and servicesbased on the fair value of the goods and services or the fair value of the equity instrument at thetime of issuance, whichever is more reliably measurable.

**Income taxes**

Deferred income tax assets and liabilities are computed annually for differences between thefinancial statements and tax basis of assets and liabilities that will result in taxable or deductibleamounts in the future based on enacted laws and rates applicable to the periods in which thedifferences are expected to affect taxable income (loss). Valuation allowance is established whennecessary to reduce deferred tax assets to the amount expected to be realized.

**Fair value of financial instruments**

Statement of financial accounting standard No. 107, Disclosures about fair value of financialinstruments, requires that the Company disclose estimated fair values of financial instruments.The carrying amounts reported in the statements of financial position for current assets andcurrent liabilities qualifying as financial instruments are a reasonable estimate of fair value.

**Basic and diluted net loss per share**

Net loss per share is calculated in accordance with the Statement of financial accountingstandards No. 128 (SFAS No. 128), "Earnings per share." SFAS No. 128 superseded AccountingPrinciples Board Opinion No.15 (APB 15). Net loss per share for all periods presented has beenrestated to reflect the adoption of SFAS No. 128. Basic net loss per share is based upon theweighted average number of common shares outstanding. Diluted net loss per share is based onthe assumption that all dilutive convertible shares and stock options were converted or exercised.Dilution is computed by applying the treasury stock method. Under this method, options andwarrants are assumed to be exercised at the beginning of the period (or at the time of issuance, iflater), and as if funds obtained thereby were used to purchase common stock at the averagemarket price during the period. 

**Comprehensive Loss**

Accounting principles generally require that recognized revenue, expenses, gains and losses beincluded in net income. Certain statements, however, require entities to report specific changes inassets and liabilities, such as unrealized gains and losses on available-for-sale securities, as aseparate component of the equity section of the balance sheet. Such items, along with net income,are components of comprehensive income. There were no items of comprehensive income during2003 and 2002, accordingly, a Statement of Comprehensive Loss is not presented.

**Recent Pronouncements**

On May 15 2003, the FASB issued FASB Statement No. 150 (ôSFAS 150ö), Accounting forCertain Financial Instruments with Characteristics of both Liabilities and Equity. SFAS 150changes the accounting for certain financial instruments that, under previous guidance, could beclassified as equity or "mezzanine" equity, by now requiring those instruments to be classified asliabilities (or assets in some circumstances) in the statement of financial position. Further, SFAS150 requires disclosure regarding the terms of those instruments and settlement alternatives.SFAS 150 affects an entity's classification of the following freestanding instruments: a)Mandatorily redeemable instruments b) Financial instruments to repurchase an entity's ownequity instruments c) Financial instruments embodying obligations that the issuer must or couldchoose to settle by issuing a variable number of its shares or other equity instruments basedsolely on (i) a fixed monetary amount known at inception or (ii) something other than changes inits own equity instruments d) SFAS 150 does not apply to features embedded in a financialinstrument that is not a derivative in its entirety. The guidance in SFAS 150 is generally effectivefor all financial instruments entered into or modified after May 31, 2003, and is otherwiseeffective at the beginning of the first interim period beginning after June 15, 2003. For privatecompanies, mandatorily redeemable financial instruments are subject to the provisions of SFAS150 for the fiscal period beginning after December 15, 2003. The adoption of SFAS No. 150does not have a material impact on the Company's financial position or results of operations orcash flows.

In December 2003, the Financial Accounting Standards Board (FASB) issued a revisedInterpretation No. 46, "Consolidation of Variable Interest Entities" (FIN 46R). FIN 46R addressesconsolidation by business enterprises of variable interest entities and significantly changes theconsolidation application of consolidation policies to variable interest entities and, thus improvescomparability between enterprises engaged in similar activities when those activities areconducted through variable interest entities. The Company does not hold any variable interestentities.

**3.  PROPERTIES AND EQUIPMENT**
Property and equipment at December 31, 2003 consisted of the following:

                                                                                     **2003**
Office equipment                                                        $ 63,043        Software
4,100
Furniture and fixtures                                                       200
                                                                                     67,343
Less: accumulated depreciation & amortization           (13,094)
Property & Equipment (net)                                       $ 54,249 
Depreciation expense for the years ended December 31, 2003 and 2002 was $12,127 and $851respectively.

**4.       ACCOUNTS PAYABLE- RELATED PARTY**

The Company owed $6,392 to an officer and employee of the company for unreimbursedbusiness expenses as of December 31, 2003. The amount is due on demand, unsecured andinterest free.
 
**5. PAYROLL LIABILITIES**

The Company has not paid salaries to its employees and has accrued $73,240 in payroll liabilitiesfor the past two years. $32,593 of the payroll liability balance was assumed by the Companyfrom Bio Standard during the recapitalization transaction.    

**6.       NOTE PAYABLE**

Notes Payable from an individual are due on demand after December 31, 2003. These notes areunsecured and bear the annual interest rate of 6% on the unpaid principal balance. Interestexpense for these notes for the years ended December 31, 2003 and 2002 is $4,890 and $3,380,respectively.  Total accrued interest is $8,360. No interest has been paid on these notes.

**7.  STOCKHOLDERS' EQUITY**
On May 1, 2003, the Board of Directors declared a fifty to one reverse stock split of theCompany's common stock. An amount equal to the par value of the common shares affected bythe reverse split was transferred from the common stock account to the additional paid-in capitalaccount. All references to number of shares, except shares authorized, and to per shareinformation in the consolidated financial statements have been adjusted to reflect the reversestock split on a retroactive basis.

On May 23, 2003 the Company issued 12,846,290 shares of Common Stock for acquisition ofNetTel (note 1).

The Company issued 500,098 shares of Common Stock valued at $125, 069 to former officers ofthe Company for consulting services on May 27, 2003.  Additionally in August 2003, theCompany issued 1,466,820 shares of Common Stock valued at $901,812 to consultants forengineering and legal services. In October 2003 the Company issued 930,675 shares of CommonStock to consultants for engineering services and in November 2003, the Company issued658,851 shares of Common stock to consultants for engineering and administrative services for acombined value of $740,859. The valuation of shares was based upon market value of the sharesat the time of the consummation of the transaction.

**8.  INCOME TAXES**
The Company accounts for income taxes under the provisions of Statement of FinancialAccounting Standards No. 109, "Accounting for Income Taxes," under which the liabilitymethod is used to calculate deferred income taxes. Under this method, deferred tax assets andliabilities are determined based on the differences between financial reporting and income taxbasis of assets and liabilities and are measured using enacted tax rates and laws that will be ineffect when the differences are expected to reverse.

For federal income tax purposes, the Company has available net operating loss carryforwards ofapproximately $1,388,000 and $206,000 for the years ended December 31, 2003 and 2002,respectively. The net operating loss carryforwards expire through 2018 and are available to offsetfuture income tax liabilities. Temporary differences that give rise to deferred tax assets andliabilities are as follows:

 
 **December 31, 2003****December 31, 2002**   Allowance for doubtful accounts
$                  		59,500
$              		-Valuation reserve for inventory$                		-$                  		23,600Unpaid liabilities43,50015,400Net operating loss carryforwards436,90065,700 539,900104,700Valuation Allowance(539,900)(104,700)Net deferred taxes$             		-$              		-   Income tax expense (benefit) for the years ended December 31, 2003 and		2002 is summarized as follows:   **2003****2002**Current:      		Federal$             		(363,400)$                 		(1,700)    		State(7,800)(700)Deferred taxes(64,000)(33,400)Valuation allowance435,20035,800Income tax expense (benefit)$               		-$             		-   The following is a reconciliation of the provision for income taxes at		the U.S. federal income tax rate to the income taxes reflected in the		Consolidated Statement of Operations:    **December 31, 2003****December 31, 2002**Tax expense (credit) at statutory rate-federal(34.0%)(34.0%)State tax expense (credit) net of federal tax(4.4)(4.4)Graduated federal rate0.99.5Valuation allowance37.528.9Tax expense at actual rate--
 
**9.  EMPLOYEE BENEFIT PLANS**
The 2003 Employee Benefit Plan (ôthe Planö) adopted by the Board of Directors on April 30,2003, provides for the granting of either a stock award or non-qualified stock options to purchaseshares of the CompanyÆs Common Stock to employees, officers, directors and consultants of theCompany.  Information relating to the Plan during 2003 is as follows:

                                                                                                   Shares

Shares reserved and registered under Form S8                           5,300,000

Shares issued                                                                            (3,656,346)

Options granted                                                                                 -        

Balance of shares available to issue or grant                              1,643,654

On February 15, 2001, the Company adopted a 2001 Stock Option Plan ("the Option Plan") foremployees, officers, directors and consultants. Information relating to the Plan is as follows:
   Average per share Shares subject to optionExercise priceMarket priceOptions outstanding December 31, 2001350$          895.00$          460.00Options exercised
-         $ Options cancelled(350)$          895.00$          210.00Options issued700$          225.00$           		20.00Balance, December 31, 2002700$          225.00$           		20.00Options exercised-        $ Options cancelled-        $ Options issued-        $ Balance, December 31, 2003700$         225.00$             		0.52    
 

**10.  MAJOR CUSTOMERS**

For the year ended December 31, 2003, three customers provided 69% of the net revenues andthree suppliers provided 62% of the cost of goods sold.  For the year ended December 31, 2002,one customer provided 39% of the net revenues and one supplier provided 62% of the cost ofgoods sold. The receivable balances due from these customers were $590,382 and $3,110 atDecember 31, 2003 and 2002, respectively. The Company extends credit to its customers basedupon its assessment of their credit worthiness and generally does not require collateral. Creditlosses have not been significant.

**11.  COMMITMENTS**
The company leased a facility under a monthly lease. Total rental expense under this lease was$7,515 and $7,100 for the year ended December 31, 2003 and 2002, respectively.  July 1, 2003,the Company entered into a three-year lease for corporate office space in Portland, Oregon. Totalrent expense under this lease was $12,000 for the year ended December 31, 2003. Leasecommitments are as follows:

            2004                     24,300

            2005                     24,900
            2006                     12,600
**12.  BASIC AND DILUTED NET LOSS PER SHARE**
Basic and diluted net loss per share for the twelve-month period ended December 31, 2002 and2001 were determined by dividing net loss for the periods by the weighted average number ofbasic and diluted shares of common stock outstanding. Weighted average number of shares usedto compute basic and diluted loss per share is the same since the effect of dilutive securities isanti-dilutive.    

**13.  GOING CONCERN**
The Company's consolidated financial statements are prepared using the generally acceptedaccounting principles applicable to a going concern, which contemplates the realization of assetsand liquidation of liabilities in the normal course of business. However, the Company hasaccumulated deficit of $1,663,955 including net losses of $1,329,587 and $124,091 for the yearsended December 31, 2003 and 2002, respectively.  In view of the matters described above,recoverability of a major portion of the recorded asset amounts shown in the accompanyingbalance sheets is dependent upon continued operations of the Company, which in turn isdependent upon the Company's ability to raise additional capital, obtain financing and tosucceed in its future operations. The financial statements do not include any adjustments relatingto the recoverability and classification of recorded asset amounts or amounts and classification ofliabilities that might be necessary should the Company be unable to continue as a going concern.

Management has taken various steps to revise its operating and financial requirements, which itbelieves are sufficient to provide the Company with the ability to continue on in the subsequentyear. Management devoted considerable effort during the year ended December 31, 2003,towards management of liabilities and improving the operations. The Company has succeeded ingenerating cash from operations. The management believes that the above actions will allow theCompany to continue its operations through the next fiscal year.

**14.    SUBSEQUENT EVENTS**

The Company issued 2,364,750 shares of Common Stock to consultants for services and retired427,000 shares during the period ending April 13, 2004. Additionally, the Company issued200,000 shares of Common Stock to a consultant at $0.50 per share.
**ITEM 8.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ONACCOUNTING AND FINANCIAL DISCLOSURE.**
As disclosed in the Company's Form 8-K filed on February 27, 2002 disclosing a change in theCompany's certifying accountants. The Company previously filed a Form 8-K/A on October 12,2001 pursuant to which it announced that its independent public accountant, Mark Escoffery,P.A., resigned as the Company's accountant. The board of directors on February 26, 2002,engaged Grassano Accounting, P.A., to audit the Company's financial statements for its fiscalyear ended December 31, 2001, which change took place in connection with the Company'schange in control.   The Company filed a Form 8-K on July 23, 2003,disclosing the appointment of Kabani and Company as its new independentaccounts.  That 8-K contained the following information:

 

(a) Previousindependent accountants 

     (i) EffectiveJuly 10, 2003, Nettel Holdings, Inc. ("Nettel" or "Registrant"), confirmed withits auditors, Grassano Accounting PA ("Grassano"), that the firm would no longerbe representing the Registrant as its accountants. As of that date, Registrantinformed the Grassano that it would be dismissed as the Registrant'saccountants. 

     (ii) GrassanoAccounting PA, last reported on Registrant's financial statements as of December31, 2002. Nettel's financial statements for the past two years, as audited byGrassano, included an independent auditor's report containing an explanatoryparagraph describing the uncertainty as to the Company's ability to continue asa going concern. 

     (iii) Thechange of independent accountants was ratified by the Board of Directors ofNettel on July 10, 2003.

 

     (iv) DuringNettel's two most recent fiscal years and the subsequent interim period throughJuly 10, 2003, there were no disagreements with Grassano on any matter ofaccounting principles or practices, financial statement disclosure, or auditingscope or procedure, which, if not resolved, to Grassano's satisfaction, wouldhave caused it to make reference to the subject matter of the disagreement inconnection with its report.  However, Grassano's reports on the Company'sconsolidated financial statements contained an explanatory paragraph describingthe uncertainty as to the Company's ability to continue as a going concern. 

     (v) Duringthe two most recent fiscal year and the subsequent interim period through July10, 2003, there have been no reportable events (as defined in Regulation S-KItem 304(a)(1)(v)). 

 

            (a)During the previous two fiscal years and the subsequent interim period throughJuly 10, 2003, Grassano did not advise Nettel that the internal controlsnecessary for the registrant to develop reliable financial statements do notexist.

 

            (b) During the previous two fiscal years and the subsequent interim period throughJuly 10, 2003, Grassano did not advise Nettel that any information had come totheir attention which had led them to no longer be able to rely on management'srepresentation, or that had made Grassano unwilling to be associated with thefinancial statements prepared by management.

 

            (c) During the previous two fiscal years and the subsequent interim period throughJuly 10, 2003, Grassano did not advise Nettel that the scope of any audit neededto be expanded significantly or that more investigation was necessary.

 

            (d) During the previous two fiscal years and the subsequent interim period throughJuly 10, 2003, Grassano did not advise Nettel that there was any informationwhich the accountants concluded would materially impact the fairness andreliability of either (i) a previously issued audit report or the underlyingfinancial statements, or (ii) the financial statements issued or to be issuedcovering the fiscal period(s) subsequent to the date of the most recentfinancial statements covered by an audit report (including information that,unless resolved to the accountant's satisfaction, would prevent it fromrendering an unqualified audit report on those financial statements.

 

     (b) Newindependent accountants

 

     TheRegistrant has engaged Kabani & Company, Inc. ("Kabani") as its new independentaccountant on July 10, 2003. Prior to July 10, 2003 the Registrant had notconsulted with Kabani regarding (i) the application of accounting principles toa specified transaction, either completed or proposed, or the type of auditopinion that might be rendered on the Registrant's consolidated financialstatements, and no written report or oral advice was provided to the Registrantby Kabani concluding there was an important factor to be considered by theRegistrant in reaching a decision as to an accounting, auditing or financialreporting issue; or (ii) any matter that was either the subject of adisagreement, as that term is defined in Item 304(a)(1)(iv) of Regulation S-Kand the related instructions to Item 304 of Regulation S-K, or a reportableevent, as that term is defined in Item 304(a)(1)(iv) of Regulation S-K.

 

**PART III**

**ITEM 9.    DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS**

The following sets forth certain information with respect to directors and executive officers of theCompany.
 		Name                                   		AgePosition with the CompanyMichael Nguyen32President, Secretary and DirectorTam Bui43Director
Directors serve for a term of one year or until their successors are elected and qualified.Executive officers are appointed by and serve at the will of the Board of Directors. Each of theofficers serves at the discretion of the Board of Directors.
 
At a board meeting on May 1, 2003 duly held and called, Tam Bui and Tina Phan were elected tothe board of directors by majority vote of the board of directors. Following the election of Mr.Bui and Ms. Phan to the board of directors of the Company, Thomas J. Craft, Jr. and RichardRubin submitted their resignation as directors and officers of the Company. At a board meetingon May 23, 2003 duly held and called, Michael Nguyen was elected to the board of directors andIn June 2003, Ms. Phan submitted her resignation as an officer and a director of the Company.The current board of directors of the Company consists of Michael Nguyen, Chairman and TamBui.
 
Michael Nguyen, President and Chairman
 
Mr. Nguyen holds aBachelor of science degree from Portland State University; he also served sixyears in the Oregon Army National Guard. Mr. Nguyen has over 10 years experience in thetelecommunications industry. He founded NetTel Globalcommunication Inc. in 1999 and hasserved as its chief executive officer since the Company was founded.
 
Tam Bui, Director
 
Mr. Bui has over 5 years of experience with Honeywell, Inc. as senior computer application andproduction engineer and over 15 years experience with TRW as project manager and programmanager. His most recent responsibility was the implementation of LAPD Emergency CommandControl Communications Systems. He currently serves as Chief Operating Officer and ChiefTechnical Officer for Providential Holdings, Inc. Mr. Bui holds a Bachelors and Masters ofScience degrees from the University of Minnesota.
 
**ITEM 10.    EXECUTIVE COMPENSATION**

 

The following table sets forth compensation paid by the Company to the executive officers.

 

 
Name and Principal PositionYearAnnual CompensationLong-term CompensationAll Other CompensationSalaryBonusOther Annual CompensationAwards    Payouts    Restricted Stock Award(s)    Securities Underlying Options/SARs    LTIP Payouts
Michael Nguyen, President200100000  200200000  200300000  
 

 

**ITEM 11.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS ANDMANAGEMENT**

The following table sets forth information, as of March 31, 2004, with respect to the number ofshares beneficially owned by individual and directors and officers and by all directors andofficers of the Company as a group, and by persons known to own more than 5% of theCompany's shares. 
Name and Address of Beneficial OwnerNumber of Shares Held (1)Percentage
Michael		Nguyen, President and Chairman

610 SW		Broadway, Suite 405, Portland, Oregon 9720510,596,29053.3%
Tam Bui,		Treasurer and Director

8700		Warner Avenue, Suite 200, Fountain Valley, CA 92708500,0002.5%All Executive Officers and Directors as a Group11,096,29055.8%
 

(1) Based upon shares 19,897,116 issued and outstanding as of March 31, 2004.
 
(B) Compliance with Section 16(a) of the Exchange Act

 

Section 16(a) of the Securities Exchange Act of 1934 requires that the Company's officers anddirectors, and persons who own more that ten percent of a registered class of the Company'sequity securities, to file reports of ownership and changes in ownership with the Securities andExchange Commission and with any exchange on which the Company's securities are traded.Officers, directors and persons owning more than ten percent of such securities are required byCommission regulation to file with the Commission and furnish the Company with copies of allreports required under Section 16(a) of the Exchange Act. Based solely upon its review of thecopies of such reports received from officers, directors and greater than ten percent shareholders,the Company reports the following failures to file reports under Section 16(a) of the ExchangeAct: 
NameBeneficial Owner of class of		Securities (%) (1)Forms filed under Section		16(a)
Michael		Nguyen, President

610 SW		Broadway, Suite 405

Portland,		Oregon 9720553.3%Form 5
Tam Bui,		Treasurer and Director

8700		Warner Avenue, Suite 200

Fountain		Valley, California 927082.5%Form 5
		Providential Capital

8700		Warner Avenue, Suite 200

Fountain		Valley, California 9270811.3%SC 13D
(1) Based upon19,897,116 shares issued and outstanding as of March 31, 2004.

**ITEM 12.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

None.
 
**PART III**

 

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

 

Exhibit No.                                                           Description

3(i)                                              Articles of Incorporation (filed as an exhibit to Form 10-SB/12g on June 9, 1999)

3(i)                                              Articles of Incorporation, as amended, previously filed

3(ii)                                             By-laws (filed as an exhibit to Form 10-SB/12g on June 9, 1999)

31.1                                            Rule 13a-14a/15d-14(a) Certification of Chief Executive Officer
31.2                                            Rule 13a-14a/15d-14(a) Certification of Chief Financial Officer       
32.1                                             Section 1350 Certificationof Chief Executive Officer
32.2                                            Section 1350 Certification of Chief Financial Officer
 

 

(b) Reports on Form 8-K

8K filed May 30, 2003-  Agreement of Merger

8K filed July 23, 2003-  Change of Accountants

**ITEM 14.    CONTROL AND PROCEDURES**

As required by SEC rules, we have evaluated the effectiveness of the design andoperation of our  disclosure  controls and  procedures  atthe end of the periodcovered by this report.  This  evaluation was carried out under the supervisionand with the participation of our management,  including our principalexecutiveofficer  and  principal  financial  officer.  Based on this  evaluation,  theseofficers have concluded that the design and operation of our disclosure controlsand procedures are effective. There were no changes in our internal control overfinancial  reporting or in other factors that have materially affected,  or arereasonably  likely to materially  affect,  our internal control over  financialreporting.Disclosure  controls and procedures are our controls and other procedures  thatare designed to ensure that  information  required to bedisclosed by us in thereports that we file or submit  under the  Exchange Act is recorded, processed,summarized  and reported,  within the time periods  specified inthe SEC's rulesand forms.  Disclosure  controls and  procedures  include, without  limitation,controls  and  procedures  designed  to ensure that information  required to bedisclosed  by us in  the  reports  that  we  file under  the  Exchange  Act  isaccumulated and communicated to our management,  including  principal executiveofficer  and  principal  financial  officer,  as appropriate,  to allow  timelydecisions regarding required disclosure. 

 

**SIGNATURES**

 

In accordance with Section 12 of the Securities Exchange Act of 1934, the registrant has dulycaused this Registration Statement to be signed on its behalf by the undersigned, thereunto dulyauthorized.

 

Nettel Holdings, Inc.

 

Date: April 14, 2004

 

/s/ Michael Nguyen, President

Michael Nguyen,President and Chairman

 

/s/ Tam Bui,Treasurer

Tam Bui, Treasurerand Director 

**Exhibit 31.1**

 
Pursuant to the    requirements of Rule 13a-14 of the Securities Exchange Act of 1934, as    amended,  provides the following certification.         I,  Michael Nguyen, President and Director of	Nettel Holdings, Inc. ("Company"), certify that:
 1. I have reviewed this    annual report on Form 10-KSB of Nettel Holdings, Inc.;2.      Based on my knowledge,    this annual report does not contain any untrue statement of a material    fact or omit to state a material fact necessary to make the statements made,    in light of the circumstances under which such statements were made, not    misleading with respect to the period covered by this annual report;3.      Based on my knowledge,    the financial statements, and other financial information included in this    annual report, fairly present in all material respects the financial    condition, results of operations and cash flows of the Company as of, and    for, the periods presented in this annual    report; 4.      The other directors and	I are responsible for    establishing and maintaining disclosure controls and procedures (as defined    in Exchange Act Rules 13a-15(e) and 15d-15(e))  and internal control    over financial reporting (as defined in Exchange Act Rules 13a-15(f) and    15d-15(f) for the small business issuer and have:
a.  Designed such    disclosure controls and procedures, or caused such disclosure controls and    procedures to be designed under my supervision, to ensure that material    information relating to Nettel Holdings, Inc., including its consolidated    subsidiaries, is made known to us by other within those entities,    particularly during the period in which this report is being prepared;

b.  Designed    such internal control over financial reporting, or caused such internal    control over financial reporting to be designed under my supervision, to    provide reasonable assurance regarding the reliability of financial    reporting and the preparation of financial statement for external purposes    in accordance with generally accepted accounting principles.

c.  Evaluated    the effectiveness of the small business issuer's disclosure controls and    procedures and presented in this report our conclusions about the    effectiveness of the disclosure controls and procedures, as of the end of    the period covered by this report on such evaluation;; and

d.  Disclosed in    this report any change in Nettel Holdings, Inc.'s internal control over    financial reporting that occurred during Nettel's fourth fiscal quarter that    has materially affected, or is reasonably likely to materially affect,    Nettel's internal control over financial reporting; and 5.The other directors and	I have disclosed, based on my most recent evaluation of internal control over    financial reporting, to the Company's    auditors and the audit committee of our board of directors (or persons    performing the equivalent functions):      a.All significant    deficiencies and material weaknesses  in the design or operation of internal control    over financial reporting which are reasonably likely to adversely affect the    Company's ability to record, process, summarize and report financial data;    and
       b.Any fraud, whether or    not material, that involves management or other employees who have a    significant role in the Company's internal control over financial reporting; and   Date:  April 14, 2004 /s/ Michael Nguyen          Michael Nguyen,  President and Director  
**Exhibit 31.2**

 
Pursuant to the    requirements of Rule 13a-14 of the Securities Exchange Act of 1934, as    amended,  provides the following certification.         I,  Tam Bui, Treasurer and Director of Nettel	Holdings, Inc. ("Company"), certify that:
 1. I have reviewed this    annual report on Form 10-KSB of Nettel Holdings, Inc.;2.      Based on my knowledge,    this annual report does not contain any untrue statement of a material    fact or omit to state a material fact necessary to make the statements made,    in light of the circumstances under which such statements were made, not    misleading with respect to the period covered by this annual report;3.      Based on my knowledge,    the financial statements, and other financial information included in this    annual report, fairly present in all material respects the financial    condition, results of operations and cash flows of the Company as of, and    for, the periods presented in this annual    report; 4.      The other directors and	I are responsible for    establishing and maintaining disclosure controls and procedures (as defined    in Exchange Act Rules 13a-15(e) and 15d-15(e))  and internal control    over financial reporting (as defined in Exchange Act Rules 13a-15(f) and    15d-15(f) for the small business issuer and have:
a.  Designed such    disclosure controls and procedures, or caused such disclosure controls and    procedures to be designed under my supervision, to ensure that material    information relating to Nettel Holdings, Inc., including its consolidated    subsidiaries, is made known to us by other within those entities,    particularly during the period in which this report is being prepared;

b.  Designed    such internal control over financial reporting, or caused such internal    control over financial reporting to be designed under my supervision, to    provide reasonable assurance regarding the reliability of financial    reporting and the preparation of financial statement for external purposes    in accordance with generally accepted accounting principles.

c.  Evaluated    the effectiveness of the small business issuer's disclosure controls and    procedures and presented in this report our conclusions about the    effectiveness of the disclosure controls and procedures, as of the end of    the period covered by this report on such evaluation;; and

d.  Disclosed in    this report any change in Nettel Holdings, Inc.'s internal control over    financial reporting that occurred during Nettel's fourth fiscal quarter that    has materially affected, or is reasonably likely to materially affect,    Nettel's internal control over financial reporting; and 5.The other directors and	I have disclosed, based on my most recent evaluation of internal control over    financial reporting, to the Company's    auditors and the audit committee of our board of directors (or persons    performing the equivalent functions):      a.All significant    deficiencies and material weaknesses  in the design or operation of internal control    over financial reporting which are reasonably likely to adversely affect the    Company's ability to record, process, summarize and report financial data;    and
       b.Any fraud, whether or    not material, that involves management or other employees who have a    significant role in the Company's internal control over financial reporting; and   Date:  April 14, 2004 /s/ Tam Bui          Tam Bui,  Treasurer and Director  
**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. Section 1350, AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

    In connection with the Annual Report ofNettel Holdings, Inc. on Form 10-KSB for the year ending December 31, 2003, as filed with theSecurities and Exchange Commission on the date hereof (the "Report"), I,Michael Nguyen, President and Chairman of the Company, certify, pursuantto 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of theSarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: (1)the Report fully complies with the requirements of Section 13(a) or 15(d) of theSecurities Exchange Act of 1934; and (2) the information contained in the Reportfairly presents, in all material respects, the financial condition and result ofoperations of the Company. 

/s/ Michael Nguyen

Michael Nguyen

President and Chairman 

April 14, 2004

 

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. Section 1350, AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

    In connection with the Annual Report ofNettel Holdings, Inc. on Form 10-KSB for the year ending December 31, 2003, as filed with theSecurities and Exchange Commission on the date hereof (the "Report"), I,Tam Bui, Treasurer and Director of the Company, certify, pursuantto 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of theSarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: (1)the Report fully complies with the requirements of Section 13(a) or 15(d) of theSecurities Exchange Act of 1934; and (2) the information contained in the Reportfairly presents, in all material respects, the financial condition and result ofoperations of the Company. 

/s/ Tam Bui

Tam Bui

Treasurer and Director

April 14, 2004

 
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