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| Delaware               | 56-2291458                      |
|------------------------|---------------------------------|
| State of Incorporation | IRS Employer Identification No. |

| Large accelerated filer  oNon-accelerated filer  o  |   | Accelerated filer  oSmaller Reporting company  x |   |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|--------|

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| PART I   |    |                                                                                                               |
|---------------|--------------|--------------------------------------------------------------------------------------------------------------------|
| ITEM 1.  |    | BUSINESS                                                                                                           |    | 1 |
| ITEM 1A. |    | RISK FACTORS                                                                                                       |    | 7 |
| ITEM 1B. |    | UNRESOLVED STAFF COMMENTS                                                                                          |    | 11 |
| ITEM 2.  |    | PROPERTIES                                                                                                         |    | 12 |
| ITEM 3.  |    | LEGAL PROCEEDINGS                                                                                                  |    | 12 |
| ITEM 4.  |    | RESERVED                                                                                                           |    | 12 |
| PART II  |    |                                                                                                               |
| ITEM 5.  |    | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |    | 12 |
| ITEM 6.  |    | SELECTED FINANCIAL DATA                                                                                            |    | 16 |
| ITEM 7.  |    | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                        |    | 17 |
| ITEM 7A. |    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                         |    | 21 |
| ITEM 8.  |    | CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                           |    | 22 |
| ITEM 9.  |    | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                               |    | 23 |
| ITEM 9A. |    | CONTROLS AND PROCEDURES                                                                                            |    | 23 |
| ITEM 9B. |    | OTHER INFORMATION                                                                                                  |    | 24 |
| PART III |    |                                                                                                               |
| ITEM 10. |    | DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE.                                                           |    | 25 |
| ITEM 11. |    | EXECUTIVE COMPENSATION                                                                                             |    | 26 |
| ITEM 12. |    | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                     |    | 28 |
| ITEM 13. |    | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                          |    | 30 |
| ITEM 14. |    | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                             |    | 30 |
| PART IV  |    |                                                                                                               |
| ITEM 15. |    | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                         |    | 31 |
|          |    | SIGNATURES                                                                                                         |    | 32 |

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| (a)      | Collect raw waste (grease and septage) from customers which would constitute the raw material of Biofuel       |
|-------------------------|----------------------------------------------------------------------------------------------------------------|
| (b)      | Transport the raw materials to a processing facility controlled by the enterprise where waste convertible into |

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| Periods                                        |   | High   |   |   | Low    |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Fiscal Year 2009                               |   |   |   |   |   |   |
| First Quarter (January – March 2009)     |   | $      | .02    |   |   | $      | .02 |   |
| Second Quarter (April – June 2009)       |   | $      | .01    |   |   | $      | .01 |   |
| Third Quarter (July – September 2009)    |   | $      | .25    |   |   | $      | .25 |   |
| Fourth Quarter (October – December 2009) |   | $      | .15    |   |   | $      | .15 |   |
|  Fiscal Year 2008                         |   |   |   |   |   |   |   |   |
| First Quarter (January – March 2008)     |   | $      | .40    |   |   | $      | .30 |   |
| Second Quarter (April – June 2008)       |   | $      | 1.08   |   |   | $      | .15 |   |
| Third Quarter (July – September 2008)    |   | $      | 1.07   |   |   | $      | .50 |   |
| Fourth Quarter (October – December 2008) |   | $      | .55    |   |   | $      | .01 |   |

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| Statement of Operations Data  |   |         |       |   |   |   |       |
|-------------------------------|--------|--------------|------------|--------|--------|--------|------------|
|                          |   | December 31, |       |
|                          |   | 2009         |       |   | 2008   |   |
|                          |   |         |       |   |   |   |
| Revenues                      |   | $            | 293,282    |   |   | $      | 293,124    |   |
| Cost of Sales                 |   |         | (52,601    | )      |   |   | (152,602   | ) |
| Operating and Other Expenses  |   |         | 4,707,803  |   |   |   | (8,011,087 | ) |
|                          |   |         |       |   |   |   |       |   |
| Net Loss                      |   | $            | 4,948,484  |   |   | $      | (7,870,565 | ) |
|                          |   |         |       |   |   |   |       |   |
| Balance Sheet Data:           |   |         |       |   |   |   |       |   |
|                          |   | December 31, |       |
|                          |   |         |       |   |   |   |       |   |
|                          |   |         | 2009       |   |   |   | 2008       |   |
|                          |   |         |       |   |   |   |       |   |
| Current Assets                |   | $            | 10,952     |   |   | $      | 2,675      |   |
| Total Assets                  |   |         | 13,306     |   |   |   | 25,478     |   |
| Current Liabilities           |   |         | 1,753,996  |   |   |   | 1,133,559  |   |
| Non Current Liabilities       |   |         | -          |   |   |   | 4,997      |   |
| Total Liabilities             |   |         | 1,753,996  |   |   |   | 1,138,556  |   |
| Working Capital (Deficit)     |   |         | (1,743,044 | )      |   |   | (1,130,884 | ) |
| Shareholders'Equity (Deficit) |   | $            | (1,740,690 | )      |   | $      | (1,113,078 | ) |
|                          |   |         |       |   |   |   |       |   |

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| Asset Category         |   | Depreciation/Amortization Period |
|------------------------|--------|----------------------------------|
| Furniture and Fixture  |   | 3 Years                          |
| Office equipment       |   | 3 Years                          |
| Leasehold improvements |   | 5 Years                          |

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----

| · | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets orliabilities in active markets;                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable or the asset or liability other than quoted prices, eitherdirectly or indirectly including inputs in markets that are not considered to be active; |
| · | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value. measurement                                                                                                                                                                                                    |

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| TABLE OF CONTENTS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM:  | Page F-2                                                                                                     |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| Tarvaran, Askelson & Company LLP                                   |                                                                                                                   |
| CONSOLIDATED FINANCIAL STATEMENTS:                                          |                                                                                                                   |
|                                                                        |                                                                                                                   |
|                                                                        | Consolidated Balance Sheet at December 31, 2009 and 2008                                                               | F-3 |
|                                                                        |                                                                                                                   |   |
|                                                                        | Consolidated Statements of Operations for the years endedDecember 31, 2009 and 2008                                    |  F-4 |
|                                                                        |                                                                                                                   |   |
|                                                                        | Consolidated Statements of Stockholders’ Equity for the years ended    December 31, 2009 and 2008 |  F-5 |
|                                                                        |                                                                                                                   |   |
|                                                                        | Consolidated Statements of Cash Flows for the years ended    December 31, 2009 and 2008                 |  F-6 |
|                                                                        |                                                                                                                   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                  | F-7                                                                                                                    |

----

----

| FREEDOM ENVIRONMENTAL SERVICES, INC.                                                    |
|-----------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                             |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   | December 31, |   |
|                                                                                    |   | 2009 |   |   | 2008 |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |
| CURRENT ASSETS                                                                          |   |   |   |   |   |   |
|    Cash                                                                  |   | $ | - |   |   | $ | - |   |
|    Accounts receivable - net                                             |   |   | 10,952 |   |   |   | 2,675 |   |
|       Total current assets                                |   |   | 10,952 |   |   |   | 2,675 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                             |   |   | 2,354 |   |   |   | 11,065 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|   Deposits                                                                    |   |   | - |   |   |   | 11,738 |   |
|     TOTAL ASSETS                                                    |   | $ | 13,306 |   |   | $ | 25,478 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                    |   |   |   |   |   |   |   |   |
|    Bank overdraft                                                        |   | $ | 5,037 |   |   | $ | 20,471 |   |
|    Accounts payables                                                     |   |   | 160,831 |   |   |   | 68,933 |   |
|    Accrued liabilities                                                   |   |   | 807,090 |   |   |   | 380,106 |   |
|    Line of credit                                                        |   |   | 13,177 |   |   |   | 14,995 |   |
|    Notes payable                                                         |   |   | - |   |   |   | 4,997 |   |
|    Notes payable shareholder                                             |   |   | 95,000 |   |   |   | 95,000 |   |
|    Notes payables from affiliate                                         |   |   | 672,861 |   |   |   | 549,057 |   |
|       Total current liabilities                           |   |   | 1,753,996 |   |   |   | 1,133,559 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|    Notes payable                                                         |   |   | - |   |   |   | 4,997 |   |
|       TOTAL LIABILITIES                                   |   |   | 1,753,996 |   |   |   | 1,138,556 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| CONTINGENCIES AND COMMITMENTS                                                           |   |   | - |   |   |   | - |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT:                                                                  |   |   |   |   |   |   |   |   |
|     Preferred stock, $.001 par value, 75,000,000 shares                  |   |   |   |   |   |
|     authorized; none issued and outstanding                              |   |   |   |   |   |   |   |   |
|     as of December 31, 2009 and 2008, respectively                  |   |   | - |   |   |   | - |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|     Common stock, $.001 par value, 100,000,000 shares authorized;        |   |
|     16,917,707 and 35,158,093 issued and outstanding                     |   |   |   |   |   |
|     as of December 31, 2009 and 2008, respectively                  |   |   | 16,917 |   |   |   | 35,157 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|     Additional paid in capital                                      |   |   | 16,181,099 |   |   |   | 11,841,986 |   |
|     Accumulated deficit                                             |   |   | (17,938,705 | ) |   |   | (12,990,221 | ) |
|       Total stockholders' deficit                         |   |   | (1,740,690 | ) |   |   | (1,113,078 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |
|     TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                     |   | $ | 13,306 |   |   | $ | 25,478 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

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| FREEDOM ENVIRONMENTAL SERVICES, INC.                                                    |   |
|-----------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENT OF OPERATIONS                                                    |   |
|                                                                                    |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   |   |   |
|                                                                                    |   | December 31, |   |
|                                                                                    |   | 2009 |   |   | 2008 |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |
|  Revenue                                                                           |   | $ | 293,282 |   |   | $ | 293,124 |   |
|      Total                                                     |   |   | 293,282 |   |   |   | 293,124 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|  COST OF SALES                                                                     |   |   | 52,601 |   |   |   | 152,602 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|  GROSS PROFITS                                                                     |   |   | 240,682 |   |   |   | 140,522 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                                                                     |   |   |   |   |   |   |   |   |
|      General and administrative                                |   |   | 4,992,400 |   |   |   | 7,581,668 |   |
|      Selling and marketing                                     |   |   | 50,114 |   |   |   | - |   |
|      Depreciation expense                                      |   |   | 8,712 |   |   |   | 6,067 |   |
|          Total operating expenses          |   |   | 5,051,226 |   |   |   | 7,587,735 |   |
| OPERATING LOSS                                                                          |   |   | (4,810,544 | ) |   |   | (7,447,213 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |
| OTHER (INCOME) AND EXPENSES                                                             |   |   |   |   |   |   |   |   |
|       Interest income                                     |   |   | - |   |   |   | - |   |
|       Interest expense                                    |   |   | 137,940 |   |   |   | 423,352 |   |
|         Total other (income) expense            |   |   | 137,940 |   |   |   | 423,352 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| NET LOSS                                                                                |   | $ | (4,948,484 | ) |   | $ | (7,870,565 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |
| NET LOSS PER SHARE:                                                                     |   |   |   |   |   |   |   |   |
|   Basic and diluted:                                                          |   | $ | (0.22 | ) |   | $ | (0.18 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                                             |   |   |   |   |   |   |   |   |
|   Basic and diluted:                                                          |   |   | 22,407,365 |   |   |   | 42,647,381 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

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| FREEDOM ENVIRONMENTAL SERVICES, INC.                                                                            |   |
|-----------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                           |   |
|                                                                                                            |   |
|                                                                                                            |   |   |   |
|                                                                                                            |   | December 31, |   |
|                                                                                                            |   | 2009 |   |   | 2008 |   |
|                                                                                                            |   |   |   |   |   |   |
|                                                                                                            |   |   |   |   |   |   |
|   Net loss                                                                                            |   | $ | (4,948,484 | ) |   | $ | (7,870,565 | ) |
|   Adjustments to reconcile net loss to net cash                                                       |   |   |   |   |   |   |   |   |
|      used in operating activities:                                                     |   |   |   |   |   |   |   |   |
|   Depreciation                                                                                        |   |   | 8,712 |   |   |   | 6,067 |   |
|   Common stock issued for services                                                                    |   |   | 3,904,498 |   |   |   | 6,761,663 |   |
|   Common stock issued for conversion of debt and services                                             |   |   | 416,375 |   |   |   | - |   |
|   Changes in operating assets and liabilities:                                                        |   |   |   |   |   |   |   |   |
|     Accounts receivables                                                                    |   |   | (8,277 | ) |   |   | (2,675 | ) |
|     Other assets                                                                            |   |   | 6,686 |   |   |   | (11,738 | ) |
|     Deposits                                                                                |   |   | 5,052 |   |   |   | - |   |
|     Accounts payables                                                                       |   |   | 91,899 |   |   |   | 448,900 |   |
|     Accrued expenses                                                                        |   |   | 426,984 |   |   |   | - |   |
|           Net cash (used in) provided by operating activities |   |   | (96,555 | ) |   |   | (668,348 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                           |   |   |   |   |   |   |   |   |
|     Purchase of intangible                                                                  |   |   | - |   |   |   | - |   |
|     Purchase of equipment                                                                   |   |   | - |   |   |   | (17,132 | ) |
|           Net cash (used in) investing activities             |   |   | - |   |   |   | (17,132 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                           |   |   |   |   |   |   |   |   |
|  Bank overdraft                                                                                            |   |   | (15,434 | ) |   |   | 20,471 |   |
|  Repayment of note payable                                                                                 |   |   | (9,994 | ) |   |   |   |   |
|  Repayment of note payable-affiliate                                                                       |   |   | (1,818 | ) |   |   |   |   |
|  Proceeds from related party                                                                               |   |   |   |   |   |   | 95,000 |   |
|  Proceeds from line of credit                                                                              |   |   | - |   |   |   | 14,995 |   |
|  Proceeds from note payable                                                                                |   |   | - |   |   |   | 9,995 |   |
|  Advances from affiliate                                                                                   |   |   | 123,804 |   |   |   | 545,019 |   |
|           Net cash provided by financing activities           |   |   | 96,558 |   |   |   | 685,480 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| (DECREASE) INCREASE IN CASH                                                                                     |   |   | - |   |   |   | - |   |
| CASH, BEGINNING OF PERIOD                                                                                       |   |   | - |   |   |   | - |   |
| CASH, END OF PERIOD                                                                                             |   | $ | - |   |   | $ | - |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                                              |   |   |   |   |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Interest paid                                                                                                   |   | $ | 137,940 |   |   | $ | 423,352 |   |
| Taxes paid                                                                                                      |   | $ | - |   |   | $ | - |   |
| Issuance of company stock for accrued liabilities                                                               |   | $ | 416,375 |   |   | $ | - |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                    |   |

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| FREEDOM ENVIRONMENTAL SERVICES, INC.                                                         |   |
|----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENT OF STOCKHOLDER' EQUITY                                                |   |
| FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008                                               |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   | ------ Preferred Stock ------ |   |   | Additional |   |   |   |   |   |   |   |
|                                                                                         |   | Common Stock |   |   |   |   |   | Preferred |   |   | Paid-in |   |   | Accumulated |   |   |   |   |
|                                                                                         |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Deficit |   |   | Total |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    DECEMBER 31, 2007                                                          |   |   | 50,136,668 |   |   | $ | 50,137 |   |   |   |   |   | $ | - |   |   | $ | 5,065,343 |   |   | $ | (5,119,656 | ) |   | $ | (4,176 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Reverse stock split 1:20                                                   |   |   | (47,629,631 | ) |   |   | (47,630 | ) |   |   |   |   |   | - |   |   |   | 47,630 |   |   |   | - |   |   |   | - |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Common stock issued for services @ $.50                                    |   |   | 12,746,444 |   |   |   | 12,746 |   |   |   |   |   |   | - |   |   |   | 6,360,476 |   |   |   | - |   |   |   | 6,373,222 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Recapitalization as per Stock Purchase Agreement                           |   |   | 20,704,427 |   |   |   | 20,704 |   |   |   |   |   |   | - |   |   |   | (20,704 | ) |   |   | - |   |   |   | - |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Shares returned by former Chairman and cancelled                           |   |   | (800,000 | ) |   |   | (800 | ) |   |   |   |   |   | - |   |   |   | 800 |   |   |   | - |   |   |   | - |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Miscellaneous Issuance                                               |   |   | 185 |   |   |   | - |   |   |   |   |   |   |   |   |   |   | 191 |   |   |   | - |   |   |   | 191 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Value of beneficial conversion feature of convertible note           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 388,250 |   |   |   | - |   |   |   | 388,250 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,870,565 | ) |   |   | (7,870,565 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    DECEMBER 31, 2008                                                          |   |   | 35,158,093 |   |   | $ | 35,157 |   |   |   | - |   |   | $ | - |   |   | $ | 11,841,986 |   |   | $ | (12,990,221 | ) |   | $ | (1,113,078 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Reverse stock split 1:50                                                         |   |   | (54,960,124 | ) |   |   | (54,960 | ) |   |   |   |   |   |   |   |   |   |   | 54,960 |   |   |   |   |   |   |   | - |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Common stock issued for services                                                 |   |   | 35,054,238 |   |   |   | 35,054 |   |   |   |   |   |   |   | - |   |   |   | 3,869,444 |   |   |   | - |   |   |   | 3,904,498 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Common stock issued for the conversion of debt                                   |   |   | 1,665,500 |   |   |   | 1,666 |   |   |   | - |   |   |   | - |   |   |   | 414,709 |   |   |   | - |   |   |   | 416,375 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net loss                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,948,484 | ) |   |   | (4,948,484 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    DECEMBER 31, 2009                                                          |   |   | 16,917,707 |   |   | $ | 16,917 |   |   |   | - |   |   | $ | - |   |   | $ | 16,181,099 |   |   | $ | (17,938,705 | ) |   | $ | (1,740,689 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  The accompanying notes are an integral part of these consolidated financial statements |   |

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| ·   | The share exchange allows for the shareholders of Freedom Environmental Services, LLC. to receive shares of common stock with increased liquidity and stronger market value; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The ability of the combined companies to utilize publicly-traded securities in capital raising transactions and as consideration in connection with future potential mergers or acquisitions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                   |   | Depreciation/Amortization Period |
|------------------------|--------|----------------------------------|
| Furniture and Fixture  |   | 3 Years                          |
| Office equipment       |   | 3 Years                          |
| Leasehold improvements |   | 5 Years                          |

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| · | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets orliabilities in active markets;                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable or the asset or liability other than quoted prices, eitherdirectly or indirectly including inputs in markets that are not considered to be active; |
| · | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value. measurement                                                                                                                                                                                                    |

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|                            |   | December 31, |    |
|---------------------------------|--------|--------------|---------|
|                            |   | 2009         |    |   | 2008 |   |
|                            |   |         |    |   |   |   |
| Accounts receivables            |   | $            | 36,645  |   |   | $ | 3,435 |   |
| Allowance for doubtful accounts |   |         | (25,693 | ) |   |   | (760 | ) |
|  Total                     |   | $            | 10,952  |   |   | $ | 2,675 |   |
|                            |   |         |    |   |   |   |   |   |

|                                                                                                         |   |              |    |   |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|
|                                                                                                         |   | December 31, 2009 |    |   | December 31, 2008 |   |
| Furniture and equipment                                                                                      |   | $                 | 16,241  |   |   | $ | 16,241 |   |
| Leasehold improvements                                                                                       |   |              | 890     |   |   |   | 890 |   |
|                                                                                                         |   |              |    |   |   |   |   |   |
| Total Notes Payable                                                                                          |   | $                 | 17,131  |   |   | $ | 17,131 |   |
| Less: accumulated depreciation                                                                               |   |              | (14,777 | )      |   |   | (6,066 | ) |
|                                                                                                         |   |              |    |   |   |   |   |   |
| Net property and equipment                                                                                   |   | $                 | 2,354   |   |   | $ | 11,065 |   |
|                                                                                                         |   |              |    |   |   |   |   |   |
| Depreciation expense totaled $8,712 and $6,067 for the years ended December 31, 2009 and 2008, respectively. |   |

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|                                                                                                                                              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                              |   |   |   |   |   |   |
| The following table represents the computation of basic and diluted losses per share for the years ended December 31, 2009 and 2008, respectively |   |
|                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                              |   | 2009 |   |   | 2008 |   |
|                                                                                                                                              |   |   |   |   |   |   |
| Losses available for common shareholders                                                                                                          |   |   | 4,948,484 |   |   |   | 7,870,565 |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                                                                                                        |   |   | 22,407,365 |   |   |   | 42,647,381 |   |
| Basic and diluted loss per share                                                                                                                  |   |   | .22 |   |   |   | .18 |   |
| Net loss per share is based upon the weighted average shares of common stock outstanding                                                          |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |     |   |   |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|------------|
| The company had the following notes payable outstanding for the years ended December 31, 2009 and 2008, respectively:                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2009   |     |   |   |  2008 |   |   |
| The Company entered into a convertible promissory note with a shareholder of the Company and a related party on December 11, 2008 in the amount of $600,000. The promissory note had convertible beneficial feature which allowed the holder on the inception of the convertible promissory note into the company’s common stock equal to 50% of the market price of the corporation’s common stock on the date of conversion. The notes have an annual interest rate of 15%.                                          |   | $      | 271,875  |   |   | $          | 299,658 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |     |   |   |       |
| The Company entered into a convertible promissory note with a related party company (Resort Marketing) owned by the Company’s chief executive officer on December 22 2008 in the amount of $95,000. The promissory note had convertible beneficial feature which allowed the holder on the inception of the convertible promissory note into the company’s common stock equal to 50% of the market price of the corporation’s common stock on the date of conversion. The notes have an annual interest rate of 15%. As of |   |   | 95,000   |   |   |       | 95,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |     |   |   |       |
| The Company receives advances from its officers and related parties during the regular course of business. The advances from its officers have an annual rate of 15%.                                                                                                                                                                                                                                                                                                                                                                        |   |   | 395,911  |   |   |       | 243,579 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |     |   |   |       |
| The Company has a line of credit with Royal Bank of Canada. The line is for one year and carries an interest rate of LIBOR +3%.                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 13,177   |   |   |       | 14,995 |   |
| The Company has advances from prior officers of the Company.  The advance are due upon demand                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 5,075    |   |   |       | - |   |
| The Company entered into a notes payable with US Bancorp Manifest Funding Services for the capital lease of equipment. As of December 31, 2008 the Company has a notes payable in the amount of $9,994 of which $4,997 is due by December 31, 2009.                                                                                                                                                                                                                                                                                          |   |   | -        |   |   |       | 9,994 |   |
| Total Notes Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 781,038  |   |   | $          | 663,226 |   |
| less:  Current Portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (781,038 | )      |   |       | (658,229 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |     |   |   |       |   |   |   |
| Long Term Portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | -        |   |   | $          | 4,997 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |     |   |   |       |

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|                                          |   | December 31, |       |
|-----------------------------------------------|--------|--------------|------------|
|                                          |   | 2009         |       |   | 2008 |   |
| Current:                                      |   |         |       |   |   |   |
| Federal                                       |   | $            | -          |   |   | $ | - |   |
| State                                         |   |         | -          |   |   |   | - |   |
|                                          |   |         | -          |   |   |   | - |   |
| Deferred:                                     |   |         |       |   |   |   |   |   |
| Federal                                       |   | $            | 1,591,630  |   |   | $ | 2,676,000 |   |
| State                                         |   |         | 267,218    |   |   |   | 433,000 |   |
|                                          |   |         | 1,858,848  |   |   |   | 3,109,000 |   |
| Valuation allowance                           |   |         | (1,858,848 | ) |   |   | (3,109,000 | ) |
|  Provision benefit for income taxes, net |   | $            | -          |   |   | $ | - |   |
|                                          |   |         |       |   |   |   |   |   |

|                              |   | December 31, |
|-----------------------------------|--------|--------------|
|                              |   | 2009         |   | 2008 |
|                              |   |         |   |   |
| Statutory federal income tax rate |   | 34.0%        |   | 34.0% |
| State income taxes and other      |   | 5.5%         |   | 5.5% |
| Valuation allowance               |   | (39.5%       |   | (39.5% |
|  Effective tax rate          |   |  -      |   |  - |

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|                            |   | December 31, |       |
|---------------------------------|--------|--------------|------------|
|                            |   | 2009         |       |   | 2008 |   |
|                            |   |         |       |   |   |   |
| Net operating loss carryforward |   |         | 1,858,848  |   |   |   | 3,109,000 |   |
| Valuation allowance             |   |         | (1,858,848 | ) |   |   | (3,109,000 | ) |
|                            |   |         |       |   |   |   |   |   |
| Deferred income tax asset       |   | $            | -          |   |   | $ | - |   |
|                            |   |         |       |   |   |   |   |   |

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| Name              |   | Age    |   | Title                             |
|-------------------|--------|--------|--------|-----------------------------------|
|              |   |   |   |                              |
| Michael S. Borish |   | 46     |   | Chairman, CEO, CFO, Sole Director |

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| Name and Principal Position | Year     | Salary ($)     | Bonus ($) | Stock Awards ($) | Warrants Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All OtherCompensation ($) | Total ($)         |
|-----------------------------|----------|----------------|-----------|------------------|----------------------------|--------------------------------------------|-----------------------------------------------------------------------------|---------------------------|-------------------|
| Michael S. Borish           | 20092008 | 185,000185,000 |      | 11,820,000-      | --                         | --                                         | --                                                                          |                      | 12,005,000185,000 |

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|           | Option Awards                                                      | Stock Awards                                                         |
|----------------|--------------------------------------------------------------------|----------------------------------------------------------------------|
| Name           | Number of Securities Underlying Unexercised Options (#)Exercisable | Number of Securities Underlying Unexercised Options (#)Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| Michael Borish | --                                                                 | --                                                                   | -- | -- | -- | -- | -- | -- | -- |

|           |   | Option Awards                             | Stock Awards                   |
|----------------|--------|-------------------------------------------|--------------------------------|
| Name           | Year   | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Voting (#) | Value Realized on Vesting ($) |
| Michael Borish | --     | --                                        | --                             | -- | -- |

| Name           | Year | Plan Name | Number of Years of Credited Service | Present Value of Accumulated Benefit ($) | Payments During LastFiscal Year ($) |
|----------------|------|-----------|------------------------------------------|------------------------------------------|-------------------------------------|
| Michael Borish | --   | --        | --                                       | --                                       | --                                  |

| Name           | Year | Executive Contributions in Last Fiscal Year ($) | RegistrantContributions in Last Fiscal Year ($) | Aggregate Earnings in Last Fiscal Year ($) | Aggregate Withdrawals /Distributions | Aggregate Balance at Last Fiscal Year-End ($) |
|----------------|------|-------------------------------------------------|-------------------------------------------------|------------------------------------------------------|--------------------------------------|-----------------------------------------------|
| Michael Borish | --   | --                                              | --                                              | --                                                   | --                                   | --                                            |

| Name             | Year     | Fees Earned or Paid in Cash | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All OtherCompensation ($) | Total ($) |
|------------------|----------|-----------------------------|------------------|-------------------|--------------------------------------------|-----------------------------------------------------------------------------|---------------------------|-----------|
| Michael Borish , | 20092008 | --                          | --               | --                | --                                         | --                                                                          | --                        | --        |

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|  Name     | Year     | Perquisites and Other Personal Benefits ($) | Tax Reimburse-mints ($) | Insurance Premiums ($) | Company Contributions to Retirement and 401(k) Plans ($) | Severance Payments / Accruals ($) | Change in Control Payments / Accruals | Total ($) |
|----------------|----------|---------------------------------------------|-------------------------|------------------------|----------------------------------------------------------|-----------------------------------|---------------------------------------|-----------|
| Michael Borish | 20092008 | --                                          | --                      | --                     | --                                                       | --                                | --                                    | --        |

| Name           | Year     | Personal Use of Company Car / Parking ($) | Financial Planning / Legal Fees ($) | Club Dues ($) | Executive Relocation ($) | Total Perquisites and Other Personal Benefits ($) |
|----------------|----------|-------------------------------------------|------------------------------------------|---------------|--------------------------|---------------------------------------------------|
| Michael Borish | 20092008 | --                                        | --                                       | --            | --                       | --                                                |

|  Name     | Year     | Benefit | Before Change in Control Termination w/o Cause or for Good Reason | After Change in Control Termination w/o Cause or for Good Reason | Voluntary Termination | Death | Disability | Change in Control |
|----------------|----------|---------|-------------------------------------------------------------------|------------------------------------------------------------------|-----------------------|-------|------------|-------------------|
| Michael Borish | 20092008 | --      | --                                                                | --                                                               | --                    | --    | --         | --                |

| Name and Address of Owner                                                           |   | Title of Class |   | Numberof SharesOwned (1) |   | Percentageof Class |
|-------------------------------------------------------------------------------------|--------|----------------|--------|--------------------------|--------|--------------------|
|                                                                                |   |           |   |                     |   |               |
| Michael Borish(1)c/o Freedom7380 W Sand Lake #543Orlando, FL  32819  |   | Common Stock   |   | 13,828,686               |   | 82%                |
| All Officers and DirectorsAs a Group                                           |   | Common Stock   |   | 0                        |   | 0%                 |

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|   |   |                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
| 3.1    |   | Articles of Incorporation (1)                                                                                      |
| 3.2    |   | Amendments to Articles of Incorporation (1)                                                                        |
| 3.1    |   | Bylaws of the Corporation (1)                                                                                      |
| 10.1   |   | Employment Agreement Michael Borish (1)                                                                            |
| 2131.1 |   | Subsidiaries (3)Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act. (3)    |
| 31.2   |   | Certification of Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act. (3) |
| 32.1   |   | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act.  (3)         |
| 32.2   |   | Certification of Chief Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act.  (3)        |

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| RegistrantDate: May 7, 2010 |   | Freedom Environmental Services, Inc.By: /s/ Michael Borish                                     |
|-----------------------------|--------|------------------------------------------------------------------------------------------------|
|                        |   | Michael Borish                                                                                 |
|                        |   | Chief Executive Officer (Principal Executive Officer), President, Principal Accounting Officer |

| Date: May 7, 2010 |   | By: /s/ Michael Borish |
|-------------------|--------|------------------------|
|              |   | Michael Borish         |
|              |   | Chairman               |

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