----

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| x | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|---|--------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------|

| Colorado                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                 | 84-1085935                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State or other jurisdiction of                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                        | (I.R.S. employer                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                 | identification number)                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                |                                                                                                                                 |                                                                                |
| 135 Fifth Ave., 10th Floor, New York, NY                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                 | 10010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                 | (Zip code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

| Yes  |   | x |   | No  |   |  ̈ |
|-----------|--------|---|--------|----------|--------|--------|

| Yes  |   |  ̈ |   | No  |   |  ̈ |
|-----------|--------|--------|--------|----------|--------|--------|

| Large accelerated filer |  ̈ |                                          |   | Accelerated filer         |  ̈ |
|-------------------------|--------|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer   |  ̈ | (Do not check if a smaller reporting company) |   | Smaller reporting company | x      |

----

----

----

|                     |                                                                                                                    | Page   |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------|--------|
|           | PART I                                                                                                                  |   |
| Item 1.                  | Business                                                                                                                | 4      |
|           |                                                                                                                    |   |
| Item 1A.                 | Risk Factors                                                                                                            | 6      |
|                     |                                                                                                                    |   |
| Item 1B.                 | Unresolved Staff Comments                                                                                               | 7      |
|                     |                                                                                                                    |   |
| Item 2.                  | Properties                                                                                                              | 7      |
|           |                                                                                                                    |   |
| Item 3.                  | Legal Proceedings                                                                                                       | 7      |
|           |                                                                                                                    |   |
| Item 4.                  | Removed and Reserved                                                                                                    | 7      |
|           |                                                                                                                    |   |
|                     | PART II                                                                                                                 |   |
|      |                                                                                                                    |   |
| Item 5.                  | Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities | 7      |
|                     |                                                                                                                    |   |
| Item 6.                  | Selected Financial Data                                                                                                 | 8      |
|           |                                                                                                          |   |
| Item 7.                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 8      |
|                |                                                                                                               |   |
| Item 7A.                 | Quantitative and Qualitative Disclosure About Market Risk                                                               | 9      |
|           |                                                                                                               |   |
| Item 8.                  | Financial Statements and Supplementary Data                                                                             | 10     |
|                     |                                                                                                                    |   |
| Item 9.                  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                    | 26     |
|           |                                                                                                                    |   |
| Item 9A.            | Controls and Procedures                                                                                                 | 26     |
|                |                                                                                                          |   |
| Item 9B.                 | Other Information                                                                                                       | 27     |
|           |                                                                                                                    |   |
|                     | PART III                                                                                                                |   |
|      |                                                                                                                    |   |
| Item 10.                 | Directors, Executive Officers and Corporate Governance                                                             | 28     |
|           |                                                                                                                    |   |
| Item 11.                 | Executive Compensation                                                                                                  | 32     |
|                     |                                                                                                                    |   |
| Item 12.                 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                          | 32     |
|                     |                                                                                                                    |   |
| Item 13.                 | Certain Relationships, Related Transactions and Director Independence                                                   | 34     |
|           |                                                                                                                    |   |
| Item 14.                 | Principal Accountant Fees and Services                                                                                  | 34     |
|                |                                                                                                                    |   |
|                     | PART IV                                                                                                                 |   |
| Item 15.                 | Exhibits and Financial Statements Schedules                                                                             | 36     |
|           |                                                                                                                    |   |
|                     | SIGNATURES                                                                                                              | 37     |

----

|   | · | general economic and industry conditions; |
|--------|--------|-------------------------------------------|

|   | · | limited resources and need for additional financing; |
|--------|--------|------------------------------------------------------|

|   | · | competition for suitable private companies with which to merge; |
|--------|--------|-----------------------------------------------------------------|

|   | · | no definitive agreements or business opportunities identified; |
|--------|--------|----------------------------------------------------------------|

|   | · | substantial dilution to current shareholders if a merger occurs; and |
|--------|--------|----------------------------------------------------------------------|

|   | · | our stock is thinly traded with limited liquidity. |
|--------|--------|----------------------------------------------------|

----

PART

ITEM

----

|   | • | Immediately prior to the consummation of the Stock Purchase, we increased the size of our Board of Directors from two to five, and L. Michael Underwood and John P. Kanouff, our current directors, appointed Scott Mathis, Julian Beale and Peter Lawrence, as directors of the Company, effective at the closing.  After such new directors were appointed, Messrs. Underwood and Kanouff resigned as members of our Board of Directors. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Mr. Underwood resigned as President and Mr. Kanouff resigned as Secretary and Treasurer.  Our Board of Directors appointed Scott Mathis as Chief Executive Officer and President, Ronald S. Robbins as Executive Vice President and Chief Operating Officer (Mr. Robbins subsequently retired on April 6, 2010 and the Company has currently no plans to replace him), and Tim Holderbaum as Executive Vice President, Chief Financial Officer, Treasurer and Secretary. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| -:- |
|-----|

| CONTENTS                                                                |
|-------------------------------------------------------------------------|
|                                                          |
|                                                                    |
|                                                                    |   | Page |
| Independent Registered Public Accountants Report                   |   | 11  |
|                                                                    |   |   |
| Balance Sheets                                                     |   |   |
|   May 31, 2011 and 2010                                            |   | 12  |
|                                                                    |   |   |
| Statements of Operations                                           |   |   |
|   For the Years Ended May 31, 2011 and 2010                        |   |   |
|   And for the Cumulative Period from March 1, 2004 to May 31, 2011 |   | 13  |
|                                                                    |   |   |
| Statement of Stockholders’ Equity for the                    |   |   |
|   Period from December 30, 1987 (Inception) to May 31, 2011        |   | 14  |
|                                                                    |   |   |
| Statements of Cash Flows                                                |   |   |
|   For the Years Ended May 31, 2011 and 2010                        |   |   |
|   And for the Cumulative Period from March 1, 2004 to May 31, 2011 |   | 18  |
|                                                                    |   |   |
| Notes to Financial Statements                                           |   | 19  |

----

| /s/ Robison Hill & Co.   |
|------------------------------|
| Certified Public Accountants |

| Salt Lake City, UtahAugust 22, 2011 |
|-------------------------------------|

----

|                                                                                                                                                                         |   | May 31 |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|
|                                                                                                                                                                         |   | 2011   |     |   | 2010 |   |
| Current Assets                                                                                                                                                          |   |   |     |   |   |   |
|     Cash                                                                                                                                            |   | $      | 16,053   |   |   | $ | 34,791 |   |
| Total Assets                                                                                                                                                            |   | $      | 16,053   |   |   | $ | 34,791 |   |
|                                                                                                                                                                         |   |   |     |   |   |   |   |   |
| Current Liabilities:                                                                                                                                                    |   |   |     |   |   |   |   |   |
|     Accounts Payable & Accrued Liabilities                                                                                                      |   |   | 1,065    |   |   |   | 425 |   |
| Total Liabilities                                                                                                                                                       |   | $      | 1,065    |   |   | $ | 425 |   |
|                                                                                                                                                                         |   |   |     |   |   |   |   |   |
| Stockholders' Equity:                                                                                                                                                   |   |   |     |   |   |   |   |   |
|     Common Stock, Par value $.00001    Authorized 950,000,000 shares, Issued 45,411,400 shares at May 31, 2011 and May 31, 2010 |   |   | 454      |   |   |   | 454 |   |
|     Paid-In Capital                                                                                                                                      |   |   | 158,722  |   |   |   | 158,722 |   |
|     Deficit accumulated during the development stage since March 1, 2004 in connection with quasi reorganization                          |   |   | (144,188 | ) |   |   | (124,810 | ) |
|                                                                                                                                                                         |   |   |     |   |   |   |   |   |
| Total Stockholders' Equity                                                                                                                                              |   |   | 14,988   |   |   |   | 34,366 |   |
|                                                                                                                                                                         |   |   |     |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                         |   | $      | 16,053   |   |   | $ | 34,791 |   |

----

|                                     |   |                |       |   |         |   |       | Cumulative |   |
|------------------------------------------|--------|---------------------|------------|--------|--------------|--------|------------|------------|--------|
|                                     |   |                |       |   |         |   |       | since      |   |
|                                     |   |                |       |   |         |   |       | March 1,   |   |
|                                     |   |                |       |   |         |   |       | 2004       |   |
|                                     |   | For the years ended |       |   | Inception of |   |
|                                     |   | May 31              |       |   | development  |   |
|                                     |   | 2011                |       |   | 2010         |   |       | stage      |   |
| Revenues:                           |   | $                   | -          |   |         | $      | -          |       |   | $ | - |   |
| Expenses:                           |   |                |       |   |         |   |       |       |   |   |   |   |
| General and administrative          |   |                | 19,378     |   |         |   | 19,140     |       |   |   | 142,718 |   |
| Other Income (Expense):             |   |                |       |   |         |   |       |       |   |   |   |   |
| Interest expense                    |   |                | -          |   |         |   | (621       | )          |   |   | (1,470 | ) |
| Net Income (Loss)                   |   | $                   | (19,378    | )      |         | $      | (19,761    | )          |   | $ | (144,188 | ) |
| Basic & Diluted Loss Per Share  |   |                | (0.0004    | )      |         |   | (0.0008    | )          |   |   |   |   |
| Weighted Average Shares             |   |                | 45,411,400 |   |         |   | 25,961,635 |       |   |   |   |   |

----

|                                                         |   |         |         |   |      |   |   |         |   |   |     |   |   |            |     |   | Deficit Accumulated Since Inception of Development Stage |   |
|--------------------------------------------------------------|--------|--------------|--------------|--------|-----------|--------|--------|--------------|--------|--------|----------|--------|--------|-----------------|----------|--------|----------------------------------------------------------|--------|
|                                                         |   |         |         |   |      |   |   | Common       |   |   |     |   |   |            |     |   | SinceAug. 31, 2001                                       |   |   | SinceMarch 1, 2004 |   |
|                                                         |   | Common Stock |         |   | Stock     |   |   | Paid -In     |   |   | Retained |   |   | (Prior to quasi |     |   | (Since quasi                                             |   |
|                                                         |   | Shares       |         |   | Par Value |   |   | to be Issued |   |   | Capital  |   |   | Deficit         |     |   | reorganization)                                          |   |   | reorganization) |   |
| Balance at December 30, 1987 (inception)      |   |         | -            |   |      | $      | -      |         |   | $      | -        |   |   | $               | -        |   |                                                     | $      | - |   |   | $ | - |   |   | $ | - |   |
|                                                         |   |         |         |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Stock issued for cash   - $.00001/sh    |   |         | 271,000,000  |   |      |   | 2,710  |         |   |   | -        |   |   |            | -        |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Stock issued for cash   - $.0001/sh     |   |         | 8,000,000    |   |      |   | 80     |         |   |   | -        |   |   |            | 720      |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Stock issued for cash   - $.0025/sh     |   |         | 8,000,000    |   |      |   | 80     |         |   |   | -        |   |   |            | 19,920   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Offering costs                                    |   |         | -            |   |      |   | -      |         |   |   | -        |   |   |            | (500     | )      |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                          |   |         | -            |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | (62,639 | ) |   |   | - |   |   |   | - |   |
| Balance at May 31, 1988                                 |   |         | 287,000,000  |   |      |   | 2,870  |         |   |   | -        |   |   |            | 20,140   |   |                                                     |   | (62,639 | ) |   |   | - |   |   |   | - |   |
|                                                         |   |         |         |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  August 2004 - 900:1  reverse stock split     |   |         | (286,673,769 | )      |      |   | (2,867 | )            |   |   | -        |   |   |            | 2,867    |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  May 2008 - 3.5:1  reverse stock split   |   |         | (233,022     | )      |      |   | (2     | )            |   |   | -        |   |   |            | 2        |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
| Restated Balance at May 31, 1988                   |   |         | 93,209       |   |      |   | 1      |         |   |   | -        |   |   |            | 23,009   |   |                                                     |   | (62,639 | ) |   |   | - |   |   |   | - |   |
|                                                         |   |         |         |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Stock issued for cash   - $.0001/sh     |   |         | 476          |   |      |   | -      |         |   |   | -        |   |   |            | 150      |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Stock issued for cash   - $.01/sh       |   |         | 24,647       |   |      |   | -      |         |   |   | -        |   |   |            | 776,371  |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Offering costs                                    |   |         | -            |   |      |   | -      |         |   |   | -        |   |   |            | (126,353 | )      |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Stock issued for cash   - $.01/sh       |   |         | 900          |   |      |   | -      |         |   |   | -        |   |   |            | 28,354   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                          |   |         | -            |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | (501,740 | ) |   |   | - |   |   |   | - |   |
| Balance at May 31, 1989                                 |   |         | 119,232      |   |      |   | 1      |         |   |   | -        |   |   |            | 701,531  |   |                                                     |   | (564,379 | ) |   |   | - |   |   |   | - |   |

----

|                                                           |   |         |    |   |      |   |   |         |   |   |     |   |   |            |    |   | Deficit Accumulated Since Inception of Development Stage |   |
|----------------------------------------------------------------|--------|--------------|---------|--------|-----------|--------|--------|--------------|--------|--------|----------|--------|--------|-----------------|---------|--------|----------------------------------------------------------|--------|
|                                                           |   |         |    |   |      |   |   | Common       |   |   |     |   |   |            |    |   | SinceAug. 31, 2001                                       |   |   | SinceMarch 1, 2004 |   |
|                                                           |   | Common Stock |    |   | Stock     |   |   | Paid -In     |   |   | Retained |   |   | (Prior to quasi |    |   | (Since quasi                                             |   |
|                                                           |   | Shares       |    |   | Par Value |   |   | to be Issued |   |   | Capital  |   |   | Deficit         |    |   | reorganization)                                          |   |   | reorganization) |   |
| Balance at May 31, 1989                                   |   |         | 119,232 |   |      |   | 1      |         |   |   | -        |   |   |            | 701,531 |   |                                                     |   | (564,379 | ) |   |   | - |   |   |   | - |   |
|                                                           |   |         |    |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Stock issued for cash   - $.0125/share    |   |         | 96      |   |      |   | -      |         |   |   | -        |   |   |            | 3,778   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Stock issued for debt   - $.004/share     |   |         | 7,936   |   |      |   | -      |         |   |   | -        |   |   |            | 103,355 |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                            |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | (3,355 | ) |   |   | - |   |   |   | - |   |
|  Write-off of assets                                 |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | (351,366 | ) |   |   | - |   |   |   | - |   |
| Balance at May 31, 1990                                   |   |         | 127,264 |   |      |   | 1      |         |   |   | -        |   |   |            | 808,664 |   |                                                     |   | (919,100 | ) |   |   | - |   |   |   | - |   |
|                                                           |   |         |    |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Balance at May 31, 2001                                   |   |         | 127,264 |   |      |   | 1      |         |   |   | -        |   |   |            | 808,664 |   |                                                     |   | (919,100 | ) |   |   | - |   |   |   | - |   |
|                                                           |   |         |    |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  December 17, 2001   shares to be cancelled     |   |         | (64,524 | )      |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  December 17, 2001   shares to be issued   |   |         | 240,945 |   |      |   | -      |         |   |   | 2        |   |   |            | 7,588   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Capital contributed by   shareholders     |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | 7,677   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                            |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | (18,675 | ) |   |   | - |   |
| Balance at May 31, 2002                                   |   |         | 303,685 |   |      |   | 1      |         |   |   | 2        |   |   |            | 823,929 |   |                                                     |   | (919,100 | ) |   |   | (18,675 | ) |   |   | - |   |
|                                                           |   |         |    |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Issuance of shares   previously authorized     |   |         | -       |   |      |   | 2      |         |   |   | (2       | )      |   |            | -       |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                            |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | (6,478 | ) |   |   | - |   |
| Balance at May 31, 2003                                   |   |         | 303,685 |   |      |   | 3      |         |   |   | -        |   |   |            | 823,929 |   |                                                     |   | (919,100 | ) |   |   | (25,153 | ) |   |   | - |   |

----

|                                                                                          |   |         |    |   |      |   |   |         |   |   |     |   |   |            |     |   | Deficit Accumulated Since Inception of Development Stage |   |
|-----------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-----------|--------|--------|--------------|--------|--------|----------|--------|--------|-----------------|----------|--------|----------------------------------------------------------|--------|
|                                                                                          |   |         |    |   |      |   |   | Common       |   |   |     |   |   |            |     |   | SinceAug. 31, 2001                                       |   |   | SinceMarch 1, 2004 |   |
|                                                                                          |   | Common Stock |    |   | Stock     |   |   | Paid -In     |   |   | Retained |   |   | (Prior to quasi |     |   | (Since quasi                                             |   |
|                                                                                          |   | Shares       |    |   | Par Value |   |   | to be Issued |   |   | Capital  |   |   | Deficit         |     |   | reorganization)                                          |   |   | reorganization) |   |
| Balance at May 31, 2003                                                                  |   |         | 303,685 |   |      |   | 3      |         |   |   | -        |   |   |            | 823,929  |   |                                                     |   | (919,100 | ) |   |   | (25,153 | ) |   |   | - |   |
|                                                                                          |   |         |    |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Expired accounts payable   reclassified to paid-in   capital   |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | 110,435  |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Capital contributed   by shareholder                                     |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | 50,000   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss (prior to   quasi reorganization)                               |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | - |   |   |   | (8,970 | ) |   |   | - |   |
|  Quasi-reorganization   effective March 1, 2004                           |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | (953,223 | )      |                                                     |   | 919,100 |   |   |   | 34,123 |   |   |   | - |   |
|  Net loss (since quasi   organization)                                         |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | - |   |   |   | - |   |   |   | (12,431 | ) |
| Balance at May 31, 2004                                                                  |   |         | 303,685 |   |      |   | 3      |         |   |   | -        |   |   |            | 31,141   |   |                                                     |   | - |   |   |   | - |   |   |   | (12,431 | ) |
|                                                                                          |   |         |    |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Capital contributed by   shareholder                                     |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | 5,000    |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                                                           |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | - |   |   |   | - |   |   |   | (19,302 | ) |
| Balance at May 31, 2005                                                                  |   |         | 303,685 |   |      |   | 3      |         |   |   | -        |   |   |            | 36,141   |   |                                                     |   | - |   |   |   | - |   |   |   | (31,733 | ) |
|                                                                                          |   |         |    |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss                                                                           |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | - |   |   |   | - |   |   |   | (7,728 | ) |
| Balance at May 31, 2006                                                                  |   |         | 303,685 |   |      |   | 3      |         |   |   | -        |   |   |            | 36,141   |   |                                                     |   | - |   |   |   | - |   |   |   | (39,461 | ) |
|                                                                                          |   |         |    |   |      |   |   |         |   |   |     |   |   |            |     |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Capital Contributed   by shareholder                                     |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | 1,740    |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Issuance of shares for   notes payable                                   |   |         | 571,428 |   |      |   | 6      |         |   |   | -        |   |   |            | 19,994   |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                                                           |   |         | -       |   |      |   | -      |         |   |   | -        |   |   |            | -        |   |                                                     |   | - |   |   |   | - |   |   |   | (21,248 | ) |
| Balance at May 31, 2007                                                                  |   |         | 875,113 |   |      |   | 9      |         |   |   | -        |   |   |            | 57,875   |   |                                                     |   | - |   |   |   | - |   |   |   | (60,709 | ) |

----

|                                                                                |   |         |       |   |      |   |   |         |   |   |     |   |   |            |    |   | Deficit Accumulated Since Inception of Development Stage |   |
|-------------------------------------------------------------------------------------|--------|--------------|------------|--------|-----------|--------|--------|--------------|--------|--------|----------|--------|--------|-----------------|---------|--------|----------------------------------------------------------|--------|
|                                                                                |   |         |       |   |      |   |   | Common       |   |   |     |   |   |            |    |   | SinceAug. 31, 2001                                       |   |   | SinceMarch 1, 2004 |   |
|                                                                                |   | Common Stock |       |   | Stock     |   |   | Paid -In     |   |   | Retained |   |   | (Prior to quasi |    |   | (Since quasi                                             |   |
|                                                                                |   | Shares       |       |   | Par Value |   |   | to be Issued |   |   | Capital  |   |   | Deficit         |    |   | reorganization)                                          |   |   | reorganization) |   |
| Balance at May 31, 2007                                                        |   |         | 875,113    |   |      |   | 9      |         |   |   | -        |   |   |            | 57,875  |   |                                                     |   | - |   |   |   | - |   |   |   | (60,709 | ) |
|                                                                                |   |         |       |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Stock issued for cash   - $.01/share                           |   |         | 714,286    |   |      |   | 7      |         |   |   | -        |   |   |            | 24,993  |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                                                 |   |         | -          |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | - |   |   |   | (23,630 | ) |
| Balance at May 31, 2008                                                        |   |         | 1,589,399  |   |      |   | 16     |         |   |   | -        |   |   |            | 82,868  |   |                                                     |   | - |   |   |   | - |   |   |   | (84,339 | ) |
|                                                                      |   |         |       |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss                                                                 |   |         | -          |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | - |   |   |   | (20,710 | ) |
| Balance at May 31, 2009                                                             |   |         | 1,589,399  |   |      |   | 16     |         |   |   | -        |   |   |            | 82,868  |   |                                                     |   | - |   |   |   | - |   |   |   | (105,049 | ) |
|                                                                                |   |         |       |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Stock issued for cash   - $.001/share                          |   |         | 43,822,001 |   |      |   | 438    |         |   |   | -        |   |   |            | 43,384  |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Forgiven loans   reclassified to paid-in   capital   |   |         | -          |   |      |   | -      |         |   |   | -        |   |   |            | 32,470  |   |                                                     |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss                                                                 |   |         | -          |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | - |   |   |   | (19,761 | ) |
| Balance at May 31, 2010                                                             |   |         | 45,411,400 |   |      |   | 454    |         |   |   | -        |   |   |            | 158,722 |   |                                                     |   | - |   |   |   | - |   |   |   | (124,810 | ) |
|                                                                      |   |         |       |   |      |   |   |         |   |   |     |   |   |            |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss                                                                 |   |         | -          |   |      |   | -      |         |   |   | -        |   |   |            | -       |   |                                                     |   | - |   |   |   | - |   |   |   | (19,378 | ) |
| Balance at May 31, 2011                                                             |   |         | 45,411,400 |   |      | $      | 454    |         |   | $      | -        |   |   | $               | 158,722 |   |                                                     | $      | - |   |   | $ | - |   |   | $ | (144,188 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                 |   | For the years endedMay 31, |    |   | Cumulative SinceMarch 31, 2004Inception ofDevelopment |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|-------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                 |   | 2011                            |    |   | 2010                                                  |   |   | Stage |   |
|  CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                |   |                            |    |   |                                                  |   |   |   |   |
|  Net Loss                                                                                                                                                                                                                                                                                                                                                                  |   | $                               | (19,378 | )      |                                                  | $      | (19,761 | ) |   | $ | (144,188 | ) |
|  Increase (Decrease) in Accounts Payable                                                                                                                                                                                                                                                                                                                                   |   |                            | 640     |   |                                                  |   | (141 | ) |   |   | (17,901 | ) |
|  Increase (Decrease) in Accrued Interest                                                                                                                                                                                                                                                                                                                                   |   |                            | -       |   |                                                  |   | 621 |   |   |   | 1,470 |   |
|  Net Cash Used in operating activities                                                                                                                                                                                                                                                                                                                                     |   |                            | (18,738 | )      |                                                  |   | (19,281 | ) |   |   | (160,619 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|  CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|  Net cash provided by investing activities                                                                                                                                                                                                                                                                                                                                 |   |                            | -       |   |                                                  |   | - |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|  CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|  Payments on shareholder loans                                                                                                                                                                                                                                                                                                                                             |   |                            | -       |   |                                                  |   | - |   |   |   | (610 | ) |
|  Proceeds from shareholder loans                                                                                                                                                                                                                                                                                                                                           |   |                            |    |   |                                                  |   | 4,000 |   |   |   | 33,350 |   |
|  Proceeds from notes payable                                                                                                                                                                                                                                                                                                                                               |   |                            | -       |   |                                                  |   | - |   |   |   | 20,000 |   |
|  Proceeds from sale of stock                                                                                                                                                                                                                                                                                                                                               |   |                            |    |   |                                                  |   | 43,822 |   |   |   | 68,822 |   |
|  Cash contributed by shareholders                                                                                                                                                                                                                                                                                                                                          |   |                            | -       |   |                                                  |   | - |   |   |   | 55,000 |   |
|  Net Cash Provided by financing activities                                                                                                                                                                                                                                                                                                                                 |   |                            | -       |   |                                                  |   | 47,822 |   |   |   | 176,562 |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|  Net (Decrease) Increase in Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                      |   |                            | (18,738 | )      |                                                  |   | 28,541 |   |   |   | 15,943 |   |
|  Cash and Cash Equivalents at Beginning of Period                                                                                                                                                                                                                                                                                                                     |   |                            | 34,791  |   |                                                  |   | 6,250 |   |   |   | 110 |   |
|  Cash and Cash Equivalents at End of Period                                                                                                                                                                                                                                                                                                                           |   | $                               | 16,053  |   |                                                  | $      | 34,791 |   |   | $ | 16,053 |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                                                                                                                                                                                                                                                                                                                    |   |                            |    |   |                                                  |   |   |   |   |
|  Cash paid during the year for:                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
|      Interest                                                                                                                                                                                                                                                                                                                                               |   | $                               | -       |   |                                                  | $      | - |   |   | $ | - |   |
|      Franchise and income taxes                                                                                                                                                                                                                                                                                                                             |   | $                               | -       |   |                                                  | $      | - |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |    |   |                                                  |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                              |   |
|     On November 9, 2009, two former directors of the Company forgave a total of $32,470 of loans    previously made to the Company. This amount included principal of $31,000 and accrued interest    of $1,470. The forgiveness of these loans was classified as paid-in capital in the financial statements. |   |

----

----

----

|                       |   | 2011   |    |   | 2010   |   |
|----------------------------|--------|--------|---------|--------|--------|--------|
|  Net Operating Losses |   | $      | 21,450  |   |   | $      | 18,750 |   |
|  Valuation Allowance  |   |   | (21,450 | )      |   |   | (18,750 | ) |
|                       |   | $      | -       |   |   | $      | - |   |

|                                             |   | 2011   |   |   | 2010   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|
|  Provision (Benefit) at US Statutory Rate   |   | $      | (3,000 | )      |   | $      | (3,000 | ) |
|  Increase (Decrease) in Valuation Allowance |   |   | 3,000  |   |   |   | 3,000 |   |
|                                             |   | $      | -      |   |   | $      | - |   |

----

----

----

| United States (a)                                                                                            |   | 2006 – Present |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------|
|     (a) Includes federal as well as state or similar local jurisdictions, as applicable. |

----

|   | · | Immediately prior to the consummation of the Stock Purchase, we increased the size of our Board of Directors from two to five, and L. Michael Underwood and John P. Kanouff, our current directors, appointed Scott Mathis, Julian Beale and Peter Lawrence, as directors of the Company, effective at the closing.  After such new directors were appointed, Messrs. Underwood and Kanouff resigned as members of our Board of Directors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mr. Underwood resigned as President and Mr. Kanouff resigned as Secretary and Treasurer, and our Board of Directors appointed Scott Mathis as Chief Executive Officer and President, Ronald S. Robbins as Executive Vice President and Chief Operating Officer (Mr. Robbins subsequently retired on April 6, 2010 and the Company has currently no plans to replace him), and Tim Holderbaum as Executive Vice President, Chief Financial Officer, Treasurer and Secretary. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

ITEM

ITEM

----

ITEM

----

PART

ITEM

| Name           |   | Age    |   | Position                                                                   |   | Date First Elected/Appointed |
|----------------|--------|--------|--------|----------------------------------------------------------------------------|--------|------------------------------|
|           |   |   |   |                                                                       |   |                         |
| Scott Mathis   |   | 49     |   | Director, Chief Executive Officer and President                            |   | November 9, 2009             |
| Tim Holderbaum |   | 38     |   | Executive Vice President, Chief Financial Officer, Treasurer and Secretary |   | November 9, 2009             |
| Julian Beale   |   | 76     |   | Director                                                                   |   | November 9, 2009             |
| Peter Lawrence |   | 77     |   | Director                                                                   |   | November 9, 2009             |

----

----

----

----

ITEM

ITEM

----

|    Name of Beneficial Owner                                       |                                  |  SharesBeneficiallyOwned            |                                                                                                                 |   Percentageof Class |
|----------------------------------------------------------------------------------|--------------------------------------------|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|  5% Shareholders                                                       |                                       |                                |                                                                                                                      |                           |
|                                                                             | Diversified Private Equity Corporation (1) |                                     |      43,822,401                                                                                  |                           | 96.5% |
|                                                                             |                                       | 135 Fifth Avenue                         |                                                                                                                      |                      |   |   |
|                                                                             |                                       | 10th Floor                               |                                                                                                                      |                      |   |   |
|                                                                             |                                       | New York, NY 10010                       |                                                                                                                      |                      |   |   |
|                                                                             |                                       |                                     |                                                                                                                      |                           |   |   |
|  Directors and Executive Officers                                      |                                       |                                |                                                                                                                      |                           |
|                                                                             | Scott Mathis (2)                           |                                     |        9,323,291                                                                       |                           | 20.5% |
|                                                                             | Julian Beale                               |                                     |                     - |                           | 0.0% |
|                                                                             | Peter Lawrence                             |                                     |                     - |                           | 0.0% |
|                                                                             | Tim Holderbaum  (3)                   |                                     |        2,797,677                                                                       |                           | 6.2% |
|  All directors and executive officers as a group (4 persons) (2)  |                                       |      12,120,967 |                                                                                                                      | 26.7%                          |

| (1) | Scott Mathis is the Chief Executive Officer, President, Chairman of the Board and a significant shareholder of DPEC and has shared voting and dispositive power with respect to the shares owned by DPEC. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consists of 9,323,291 shares of common stock held by DPEC, which represents Mr. Mathis’s pro rata indirect interest in the Company. Mr. Mathis is the Chief Executive Officer, President, Chairman of the Board and a significant beneficial shareholder of DPEC. Mr. Mathis has shared voting and dispositive power, and may be deemed to be the indirect beneficial owner, of such shares. Mr. Mathis disclaims beneficial ownership of such shares except to the extent of his pecuniary interest in DPEC. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| (3) | Consists of 2,797,677 shares of common stock held by DPEC, which represents Mr. Holderbaum’s pro rata indirect interest in the Company. Mr. Holderbaum is the Executive Vice President and Chief Financial Officer of DPEC. Mr. Holderbaum has shared voting and dispositive power, and may be deemed to be the indirect beneficial owner, of such shares. Mr. Holderbaum disclaims beneficial ownership of such shares except to the extent of his pecuniary interest in DPEC. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

ITEM

ITEM

|                       |   | Year EndedMay 31, 2011 |   |   | Year EndedMay 31, 2010 |   |
|----------------------------|--------|------------------------|--------|--------|------------------------|--------|
|  Audit Fees      |   | $                      | 6,661  |   |                   | $      | 7,350 |   |
|  Audit - Related Fees |   |                   |   |   |                   |   |   |   |
|  Tax Fees        |   |                   | 231    |   |                   |   | 231 |   |
|  All Other Fees  |   |                   | -      |   |                   |   | - |   |

----

----

PART

ITEM

| 1.        | Financial Statements                                        |
|-----------------------------------------|-------------------------------------------------------------|
|                                    |
| 2.                       | Financial Statement Schedules.   None.       |
|                                    |
| 3.                       | Exhibits                                                    |
|                                    |
|                                    | The following exhibits are included as part of this report: |
|                                    |

| ExhibitNumber            |                           | Description                                                                                                                                                                                                                                                                                          |
|--------------------------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |       |                                                                                                                                                                                                                                                                                                 |
| 3.1                      |                           | Articles of Incorporation.*                                                                                                                                                                                                                                                                     |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 3.1A                     |                           | Articles of Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 to registrant’s Current Report on Form 8-K filed May 30, 2009).                                                                                                                              |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 3.2       |                           | Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to registrant’s Current Report on Form 8- K filed May 30, 2009).                                                                                                                                                            |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 3.3       |                           | Plan of Recapitalization adopted August 4, 2004.*                                                                                                                                                                                                                                                    |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 10.1                     |                           | Stock Purchase Agreement by and between Diversified Private Equity Corporation, Mercari Communications Group, Ltd., Kanouff, LLC and Underwood Family Partners, LTD., dated as of November 9, 2009 (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on November 11, 2009). |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 31.1      |                           | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                             |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 31.2      |                           | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                             |
|                     |                           |                                                                                                                                                                                                                                                                                                 |
| 32.1      |                           | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                             |
|                     |                           |                                                                                                                                                                                                                           |
| 32.2                     |                           | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                             |

----

SIGNATURES

|                                   |   | MERCARI COMMUNICATIONS GROUP, LTD.                                       |
|----------------------------------------|--------|--------------------------------------------------------------------------|
|                                   |   |                                                                     |
| Dated:  August 22, 2011 |   | By /s/ Scott Mathis                                                      |
|                                   |   |     Scott Mathis, President, Chief Executive Officer |
|                                   |   |     and Director (Principal Executive Officer)       |
|                                   |   |                                                                     |

| Signatures                                                                                                                                                                                                                                                                                                                                                                                                                           |              |   | Title                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|
|                                                                        |                                                                     |   |                                                                       |
| /s/ Scott Mathis                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                     |   | President, Chief Executive Officer and Director                            |
| Scott Mathis                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                     |   | (Principal Executive Officer)                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                     |   |                                                                       |
| /s/ Tim F. Holderbaum                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                     |   | Executive Vice President, Chief Financial Officer, Treasurer and Secretary |
| Tim F. Holderbaum                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                     |   | (Principal Financial Officer and Principal Accounting Officer)             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                     |   |                                                                       |
| /s/ Julian Beale                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                     |   | Director                                                                   |
| Julian Beale                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                     |   |                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                     |   |                                                                       |
| /s/ Peter Lawrence                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                     |   | Director                                                                   |
| Peter Lawrence                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |   |                                                                       |