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

                                    FORM 10-K

[x]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the fiscal year ended September 30, 2008

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from        to
                                   --------  --------

                        Commission file number 333-154221

                             ELEVATED CONCEPTS,INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

             Nevada                                    26-3126279
    ------------------------                      ------------------------
    (State of incorporation)                      (I.R.S. Employer ID No.)

                            5 Revere Drive, Suite 200
                           Northbrook, Illinois 60062
          -------------------------------------------------------------
          (Address of principal executive officers, including Zip Code)

                                 (847) 509-5884
                      -------------------------------------
                           (Issuer's Telephone Number)

Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.001
par value

Indicate by check mark if the  registrant is a well-known  seasoned  issuer,  as
defined in Rule 405 of the  Securities Act. Yes [ ] No [ ]

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

Indicate by  checkmark  whether the issuer (1) filed all reports  required to be
filed by Section 13 or 15(d) of the  Securities  Exchange Act of 1934 during the
past 12 months (or for such shorter  period that the  registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X] No [ ]

Indicate by checkmark if  disclosure of delinquent  filers  pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained,to the best
of  registrant's   knowledge, in  definitive  proxy  or  information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

<page>

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

Large accelerated filer [ ]                   Accelerated filer          [ ]
Non-accelerated filer   [ ]                   Smaller reporting company  [X]
(Do not check if a smaller reporting company)

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

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates  computed by reference to the price at which the common equity
was last sold, or the average bid and asked price of such common  equity,  as of
the last business day of the registrant's most recently  completed second fiscal
quarter:

The aggregate  market value of the Company's  common shares of voting stock held
by non-affiliates of the Company at September 30, 2008, was $Nil.

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date:

As of December 22, 2008,  there were 5,000,000 shares of common stock, par value
$0.001, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

None.

Transitional Small Business Disclosure Format: Yes [ ] No [X]











<page>


                                TABLE OF CONTENTS

                                                                        Page No.
                                                                        --------

                                     Part I

Item 1.  Business                                                             5
Item 1A. Risk Factors                                                        10
Item 2.  Properties                                                          16
Item 3.  Legal Proceedings                                                   17
Item 4.  Submission of Matters to a Vote of Securities Holders               17

                                     Part II

Item 5.  Market for Registrant's Common Equity, Related Stockholder
         Matters and Issuer Purchases of Equity Securities                   17
Item 7.  Management's Discussion and Analysis of Financial Condition
         and Results of Operation                                            18
Item 8.  Financial Statements                                                24
Item 9.  Changes in and Disagreements with Accountants on Accounting
         and Financial Disclosure                                            38
Item 9A. Controls and Procedures                                             38

                                    Part III

Item 10. Directors and Executive Officers                                    38
Item 11. Executive Compensation                                              40
Item 12. Security Ownership of Certain Beneficial Owners and Management
         and Related Stockholder Matters                                     42
Item 13. Certain Relationships and Related Transactions and Director
         Independence                                                        43
Item 14. Principal Accounting Fees and Services                              44

                                     Part IV

Item 15. Exhibits                                                            44

Signatures                                                                   45








<page>



                                     PART I

FORWARD LOOKING STATEMENTS

This  annual  report  contains   forward-looking   statements.   Forward-looking
statements  are  projections  of  events,  revenues,   income,  future  economic
performance or management's plans and objectives for our future  operations.  In
some cases, you can identify  forward-looking  statements by terminology such as
"may," "should,"  "expects," "plans,"  "anticipates,"  "believes,"  "estimates,"
"predicts,"  "potential"  or  "continue" or the negative of these terms or other
comparable terminology.  These statements are only predictions and involve known
and unknown risks,  uncertainties and other factors,  including the risks in the
section  entitled "Risk  Factors" and the risks set out below,  any of which may
cause our or our industry's actual results,  levels of activity,  performance or
achievements  to be  materially  different  from any future  results,  levels of
activity,   performance   or   achievements   expressed   or  implied  by  these
forward-looking  statements.  These risks include,  by way of example and not in
limitation:

-  the uncertainty of profitability based upon our history of losses;
-  risks related to failure to obtain  adequate  financing on a timely basis and
   on acceptable  terms to continue as going concern;
-  risks related to our international operations and currency exchange
   fluctuations;
-  risks related to product liability claims;
-  other risks and uncertainties related to our business plan and business
   strategy.

This list is not an  exhaustive  list of the factors  that may affect any of our
forward-looking  statements.  These  and  other  factors  should  be  considered
carefully  and readers  should not place undue  reliance on our  forward-looking
statements.

Forward looking statements are made based on management's beliefs, estimates and
opinions on the date the  statements  are made and we undertake no obligation to
update  forward-looking  statements if these beliefs,  estimates and opinions or
other  circumstances  should change.  Although we believe that the  expectations
reflected in the forward-looking  statements are reasonable, we cannot guarantee
future  results,  levels of activity,  performance  or  achievements.  Except as
required by applicable law,  including the securities laws of the United States,
we do not  intend to update  any of the  forward-looking  statements  to conform
these statements to actual results.

Our  financial  statements  are stated in United  States  dollars  (US$) and are
prepared  in  accordance  with  United  States  Generally  Accepted   Accounting
Principles.


In this  annual  report,  unless  otherwise  specified,  all dollar  amounts are
expressed in United States dollars and all references to "common stock" refer to
the common shares in our capital stock.


As used in this annual  report,  the terms "we," "us," "our," the  "Company" and
"Elevated Concepts" mean Elevated Concepts, Inc., unless otherwise indicated.


                                        4
<page>

ITEM 1. BUSINESS

GENERAL INFORMATION ABOUT OUR COMPANY

We were formed on December 21, 2006. Our plan is to export and sell green,  eco-
friendly,  biodegradable,  non-toxic  household  products and building materials
used in housing  construction  and home  renovation  in the emerging  markets of
Russia,  Ukraine  and other  Eastern  European  countries  from  North  American
manufacturers.

As of September 30, 2008, we have no revenues,  have incurred  losses of $14,354
since our  inception on December 21, 2006,  and have relied upon the sale of our
securities in unregistered private placement transactions and cash advances from
our President,  Mr.Vasili Borisov, to fund our operations.  We are a development
stage  company and we do not expect to  generate  revenue for the next 12 months
which  would  be  enough  to  sustain  our  operations.   Accordingly,  for  the
foreseeable future, we will continue to be dependent on additional  financing in
order to maintain our operations and continue with our corporate activities. Due
to the  uncertainty of our ability to meet our financial  obligations and to pay
our liabilities as they become due, in their report on our financial  statements
for the year ended  September  30, 2008,  our  registered  independent  auditors
included  additional  comments indicating concerns about our ability to continue
as a going concern. Our financial statements contain additional note disclosures
describing  the  circumstances  that led to this  disclosure  by our  registered
independent  auditors.  The financial  statements do not include any adjustments
that might result from the outcome of this uncertainty.


MARKET AND INDUSTRY OVERVIEW

Our plan is to build a portfolio of eco-friendly,  bio-degradable, non-toxic and
organic products used in construction,  home renovation and maintenance for sale
and  distribution in the emerging  markets of Russia,  Ukraine and other Eastern
European countries. We plan to start with sale and distribution of constructions
and household  materials which will be used in "green  development"  projects in
the suburban areas of Moscow, Russia.

Green Development
-----------------
Providing comfort indoors means ensuring appropriate  ventilation,  heating, and
cooling,  as well as limiting  emissions  from materials used inside a building.
Green  development is the latest trend in real estate  development  based on the
use  of  ecologically   clean  natural   materials  and  intention  to  preserve
environment,  both in the process of construction  and during further  operation
and use.  Green  development  first  emerged  several  years ago. The term means
construction or any other development based on  environmentally  friendly terms.
The purpose of green  development  is to create  favorable  conditions for life,
work and leisure  featuring minimal impact on the environment and preserving the
existing ecological  equilibrium.  This ecological  equilibrium is possible if a
construction  project  skillfully  combines  a  well-thought-out   architectural
concept,  energy saving technologies,  natural construction  materials and, most
importantly,  responsible and careful consideration of the impact of the project
on the environment.

In Russia,  interest in an environmentally  conscious lifestyle is becoming more
popular amongst the middle class population.

                                        5
<page>


Green  development  is a complex of standards and measures for  construction  of
buildings  and  municipal  landscaping,  the  application  of which  enables  to
minimize the negative impact on the  environment.  This, in turn, helps preserve
the balance between human needs and the environmental  resources.  The standards
of green  development are there to improve such  indicators of construction  and
operation of buildings as indoor air quality,  emissions control, energy saving,
efficiency  of  water  usage,  limitation  and  recycling  of  household  waste,
preservation and growth of green plantations and natural habitat for animals and
birds, as well as provision of economic and social wellbeing.

All these requirements may be met by: thorough, careful selection of development
sites, detailed development planning, application of energy saving technologies,
harmonious  interior  planning  of  buildings,  the  use of  ecologically  clean
construction and finishing  materials  (preferably locally sourced or produced),
as well as a responsible approach to building management.

Market overview
---------------

"Green," eco-friendly building materials and household products.
----------------------------------------------------------------

Quite a bit of attention has been focused  lately on the issue of green building
materials.  What makes a given product "green"? How do you evaluate the relative
greenness of different products? How do you find green products?

In compiling  any  directory  of green  building  products,  the authors have to
figure out what qualifies a product for inclusion. Standards and thresholds have
evolved over time and  criteria  which  determine  how green any product is will
continue to change,  and as they do, the  products  included in the  category of
green and eco-friendly will evolve constantly.

The Holy Grail of the green  building  movement would be a database in which the
life-cycle  environmental  impacts of different  materials were fully quantified
and the impacts  weighted so that a designer could easily see which material was
better  from an  environmental  standpoint.  Experts in this field are trying to
weigh,  for  example,  the  resource-extraction  impacts of one product with the
manufacturing impacts of another, and the indoor-air-quality impacts of a third.

In building a house or office building, a great many materials and products will
be used.  Even in the greenest of projects it is likely that many  products will
be used that are not  themselves  green-but they are used in a manner that helps
reduce the overall environmental impact of the building. A particular window may
not be green, but the way it is used maximizes collection of low winter sunlight
and blocks the summer sun.  So even a  relatively  conventional  window can help
make a house green.  Creating a green  building  means matching the products and
materials to the specific design and site to minimize the overall  environmental
impact.

Green products  could be used in inefficient  ways that result in buildings that
are far from environmentally responsible. In a well-thought-out building design,
however,  substituting  green  products for  conventional  products can make the
difference between a good building and a great one.

It is important to note that multiple  criteria  often apply - in other words, a
product may be considered green for more than one reason. Take recycled plastic

                                        6
<page>


lumber,  for example:  it's made from recycled waste, it's highly durable and it
can obviate the need for pesticide treatments.  Straw particleboard products are
made from  agricultural  waste  materials,  and they are free from  formaldehyde
offgassing.  A product with multiple  benefits  could qualify to be green on the
basis  of its  overall  environmental  performance,  even if it  doesn't  meet a
threshold  in any one  category  alone.  Conversely,  a product with one or more
green attributes might not qualify if it also carries significant  environmental
burdens.  For example,  wood treated with toxic  preservatives has advantages in
terms of  durability,  but it would not be  considered  green due the health and
environmental hazards it represents.

There are  several  factors  used to  designate  building  products  as green or
eco-friendly.

1. Products  Made  with  Salvaged, Recycled  or Agricultural  Waste Content. The
   materials  used  to produce a building product-and where those materials came
   from-is a key determinant of green.

2. Products That Conserve Natural Resources
      - Products that reduce material use
      - Products with exceptional  durability or low maintenance  requirements
      - Certified wood products
      - Rapidly renewable products

3. Products That Avoid Toxic or Other Emissions
      - Natural or minimally processed products
      - Alternatives to ozone-depleting substances
      - Alternatives to hazardous products
      - Products that reduce or eliminate  pesticide  treatments
      - Products that reduce stormwater pollution
      - Products that reduce impacts from construction or demolition  activities
      - Products that reduce pollution or waste from operations

4. Products That Save Energy or Water
      - Building components that reduce heating and cooling loads
      - Equipment that conserves energy and manages loads
      - Renewable energy and fuel cell equipment
      - Fixtures and equipment that conserve water

5. Products That Contribute to a Safe, Healthy Built Environment
      - Products that do not release significant pollutants into the building
      - Products that block the introduction, development, or spread  of  indoor
        contaminants
      - Products that remove indoor pollutants
      - Products that warn occupants of health hazards in the building
      - Products that improve light quality
      - Products that help control noise

Target market
-------------

In the past, as far as real estate was concerned,  the outskirts of major cities
such as Moscow,  Saint  Petersburg and others were  primarily  areas where urban
dwellers purchased recreational properties.

Recently,  as the middle class gets pushed out by the cities'  high  real-estate
prices, more and more people are looking to new developments outside  the  urban

                                        7
<page>

areas and major cities for  affordable  housing with similar  levels of quality.
Developers  are also  beginning to show more interest in the regions that lie in
close proximity to urban centers. Apart from a few districts on the outskirts of
the city, Moscow has little free land left for mass housing  development.  It is
also a lot  easier  from an  administrative  point  of  view to get  land in the
regional,  rural areas: The smaller the plot of land involved,  the easier it is
to get authorization from the district authorities for development.

Another  advantage of regional,  rural  developments  is that developers are not
limited by the  restrictions of district urban  development  plans as in Moscow.
Many of Moscow's  satellite  cities either do not have such plans, or those they
do have are now  hopelessly  outdated.  This means that  developers  are free to
build without red tape from the district authorities.

The big housing-construction groups in Moscow, such as DSK-1, are now developing
the regional market by building new housing in the outskirts of the city.  Urban
dwellers looking to purchase a home but unable or not wanting to buy a house are
starting to look at condominium  developments in exclusive rural areas,  such as
Zhukovka or Barvikha.  Experts say this segment's potential remains untapped and
is only now starting to gain attention.

Townhouse  settlements are a growing  segment in Russian  housing  market.  They
combine  the  advantages  of  individual  houses  with the  comforts  of upscale
apartments. Townhouses built by the MIEL-Nedvizhimost agency at Barvikha-2 enjoy
stable  demand,  realtors  say,  and sell for  $3,000  and up per sq.  meter.  A
property of similar  characteristics  within Moscow would cost at least twice as
much.

Satellite towns that are unpolluted and offer good-quality  nonstandard  housing
projects have become  increasingly  popular.  So far,  however,  they offer only
scattered  stand-alone houses rather than developed districts with the necessary
range of infrastructure features.

Housing districts such as the northwest of Moscow,  built in a protected natural
enclave,  is the  pride  and  joy  of  the  city's  Department  of  Construction
Investment  Program.  This  district  is also  getting a lot of  attention  from
potential buyers. Of the 790 hectares in the project, 273 have been kept as they
were and sport  hillsides,  birch and oak groves and clean springs.  Many buyers
are  attracted  by the good  transportation  links in such  developments,  clean
environment and quality housing.

Slightly farther from the city center,the Novorizhskoe area is the up-and-comer,
burgeoning  with new  developments.  There are now 350 gated  communities on the
market  in  Russia,  about  half in the  Novorizhskoe  region  that is 16  mile,
northwest of Moscow in  Novorizhskoe's  Istra district.  A different  concept of
luxury is being  introduced in that area.  The major  indicator of luxury is now
considered to be green  development.  Now, the luxury does not mean over the top
excessive use of glitzy,  extravagant building materials but rather constructing
buildings with natural  materials  such as wood and stone,  using recycled water
and trying to use alternative energy sources.  Currently  various-stage projects
based on the green  development  principle are being  launched.  In near future,
several  companies  plan to launch brand new projects on the Russian market - an
ECO2 (`double eco') estate community. It is based on the principle of creating a
natural habitat featuring ecological purity and economic availability.

There are many active players in the market of development of new eco-friendly

                                        8

<page>

housing projects. Amongst them are INCOM, RODEX Group, Open Investments, Sapsan,
Alterwest,  Magistral,  Witstroy co., Agroimpex,  Capital Story, Kores Story and
Masshtab. Modern energy, resource economy and eco-friendly technologies are very
much demanded in all types of dwellings from cottages to residential apartments.
It is expected that these solutions will be implemented both for erection of new
buildings and during planned renovation of old ones.


Patent, Trademark,License and Franchise Restrictions and Contractual Obligations
and Concessions
--------------------------------------------------------------------------------
We currently have no pending or provisional patents or trademark applications.


Research and Development Activities
-----------------------------------
Other than time spent  researching  our proposed  business we have not spent any
funds on research and  development  activities to date. We do not currently plan
to spend any funds on research and development activities in the future.


Compliance with Environmental Laws
----------------------------------
We are not aware of any  environmental  laws that have been enacted,  nor are we
aware of any such laws being  contemplated  for the future,  that impact  issues
specific to our business.


Employees
---------
We have no full-time  employees at the present time. Our officers and Directors,
are responsible for all planning,  developing and operational  duties,  and will
continue to do so throughout the early stages of our growth.

We  have  no  intention  of  hiring   employees  until  the  business  has  been
successfully  launched  and  we  have  sufficient,  reliable  revenue  from  our
operations.  Our officers  and  Directors  are  planning to do whatever  work is
required until our business to the point of having positive cash flow. We do not
expect to hire any employees during the coming fiscal year.


Reports to Securities Holders
-----------------------------
We provide an annual report that includes audited  financial  information to our
shareholders.  We will make our financial  information  equally available to any
interested parties or investors through compliance with the disclosure rules for
a small  business  issuer  under the  Securities  Exchange  Act of 1934.  We are
subject to disclosure filing requirements including filing Form 10K annually and
Form 10Q  quarterly.  In  addition,  we will file  Form 8K and  other  proxy and
information  statements  from  time to time as  required.  We do not  intend  to
voluntarily file the above reports in the event that our obligation to file such
reports is suspended  under the  Exchange  Act. The public may read and copy any
materials that we file with the Securities and Exchange Commission,  ("SEC"), at
the SEC's Public  Reference Room at 100 F Street NE,  Washington,  DC 20549. The
public may obtain  information on the operation of the Public  Reference Room by
calling  the  SEC  at  1-800-SEC-0330.   The  SEC  maintains  an  Internet  site
(http://www.sec.gov)  that contains reports,  proxy and information  statements,
and other information regarding issuers that file electronically with the SEC.



                                        9

<page>

ITEM 1A. RISK FACTORS

INDUSTRY RISK FACTORS
---------------------

We are  susceptible  to  general  economic  conditions,  and a  downturn  in our
industries or a reduction in spending by consumers  could  adversely  affect our
operating results.
-------------------------------------------------------------------------------
The  construction  materials  and  household  supplies  industry  in general has
historically  been  characterized  by a high degree of volatility and subject to
substantial  cyclical  variations.  Our  operating  results  will be  subject to
fluctuations based on general economic conditions, in particular conditions that
impact consumer spending and construction and industrial activity. A downturn in
the  construction,  industrial or housing  sectors could be expected to directly
and negatively  impact sales of our portfolio  products in these sectors,  which
could cause a decrease in revenue and harm our sales.

Difficult  economic  conditions could also increase the risk of extending credit
to our  distributors  and  retailers.  In the  event we enter  into a  factoring
relationship, a customer's financial problems would limit the amount of customer
receivables  that we could assign to such factor on the  receivables,  and could
cause us to assume more credit risk relating to those assigned receivables or to
curtail business with that customer.


Our international operations are subject to political and economic risks.
-------------------------------------------------------------------------
We expect that most of our sales will be generated outside the United States. We
will be  accordingly  subject to a number of risks  relating  to doing  business
internationally, any of which could significantly harm our business, including:

   - political and economic  instability;
   - inflation;
   - exchange controls and currency exchange rates;
   - foreign tax treaties and policies; and
   - restrictions on the transfer of funds to and from foreign countries.

Our financial  performance on a U.S. dollar denominated basis is also subject to
fluctuations in currency  exchange  rates.  These  fluctuations  could cause our
results of operations to vary materially.

From time to time, we may enter into agreements seeking to reduce the effects of
our exposure to currency fluctuations, but these agreements may not be effective
in reducing our exposure to currency  fluctuations  or may not be available at a
cost effective price. We are not currently entered into any of these agreements.


We operate in very competitive  markets and may be unable to compete effectively
in  the  worldwide  building  construction   materials  and  household  supplies
industry.
--------------------------------------------------------------------------------
Competition  in the  building  construction  materials  and  household  supplies
retailing industry is intense. We face a variety of competitive  challenges from
domestic and  international  retailers,  including a number of competitors  that
have  substantially  greater  financial and marketing  resources than we do. The
principal  competitive  factors include quality and assortment of product lines,
product price,  schedules and reliability of delivery, and the range and quality
of customer services. Due to limited financing, and fierce competition from

                                       10
<page>

multinational  wholesalers and retailers we may not be able to generate revenues
and will have to cease operations.  In addition, it is possible that mass-market
discount  retailers  will increase  their  investment  and enclose  eco-friendly
building materials and household  supplies in their retail  operations,  thereby
achieving  greater  market  penetration  and  placing   additional   competitive
pressures on our business.

The wholesale building  construction  materials and household supplies market is
highly  competitive  with few  barriers to entry.  We compete  against a diverse
group of international  wholesalers and retailers offering eco-friendly lines of
products, e.g. "Auchan-Rossia" a division of Auchan, the French retailer who has
opened its 30th store in Russia in September 2008, among many others. In France,
Auchan has launched a new range of "eco-friendly" household cleaning products in
February of 2007, and is planning to add the assortment of these products on the
Russian market.

Many of our  competitors  are  larger  than us and  have  substantially  greater
resources  than us and,  as a  result,  may be able to  adapt  more  quickly  to
changing  market  conditions  and exploit  new  opportunities  and supply  their
products  more quickly and  effectively  than us. Many of these  retailers  have
better  name  recognition  among  consumers  and  purchase   significantly  more
merchandise from vendors.


Our dependence on independent  manufacturers  reduces our ability to control the
quality,  price and  shipment of the  products we re-sell,  which could harm our
sales, reputation and overall profitability.
--------------------------------------------------------------------------------
We will depend on  independent  contract  manufacturers  to maintain  sufficient
manufacturing and shipping capacity in an environment characterized by declining
prices,  labor  shortages,  continuing  cost pressure and increased  demands for
product  innovation and  speed-to-market.  This  dependence  could subject us to
difficulty in obtaining  timely delivery of products of acceptable  quality.  In
addition, a contractor's failure to ship products to us in a timely manner or to
meet the required  quality  standards  could cause us to miss the delivery  date
requirements of our customers.  The failure to make timely  deliveries may cause
our  customers  to  cancel  orders,   refuse  to  accept    deliveries,   impose
non-compliance charges through invoice deductions or other charge-backs,  demand
reduced  prices or reduce  future  orders,  any of which  could  harm our sales,
reputation  and  overall  profitability.  We will  depend  on third  parties  to
transport and deliver the products we will  re-sell.  Due to the fact that we do
not have any independent  transportation or delivery capabilities of our own, if
these third parties are unable to transport or deliver our  merchandise  for any
reason,  or if they increase the price of their services,  including as a result
of increases in the cost of fuel, our operations and financial  performance  may
be adversely affected.

We currently do not have long-term  agreements  with any of our potential  brand
manufacturers,  and any of these manufacturers may unilaterally  terminate their
relationship  with  us at any  time in the  future.  There  is also  substantial
competition among wholesalers for quality brand manufacturers.  To the extent we
are unable to secure or maintain relationships with quality brand manufacturers,
our business could be harmed.


COMPANY RISK FACTORS
--------------------

                                       11

<page>

We lack an operating  history and have losses  which we expect to continue  into
the  future.  There  is no  assurance  our  future  operations  will  result  in
profitable  revenues.  If we cannot  generate  sufficient  revenues  to  operate
profitably, our business will fail.
--------------------------------------------------------------------------------
We were  incorporated  on  December  21,  2006,  and we have  not  realized  any
revenues.  We have very little operating history upon which an evaluation of our
future success or failure can be made. Our net loss since  inception on December
21, 2006, to September 30, 2008, is $14,354. Based upon current plans, we expect
to incur  operating  losses  in  future  periods  because  we will be  incurring
expenses  and not  generating  revenues.  We  cannot  guarantee  that we will be
successful in generating  revenues in the future.  Failure to generate  revenues
will cause us to go out of business.


There is substantial  uncertainty as to whether we will continue operations.  If
we discontinue operations, you could lose your investment.
--------------------------------------------------------------------------------
Our registered  independent auditors have discussed their uncertainty  regarding
our business operations in their audit report dated November 6, 2008. This means
that there is substantial  doubt that we can continue as an ongoing business for
the next 12 months. The financial statements do not include any adjustments that
might result from the uncertainty about our ability to continue in business.  As
such, we may have to cease operations and you could lose your entire investment.


We depend on key personnel.
---------------------------
Our  future  success  will  depend  in  part  on the  continued  service  of key
personnel,  particularly  Vasili  Borisov,  our  President  and Chief  Executive
Officer, and Nadezda Bulicheva,  our Chief Financial Officer. Our future success
will also depend on our ability to attract and retain key managers, sales people
and  others.  We face  intense  competition  for  these  individuals  from  well
established multinational, national and regional wholesale and retail companies.
We may not be  able to  attract  qualified  new  employees  or  retain  existing
employees, which may have a material adverse effect on our results of operations
and financial condition.


Because our management does not have prior experience in the building  materials
and household  supplies  wholesale  industry,  our business has a higher risk of
failure.
--------------------------------------------------------------------------------
Our  Directors do not have  experience  in the building  materials and household
supplies  wholesale  industry.  As a result, we may not be able to recognize and
take advantage of opportunities  without the aid of qualified  marketing,  sales
and business development  consultants.  Our Directors' decisions and choices may
not be well thought out and our  operations,  earnings  and  ultimate  financial
success may suffer irreparable harm as a result.


We have filed a  Registration  Statement on the Form S-1 with the Securities and
Exchange  Commission to register  minimum of 4,000,000 and maximum of 50,000,000
shares of common stock,  which become effective on October 28, 2008. Because our
Directors will own 55.56% of our outstanding common stock, if the minimum amount
of the offering will be sold,  they could make and control  corporate  decisions
that may be disadvantageous to other minority shareholders.
--------------------------------------------------------------------------------

                                       12

<page>

As of the date of this annual report we have not sold any shares of common stock
pursuant to the Registration Statement on the Form S-1 filed with the Securities
and Exchange  Commission on October 14, 2008. Our Directors,  Vasili Borisov and
Nadezda Bulicheva,  own 100% of the outstanding shares of our common stock as of
the date of this annual  report.  If minimum  amount of the shares will be sold,
our Directors will own 55.56% of our outstanding common stock. Accordingly, they
will have a significant  influence in  determining  the outcome of all corporate
transactions or other matters, including mergers, consolidations and the sale of
all or substantially all of our assets. They will also have the power to prevent
or cause a change in control. The interests of our Directors may differ from the
interests of the other stockholders and thus result in corporate  decisions that
are disadvantageous to other shareholders.


We do not intend to pay  dividends and there will be fewer ways in which you can
make a gain on any investment in Elevated Concepts, Inc.
--------------------------------------------------------------------------------
We have never paid any cash  dividends  and  currently  do not intend to pay any
dividends for the foreseeable  future. To the extent that we require  additional
funding  currently not provided for in our financing  plan, our funding  sources
may  likely  prohibit  the  payment of a  dividend.  Because we do not intend to
declare  dividends,  any gain on an investment in Elevated Concepts will need to
come through appreciation of the stock's price.


Failure to achieve and maintain  effective  internal controls in accordance with
section 404 of the  Sarbanes-Oxley  Act could have a material  adverse effect on
our business and operating results.
--------------------------------------------------------------------------------
It may be time  consuming,  difficult and costly for us to develop and implement
the additional internal controls, processes and reporting procedures required by
the  Sarbanes-Oxley  Act. We may need to hire  additional  financial  reporting,
internal  auditing  and other  finance  staff in order to develop and  implement
appropriate additional internal controls, processes and reporting procedures. If
we are unable to comply with these  requirements of the  Sarbanes-Oxley  Act, we
may not be able to obtain the  independent  accountant  certifications  that the
Sarbanes-Oxley Act requires of publicly traded companies.

If we fail to comply in a timely manner with the  requirements of Section 404 of
the Sarbanes-Oxley Act regarding internal control over financial reporting or to
remedy any material  weaknesses  in our internal  controls that we may identify,
such failure could result in material misstatements in our financial statements,
cause  investors to lose  confidence in our reported  financial  information and
have a negative effect on the trading price of our common stock.

Pursuant to Section 404 of the  Sarbanes-Oxley  Act and current SEC regulations,
beginning  with our  annual  report on Form 10-K for our  fiscal  period  ending
September  30,  2007,  we will be  required  to  prepare  assessments  regarding
internal controls over financial  reporting and beginning with our annual report
on Form 10-K for our fiscal period ending  September 30, 2008,  furnish a report
by our  management on our internal  control over  financial  reporting.  We have
begun the process of documenting and testing our internal control  procedures in
order to  satisfy  these  requirements,  which is likely to result in  increased
general and administrative  expenses and may shift management time and attention
from   revenue-generating   activities  to  compliance  activities.   While  our
management  is expending  significant  resources  in an effort to complete  this
important project, there can be no assurance that we will be able to achieve our
objective on a timely basis.  There also can be no assurance that our registered
independent   auditors  will  be  able  to  issue  an  unqualified   opinion  on
management's assessment of the
                                       13

<page>

effectiveness  of our internal  control  over  financial  reporting.  Failure to
achieve and maintain an effective  internal control  environment or complete our
Section 404  certifications  could have a material  adverse  effect on our stock
price.

In addition,  in connection with our on-going assessment of the effectiveness of
our  internal  control  over  financial  reporting,  we may  discover  "material
weaknesses" in our internal controls as defined in standards  established by the
Public Company Accounting  Oversight Board, or the PCAOB. A material weakness is
a significant  deficiency,  or  combination of  significant  deficiencies,  that
results in more than a remote  likelihood  that a material  misstatement  of the
annual or interim  financial  statements will not be prevented or detected.  The
PCAOB defines "significant deficiency" as a deficiency that results in more than
a remote likelihood that a misstatement of the financial statements that is more
than inconsequential will not be prevented or detected.

In the event that a material  weakness is identified,  we will employ  qualified
personnel  and adopt and  implement  policies  and  procedures  to  address  any
material  weaknesses  that we identify.  However,  the process of designing  and
implementing effective internal controls is a continuous effort that requires us
to  anticipate  and  react to  changes  in our  business  and the  economic  and
regulatory environments and to expend significant resources to maintain a system
of internal controls that is adequate to satisfy our reporting  obligations as a
public  company.  We  cannot  assure  you that the  measures  we will  take will
remediate any material weaknesses that we may identify or that we will implement
and maintain  adequate  controls over our financial process and reporting in the
future.  Any failure to complete our  assessment  of our  internal  control over
financial  reporting,  to remediate any material weaknesses that we may identify
or to implement new or improved controls,  or difficulties  encountered in their
implementation,  could harm our operating results,  cause us to fail to meet our
reporting  obligations  or result in  material  misstatements  in our  financial
statements.  Any such  failure  could also  adversely  affect the results of the
periodic  management  evaluations of our internal controls and, in the case of a
failure  to  remediate  any  material  weaknesses  that we may  identify,  would
adversely  affect  the  annual  auditor   attestation   reports   regarding  the
effectiveness of our internal control over financial reporting that are required
under Section 404 of the Sarbanes-Oxley  Act. Inadequate internal controls could
also cause investors to lose confidence in our reported  financial  information,
which could have a negative effect on the trading price of our common stock.

RISK FACTORS RELATING TO OUR COMMON STOCK
-----------------------------------------

There is no  public  (trading)  market  for our  common  stock  and  there is no
assurance  that the common  stock will ever trade on a  recognized  exchange  or
dealers' network; therefore, our investors may not be able to sell their shares.
--------------------------------------------------------------------------------
Our  common  stock is not  listed  on any  exchange  or  quoted  on any  similar
quotation service, and there is currently no public market for our common stock.
As of the date of this  annual  report we have not taken any steps to enable our
common  stock  to be  quoted  on the OTC  Bulletin  Board,  and can  provide  no
assurance that our common stock will ever be quoted on any quotation  service or
that  any  market  for  our  common  stock  will  ever  develop.  As  a  result,
stockholders  may be unable to liquidate  their  investments,  or may  encounter
considerable  delay in selling  shares of our common  stock.  Neither we nor our
selling  stockholders  have engaged an underwriter for the Offering  pursuant to
the Registration Statement on the Form S-1 filed in October of 2008 with the

                                       14

<page>

Securities and Exchange Commission,  and we cannot assure you that any brokerage
firm will act as a market  maker of our  securities.  A trading  market  may not
develop in the future, and if one does develop,  it may not be sustained.  If an
active  trading  market does  develop,  the market  price of our common stock is
likely to be highly  volatile  due to,  among  other  things,  the nature of our
business  and  because  we are a new  public  company  with a limited  operating
history. Further, even if a public market develops, the volume of trading in our
common  stock will  presumably  be  limited  and  likely be  dominated  by a few
individual stockholders.  The limited volume, if any, will make the price of our
common  stock  subject  to  manipulation  by one or more  stockholders  and will
significantly  limit the  number of shares  that one can  purchase  or sell in a
short period of time.  The market  price of our common stock may also  fluctuate
significantly in response to the following factors, most of which are beyond our
control:

     -  variations in our quarterly operating results;
     -  changes in general economic conditions and in the building materials and
        household supplies wholesale industry;
     -  announcements by us or our competitors of significant new contracts,
        acquisitions,  strategic partnerships or joint ventures, or capital
        commitments;
     -  loss of a major customer, partner or joint venture participant; and
     -  the addition or loss of key managerial and collaborative personnel.

The equity markets have, on occasion,  experienced  significant price and volume
fluctuations that have affected the market prices for many companies' securities
and that  have  often  been  unrelated  to the  operating  performance  of these
companies.  Any such  fluctuations  may adversely affect the market price of our
common  stock,  regardless  of our actual  operating  performance.  As a result,
stockholders  may be unable to sell their shares,  or may be forced to sell them
at a loss.


You could be diluted from our future  issuance of capital  stock and  derivative
securities.
--------------------------------------------------------------------------------
As of the date of this annual  report we had  5,000,000  shares of common  stock
outstanding and no shares of preferred stock  outstanding.  We are authorized to
issue up to 75,000,000  shares of common stock and no shares of preferred stock.
To the  extent  of such  authorization,  our  Board of  Directors  will have the
ability,  without seeking  stockholder  approval,  to issue additional shares of
common  stock or  preferred  stock in the future for such  consideration  as the
Board of Directors may consider  sufficient.  The issuance of additional  common
stock or preferred stock in the future may reduce your  proportionate  ownership
and voting power.


Once  publicly  trading,  the  application  of the  "Penny  Stock"  rules  could
adversely  affect  the  market  price of our common  shares  and  increase  your
transaction costs to sell those shares.  The Securities and Exchange  Commission
has adopted Rule 3A51-1,  which  establishes  the definition of a "Penny Stock,"
for the purposes relevant to us, as any equity security that has market price of
less than  $5.00 per share or within an  exercise  price of less than  $5.00 per
share,  subject to certain  exceptions.  For any  transaction  involving a penny
stock, unless exempt, Rule 15G-9 require:
--------------------------------------------------------------------------------
     -  that a broker or dealer approve a person's account for transactions in
        penny stocks; and


                                       15

<page>

     -  the  broker  or dealer  receive from the investor a written agreement to
        the  transaction,  setting  forth the identity and quantity of the penny
        stock to be purchased.

In order to approve a person's  account for  transactions  in penny stocks,  the
broker or dealer must:

     -  obtain financial information and investment experience objectives of the
        person; and

     -  make a reasonable  determination  that the  transactions in penny stocks
        are suitable for that person and the person has sufficient knowledge and
        experience in financial matters to be capable of evaluating the risks of
        transactions in penny stocks.

The broker or dealer  must also  deliver,  prior to any  transaction  in a penny
stock, a disclosure  schedule  prescribed by the SEC relating to the penny stock
market, which, in highlight form:

     -  sets forth the basis on which the broker or dealer made the suitability
        determination; and

     -  that the broker or dealer received a signed,  written agreement from the
        investor prior to the transaction.

     -  Generally,  brokers  may be less  willing  to  execute  transactions  in
        securities  subject to the "penny  stock"  rules.  This may make it more
        difficult  for  investors  to dispose  of our  common  stock and cause a
        decline in the market value of our stock.


Volatility   in  our  common   share   price  may   subject  us  to   securities
litigation,thereby  diverting our resources  that may have a material  effect on
our profitability and results of operations.
--------------------------------------------------------------------------------
We expect the market for our common shares to be  characterized  by  significant
price volatility when compared to seasoned issuers, and we expect that our share
price  will  continue  to be  more  volatile  than a  seasoned  issuer  for  the
indefinite future. In the past, plaintiffs have often initiated securities class
action  litigation  against a company  following  periods of  volatility  in the
market  price of its  securities.  We may in the future be the target of similar
litigation.   Securities  litigation  could  result  in  substantial  costs  and
liabilities and could divert management's attention and resources.


We will incur increased costs as a result of being a public company, which could
affect our profitability and operating  results.
--------------------------------------------------------------------------------
The Sarbanes-Oxley Act of 2002 and the new rules subsequently implemented by the
Securities and Exchange  Commissions,  the NASDAQ National Market and the Public
Company  Accounting  Oversight  Board have imposed  various new  requirements on
public companies, including requiring changes in corporate governance practices.
We expect  these  rules and  regulations  to  increase  our legal and  financial
compliance  costs and to make some  activities more  time-consuming  and costly.
These costs could affect profitability and our results of operations.

ITEM 2. PROPERTIES

We do not hold ownership or leasehold interest in any property.

                                       16

<page>

ITEM 3. LEGAL PROCEEDINGS

We are not currently a party to any legal  proceedings,  and we are not aware of
any pending or potential legal actions.

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

No matters were  submitted to a vote of security  holders during the fiscal year
ended September 30, 2008.

                                     PART II


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

(a) Market Information

Our  common  stock is not  listed  on any  exchange  or  quoted  on any  similar
quotation service, and there is currently no public market for our common stock.
As of the date of this  annual  report we have not taken any steps to enable our
common  stock  to be  quoted  on the OTC  Bulletin  Board,  and can  provide  no
assurance that our common stock will ever be quoted on any quotation  service or
that any market for our common stock will ever develop.

(b) Holders of Common Stock

We have 2  shareholders  of  record,  and  5,000,000  shares  outstanding  as of
December 22, 2008.

(c) Dividends

There are no  restrictions  in our  articles  of  incorporation  or bylaws  that
prevent us from declaring  dividends.  The Nevada Revised Statutes,  however, do
prohibit  us  from  declaring  dividends  where,  after  giving  effect  to  the
distribution of the dividend:

      1. we  would  not be able to pay our debts as they become due in the usual
         course of business; or

      2. our total  assets  would be less than the sum of our total  liabilities
         plus  the  amount  that  would be  needed  to  satisfy  the  rights  of
         shareholders who have  preferential  rights superior to those receiving
         the distribution.

We have not declared any dividends,  and we do not plan to declare any dividends
in the foreseeable future.


(d) Securities Authorized for Issuance under Equity Compensation Plans

There are no  outstanding  grants or rights or any equity  compensation  plan in
place.

Recent Sales of Unregistered Securities
---------------------------------------
We completed an offering of 5,000,000 shares of our common stock at a price of

                                       17

<page>

$0.001  per  share to our  Directors  Vasili  Borisov  (2,500,000)  and  Nadezda
Bulicheva  (2,500,000),  on June 30, 2008.  The total amount  received from this
offering was $5,000.  We completed this offering pursuant to Regulation S of the
Securities Act.

We have filed a  Registration  Statement on the Form S-1 with the Securities and
Exchange  Commission to register  minimum of 4,000,000 and maximum of 50,000,000
shares of common  stock,  which become  effective on October 28, 2008. As of the
date of this  annual  report  we have not sold any  shares of our  common  stock
pursuant to this Registration Statement.

The offer and sale of all shares of our common stock listed above were  affected
in reliance on the  exemptions  for sales of  securities  not involving a public
offering, as set forth in Regulation S promulgated under the Securities Act. The
Investor  acknowledged the following:  Subscriber is not a United States Person,
nor is the  Subscriber  acquiring  the Shares  directly  or  indirectly  for the
account  or  benefit of a United  States  Person.  None of the funds used by the
Subscriber to purchase the Units have been obtained from United States  Persons.
For purposes of this  Agreement,  "United  States  Person" within the meaning of
U.S. tax laws, means a citizen or resident of the United States, any former U.S.
citizen subject to Section 877 of the Internal Revenue Code, any corporation, or
partnership organized or existing under the laws of the United States of America
or any state,  jurisdiction,  territory or possession  thereof and any estate or
trust the income of which is subject to U.S.  federal income tax irrespective of
its source,  and within the meaning of U.S.  securities laws, as defined in Rule
902(o) of Regulation  S, means:  (i) any natural  person  resident in the United
States; (ii) any partnership or corporation  organized or incorporated under the
laws  of  the  United  States;  (iii)  any  estate  of  which  any  executor  or
administrator  is a U.S.  person;  (iv) any trust of which any trustee is a U.S.
person;  (v) any  agency or branch of a foreign  entity  located  in the  United
States;  (vi) any  non-discretionary  account or similar  account (other than an
estate or trust) held by a dealer or other  fiduciary for the benefit or account
of a U.S. person; (vii) any discretionary account or similar account (other than
an estate or trust) held by a dealer or other fiduciary organized, incorporated,
or (if an individual)  resident in the United States; and (viii) any partnership
or  corporation  if organized  under the laws of any foreign  jurisdiction,  and
formed by a U.S.  person  principally for the purpose of investing in securities
not registered under the Securities Act, unless it is organized or incorporated,
and owned,  by  accredited  investors  (as  defined in Rule  501(a)) who are not
natural persons, estates or trusts.

There have been no other issuances of common or preferred stock.

Issuer Purchases of Equity Securities
-------------------------------------
We did not  repurchase  any of our  equity  securities  during  the years  ended
September 30, 2008 or 2007.


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

Our Current Business
--------------------
We were formed on December 21, 2006.  Our plan is to export and sell green, eco-

                                       18

<page>

friendly,  biodegradable,  non-toxic  household  products and building materials
used in housing  construction  and home  renovation  in the emerging  markets of
Russia,  Ukraine  and other  Eastern  European  countries  from  North  American
manufacturers.

Short-term plan
---------------

Our short-term plan (next 12 months) is to do a market test and determine a list
of  perspective  products  that we want to  introduce  to  Russian  and  Eastern
European market. Once the market is tested and product lines are determined,  we
will start  selling the products to potential  buyers.  Initially,  we intend to
concentrate on two main concepts of green and environmentally  friendly building
products when determining our portfolio.

     1) Products That Contribute to a Safe, Healthy Built Environment
        --------------------------------------------------------------

        Buildings  should be healthy to live or work in and around,  and product
        selection is a significant  determinant of indoor  environment  quality.
        Green building  products that help to ensure a healthy built environment
        can be separated into several categories:

        - Products that do not release significant  pollutants into the building
          such as zero- and low-VOC paints,  caulks,  and adhesives,  as well as
          products with very low emissions, such as nonformaldehyde manufactured
          wood products.

        - Products that block the introduction, development, or spread of indoor
          contaminants.  Certain  materials  and products are green because they
          prevent the  generation  or  introduction  of  pollutants,  especially
          biological  contaminants,   into  occupied  space.  Duct  mastic,  for
          example,  can block the entry of mold-laden  air or insulation  fibers
          into a duct system.  "Track-off"  systems for entryways help to remove
          pollutants    from   the    shoes   of   people    entering.    Coated
          ductboard--compared with standard rigid fiberglass ductboard--prevents
          fiber  shedding and helps control mold growth.  And linoleum  helps to
          control  microbial  growth because of the ongoing  process of linoleic
          acid oxidation.

        - Products that help control noise. Noise pollution both from indoor and
          outside  sources  adds to  stress  and  discomfort.  A wide  range  of
          products  are  available  to  help  absorb  noise,   prevent  it  from
          spreading,  masking it and even  reducing  it with  sound-cancellation
          technologies.

        - Products  that  reduce or  eliminate  pesticide  treatments.  Periodic
          pesticide  treatment around buildings can be a significant  health and
          environmental hazard. The use of certain products can obviate the need
          for pesticide  treatments,  and such products are therefore considered
          green.  Examples  include physical  termite  barriers,  borate-treated
          building  products  and  bait  systems  that  eliminate  the  need for
          broad-based pesticide application.

     2) Products That Avoid Toxic or Other Emissions:
        ---------------------------------------------


                                       19

<page>

        - Alternatives to hazardous  products.  Some materials  provide a better
          alternative  in an  application  dominated by products for which there
          are concerns about toxic constituents, intermediaries, or by-products.

        - Also included here are  alternatives to products made with chlorinated
          hydrocarbons  such as polyvinyl  chloride  (PVC) and  brominated  fire
          retardants.

        - Natural or minimally  processed  products -- Products that are natural
          or minimally  processed can be green because of low energy use and low
          risk of chemical releases during  manufacture.  These can include wood
          products,  agricultural or nonagricultural plant products, and mineral
          products such as natural stone and slate shingles.

We plan to create our  portfolio  of these  products  by sourcing  them  through
industry  trade  shows,   directly  contacting  North  American   manufacturers,
searching through construction industry publications, ads and referrals. Once we
determine the list of products we will contact  distributors of construction and
household  materials in Moscow and Saint  Petersburg for the purpose of sale and
distribution of our portfolio products.

Long-term plan
--------------
There are three key elements of our long term plan (next five years):

 1) Expand our portfolio by diversifying our offerings with innovative new
    American brands
 2) Introduce new product categories including energy efficient lightning and
    energy efficient appliances
 3) Expand sales territories, increase number of distributors and uncover new
    distribution channels


RESULTS OF OPERATIONS

The  following is a discussion  and analysis of our results of operation for the
year ended  September  30,  2008,  and the factors  that could affect our future
financial condition.  This discussion and analysis should be read in conjunction
with our audited financial  statements and the notes thereto included  elsewhere
in this annual report. Our financial  statements are prepared in accordance with
United States generally accepted accounting principles. All references to dollar
amounts in this section are in United States  dollars  unless  expressly  stated
otherwise.


Financial Data Summary
----------------------
                                         Year             December 21, 2006
                                         Ended           (Inception) Through
                                      September 30,          September 30,
                                         2008                    2007
                                        ------                  -----
Revenue                                $        -             $       -
General and Administrative Expenses    $   10,823                 3,531
                                       ----------             ---------
Net Loss                               $   10,823             $   3,531
                                       ==========             =========

                                       20

<page>

Revenue
-------
We have not generated any revenues during the year ended September 30, 2008, and
period from inception  through  September 30, 2007, and incurred  losses for the
same years of $10,823 and $3,531 respectively.


Operating Costs and Expenses
----------------------------

The major  components of our expenses for the year ended September 30, 2008, and
for the period from December 21, 2006,  (Inception)  through September 30, 2007,
are outlined in the table below:

                                         Year             December 21, 2006
                                         Ended           (Inception) Through
                                      September 30,          September 30,
                                         2008                    2007
                                        ------                  -----

   Accounting and audit fees           $    6,000             $   3,000
   Depreciation                               351                     9
   General and administrative - Other       1,402                   147
   Legal fees                                 520                     -
   Organization costs                           -                   375
   Rent                                     1,378                     -
   Travel and promotion                     1,172                     -
                                       ----------             ---------
                                       $   10,823             $   3,531
                                       ==========             =========

Operating Expenses

The increase our operating cost for the year ended September 30, 2008,  compared
to the period ended  September 30, 2007,  was due to the increase in general and
administrative  costs,  legal fees,  rent,  travel  expenses and the increase in
professional fees associated with our reporting obligations under the Securities
Exchange Act of 1934. All these  increases are associated to the increase in our
corporate  activities and increase in expenses related to  implementation of our
business plan.


Liquidity and Capital Resources
-------------------------------

Working Capital
---------------
                                         Year             December 21, 2006
                                         Ended           (Inception) Through
                                      September 30,          September 30,
                                         2008                    2007
                                        ------                  -----

Current Assets                         $      858             $       -
Current Liabilities                        12,328                 3,693
                                       ----------             ---------
Working Capital Deficiency             $  (11,470)            $  (3,693)
                                       ===========            ==========

                                       21

<page>

Cash Flows
----------
                                         Year             December 21, 2006
                                         Ended           (Inception) Through
                                      September 30,          September 30,
                                         2008                    2007
                                        ------                  -----

Cash (used in) Operating Activities    $   (7,599)            $    (522)
Cash (used in) Investing Activities        (1,905)                 (171)
Cash provided by Financing Activities      10,362                   693
                                       ----------             ---------
Net Increase in Cash                   $      858             $       -
                                       ==========             =========

As of September 30, 2008, we had current assets  consisting of cash of $858, and
current  liabilities  totaling  $12,328  consisting of trade accounts payable of
$3,273, accrued liabilities of $3,000 and amounts due to related party of $6,055
for a working capital deficiency of $11,470.

If the minimum  amount of the shares will be sold pursuant to our  Offering,  we
will use the  proceeds to pay for our  outstanding,  as of  September  30, 2008,
liabilities of $6,273,  which  represent the following  amounts:  accounting and
audit fees of $3,000,  office  rent of  $1,778,  legal fees of $545,  travel and
promotion expenses of $667, and general and administrative expenditures of $283.
If the  maximum  amount  of the  shares  will be  sold  we  will  pay all of our
outstanding  liabilities  as of  September  30,  2008,  totaling  $12,328  which
represents  current accounts  payable and accrued  liabilities of $6,273 and the
amounts owed to our  Director for expenses  incurred on behalf of the company in
the amount of $6,055.

In the future,  in addition to equity  financing,  we may rely on loans from our
Directors  and  officers  to  continue  our  operations;  however,  there are no
assurances  that  our  Directors  will  provide  us with any  additional  funds.
Currently,  we do not have any arrangements for additional financing.  If we are
not able to obtain needed financing, we may have to cease operations.

Cash Used In Operating Activities
---------------------------------
We used cash in  operating  activities  in the amount of $7,599  during the year
ended  September  30, 2008 and $522 during the period ended  September 30, 2007.
Cash used in operating activities was funded by cash from financing activities.


Cash Used In Investing Activities
---------------------------------
We used cash in  investing  activities  in the amount of $1,905  during the year
ended  September  30, 2008 and $171 during the period ended  September 30, 2007.
These funds were used for purchasing of computer and office equipment. Cash used
in investing activities was funded by cash from financing activities.


Cash from Financing Activities
-------------------------------
From inception to September 30, 2008, the Company has mostly funded its  initial

                                       22

<page>

operations  through  the  issuance  of 5,000,000  shares  of  capital  stock for
proceeds of $5,000 and loans from Directors in the amount of $6,055.

Due to the "start up" nature of our  business,  we expect to incur  losses as it
expands.  To date, our cash flow  requirements have been primarily met by equity
financings and cash advances from the Company's Directors. Management expects to
keep operating costs to a minimum until cash is available  through  financing or
operating  activities.  Management  plans to continue  to seek other  sources of
financing on favorable  terms;  however,  there are no assurances  that any such
financing  can be obtained on  favorable  terms,  if at all. If we are unable to
generate sufficient profits or unable to obtain additional funds for our working
capital needs, we may need to cease or curtail operations. Furthermore, there is
no assurance the net proceeds from any successful financing  arrangement will be
sufficient to cover cash requirements during the initial stages of the Company's
operations.  For these reasons, our registered independent auditors believe that
there is substantial doubt that we will be able to continue as a going concern.

Going Concern
-------------
The audited financial statements for the year ended September 30, 2008, included
in this annual  report,  have been  prepared  on a going  concern  basis,  which
implies that our company will  continue to realize its assets and  discharge its
liabilities  and  commitments in the normal course of business.  Our company has
not generated any revenues since  inception and has never paid any dividends and
is unlikely to pay dividends or generate  substantial  earnings in the immediate
or foreseeable  future.  The  continuation  of our company as a going concern is
dependent  upon the  continued  financial  support  from our  shareholders,  the
ability of our  company to obtain  necessary  equity  financing  to achieve  our
operating  objectives,  and  the  attainment  of  profitable  operations.  As of
September  30,  2008,  our  company  has  accumulated  losses of  $14,354  since
inception.  As we do not have sufficient  funds for our planned  operations,  we
will be required to raise additional funds for operations.

Due to the uncertainty of our ability to meet our current operating expenses and
the  capital  expenses  noted  above,  in their  report on the annual  financial
statements for the year ended  September 30, 2008,  our  registered  independent
auditors included an explanatory  paragraph regarding concerns about our ability
to continue as a going concern. Our financial statements contain additional note
disclosures  describing the  circumstances  that lead to this  disclosure by our
registered independent auditors.

The  continuation  of our  business  is  dependent  upon us  raising  additional
financial  support.  The issuance of  additional  equity  securities by us could
result  in a  significant  dilution  in the  equity  interests  of  our  current
stockholders.   Obtaining  commercial  loans,  assuming  those  loans  would  be
available, will increase our liabilities and future cash commitments.


Future Financings
-----------------
We  anticipate  that  additional  funding will be required in the form of equity
financing  from  the  sale of our  common  stock.  However,  we  cannot  provide
investors  with any assurance that we will be able to raise  sufficient  funding
from the sale of our common stock to fund our marketing plan and operations.  At
this time, we cannot  provide  investors with any assurance that we will be able
to raise sufficient funding from the sale of our common stock or through a loan

                                       23

<page>

from our Directors to meet our  obligations  over the next twelve months.  We do
not have any arrangements in place for any future equity financing.

Off-Balance Sheet Arrangements
------------------------------
We  have  no  significant  off-balance  sheet  arrangements  that  have  or  are
reasonably likely to have a current or future effect on our financial condition,
changes in financial  condition,  revenues or expenses,  results of  operations,
liquidity,  capital  expenditures  or capital  resources  that are  material  to
stockholders.


ITEM 8. FINANCIAL STATEMENTS

Index to the Audited Financial Statements                                   Page
-----------------------------------------                                   ----

Report of Registered Independent Auditors                                    F-2
Balance Sheets                                                               F-3
Statements of Operations                                                     F-4
Statement of Stockholders' Equity                                            F-5
Statements of Cash Flows                                                     F-6
Notes to Financial Statements                                                F-7

















                                       24


<page>


                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          INDEX TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007




Report of Registered Independent Auditors....................................F-2

Financial Statements-

   Balance Sheets as of September 30, 2008, and 2007.........................F-3

   Statements of Operations for the Year Ended September 30, 2008,
     Period Ended September 30, 2007, and Cumulative from Inception..........F-4

   Statement of Stockholders' (Deficit) for the Period from Inception Through
     September 30, 2008......................................................F-5

   Statements of Cash Flows for the Year Ended September 30, 2008,
       Period Ended September 30, 2007, and Cumulative from Inception........F-6

   Notes to Financial Statements September 30, 2008, and 2007................F-7
























                                       F-1

<page>


                   REPORT OF REGISTERED INDEPENDENT AUDITORS



To the Board of Directors and Stockholders
of Elevated Concepts, Inc.:

We have audited the accompanying  balance sheets of Elevated  Concepts,  Inc. (a
Nevada corporation in the development stage) as of September 30, 2008, and 2007,
and the related  statements of  operations,  stockholders'  (deficit),  and cash
flows for the periods then ended,  and cumulative  from inception  (December 21,
2006)  through   September  30,  2008.   These  financial   statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of Elevated Concepts,  Inc. as of
September 30, 2008,  and 2007,  and the results of its  operations  and its cash
flows for the periods ended  September 30, 2008, and 2007,  and cumulative  from
inception  (December  21, 2006) through  September 30, 2008, in conformity  with
accounting principles generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 2 to the
financial  statements,  the  Company is in the  development  stage,  and has not
established any source of revenues to cover its operating costs. As such, it has
incurred  an  operating  loss since  inception.  These and other  factors  raise
substantial  doubt about the Company's  ability to continue as a going  concern.
Management's  plan  regarding  these matters is also  described in Note 2 to the
financial  statements.  The financial  statements do not include any adjustments
that might result from the outcome of this uncertainty.

Respectfully submitted,

/s/ Davis Accounting Group P.C.

Cedar City, Utah,
November 6, 2008.



                                       F-2

<page>


                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             BALANCE SHEETS (NOTE 2)
                       AS OF SEPTEMBER 30, 2008, AND 2007

                                     ASSETS
                                     ------
                                                           2008          2007
                                                       -----------  -----------
Current Assets:
  Cash and cash equivalent                             $       858  $         -
                                                       -----------  -----------
    Total current assets                                       858            -
                                                       -----------  -----------
Property and Equipment:
  Computer equipment                                         2,076          171
  Less - Accumulated depreciation                             (360)          (9)
                                                       -----------  -----------
    Net property and equipment                               1,716          162
                                                       -----------  -----------

Other Assets:
  Security deposit                                             400            -
                                                       -----------  -----------
    Total other assets                                         400            -
                                                       -----------  -----------
Total Assets                                           $     2,974  $       162
                                                       ===========  ===========

                     LIABILITIES AND STOCKHOLDERS' (DEFICIT)
                     ---------------------------------------
Current Liabilities:
  Accounts payable  - Trade                            $     3,273  $         -
  Accrued liabilities                                        3,000        3,000
  Due to related party - Director and stockholder            6,055          693
                                                       -----------  -----------
    Total current liabilities                               12,328        3,693
                                                       -----------  -----------
    Total liabilities                                       12,328        3,693
                                                       -----------  -----------

Commitments and Contingencies

Stockholders' (Deficit):
  Common  stock, par value $0.001 per share,
    75,000,000 shares authorized;
    5,000,000 shares and no shares issued and
    outstanding in 2008 and 2007, respectively               5,000            -
 (Deficit) accumulated during the development stage        (14,354)      (3,531)
                                                       -----------  -----------
    Total stockholders' (deficit)                           (9,354)      (3,531)
                                                       -----------  -----------
Total Liabilities and Stockholders' (Deficit)          $     2,974  $       162
                                                       ===========  ===========



             The accompanying notes to the financial statements are
                    an integral part of these balance sheets.

                                       F-3

<page>

                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                        STATEMENTS OF OPERATIONS (NOTE 2)
               FOR THE YEAR ENDED SEPTEMBER 30, 2008, PERIOD ENDED
                SEPTEMBER 30, 2007, AND CUMULATIVE FROM INCEPTION
                 (DECEMBER 21, 2006) THROUGH SEPTEMBER 30, 2008

<table>
<caption>
                                                Year Ended            Period Ended           Cumulative
                                               September 30,          September 30,             From
                                                   2008                    2007               Inception
                                                ----------            ----------              ----------

                                            <c>                   <c>                     <c>
Revenues                                        $        -            $        -              $        -
                                                ----------            ----------              ----------

Expenses:
  Accounting and audit fees                          6,000                 3,000                   9,000
  Depreciation                                         351                     9                     360
  General and administrative - Other                 1,402                   147                   1,549
  Legal fees                                           520                     -                     520
  Organization costs                                     -                   375                     375
  Rent                                               1,378                     -                   1,378
  Travel and promotion                               1,172                     -                   1,172
                                                ----------            ----------              ----------
     Total general and administrative expenses      10,823                 3,531                  14,354
                                                ----------            ----------              ----------
(Loss) from Operations                             (10,823)               (3,531)                (14,354)

Provision for income taxes                               -                     -                       -
                                                ----------            ----------              ----------

Net (Loss)                                      $  (10,823)           $   (3,531)             $  (14,354)
                                                ==========            ==========              ==========

(Loss) Per Common Share:
  (Loss) per common share - Basic and Diluted   $    (0.01)           $        -
                                                ==========            ==========
Weighted Average Number of Common Shares
   Outstanding - Basic and Diluted               1,318,306                     -
                                                ==========            ==========
</table>



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


                                       F-4

<page>

                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  STATEMENT OF STOCKHOLDERS' (DEFICIT) (NOTE 2)
                FOR THE PERIOD FROM INCEPTION (DECEMBER 21, 2006)
                           THROUGH SEPTEMBER 30, 2008

<table>
<caption>

                                                                          (Deficit)
                                                                         Accumulated
                                           Common Stock                  During the
                                ----------------------------------       Development
          Description                Shares             Amount              Stage             Total
----------------------------    ---------------    ---------------     ---------------    -------------

                             <c>               <c>                 <c>                <c>
Balance - December 21, 2006                   -    $             -     $            -     $           -
Net (loss) for the period                     -                  -             (3,531)           (3,531)
                                ---------------    ---------------     ---------------    --------------
Balance - September 30, 2007                  -                  -             (3,531)           (3,531)

Common stock issued for cash          5,000,000              5,000                  -             5,000
Net (loss) for the period                     -                  -            (10,823)          (10,823)
                                ---------------    ---------------     ---------------    --------------
Balance - September 30, 2008          5,000,000    $         5,000     $      (14,354)    $      (9,354)
                                ===============    ===============     ===============    ==============
</table>








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

                                       F-5
<page>

                             ELEVATED CONCEPTS, INC.
                         (A DEVELOPMENT STAGES COMPANY)
                        STATEMENTS OF CASH FLOWS (NOTE 2)
               FOR THE YEAR ENDED SEPTEMBER 30, 2008, PERIOD ENDED
      SEPTEMBER 30, 2007, AND CUMULATIVE FROM INCEPTION (DECEMBER 21, 2006)
                           THROUGH SEPTEMBER 30, 2008

<table>
<caption>
                                                        Year Ended            Period Ended           Cumulative
                                                       September 30,          September 30,             From
                                                           2008                  2007                Inception
                                                        ----------            ----------             ----------

                                                    <c>                   <c>                    <c>

Operating Activities:
  Net (loss)                                            $   (10,823)          $    (3,531)           $  (14,354)
  Adjustments to reconcile net (loss) to net cash
   (used in) operating activities:
      Depreciation                                              351                     9                   360
      Changes in net assets and liabilities-
        Security deposit                                       (400)                    -                  (400)
        Accrued liabilities                                   3,273                 3,000                 6,273
                                                        ------------          ------------           -----------
Net Cash (Used in) Operating Activities                      (7,599)                 (522)               (8,121)
                                                        ------------          ------------           -----------
Investing Activities:
  Purchases of computer equipment                            (1,905)                 (171)               (2,076)
                                                        ------------          ------------           -----------
Net Cash (Used in) Investing Activities                      (1,905)                 (171)               (2,076)
                                                        ------------          ------------           -----------
Financing Activities:
  Proceeds from issuance of common stock                      5,000                     -                 5,000
  Loan from Director and stockholder                          5,362                   693                 6,055
                                                        ------------          ------------           -----------
Net Cash Provided by Financing Activities                    10,362                   693                11,055
                                                        ------------          ------------           -----------
Net Increase in Cash                                            858                     -                   858

Cash - Beginning of Period                                        -                     -                     -
                                                        ------------          ------------           -----------
Cash - End of Period                                    $       858           $         -            $      858
                                                        ============          ============           ===========

Supplemental Disclosure of Cash Flow Information:
  Cash paid during the period for:
     Interest                                           $         -           $         -            $        -
                                                        ============          ============           ===========
     Income taxes                                       $         -           $         -            $        -
                                                        ============          ============           ===========
</table>





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

                                       F-6

<page>


                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007


(1) Summary of Significant Accounting Policies

  Basis of Presentation and Organization
  --------------------------------------
Elevated  Concepts,  Inc.  (the  "Company" or "Elevated  Concepts")  is a Nevada
corporation in the development stage and has minimal operations. The Company was
incorporated  under the laws of the State of Nevada on December  21,  2006.  The
proposed business plan of the Company is to sell and distribute  environmentally
friendly building materials.  The accompanying  financial statements of Elevated
Concepts  were prepared from the accounts of the Company under the accrual basis
of accounting.

  Cash and Cash Equivalents
  -------------------------
For  purposes of  reporting  within the  statement  of cash  flows,  the Company
considers all cash on hand, cash accounts not subject to withdrawal restrictions
or penalties,  and all highly liquid debt instruments  purchased with a maturity
of three months or less to be cash and cash equivalents.

  Revenue Recognition
  -------------------
The Company is in the  development  stage and has yet to realize  revenues  from
operations.  Once  Elevated  Concepts has  commenced  full  operations,  it will
recognize  revenue when the sale and/or  distribution  of building  materials is
complete,  risk of loss and title to the building  materials have transferred to
the customer, there is persuasive evidence of an agreement,  acceptance has been
approved  by its  customer,  the  fee is  fixed  or  determinable  based  on the
completion  of stated  terms  and  conditions,  and  collection  of any  related
receivable  is  probable.  Net sales will be comprised  of gross  revenues  less
expected  returns,  trade discounts,  and customer  allowances that will include
costs associated with off-invoice markdowns and other price reductions,  as well
as trade promotions and coupons. These incentive costs will be recognized at the
later of the date on which the Company  recognized  the  related  revenue or the
date on which the Company offers the incentive.

  Loss per Common Share
  ---------------------
Basic loss per share is computed by dividing  the net loss  attributable  to the
common  stockholders  by the weighted  average  number of shares of common stock
outstanding  during the periods.  Diluted loss per share is computed  similar to
basic loss per share  except that the  denominator  is  increased to include the
number of  additional  common  shares  that would have been  outstanding  if the
potential common shares had been issued and if the additional common shares were
dilutive. There were no dilutive financial instruments issued or outstanding for
the year ended September 30, 2008, and period ended September 30, 2007.

  Income Taxes
  ------------

The Company accounts for income taxes pursuant to SFAS No. 109, "Accounting  for
Income Taxes" ("SFAS  No.  109").  Under SFAS No.  109,  deferred tax assets and
liabilities are determined based on temporary differences between the  bases  of
certain assets and liabilities for income tax and financial reporting  purposes.
The  deferred  tax  assets  and  liabilities  are  classified  according  to the
financial statement classification of the assets and liabilities  generating the
differences.

                                       F-7

<page>

                             ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007


The Company maintains a valuation allowance with respect to deferred tax assets.
Elevated  Concepts  establishes a valuation  allowance  based upon the potential
likelihood of realizing the deferred tax asset and taking into consideration the
Company's  financial  position and results of operations for the current period.
Future  realization  of the  deferred  tax benefit  depends on the  existence of
sufficient  taxable income within the carryforward  period under the Federal tax
laws.

Changes in circumstances,  such as the Company generating taxable income,  could
cause a change in judgment about the  realizability  of the related deferred tax
asset.  Any change in the valuation  allowance will be included in income in the
year of the change in estimate.

  Fair Value of Financial Instruments
  -----------------------------------
The  Company  estimates  the  fair  value of  financial  instruments  using  the
available market  information and valuation  methods.  Considerable  judgment is
required in estimating fair value. Accordingly,  the estimates of fair value may
not be indicative of the amounts  Elevated  Concepts  could realize in a current
market  exchange.  As of September 30, 2008, and 2007, the carrying value of the
Company's  financial  instruments  approximated fair value due to the short-term
nature and maturity of these instruments.

  Deferred Offering Costs
  -----------------------
The  Company  defers as other  assets  the direct  incremental  costs of raising
capital  until  such  time as the  offering  is  completed.  At the  time of the
completion of the offering,  the costs are charged  against the capital  raised.
Should the  offering  be  terminated,  deferred  offering  costs are  charged to
operations during the period in which the offering is terminated.

  Property and Equipment
  ----------------------
Property and equipment is stated at cost.  Expenditures that materially increase
useful  lives are  capitalized,  while  ordinary  maintenance  and  repairs  are
expensed as incurred.  Depreciation is computed using the  straight-line  method
over the estimated useful lives of the assets as follows:

           Computer equipment                  5 years

  Impairment of Long-lived Assets
  -------------------------------
Capital  assets are reviewed for  impairment  in  accordance  with SFAS No. 144,
"Accounting  for the  Impairment  of Disposal of Long-lived  Assets,"  which was
adopted  effective  January 1, 2002. Under SFAS No. 144, these assets are tested
for  recoverability  whenever events or changes in  circumstances  indicate that
their  carrying  amounts  may  not  be  recoverable.  An  impairment  charge  is
recognized for the amount, if any, which the carrying value of the asset exceeds
the fair  value.  For the year  ended  September  30,  2008,  and  period  ended
September 30, 2007, no events or circumstances  occurred for which an evaluation
of the recoverability of long-lived assets was required.

  Advertising and Promotion
  -------------------------
The Company  expenses all  advertising  and  promotion  costs as  incurred.  The
Company did not incur  advertising  and  promotion  costs for the periods  ended
September 30, 2008, and 2007.

                                       F-8

<page>

                             ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007



  Common Stock Registration Expenses
  ----------------------------------
The Company considers incremental costs and expenses related to the registration
of equity  securities with the SEC,  whether by contractual  arrangement as of a
certain date or by demand, to be unrelated to original issuance transactions. As
such,   subsequent   registration  costs  and  expenses  are  reflected  in  the
accompanying  financial statements as general and administrative  expenses,  and
are expensed as incurred.

  Lease Obligations
  -----------------
All  noncancellable  leases  with an  initial  term  greater  than  one year are
categorized as either capital or operating leases. Assets recorded under capital
leases  are  amortized  according  to the  methods  employed  for  property  and
equipment or over the term of the related lease, if shorter.

  Estimates
  ---------
The  financial  statements  are prepared on the basis of  accounting  principles
generally accepted in the United States of America. The preparation of financial
statements in conformity with generally accepted accounting  principles requires
management to make estimates and assumptions that affect the reported amounts of
assets and  liabilities as of September 30, 2008, and 2007, and expenses for the
year ended  September  30,  2008,  and period  ended  September  30,  2007,  and
cumulative from inception. Actual results could differ from those estimates made
by management.

(2) Development Stage Activities and Going Concern

The Company is currently in the development  stage, and has minimal  operations.
The  proposed  business  plan of Elevated  Concepts is to engage in the sale and
distribution of environmentally friendly building materials.

During the period from inception (December 21, 2006) through September 30, 2008,
the Company was incorporated and received initial working capital through a loan
from a Director and officer.

The  accompanying  financial  statements  have been prepared in conformity  with
accounting principles generally accepted in the United States of America,  which
contemplate the continuation of the Company as a going concern.  As of September
30,  2008,  the  Company had a working  capital  deficiency  of $11,470,  and an
accumulated deficit during the development stage of $14,354. The Company has not
established any source of revenue to cover its operating costs, and as such, has
incurred an operating loss since  inception.  Its ability to continue as a going
concern is  dependent  upon the ability of the  Company to  generate  profitable
operations in the future  and/or to obtain the necessary  financing to meets its
obligations  and repay its liabilities  arising from normal business  operations
when they  come due.  These and other  factors  raise  substantial  doubt  about
Elevated  Concepts'  ability to continue as a going  concern.  The  accompanying
financial  statements  do not include any  adjustments  to reflect the  possible
future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from the possible inability of
the Company to continue as a going concern.  The management of the Company plans
to continue to provide for its capital needs by the issuance of common stock and
related party advances.



                                       F-9

<page>

                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007


(3) Loan from Director and Officer

As of September 30, 2008,  and 2007,  loans from an individual who is a Director
and officer of the Company amounted to $6,055, and $693, respectively. The loans
were provided for working  capital  purposes,  and are  unsecured,  non-interest
bearing, and have no terms for repayment.

(4) Common Stock

The Company is authorized to issue 75,000,000  shares of its common stock with a
par value of $0.001 per share. No other classes of stock are  authorized.  As of
September  30, 2008,  the Company had not granted any stock  options or recorded
any stock-based compensation.

In June 2008,  the Company  issued  2,500,000  shares of its common stock to its
Director, President, and CEO at par value. The transaction was valued at $2,500.

In June 2008,  the Company  issued  2,500,000  shares of its common stock to its
Director,   Secretary,   Chief  Financial  Officer,   Treasurer,  and  Principal
Accounting Officer at par value. The transaction was valued at $2,500.

On July 22, 2008,  the Company also  commenced a capital  formation  activity to
file a Registration  Statement on Form S-1 with the SEC to register a minimum of
4,000,000 shares,  and a maximum of 50,000,000 shares of common stock, par value
$0.001 per share,  and raise up to $400,000 in proceeds  from the sale of common
stock at $0.008  per share in the  public  markets.  On October  14,  2008,  the
Company  filed a  Registration  Statement  on Form S-1 with the SEC to  register
50,000,000  shares of its common stock. The Registration  Statement was declared
effective  by the SEC on  October  28,  2008.  After the  effective  date of the
Registration Statement, the Company commenced the sale of the registered shares.

(5) Income Taxes

The provision  (benefit)  for income taxes for the periods  ended  September 30,
2008, and 2007, was as follows (assuming a 15% effective tax rate):


                                       Year            Period
                                       Ended            Ended
                                   September 30,    September 30,
                                       2008             2007
                                   ------------      ----------

Current Tax Provision:
  Federal-
  Taxable income                   $         -       $        -
                                   ------------      -----------
    Total current tax provision    $         -       $        -
                                   ============      ===========
Deferred Tax Provision:
  Federal-
   Loss carryforwards              $     1,623       $      530
   Change in valuation allowance        (1,623)            (530)
                                   ------------      -----------
    Total deferred tax provision   $         -       $        -
                                   ============      ===========



                                      F-10

<page>

                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007


Elevated  Concepts had deferred  income tax assets as of September 30, 2008, and
2007, as follows:


                                         2008           2007
                                    -------------   -----------

   Loss carryforwards               $       2,153   $       530
   Less - Valuation allowance              (2,153)         (530)
                                    -------------   -----------

     Total net deferred tax assets  $           -   $         -
                                    =============   ============

The Company  provided a valuation  allowance  equal to the  deferred  income tax
assets for the periods  ended  September 30, 2008,  and 2007,  because it is not
presently  known whether future taxable income will be sufficient to utilize the
loss carryforwards.

As of September 30, 2008, and 2007, the Company had approximately  $14,354,  and
$3,531,  respectively,  in tax loss carryforwards that can be utilized in future
periods to reduce taxable income, and expire in the year 2027.

(6) Related Party Transactions

As described in Note 3, as of September 30, 2008,  and 2007,  Elevated  Concepts
owed $6,055 and $693, restively,  to an individual who is a Director and officer
of the Company.

As described in Note 5, the Company issued  2,500,000 shares of its common stock
to its  Director,  President,  and Chief  Executive  Officer at par  value.  The
transaction was valued at $2,500.

As described in Note 5, the Company issued  2,500,000 shares of its common stock
to its Director,  Secretary,  Chief Financial Officer,  Treasurer, and Principal
Accounting Officer at par value. The transaction was valued at $2,500.

(7) Commitments

In May 2008,  the Company  entered  into a written  agreement  with an unrelated
third party to lease office space for  operations in Northbrook,  Illinois.  The
monthly  lease  amount  is $200,  and the term of the  lease  arrangement  is 12
months. The Company will also be charged for miscellaneous  office expenses such
as copying, printing, telephone, and facsimile charges.

(8) Recent Accounting Pronouncements

On December 4, 2007,  the FASB issued FASB  Statement  No. 160,  "Noncontrolling
Interests  in  Consolidated  Financial  Statements - an amendment of ARB No. 51"
("SFAS  No.  160").  SFAS No.  160  establishes  new  accounting  and  reporting
standards  for  the  noncontrolling   interest  in  a  subsidiary  and  for  the
deconsolidation  of a  subsidiary.  Specifically,  this  statement  requires the
recognition of a noncontrolling  interest  (minority  interest) as equity in the
consolidated  financial  statements and separate from the parent's  equity.  The
amount  of net  income  attributable  to the  noncontrolling  interest  will  be
included in consolidated  net income on the face of the income  statement.  SFAS
No. 160 clarifies that changes in a parent's  ownership interest in a subsidiary
that do not  result in  deconsolidation  are equity  transactions  if the parent
retains its controlling

                                      F-11

<page>

                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007


financial interest. In addition, this statement requires that a parent recognize
a gain or loss in net income when a subsidiary is  deconsolidated.  Such gain or
loss  will be  measured  using  the  fair  value  of the  noncontrolling  equity
investment on the  deconsolidation  date.  SFAS No. 160 also  includes  expanded
disclosure   requirements   regarding  the  interests  of  the  parent  and  its
noncontrolling interest.

SFAS No. 160 is effective for fiscal  years,  and interim  periods  within those
fiscal  years,  beginning on or after  December 15,  2008.  Earlier  adoption is
prohibited.  The management of Elevated Concepts does not expect the adoption of
this pronouncement to have a material impact on its financial statements.

In March 2008,  the FASB  issued FASB  Statement  No.  161,  "Disclosures  about
Derivative Instruments and Hedging Activities - an amendment  of FASB  Statement
133" ("SFAS No.  161").  SFAS No. 161  enhances  required  disclosures regarding
derivatives and hedging activities,  including  enhanced  disclosures  regarding
how: (a) an entity uses derivative  instruments; (b) derivative instruments  and
related hedged items are  accounted  for  under  FASB No. 133, "Accounting   for
Derivative Instruments and Hedging Activities";  and (c) derivative  instruments
and  related  hedged items  affect an  entity's  financial  position,  financial
performance,  and cash flows.  Specifically,  SFAS No. 161 requires:

   -  disclosure of the objectives for using derivative instruments be
      disclosed in terms of underlying  risk and accounting designation;
   -  disclosure  of the fair values of derivative  instruments  and their
      gains and losses in a tabular format;
   -  disclosure of information about credit-risk-related  contingent
      features; and
   -  cross-reference from the derivative footnote to other footnotes in which
      derivative-related information is disclosed.

SFAS No. 161 is effective for fiscal years and interim  periods  beginning after
November 15, 2008. Earlier application is encouraged. The management of Elevated
Concepts does not expect the adoption of this  pronouncement  to have a material
impact on its financial statements.

On May 9, 2008,  the FASB  issued  FASB  Statement  No. 162, "The  Hierarchy  of
Generally  Accepted   Accounting  Principles" ("SFAS No. 162"). SFAS  No. 162 is
intended to improve  financial  reporting by identifying a consistent framework,
or hierarchy,  for selecting  accounting  principles to  be  used  in  preparing
financial statements  that  are  presented  in  conformity  with  U.S. generally
accepted accounting principles ("GAAP") for nongovernmental entities.

Prior to the  issuance  of SFAS No.  162,  GAAP  hierarchy  was  defined  in the
American  Institute  of  Certified  Public  Accountants  ("AICPA")  Statement on
Auditing  Standards ("SAS") No. 69, "The Meaning of Present Fairly in Conformity
with Generally  Accept  Accounting  Principles."  SAS No. 69 has been criticized
because it is  directed to the  auditor  rather  than the  entity.  SFAS No. 162
addresses  these  issues  by  establishing  that the GAAP  hierarchy  should  be
directed  to  entities  because  it is the  entity  (not  the  auditor)  that is
responsible for selecting  accounting  principles for financial  statements that
are presented in conformity with GAAP.

The sources of accounting principles that are generally accepted are categorized
in descending order as follows:

a)       FASB Statements of Financial  Accounting Standards and Interpretations,
         FASB Statement 133  Implementation  Issues,  FASB Staff Positions,  and
         American Institute of Certified Public  Accountants  (AICPA) Accounting
         Research  Bulletins and Accounting  Principles  Board Opinions that are
         not superseded by actions of the FASB.


                                      F-12

<page>

                            ELEVATED CONCEPTS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2008, AND 2007


b)       FASB Technical  Bulletins  and, if cleared by the FASB,  AICPA Industry
         Audit and Accounting Guides and Statements of Position.

c)       AICPA Accounting  Standards Executive Committee Practice Bulletins that
         have been cleared by the FASB, consensus positions of the FASB Emerging
         Issues Task Force  (EITF),  and the Topics  discussed  in Appendix D of
         EITF Abstracts (EITF D-Topics).

d)       Implementation  guides  (Q&As)  published  by  the  FASB  staff,  AICPA
         Accounting Interpretations,  AICPA Industry Audit and Accounting Guides
         and  Statements of Position not cleared by the FASB, and practices that
         are  widely  recognized  and  prevalent  either  generally  or  in  the
         industry.

SFAS No. 162 is effective  60 days  following  the SEC's  approval of the Public
Company Accounting Oversight Board amendment to its authoritative literature. It
is only effective for nongovernmental  entities;  therefore,  the GAAP hierarchy
will  remain in SAS 69 for state and local  governmental  entities  and  federal
governmental  entities.  The management of Elevated Concepts does not expect the
adoption  of this  pronouncement  to have a  material  impact  on its  financial
statements.

On  May 26, 2008, the  FASB  issued  FASB  Statement  No. 163,  "Accounting  for
Financial  Guarantee   Insurance   Contracts" ("SFAS  No.  163").  SFAS  No. 163
clarifies how  FASB  Statement No.60, "Accounting  and  Reporting  by  Insurance
Enterprises" ("SFAS No. 60"), applies to financial guarantee insurance contracts
issued  by insurance  enterprises,  including  the  recognition  and measurement
of premium  revenue and claim liabilities. It also requires expanded disclosures
about financial guarantee insurance contracts.

The  accounting  and  disclosure  requirements  of SFAS No. 163 are  intended to
improve  the  comparability  and  quality of  information  provided  to users of
financial  statements by creating  consistency.  Diversity exists in practice in
accounting for financial guarantee insurance contracts by insurance  enterprises
under SFAS No. 60,  "Accounting  and Reporting by Insurance  Enterprises."  That
diversity results in inconsistencies in the recognition and measurement of claim
liabilities because of differing views about when a loss has been incurred under
FASB Statement No. 5,  "Accounting for  Contingencies"  ("SFAS No. 5"). SFAS No.
163 requires that an insurance  enterprise  recognize a claim liability prior to
an event of  default  when  there is  evidence  that  credit  deterioration  has
occurred in an insured financial  obligation.  It also requires disclosure about
(a) the risk-management  activities used by an insurance  enterprise to evaluate
credit deterioration in its insured financial  obligations and (b) the insurance
enterprise's surveillance or watch list.

SFAS No. 163 is  effective  for  financial  statements  issued for fiscal  years
beginning  after December 15, 2008, and all interim  periods within those fiscal
years, except for disclosures about the insurance  enterprise's  risk-management
activities.   Disclosures  about  the  insurance  enterprise's   risk-management
activities are effective the first period  beginning  after issuance of SFAS No.
163.  Except  for  those  disclosures,  earlier  application  is not  permitted.
Management   of  Elevated   Concepts  does  not  expect  the  adoption  of  this
pronouncement to have material impact on its financial statements.

(9) Subsequent Events

On October 14, 2008, the Company filed a Registration Statement on Form S-1 with
the SEC to register  50,000,000  shares of its common  stock.  The  Registration
Statement  was  declared  effective  by the SEC on October 28,  2008.  After the
effective date of the Registration Statement,  the Company commenced the sale of
the registered shares.

                                      F-13

<page>

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

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls
---------------------------------
We evaluated the  effectiveness of our disclosure  controls and procedures as of
the end of the  2008  fiscal  year.  This  evaluation  was  conducted  with  the
participation  of our  chief  executive  officer  and our  principal  accounting
officer.

Disclosure  controls  are  controls  and other  procedures  that are designed to
ensure that  information  that we are required to be disclosed in the reports we
file  pursuant to the  Securities  Exchange Act of 1934 is recorded,  processed,
summarized and reported.

Limitations on the Effective of Controls
----------------------------------------
Our  management  does not expect that our  disclosure  controls or our  internal
controls over  financial  reporting  will prevent all error and fraud. A control
system, no matter how well conceived and operated,  can provide only reasonable,
but no absolute,  assurance  that the  objectives  of a control  system are met.
Further, any control system reflects limitations on resources,  and the benefits
of a control system must be considered  relative to its costs. These limitations
also include the realities that judgments in  decision-making  can be faulty and
that  breakdowns  can occur  because of simple  error or mistake.  Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people or by management override of a control. A design
of a control  system is also  based upon  certain  assumptions  about  potential
future conditions;  over time, controls may become inadequate because of changes
in conditions,  or the degree of compliance  with the policies or procedures may
deteriorate.  Because of the inherent  limitations in a  cost-effective  control
system, misstatements due to error or fraud may occur and may not be detected.

Conclusions
-----------
Based upon their  evaluation of our controls,  the Chief  Executive  Officer and
principal  accounting  officer have concluded  that,  subject to the limitations
noted  above,  the  disclosure  controls  are  effective  providing   reasonable
assurance that material  information  relating to us is made known to management
on a timely basis during the period when our reports are being  prepared.  There
were no changes in our internal  controls that occurred  during the year covered
by this  report  that have  materially  affected,  or are  reasonably  likely to
materially affect our internal controls.

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS

Directors, Executive Officers and Control Persons
-------------------------------------------------

Our executive officers and Directors and their respective ages as of the date of
this Prospectus are as follows:


                                       38

<page>

--------------------------------------------------------------------------------
Name                      Age                    Position
--------------------------------------------------------------------------------

Vasili Borisov            59                     President, Chief Executive
                                                 Officer, Director

Nadezda Bulicheva         54                     Secretary, Treasurer, Chief
                                                 Financial Officer, Director
--------------------------------------------------------------------------------

The Directors will serve as Directors until our next annual shareholder  meeting
or until a successor is elected who accepts the position.  Directors are elected
for one-year  terms.  Officers hold their  positions at the will of the Board of
Directors,   absent  any  employment  agreement.   There  are  no  arrangements,
agreements or understandings between non-management  shareholders and management
under which non-management  shareholders may directly or indirectly  participate
in or influence the management of Elevated Concepts' affairs.

Vasili Borisov
--------------
Mr. Vasili  Borisov is our President and Chief  Executive  Officer and is also a
member of the Board of  Directors.  He holds a degree in  non-organic  chemistry
from  Russian  Mendeleev  University  of  Chemical  Technology  and has in depth
knowledge  and  experience  in research  and  development  of  formulations  for
household  cleaning  products,  industrial  cleaning  products and institutional
cleaning products based on application of silicone-based  solutions. In the past
five  years,   Mr.Borisov  held  various  contract  positions  with  a  chemical
laboratory and private enterprises in Moscow, Russia

Nadezda Bulicheva
-----------------
Mrs.Bulicheva is our Secretary and Chief Financial  Officer and is also a member
of the Board of  Directors.  She holds a  Bachelors  degree  in  economics  from
Tumanov   Metallurgy   College,   Moscow,   Russia.  In  the  past  five  years,
Mrs.Bulicheva  has  worked  as a  consultant  for  "Consult-Invest,"  a  private
enterprise,  which provides financial and strategic services,  including capital
formation  business case development,  valuation and operational  assistance for
startup companies in Moscow and Moscow Region, Russia.

CODE OF ETHICS

We have not yet adopted a code of ethics that applies to our principal executive
officers,   principal  financial  officer,   principal   accounting  officer  or
controller, or persons performing similar functions, since we have been focusing
our efforts on obtaining financing for the company. We expect to adopt a code by
the end of the current fiscal year.


SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Securities  Exchange Act of 1934 requires our Directors and
executive  officers,  and  persons  who own more than ten  percent of our common
stock,  to file with the Securities and Exchange  Commission  initial reports of
ownership  and reports of changes of  ownership of our common  stock.  Officers,
Directors and greater than ten percent stockholders are required by SEC

                                       39

<page>

regulation to furnish us with copies of all Section 16(a) forms they file.

Based  solely on our  review  of the  copies of such  forms  received  by us, or
written  representations  from certain  reporting  persons,  we believe that all
filing requirements  applicable to our officers,  Directors and greater than ten
percent  beneficial  owners  were  complied  with,  with  the  exception  of the
following:

<table>
<caption>
--------------------------------------------------------------------------------------------
                      Number of Late      Number of Transactions Not       Failure to File
Name                  Reports             Reported on a Timely Basis       Requested Forms
--------------------------------------------------------------------------------------------

                   <c>                 <c>                              <c>
Vasili Borisov               1(1)                      1                          Nil
--------------------------------------------------------------------------------------------
Nadezda Bulicheva            1(1)                      1                          Nil
--------------------------------------------------------------------------------------------
</table>

    (1)  The  named  officer,  Director  or  greater  than 10%  stockholder,  as
         applicable,  filed a late  Form 3 -  Initial  Statement  of  Beneficial
         Ownership of Securities.

ITEM 11:  EXECUTIVE COMPENSATION

The  following  summary  compensation  table sets forth  information  concerning
compensation  for  services  rendered  in all  capacities  during  2008 and 2007
awarded to, earned by or paid to our executive officers.


SUMMARY COMPENSATION TABLE

<table>
<caption>
-------------------------------------------------------------------------------------------------------------------------------
                                                                                           Change in
                                                                                            Pension
                                                                                           Value and
                                                                              Non-Equity  Nonqualified
                                                                               Incentive    Deferred
Name and                                                      Stock  Option      Plan     Compensation    All Other
Principal                                        Salary Bonus Awards Awards  Compensation   Earnings    Compensation     Total
Position                                    Year  ($)    ($)   ($)    ($)        ($)           ($)           ($)          ($)
(a)                                          (b)  (c)    (d)   (e)    (f)        (g)           (h)           (i)          (j)
--------------------------------------------------------------------------------------------------------------------------------

                                        <c>  <c>    <c>    <c>     <c>      <c>         <c>           <c>         <c>

Vasili Borisov, Chief Executive Officer     2008 $  0     0     0       0         0             0               0     $      0
                                            2007 $  0     0     0       0         0             0               0            0
--------------------------------------------------------------------------------------------------------------------------------
Nadezda Bulicheva, Chief Financial Officer  2008 $  0     0     0       0         0             0               0     $      0
                                            2007 $  0     0     0       0         0             0               0            0
--------------------------------------------------------------------------------------------------------------------------------
</table>


                                       40

<page>

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END TABLE

<table>
<caption>
----------------------------------------------------------------------------------------------------------------------------------
                 |                        Option Awards                              |                Stock Awards               |
                 -------------------------------------------------------------------  --------------------------------------------
  Name              Number of        Number of        Equity      Option     Option     Number    Market     Equity       Equity
  (a)               Securities       Securities      Incentive    Exercise Expiration of Shares  Value of   Incentive   Incentive
                    Underlying       Underlying        Plan        Price      Date     or Units  Shares or    Plan         Plan
                    Unexercised      Unexercised      Awards:       ($)        (f)     of Stock    Units     Awards:      Awards:
                     Options          Options       Number of       (e)                That Have  of Stock   Number       Market
                       (#)               (#)         Securities                            Not     That Have    of        or Payout
                   (Exercisable)   (Unexercisable)  Underlying                          Vested      Not     Unearned      Value of
                       (b)               (c)         Unexercised                           (#)      Vested     Shares,     Unearned
                                                     Unearned                             (g)       ($)      Units or      Shares,
                                                      Options                                       (h)       Other       Units or
                                                        (#)                                                   Rights        Other
                                                        (d)                                                   That         Rights
                                                                                                            Have Not        That
                                                                                                             Vested       Have Not
                                                                                                               (#)         Vested
                                                                                                               (i)          ($)
                                                                                                                            (j)
-----------------------------------------------------------------------------------------------------------------------------------

                <c>              <c>             <c>           <c>       <c>        <c>        <c>      <c>            <c>
Vasili Borisov          0                  0             0            0        N/A         0       $   0        0            0
-----------------------------------------------------------------------------------------------------------------------------------
Nadezda Bulicheva       0                  0             0            0        N/A         0       $   0        0            0
-----------------------------------------------------------------------------------------------------------------------------------
</table>



DIRECTOR COMPENSATION TABLE FOR FISCAL 2008

<table>
<caption>
-----------------------------------------------------------------------------------------------------------------------------------
Name               Fees       Stock      Option          Non-Equity             Change in             All Other           Total
(a)               Earned      Awards     Awards        Incentive Plan         Pension Value         Compensation           ($)
                  or Paid      ($)         ($)          Compensation               and                   ($)               (h)
                    in         (c)         (d)               ($)              Nonqualified               (g)
                   Cash                                      (e)                Deferred
                    ($)                                                       Compensation
                    (b)                                                         Earnings
                                                                                   ($)
                                                                                   (f)
-----------------------------------------------------------------------------------------------------------------------------------

               <c>        <c>        <c>            <c>                   <c>                    <c>                <c>

Vasili Borisov           0         0          0                 0                     0                     0             $       0
-----------------------------------------------------------------------------------------------------------------------------------
Nadezda Bulicheva        0         0          0                 0                     0                     0             $       0
-----------------------------------------------------------------------------------------------------------------------------------
</table>


                                       41

<page>

Option Grants in 2008
---------------------
No options were granted during 2008.

Aggregated Option Exercises in 2008 and 2008 Year-End Option Values
-------------------------------------------------------------------
No options were exercised by our Officers or Directors during 2008.

Stock Incentive Plan - Awards in 2008
-------------------------------------
During 2008, no shares, options or other rights were granted to any of our
employees or Officers.

Director Compensation
---------------------
No options were granted or payments made in compensation  for services  rendered
to any Elevated Concepts directors.

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

The following table sets forth information regarding the beneficial ownership of
our shares of common stock at December 19, 2008,  by (i) each person known by us
to be the beneficial  owner of more than 5% of our outstanding  shares of common
stock, (ii) each of our Directors, (iii) our executive officers, and (iv) by all
of our  Directors and  executive  officers as a group.  Each person named in the
table,  has sole voting and investment power with respect to all shares shown as
beneficially  owned by such person and can be contacted at our executive  office
address.

--------------------------------------------------------------------------------
                                              Amount and
                                              Nature of
Title of Class    Name of                     Beneficial         Percent of
                  Owner                       Ownership            Class
                                                 (1)                (%)
--------------------------------------------------------------------------------

Common            Vasili Borisov              2,500,000             50
                  President, CEO,

Common            Nadezda Bulicheva
                  Secretary, CFO, Treasurer   2,500,000             50
                  and Director

Common            All Officers and            5,000,000            100
                  Directors as a Group
                  that consists of two
                  persons
--------------------------------------------------------------------------------

1    Includes shares that could be obtained by the named  individual  within the
     next 60 days.

The percent of class is based on  5,000,000  shares of common  stock  issued and
outstanding as of the date of this annual report.

                                       42

<page>

The Company has no securities  authorized for issuance under equity compensation
plans.

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

During the fiscal year ended September 30, 2008, the Company:

    a)   Issued 2,500,000 shares of its common stock to its Director, President,
         and Chief Executive Officer at par value. The transaction was valued at
         $2,500; and

    b)   Issued 2,500,000 shares of its common stock to its Director, Secretary,
         Chief Financial Officer, Treasurer, and Principal Accounting Officer at
         par value. The transaction was valued at $2,500.

As of September  30, 2008,  and 2007,  Elevated  Concepts  owed $6,055 and $693,
restively, to an individual who is a Director and officer of the Company.

Otherwise,  neither our  Directors and  officers,  nor any proposed  nominee for
election  as a  Director,  nor any person who  beneficially  owns,  directly  or
indirectly,  shares  carrying more than 10% of the voting rights attached to all
of our outstanding  shares, nor any promoter,  nor any relative or spouse of any
of the foregoing persons has any material interest,  direct or indirect,  in any
transaction  since our  incorporation or in any presently  proposed  transaction
which, in either case, has or will materially affect us.

Our management is involved in other  business  activities and may, in the future
become  involved  in  other  business  opportunities.  If  a  specific  business
opportunity  becomes  available,  such  persons may face a conflict in selecting
between our business  and their other  business  interests.  In the event that a
conflict of interest  arises at a meeting of our  Directors,  a Director who has
such a conflict  will disclose his interest in a proposed  transaction  and will
abstain from voting for or against the approval of such transaction.

None  of our  Directors  is  independent,  as  described  in the  standards  for
independence set forth in the Rules of the American Stock Exchange.


Director Independence
---------------------
Under NASDAQ rule 4200(a)(15), a Director is not considered to be independent if
he or she is also an  executive  officer or  employee  of the  corporation.  Our
Director, Vasili Borisov, is also our chief executive officer, and our Director,
Nadezda Bulicheva,  is also our chief financial officer.  As a result, we do not
have any independent Directors. As a result of our limited operating history and
limited  resources,  our  management  believes  that we will have  difficulty in
attracting independent Directors. In addition, we would be likely be required to
obtain Directors and officers  insurance coverage in order to attract and retain
independent  Directors.  Our management  believes that the costs associated with
maintaining such insurance is prohibitive at this time.




                                       43
<page>

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Our principal independent  registered  accountants,  Davis Accounting Group P.C.
billed the following fees for the services indicated:

                                      Fiscal year-ended
                       September 30, 2008          September 30, 2007
--------------------------------------------------------------------------------

Audit fees                   $4,500                     $ 3,000
Audit-related fees              Nil                         Nil
Tax fees                        Nil                         Nil
All other fees                  Nil                         Nil
--------------------------------------------------------------------------------


Audit  fees  consist  of fees  related  to  professional  services  rendered  in
connection  with the audit of our annual  financial  statements.  All other fees
relate to  professional  services  rendered in connection with the review of the
quarterly financial statements.

Our  policy  is to  pre-approve  all audit and  permissible  non-audit  services
performed by the  independent  accountants.  These  services  may include  audit
services,  audit-related  services,  tax services and other services.  Under our
audit  committee's  policy,  pre-approval  is generally  provided for particular
services or categories of services,  including planned  services,  project based
services and routine  consultations.  In addition,  the audit committee may also
pre-approve  particular  services on a case-by-case  basis.  Our audit committee
approved all services  that our  independent  accountants  provided to us in the
past two fiscal years.

                                     PART IV

ITEM 15. EXHIBITS

(a)      The following exhibits are included as part of this report:

Exhibit
Number   Title of Document
------   --------------------------
  3.1    Articles of Incorporation*
  3.2    Bylaws*
 31.1    Sec.302 Certification of CEO
 31.2    Sec.302 Certification of CFO
 32.1    Sec.906 Certification of CEO
 32.2    Sec.906 Certification of CFO

*Incorporated  by  reference  to  similarly  numbered  exhibits  filed  with the
Company's Registration Statement on Form S-1 on October 14, 2008.






                                       44

<page>

SIGNATURES

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

December 22, 2008                    Elevated Concepts, Inc.


                                     /s/ Vasili Borisov
                                     ----------------------------------------
                                     Vasili Borisov President, Chief Executive
                                     Officer and Director
                                    (Principal Executive Officer)


Pursuant to the  requirements of the Securities Act of 1933,  this  registration
statement has been signed by the following  persons in the capacities and on the
dates indicated.


/s/ Vasili Borisov
-------------------------------
Vasili Borisov
President, Chief Executive
Officer, and Director
Dated: December 22, 2008

/s/ Nadezda Bulicheva
-----------------------------
Nadezda Bulicheva
Chief Financial Officer, Secretary
Treasurer, principal accounting
officer and Director
Dated: December 22, 2008

















                                       45