----

----

| Delaware                             | 56-2291458                                |
|--------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer Identification No.) |
| incorporation      or organization)  |                                      |

| Large accelerated filer  Non-accelerated filer    |   | Accelerated filer  Small      Business Issuer  x |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|--------|

----

----

| PART I    |    |                                                                                             |
|----------------|--------------|--------------------------------------------------------------------------------------------------|
|           |         |                                                                                             |
|           |         |                                                                                             |
| ITEM 3.   |    | LEGAL PROCEEDINGS                                                                                |    | 5 |
|           |         |                                                                                             |
|           |         |
| PART II   |    |                                                                                             |
|           |         |                                                                                             |
| ITEM 6.   |    | SELECTED FINANCIAL DATA                                                                          |    | 5 |
|           |         |                                                                                             |
| ITEM 7.   |    | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OF OPERATIONS |    | 5 |
|           |         |                                                                                             |
| ITEM 8.   |    | CONSOLIDATED FINANCIAL STATEMENTS AND      SUPPLEMENTARY DATA                                    |    | 16 |
|           |         |                                                                                             |
| ITEM 9.   |    | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIAL DISCLOSURE        |    | 17 |
|           |         |                                                                                             |   |   |
| PART III  |         |                                                                                             |   |   |
|           |         |                                                                                             |   |   |
| ITEM 10.  |    | DIRECTORS      AND EXECUTIVE OFFICERS OF REGISTRANT                                              |    | 19 |
|           |         |                                                                                             |
| ITEM 11.  |    | EXECUTIVE      COMPENSATION                                                                      |    | 20 |
|           |         |
| ITEM 12.  |    | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANGEMENT                               |    | 32 |
|           |         |
| ITEM 14.  |    | PRINCIPAL ACCOUNTANT FEES AND      SERVICES                                                      |    | 35 |
|           |         |
|           |         |
| PART IV   |    |                                                                                             |
|           |         |                                                                                             |
| ITEM 15.  |    | EXHIBITS AND FINANCIAL STATEMENT      SCHEDULES                                                  |    | 37 |
|           |         |                                                                                             |
|           |    | SIGNATURES                                                                                       |    | 38 |
|           |         |                                                                                             |   |   |
| CERTIFICATIONS |         |                                                                                             |
|           |         |  Exhibit      31 – Management certification                                           |   |   |
|           |         |  Exhibit      32 – Sarbanes-Oxley Act                                                 |   |   |

  

----

----

----

----

| Consolidated      Statement of Operations       |
|-------------------------------------------------|
| For      the year December 31, 2008             |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Net      sales                                  |   |                       293,584 |   |   |                             (460) |   |   |                       293,124 |
| Cost      of Sales                              |   |                       147,251 |   |   |                            5,351 |   |   |                       152,602 |
| Gross      Profit                               |   |                       146,333 |   |   |                            5,811 |   |   |                       140,522 |
|                                            |   |   |   |   |   |   |   |   |
| Selling      general and administrative         |   |                       509,536 |   |   |                    7,078,199 |   |   |                    7,587,735 |
| Net      loss before other income and expense   |   |                     (363,203) |   |   |                  (7,084,010) |   |   |                  (7,447,213) |
| Interest      Expense                           |   |                          10,702 |   |   |                       412,650 |   |   |                       423,352 |
| Net      Loss                                   |   |                     (373,905) |   |   |                  (7,496,660) |   |   |                  (7,870,565) |
|                                            |   |   |   |   |   |   |   |   |
| Net      loss per share basic and fully diluted |   |                      (0.01) |   |   |                          (0.175) |   |   |                     (0.185) |
|                                            |   |   |   |   |   |   |   |   |
| Basic      and fully diluted weighted average   |   |   |   |   |   |   |   |   |
| number      of shares outstanding               |   |              27,931,258 |   |   |                  14,716,123 |   |   |              42,647,381 |
|                                            |   |   |   |   |   |   |   |   |

----

| Consolidated  Balance      Sheet      |
|-------------------------------------------------|
| As      of December 31, 2008                    |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Current      assets:                            |   |   |   |   |   |   |   |   |
| Accounts      receivable                        |   |                       191,843 |   |   |                     (189,168) |   |   |                            2,675 |
| Total      current assets                       |   |                       191,843 |   |   |                     (189,168) |   |   |                            2,675 |
|                                            |   |   |   |   |   |   |   |   |
| Property      and equipment, net                |   |                          21,181 |   |   |                        (10,116) |   |   |                          11,065 |
| Other      assets                               |   |                            6,100 |   |   |                            5,638 |   |   |                          11,738 |
|                                            |   |   |   |   |   |   |   |   |
| Total      assets                               | $ |                       219,124 |   | $ |                     (193,646) |   | $ |                          25,478 |
|                                            |   |   |   |   |   |   |   |   |
| Current      liabilities:                       |   |   |   |   |   |   |   |   |
| Bank      overdraft                             | $ |                                  - |   |   |                          20,471 |   | $ |                          20,471 |
| Accounts      payable and accrued expenses      |   |                          81,800 |   |   |                       367,239 |   |   |                       449,039 |
| Line      of credit                             |   |                          14,995 |   |   |                                  - |   |   |                          14,995 |
| Notes      payable – current portion      |   |                                  - |   |   |                            4,997 |   |   |                            4,997 |
| Due      to related party                       |   |                                  - |   |   |                          95,000 |   |   |                          95,000 |
| Shareholder      loan                           |   |                       508,410 |   |   |                          40,647 |   |   |                       549,057 |
| Total      current liabilities                  |   |                       607,205 |   |   |                       526,354 |   |   |                    1,133,559 |
| Notes      payable-noncurrent portion           |   |                                  - |   |   |                            4,997 |   |   |                            4,997 |
| Total      liabilities                          |   |                       607,205 |   |   |                       531,351 |   |   |                    1,138,556 |
|                                            |   |   |   |   |   |   |   |   |
| Preferred      Stock                            |   |   |   |   |   |   |   |                                  - |
| Common      Stock                               |   |                          35,158 |   |   |                                  (1) |   |   |                          35,157 |
| Additional      paid in capital                 |   |                        (35,158) |   |   |                  11,877,144 |   |   |                  11,841,986 |
| Accumulated      deficit                        |   |                     (378,081) |   |   |                (12,612,140) |   |   |                (12,990,221) |
| Total      stockholders deficit                 |   |                     (378,081) |   |   |                     (734,997) |   |   |                  (1,113,078) |
|                                            |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders deficit | $ |                       229,124 |   | $ |                     (203,646) |   | $ |                          25,478 |
|                                            |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Cashflows           |
|----------------------------------------------------|
| For      the year December 31, 2008                |
|                                               |   |  As |   |   |  Restatement |   |   |  As |
|                                               |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Cashflow      from operating activities:           |   |   |   |   |   |   |   |   |
| Net      Loss                                      |   |                 (373,905) |   |   |              (7,496,660) |   | $ |              (7,870,565) |
| Adjustments      to reconcile net loss to net      |   |   |   |   |   |   |   |   |
| loss      to net cash used in operating activities |   |   |   |   |   |   |   |   |
| Depreciation                                       |   |                      2,500 |   |   |                      3,567 |   |   |                      6,067 |
| Common      stock issued for compensation          |   |                           - |   |   |                6,761,663 |   |   |                6,761,663 |
| Change      in operating assets and liabilities    |   |   |   |   |   |   |   |   |
| Decrease      (Increase) in:                       |   |   |   |   |   |   |   |   |
| Accounts      receivable                           |   |                   (10,000) |   |   |                      7,325 |   |   |                     (2,675) |
| Other      assets                                  |   |                     (6,100) |   |   |                     (5,638) |   |   |                   (11,738) |
| Bank      overdraft                                |   |                           - |   |   |                    20,471 |   |   |                    20,471 |
| Accounts      payable and accrued expenses         |   |                    83,662 |   |   |                  365,239 |   |   |                  448,901 |
| Net      cash provided by in operating activities  |   |                 (303,843) |   |   |                 (344,033) |   |   |                 (647,876) |
|                                               |   |   |   |   |   |   |   |   |
| Cash      flow from investing activities:          |   |   |   |   |   |   |   |   |
| Fixed      assets purchased                        |   |                   (23,681) |   |   |                      6,549 |   |   |                   (17,132) |
| Net      cash used in Investing activities         |   |                   (23,681) |   |   |                      6,549 |   |   |                   (17,132) |
|                                               |   |   |   |   |   |   |   |   |
| Cash      flow from financing activities:          |   |   |   |   |   |   |   |   |
| Proceeds      from related party                   |   |                           - |   |   |                    95,000 |   |   |                    95,000 |
| Proceeds      from line of credit                  |   |                    14,995 |   |   |                           - |   |   |                    14,995 |
| Proceeds      from note payable-net of payments    |   |                           - |   |   |                      9,994 |   |   |                      9,994 |
| Proceeds      from shareholder loan                |   |                  504,372 |   |   |                    40,647 |   |   |                  545,019 |
| Net      cash provided in financing activities     |   |                  519,367 |   |   |                  145,641 |   |   |                  665,008 |
|                                               |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash               |   |                  191,843 |   |   |                 (191,843) |   |   |                           - |
| Cash      beginning period                         |   |   |   |   |                           - |   |   |                           - |
| Cash,      ending period                           |   |                  191,843 |   |   |                 (191,843) |   | $ |                           - |

----

| Consolidated      Statement of Stockholders Deficit             |
|-----------------------------------------------------------------|
| For      the year December 31, 2008                             |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   | Restatement |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | As      Originally Presented | Adjustment | As      Restated |
|                                                            |   |   |   | Additional |   | Total |   |   |   |   | Additional |   | Total |
|                                                            |   |   | Paid-in | Retained | Stockholder’s |   |   |   | Paid-in | Retained | Stockholder’s |
|                                                            | Shares | Amount |   | Capital | Earnings | Equity |   | Shares | Amount |   | Capital | Earnings | Equity |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31,2007                                   |   |       20,794,427 |  $ |              20,704 |  $ |          (20,704) |  $ |               (4,176) |  $ |              (4,176) |                         - |   |       50,136,668 |  $ |           50,137 |  $ |       5,065,343 |  $ |           (5,119,656) |  $ |            (4,176) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss -2008                                             |   |   |   |   |   |   |          (373,905) |   |          (373,905) |           (7,496,660) |   |   |   |   |   |   |          (7,870,565) |   |     (7,870,565) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reverse      Stock Split 1:20                                   |   |                      - |   |                      - |   |                    - |   |   |   |   |                         - |   |     (47,629,631) |   |         (47,630) |   |            47,630 |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      Issued for consulting fee @ $.50/share              |   |                      - |   |                      - |   |                    - |   |   |   |                   - |             6,373,222 |   |       12,746,444 |   |           12,746 |   |       6,360,476 |   |   |   |      6,373,222 |
| Recapitalization      as per Stock Purchase Agreement           |   |         14,453,481 |   |               14,453 |   |           (14,453) |   |   |   |                   - |                         - |   |      20,704,427 |   |          20,704 |   |          (20,704) |   |   |   |                 - |
| Shares      returned by former Chairman and cancelled           |   |                      - |   |                      - |   |                    - |   |   |   |                  - |                         - |   |          (800,000) |   |              (800) |   |                 800 |   |   |   |                  - |
| Miscellaneous      Issuance                                     |   |                      - |   |                      - |   |                    - |   |   |   |                   - |                            191 |   |                   185 |   |                  (1) |   |                  192 |   |   |   |                191 |
| Value      of beneficial conversion feature of convertible note |   |   |   |   |   |                    - |   |   |   |                   - |                     388,250 |   |   |   |   |   |          388,250 |   |   |   |         388,250 |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2008                                  |   |   35,247,908 |  $ |         35,157 |  $ |      (35,157) |  $ |      (378,081) |  $ |          (378,081) |        (734,997) |   |  35,158,093 |  $ |      35,157 |  $ |  11,841,986 |  $ |    (12,990,221) |  $ |      (1,113,078) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Operations       |
|-------------------------------------------------|
| For      the year December 31, 2007             |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Net      Sales                                  |   |                                  - |   |   |                                  - |   |   |                                  - |
| Cost      of Sales                              |   |                                  - |   |   |                                  - |   |   |                                  - |
| Gross      Profit                               |   |                                  - |   |   |                                  - |   |   |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Selling      general and administrative         |   |                            4,176 |   |   |                                  - |   |   |                            4,176 |
| Net      loss before other income and expense   |   |                          (4,176) |   |   |                                  - |   |   |                          (4,176) |
| Interest      Expense                           |   |   |   |   |   |   |   |   |
| Loss      from disposal of asset                |   |                                  - |   |   |                     (318,446) |   |   |                     (318,446) |
| Net      Loss                                   |   |                          (4,176) |   |   |                     (318,446) |   |   |                     (322,622) |
|                                            |   |   |   |   |   |   |   |   |
| Net      loss per share basic and fully diluted |   |                   (0.0002) |   |   |                        (0.0088) |   |   |                   (0.0090) |
|                                            |   |   |   |   |   |   |   |   |
| Basic      and fully diluted weighted average   |   |   |   |   |   |   |   |   |
| number      of shares outstanding               |   |              20,704,427 |   |   |                  17,057,241 |   |   |              37,761,668 |

----

| Consolidated  Balance      Sheet      |
|-------------------------------------------------|
| As      of December 31, 2007                    |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Current      assets:                            |   |   |   |   |   |   |   |   |
| Accounts      receivable                        |   |                                  - |   |   |                                  - |   |   |                                  - |
| Total      current assets                       |   |                                  - |   |   |                                  - |   |   |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Property      and equipment, net                |   |                                  - |   |   |                                  - |   |   |                                  - |
| Other      assets                               |   |                                  - |   |   |                                  - |   |   |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Total      assets                               | $ |                                  - |   | $ |                                  - |   | $ |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Current      liabilities:                       |   |   |   |   |   |   |   |   |
| Accounts      payable                           |   |                               138 |   |   |                                  - |   |   |                               138 |
| Credit      card payable                        |   |                                  - |   |   |                                  - |   |   |                                  - |
| Line      of credit                             |   |                                  - |   |   |                                  - |   |   |                                  - |
| Accrued      interest                           |   |                                  - |   |   |                                  - |   |   |                                  - |
| Bank      overdraft                             |   |   |   |   |                                  - |   |   |                                  - |
| Shareholder      loan                           |   |                            4,038 |   |   |                                  - |   |   |                            4,038 |
| Total      current liabilities                  |   |                            4,176 |   |   |                                  - |   |   |                            4,176 |
| Total      liabilities                          |   |                            4,176 |   |   |                                  - |   |   |                            4,176 |
|                                            |   |   |   |   |   |   |   |   |
| Preferred      Stock                            |   |   |   |   |   |   |   |                                  - |
| Common      Stock                               |   |                          20,704 |   |   |                          29,433 |   |   |                          50,137 |
| Additional      paid in capital                 |   |                        (20,704) |   |   |                    5,086,047 |   |   |                    5,065,343 |
| Accumulated      deficit                        |   |                          (4,176) |   |   |                  (5,115,480) |   |   |                  (5,119,656) |
| Total      stockholders deficit                 |   |                          (4,176) |   |   |                                  - |   |   |                          (4,176) |
|                                            |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders deficit | $ |                                  - |   | $ |                                  - |   | $ |                                  - |

----

| Consolidated      Statement of Cashflows           |
|----------------------------------------------------|
| For      the year December 31, 2007                |
|                                               |   |  As |   |   |  Restatement |   |   |  As |
|                                               |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Cashflow      from operating activities:           |   |   |   |   |   |   |   |   |
| Net      Loss                                      |   |                     (4,176) |   |   |                 (318,446) |   | $ |                 (322,622) |
| Adjustments      to reconcile net loss to net      |   |   |   |   |   |   |   |   |
| loss      to net cash used in operating activities |   |   |   |   |   |   |   |   |
| Depreciation                                       |   |                           - |   |   |                           - |   |   |                           - |
| Loss      on disposal of assets                    |   |                           - |   |   |                  318,446 |   |   |                  318,446 |
| Change      in operating assets and liabilities    |   |   |   |   |   |   |   |   |
| Decrease      (Increase) in:                       |   |   |   |   |   |   |   |   |
| Accounts      receivable                           |   |                           - |   |   |                           - |   |   |                           - |
| Other      assets                                  |   |                           - |   |   |                           - |   |   |                           - |
| Bank      overdraft                                |   |                         138 |   |   |                           - |   |   |                         138 |
| Accrued      interest                              |   |                           - |   |   |   |   |   |   |
| Automotive      loan                               |   |                           - |   |   |                           - |   |   |                           - |
| Net      cash provided by in operating activities  |   |                     (4,038) |   |   |                           - |   |   |                     (4,038) |
|                                               |   |   |   |   |   |   |   |   |
| Cashflow      from financing activities:           |   |   |   |   |   |   |   |   |
| Proceeds      from line of credit                  |   |                           - |   |   |                           - |   |   |   |
| Proceeds      from shareholder loan                |   |                      4,038 |   |   |                           - |   |   |                      4,038 |
| Net      cash provided in financing activities     |   |                      4,038 |   |   |                           - |   |   |                      4,038 |
|                                               |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash               |   |                           - |   |   |                           - |   |   |                           - |
| Cash      beginning period                         |   |   |   |   |                           - |   |   |                           - |
| Cash,      ending period                           |   |                           - |   |   |                           - |   | $ |                           - |
|                                               |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Stockholders Deficit |
|-----------------------------------------------------|
| For      the year December 31, 2007                 |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   | Restatement |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                | As      Originally Presented | Adjustment | As      Restated |
|                                                |   |   |   | Additional |   | Total |   |   |   |   | Additional |   | Total |
|                                                |   |   | Paid-in | Retained | Stockholder’s |   |   |   | Paid-in | Retained | Stockholder’s |
|                                                | Shares | Amount |   | Capital | Earnings | Equity |   | Shares | Amount |   | Capital | Earnings | Equity |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance      December 31,2006                 |   |       20,794,427 |  $ |              20,704 |  $ |          (20,704) |  $ |                     - |  $ |                   - |                (27,107) |   |      33,636,668 |  $ |          33,637 |  $ |       4,736,290 |  $ |          (4,797,037) |  $ |          (27,107) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      Loss -2007                           |   |   |   |   |   |   |               (4,176) |   |              (4,176) |              (318,446) |   |   |   |   |   |   |             (322,622) |   |        (322,622) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for notes payable to chairman    |   |                      - |   |                      - |   |                    - |   |                     - |   |                   - |               345,553 |   |       16,500,000 |   |           16,500 |   |          329,053 |   |   |   |         345,553 |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2007                      |   |   20,794,427 |  $ |         20,704 |  $ |      (20,704) |  $ |         (4,176) |  $ |              (4,176) |               - |   |  50,136,668 |  $ |      50,137 |  $ |   5,065,343 |  $ |      (5,119,659) |  $ |            (4,176) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|  TABLE OF      CONTENTS                                                          |  Page |
|---------------------------------------------------------------------------------------|------------|
|  Report      of Independent Registered Public Accounting Firm:              |  F-2  |
| Amended      and restated Consolidated Balance sheet                             | F-3        |
| Amended      and restated Consolidated Statements of Operations                  | F-4        |
| Amended      and restated Consolidated Statement of Stockholders’ Deficit  | F-5        |
| Amended      and restated Consolidated Statement of Cash Flows                   | F-6        |
| Amended      and restated Notes to Consolidated Financial Statements                  | F-7   |

  

----

ITEM 9A.  CONTROLS AND PROCEDURES 

----

----

| Name                                                            | Age    | Positions and Offices  Held    |
|-----------------------------------------------------------------|--------|--------------------------------|
| Michael      S. Borish                                          | 45     | CEO,      Acting CFO, Director |
| Edmund      F. Curtis        | 55     | COO,      President, Director  |
|                                                            |   |                           |
|                                                            |   |                           |

----

----

| Name      and Principal Position                                            |   | Year                  | Salary ($) | Bonus ($) | StockAwards($) | OptionAwards($) | Non-EquityIncentive      PlanCompensation($) | Change      inPensionValue      andNonqualifiedDeferredCompensationEarnings($) | All      OtherCompensation($) | Total($) |
|-----------------------------------------------------------------------------|--------|-----------------------|-----------------|----------------|----------------|-----------------|----------------------------------------------|--------------------------------------------------------------------------------|-------------------------------|----------|
| Michael      S. BorishChairman      and Chief   Executive Officer |   |                  |            |           |           |            |                                         |                                                                           |                          |     |
|                                                                        | 2008   | *  $185,000 | -0-             | -0-            | -0-            | -0-             | -0-                                          | -0-                                                                            | $185,000                      |
|                                                                        |   |                  |            |           |           |            |                                         |                                                                           |                          |
|                                                                        |   |                  |            |           |           |            |                                         |                                                                           |                          |
|                                                                        |   |                  |            |           |           |            |                                         |                                                                           |                          |     |
| Edmund      F. CurtisPresident      and Chief Operating  Officer  |   |                  |            |           |           |            |                                         |                                                                           |                          |     |
|                                                                        | 2008   | **  $82,500 | -0-             | -0-            | -0-            | -0-             | -0-                                          | 12,500                                                                         | $95,000                       |
|                                                                        |   |                  |            |           |           |            |                                         |                                                                           |                          |
|                                                                        |   |                  |            |           |           |            |                                         |                                                                           |                          |

| ·   | *      Salaries for executive were accrued in 2008. No salary was paid to      executive during the year. Effective in 2009 salaries will be paid.      Liabilities for salaries due will be paid back to executive or converted      to stock. ** Salaries for executive was paid by a note in 2008. Total      paid was $95,000 of which $12,500 is credited toward salary due in 2009.      Executive worked with Company starting June 30,2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                                                      | GrantDate | ApprovalDate | Number      ofNon-EquityIncentive PlanUnits      Granted(#) | Estimated      Future Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts UnderEquity      Incentive Plan Awards | All OtherStock Awards:Number      ofShares      ofStock      orUnits(#) | All      OtherOption Awards:Number      ofSecuritiesUnderlyingOptions(#) | Exercise orBase      Priceof      OptionAwards($ / Sh) | ClosingPrice onGrantDate($ / Sh) |
|---------------------------------------------------------------------------|-----------|--------------|------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------|
| Threshold($)                                                              | Target($) | Maximum($)   | Threshold(#)                                                     | Target(#)                                                                           | Maximum(#)                                                                     |
|                                                                      |      |         |                                                             |                                                                                |                                                                           |                                                                              |                                                                          |                                                                  |                                            |   |   |   |   |
| Michael      S. BorishChairman      and Chief Executive Officer      | n/a       | n/a          | -0-                                                              | -0-                                                                                 | -0-                                                                            | -0-                                                                               | -0-                                                                           | -0-                                                                   | -0-                                             | -0- | -0- | -0- | -0- |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer | n/a       | n/a          | -0-                                                              | -0-                                                                                 | -0-                                                                            | -0-                                                                               | -0-                                                                           | -0-                                                                   | -0-                                             | -0- | -0- | -0- | -0- |

----

|                                                                      | Option      Awards                                      | Stock    Awards                                         |
|---------------------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
|                                                                      | Number      ofSecuritiesUnderlyingUnexercisedOptions(#) | Number      ofSecuritiesUnderlyingUnexercisedOptions(#) | EquityIncentivePlan Awards:Number      ofSecuritiesUnderlyingUnexercisedUnearnedOptions(#) | OptionExercisePrice($) | OptionExpirationDate | Number ofShares      orUnits      ofStock ThatHave      NotVested(#) | MarketValue ofShares orUnits      ofStock ThatHave      NotVested($) | Equity IncentivePlan      Awards:Number      ofUnearnedShares,      Unitsor      OtherRights      ThatHave      NotVested(#) | EquityIncentivePlan Awards:Market      orPayout      Valueof      UnearnedShares,      Unitsor      OtherRights      ThatHave      NotVested($) |
| Name                                                                      | Exercisable                                             | Unexercisable                                           |
|                                                                      |                                                    |                                                    |   |   |   |   |   |   |   |
| Michael      S. BorishChairman      and Chief Executive Officer      | -0-                                                     | -0-                                                     | -0- | -0- | -0- | -0- | -0- | -0- | -0- |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer | -0-                                                     | -0-                                                     | -0- | -0- | -0- | -0- | -0- | -0- | -0- |

----

| Name                                                                      | Option      Awards                     | Stock      Awards                                          |
|---------------------------------------------------------------------------|----------------------------------------|------------------------------------------------------------|
| Number of SharesAcquired on Exercise(#)               | Value Realizedon      Exercise($) | Number of SharesAcquired on Vesting(#) | Value Realizedon      Vesting($) |
| Michael      S. BorishChairman      and Chief Executive Officer      | -0-                                    | -0-                                                        | -0- | -0- |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer | -0-                                    | -0-                                                        | -0- | -0- |

----

| Name                                                                      | Plan Name | Number of YearsCredited      Service(#) | Present Valueof AccumulatedBenefit($) | Payments During LastFiscal      Year($) |
|---------------------------------------------------------------------------|----------------|---------------------------------------------------|-------------------------------------------------|---------------------------------------------------|
| Michael      S. BorishChairman      and Chief Executive Officer      | N/A            | -0-                                               | -0-                                             | -0-                                               |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer | N/A            | -0-                                               | -0-                                             | -0-                                               |

----

| Name                                                                      | Executive Contributionsin      Last Fiscal Year($) | RegistrantContributions in LastFiscal      Year($) | Aggregate Earningsin      Last Fiscal Year($) | AggregateWithdrawals /Distributions($) | Aggregate Balance atLast      Fiscal Year-End($) |
|---------------------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------|---------------------------------------------|------------------------------------------------------------|
| Michael      S. BorishChairman      and Chief Executive Officer      | -0-                                                     |        -0-                                              |        -0-                                    |        -0-                             |        -0-                                            |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer |  -0-                                               |  -0-                                                    |  -0-                                          |  -0-                                   | -0-                                                        |

----

| Name                                                                      | Fees Earned orPaid in Cash($) | Stock Awards($) | Option Awards($) | Non-EquityIncentive      PlanCompensation($) | Changein      PensionValue      andNonqualifiedDeferredCompensationEarnings($) | All      OtherCompensation($) | Total($) |
|---------------------------------------------------------------------------|---------------------------------------------------|----------------------|-----------------------|----------------------------------------------|--------------------------------------------------------------------------------|-------------------------------|----------|
| Michael      S. BorishChairman      and Chief Executive Officer      | -0-                                               | -0-                  | -0-                   | -0-                                          | -0-                                                                            | -0-                           | -0-      |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer | -0-                                               | -0-                  | -0-                   | -0-                                          | -0-                                                                            | -0-                           | -0-      |

----

| Name                                                                       | Year   | Perquisitesand      OtherPersonalBenefits($) | TaxReimbursements($) | InsurancePremiums($) | CompanyContributionsto Retirement and401(k)      Plans($) | SeverancePayments /Accruals($) | Changein ControlPayments /Accruals($) | Total ($) |
|----------------------------------------------------------------------------|--------|----------------------------------------------|----------------------|----------------------|---------------------------------------------------------------------|-------------------------------------|-------------------------------------------------|----------------|
|                                                                       |   |                                         |                 |                 |                                                                |                                |                                            |           |
| Michael      S. BorishChairman      and Chief Executive      Officer  | 2008   | -0-                                          | -0-                  | -0-                  | -0-                                                                 | -0-                                 | -0-                                             | -0-            |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer  | 2008   | -0-                                          | -0-                  | -0-                  | -0-                                                                 | -0-                                 | -0-                                             | -0-            |

----

| Name                                                                       | Year   | Personal Use ofCompanyCar/Parking | Financial Planning/Legal      Fees | Club Dues | Executive Relocation | Total Perquisites andOther Personal Benefits |
|----------------------------------------------------------------------------|--------|---------------------------------------------|-----------------------------------------|----------------|---------------------------|------------------------------------------------------------------|
|                                                                       |   |                                        |                                    |           |                      |                                                             |
| Michael      S. BorishChairman      and Chief Executive      Officer  | 2008   | -0-                                         | -0-                                     | -0-            | -0-                       | -0-                                                              |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer  | 2008   | -0-                                         | -0-                                     | -0-            | -0-                       | -0-                                                              |

----

|                                                                       |                                      | Before Change inControl                     | After Change inControl                           |                 |   |       |                  |
|----------------------------------------------------------------------------|-------------------------------------------|-------------------------------------------------------|------------------------------------------------------------|----------------------|--------|------------|-----------------------|
| Name                                                                       | Benefit                                   | Terminationw/o Cause      or forGood      Reason | Terminationw/o Cause      orfor Good Reason | VoluntaryTermination | Death  | Disability | Change inControl |
| Michael      S. BorishChairman      and Chief Executive      Officer  | Employment      Contract      to 12/31/10 | $370,000                                              | $370,000                                                   | -0-                  | -0-    | -0-        | $370,000              |
| Edmund      F. CurtisPresident      and ChiefOperating  Officer  | Employment      Contract      to 12/31/10 | $330,000                                              | $330,000                                                   | -0-                  | -0-    | -0-        | $330,000              |

----

----

|                                                 |   |       |                         |
|------------------------------------------------------|--------|------------|------------------------------|
| Shareholder                                          | Class  | Amount     | %      of shares outstanding |
|                                                 |   |       |                         |
|                                                 |   |       |                         |
|                                                 |   |       |                         |
|                                                 |   |       |                         |
| David      R. Koos                                   | Common | 5,767,504  | 16.40%                       |
| c/o      Bombardier Pacific Ventures Inc.            |   |       |                         |
| 1010      University Avenue #40                      |   |       |                         |
| San      Diego, CA 92103*                            |   |       |                         |
|                                                 |   |       |                         |
| Venture      Bridge Advisors Inc.                    | Common | 3,206,072  | 9.20%                        |
| 711      S. Carson Street, Suite 4                   |   |       |                         |
| Carson      City, NV 89701                           |   |       |                         |
|                                                 |   |       |                         |
| Diana      Perlman                                   | Common | 3,172,868  |  9.10%                  |
| 5459      Vineland Road                              |   |       |                         |
| Orlando,      FL 32811                               |   |       |                         |
|                                                 |   |       |                         |
| Michael      Borish***                               | Common | 10,559,258 | 30.10%                       |
| C/o      Freedom Environmental Services, Inc.        |   |       |                         |
| 7395      Hoffner Avenue                             |   |       |                         |
| Orlando,      Florida 32822                          |   |       |                         |
|                                                 |   |       |                         |
| Edmund      F.Curtis****                             | Common | 7,039,505  | 20.10%                       |
| C/o      Freedom Environmental Services, Inc.        |   |       |                         |
| 7395      Hoffner Avenue                             |   |       |                         |
| Orlando,      Florida 32822                          |   |       |                         |
|                                                 |   |       |                         |
| John      Holwell*****                               | Common | 3,105,664  | 8.90%                        |
| C/o      Freedom Environmental Services, Inc.        |   |       |                         |
| 7395      Hoffner Avenue                             |   |       |                         |
| Orlando,      Florida 32822                          |   |       |                         |
|                                                 |   |       |                         |
| All      Executive Officers and Directors as a Group | Common | 32,850,871 | 93.8%                        |

----

----

----

----

|          |   |                                                                                                                                                                                                      |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1           |   | Articles      of Incorporation (1)                                                                                                                                                                        |
| 3.2           |   | Amendments      to Articles of Incorporation (1)                                                                                                                                                          |
| 3.1           |   | Bylaws      of the Corporation (1)                                                                                                                                                                        |
| 4.1           |   | Employment      Agreement with Michael Borish                                                                                                                                                             |
| 4.2           |   | Employment      Agreement with Edmund Curtis                                                                                                                                                              |
| 4.3           |   | Convertible      Note with Diane Perlman                                                                                                                                                                  |
| 4.4           |   | Funding      Addendum to Shareholder Loan                                                                                                                                                                 |
| 4.5           |   | Loan      Agreement with Diane Perlman                                                                                                                                                                    |
| 4.6           |   | Convertible      Note with Edmund Curtis                                                                                                                                                                  |
| 4.7           |   | Note      Assignment with Edmund Curtis                                                                                                                                                                   |
| 4.8           |   | Loan      Agreement with Resort Marketing Professionals                                                                                                                                                   |
| 14,2123.131.1 |   | Code      of EthicsSubsidiariesConsent      of  Independent Registered Accounting FirmCertification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act. (2) |
| 31.2          |   | Certification      of Principal Financial and Accounting Officer Pursuant to Section 302 of      the Sarbanes-Oxley Act. (2)                                                                              |
| 32.1          |   | Certification      of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley      Act.  (2)                                                                                      |
| 32.2          |   | Certification      of Chief Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley      Act.  (2)                                                                                     |

----

| By:                                                                         | /s/ Michael      S. Borish |   |
|-----------------------------------------------------------------------------|---------------------------------|--------|
| Michael      S. Borish, Chairman, CEO and Acting CFO      and Director |                            |

| By:                                                | /s/ Edmund      F. Curtis |   |
|----------------------------------------------------|--------------------------------|--------|
| Edmund      F. Curtis, COO, President and Director |                           |

----

|  TABLE OF      CONTENTS                                                          |  Page |
|---------------------------------------------------------------------------------------|------------|
|  Report      of Independent Registered Public Accounting Firm:              |  F-2  |
| Amended      and restated Consolidated Balance sheet                             | F-3        |
| Amended      and restated Consolidated Statements of Operations                  | F-4        |
| Amended      and restated Consolidated Statement of Stockholders’ Deficit  | F-5        |
| Amended      and restated Consolidated Statement of Cash Flows                   | F-6        |
| Amended      and restated Notes to Consolidated Financial Statements                  | F-7   |

----

----

----

| Freedom      Environmental Services, Inc.                                                                                                                                                             |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Amended      and Restated Consolidated Balance Sheet                                                                                                                                                  |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   | December      31, |   |
|                                                                                                                                                                                                  |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                  |   |   | (Restated) |   |   | (Restated) |   |
| ASSETS                                                                                                                                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| Current      assets:                                                                                                                                                                                  |   |   |   |   |   |   |   |
|    Accounts      receivable                                                                                                                                                            |   |   |   | 2,675 |   |   |   | - |   |
|  Total      current assets                                                                                                                                                                       |   |   |   | 2,675 |   |   |   | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                                                                                                                                                      |   |   |   | 11,065 |   |   |   | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Other      assets                                                                                                                                                                                     |   |   |   | 11,738 |   |   |   | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|         Total      assets                                                                                                                                     |   |   | $ | 25,478 |   |   | $ | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      DEFICIT                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
| Bank      overdraft                                                                                                                                                                                   |   |   | $ | 20,471 |   |   | $ | - |   |
| Accounts      payable and accrued expenses                                                                                                                                                            |   |   |   | 449,039 |   |   |   | 138 |   |
| Line      of credit                                                                                                                                                                                   |   |   |   | 14,995 |   |   |   |   |   |
| Note      payable-current portion                                                                                                                                                                     |   |   |   | 4,997 |   |   |   |   |   |
| Due      to related party                                                                                                                                                                             |   |   |   | 95,000 |   |   |   |   |   |
| Shareholder      loan                                                                                                                                                                                 |   |   |   | 549,057 |   |   |   | 4,038 |   |
| Total      current liabilities                                                                                                                                                                        |   |   |   | 1,133,559 |   |   |   | 4,176 |   |
| Note      payable-noncurrent portion                                                                                                                                                                  |   |   |   | 4,997 |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|         Total      liabilities                                                                                                                                |   |   |   | 1,138,556 |   |   |   | 4,176 |   |
| Stockholders'      deficit:                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Preferred      stock, $.001 par value, 75,000,000 share authorized; none      issued                                                                                                                  |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Common      Stock, par value $.001 per share, 100,000,000 shares      authorized;  50,136,668 and 35,158,093 shares issued and      outstanding at December 31, 2007 and 2008, respectively |   |   |   | 35,157 |   |   |   | 50,137 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|    Additional      paid in capital                                                                                                                                                     |   |   |   | 11,841,986 |   |   |   | 5,065,343 |   |
|    Accumulated      deficit                                                                                                                                                            |   |   |   | (12,990,221 | ) |   |   | (5,119,656 | ) |
|         Total      Stockholders' deficit                                                                                                                      |   |   |   | (1,113,078 | ) |   |   | (4,176 | ) |
|         Total      liabilities and stockholders' deficit                                                                                                      |   |   | $ | 25,478 |   |   | $ | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |
|  The      accompanying notes are an integral part of these financial      statements                                                                                                             |   |

----

| Freedom      Environmental Services, Inc.                                           |
|-------------------------------------------------------------------------------------|
| Amended      and Restated Consolidated Statement of Operations                 |   |   |
|                                                                                |   | For      the years ended |
|                                                                                |   | December      31, |
|                                                                                |   | 2008 |   |   |  2007 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Net      sales                                                                      |   | $ | 293,124 |   |   | $ | - |   |
| Cost      of sales                                                                  |   |   | 152,602 |   |   |   | - |   |
| Gross      Profit                                                                   |   | $ | 140,522 |   |   | $ | - |   |
| General      and administrative                                                     |   |   | 7,587,735 |   |   |   | 4,176 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Loss      from operations                                                           |   |   | (7,447,213 | ) |   |   | (4,176 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Other      income (expense)                                                         |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                               |   |   | (423,352 | ) |   |   | - |   |
| Loss      from disposal of assets                                                   |   |   | - |   |   |   | (318,446 | ) |
| Total      other income (expense)                                                   |   |   | (423,352 | ) |   |   | (318,446 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Loss      before income taxes                                                       |   |   | (7,870,565 | ) |   |   | (322,622 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes                                                     |   |   | - |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                                       |   |   | (7,870,565 | ) |   |   | (322,622 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Net      loss per share basic and fully diluted                                     |   |   | (0.185 | ) |   |   | (0.009 | ) |
| Basic      and fully diluted weighted average                                       |   |   |   |   |   |   |   |   |   |
| number      of shares outstanding                                                   |   |   | 42,647,381 |   |   |   | 37,761,668 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                |
|                                                                                |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements |

----

|        Freedom      Environmental Services, Inc.                                |
|--------------------------------------------------------------------------------------|
|   Amended an Restated Consolidated Statement of Stockholders'      Deficit |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   | Additional |   |   |        Total |   |
|                                                                                 |   |   |   |   | Paid-in |   | Retained |  Stockholder’s |   |
|                                                                                 |   | Shares |   |   | Amount |   |   | Capital |   | Earnings | Equity |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance      December 31,2006                                                  |   |   |   33,636,668 |   |   | $ |   33,637 |   | $ |    4,736,290 |   | $ |    (4,797,034) | $  |       (27,107) |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      Loss                                                                  |   |   |   |   |   |   |   |   |   |   |   |    (322,622) |   |  (322,622) |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Shares      issued for Notes Payable to Chairman                               |   |   |   16,500,000 |   |   |   |   16,500 |   |   |       329,053 |   |   |   |   |       345,553 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance      December 31,2007                                                  |   |   |   50,136,668 |   |   | $ |   50,137 |   | $ |    5,065,343 |   | $ |    (5,119,656) | $  |         (4,176) |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      Loss -2008                                                            |   |   |   |   |   |   |   |   |   |   |   |    (7,870,565) |   |  (7,870,565) |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Reverse      Stock Split 1:20                                                  |   |   |  (47,629,631) |   |   |   |  (47,630) |   |   |         47,630 |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Shares      Issued for consulting fee @ $.50/share                             |   |   |   12,746,444 |   |   |   |   12,746 |   |   |    6,360,476 |   |   |   |   |    6,373,222 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Recapitalization      as per Stock Purchase Agreement                          |   |   |   20,704,427 |   |   |   |   20,704 |   |   |        (20,704) |   |   |   |   |                  0 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Shares      returned by former Chairman and cancelled                          |   |   |       (800,000) |   |   |   |       (800) |   |   |              800 |   |   |   |   |                 - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Miscellaneous      Issuance                                                    |   |   |               185 |   |   |   |          - |   |   |              191 |   |   |   |   |              191 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Value      of beneficial conversion feature of convertible note                |   |   |   |   |   |   |   |   |   |       388,250 |   |   |   |   |       388,250 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2008                                                       |   |   | 35,158,093 |   |   | $ | 35,157 |   | $ |  11,841,986 |   | $ |  (12,990,221) | $  |  (1,113,078) |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements  |

----

| Freedom      Environmental Services, Inc.                                                                                             |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| Amended      and Restated Consolidated Statement of Operations                                                                   |   |
|                                                                                                                                  |   | For      the years ended |   |
|                                                                                                                                  |   | December      31, |   |
|                                                                                                                                  |   | 2008 |   |   | 2007 |   |
| Cash      flows from operating activities:                                                                                            |   |   |   |   |   |   |
| Net      loss                                                                                                                         |   | $ | (7,870,565 | ) |   |   | (322,622 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities:                                                 |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                                          |   |   | 6,067 |   |   |   | - |   |
|         Loss      on disposal of assets          |   |   |       |   |   |   | 318,466 |   |
| Common      stock issued for compensation                                                                                             |   |   | 6,761,663 |   |   |   | - |   |
| Changes      in operating assets and liabilities:                                                                                     |   |   |   |   |   |   |   |   |
| Decrease      (Increase) in:                                                                                                          |   |   |   |   |   |   |   |   |
|  Accounts      receivable                                                                                                        |   |   | (2,675 | ) |   |   | - |   |
|  Other      assets                                                                                                               |   |   | (11,738 | ) |   |   | - |   |
|  Bank      overdraft                                                                                                             |   |   | 20,471 |   |   |   |   |   |
| Accounts      payable and accrued expenses                                                                                            |   |   | 448,901 |   |   |   | 138 |   |
| Net      cash provided by in operating activities                                                                                |   |   | (647,876 | ) |   |   | (4,038 | ) |
| Cash      flows from investing activities:                                                                                            |   |   |   |   |   |   |   |   |
| Fixed      assets purchased                                                                                                           |   |   | (17,132 | ) |   |   | - |   |
| Net      Cash Used In Investing Activities                                                                                            |   |   | (17,132 | ) |   |   | 318,446 |   |
| Cash      flows from financing activities:                                                                                            |   |   |   |   |   |   |   |   |
|     Proceeds      from related party                                                                              |   |   | 95,000 |   |   |   |   |   |
|     Proceeds      from line of credit                                                                             |   |   | 14,995 |   |   |   |   |   |
|     Proceeds      from note payable-net of payments                                                               |   |   | 9,994 |   |   |   | - |   |
| Proceeds      from shareholder loan                                                                                                   |   |   | 545,019 |   |   |   | 4,038 |   |
| Net      cash provided by financing activities                                                                                   |   |   | 665,008 |   |   |   | 4,038 |   |
| Net      increase (decrease) in cash                                                                                                  |   |   | - |   |   |   | - |   |
| Cash,      beginning period                                                                                                           |   |   | - |   |   |   | - |   |
| Cash,      ending period                                                                                                              |   | $ | - |   |   |   | - |   |
| Supplemental      disclosure of cash flows information:                                                                               |   |   |   |   |   |   |   |   |
| Interest      paid during the period                                                                                                  |   | $ | 941 |   |   |   | - |   |
| Income      taxes paid during the period                                                                                              |   | $ | - |   |   |   | - |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                  |
|                                                                                                                                  |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements                                                   |   |

----

FREEDOM ENVIRONMENTAL SERVICES,  INC. 

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

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

----

----

----

| Consolidated  Balance      Sheet      |
|-------------------------------------------------|
| As      of December 31, 2008                    |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Current      assets:                            |   |   |   |   |   |   |   |   |
| Accounts      receivable                        |   |                       191,843 |   |   |                     (189,168) |   |   |                            2,675 |
| Total      current assets                       |   |                       191,843 |   |   |                     (189,168) |   |   |                            2,675 |
|                                            |   |   |   |   |   |   |   |   |
| Property      and equipment, net                |   |                          21,181 |   |   |                        (10,116) |   |   |                          11,065 |
| Other      assets                               |   |                            6,100 |   |   |                            5,638 |   |   |                          11,738 |
|                                            |   |   |   |   |   |   |   |   |
| Total      assets                               | $ |                       219,124 |   | $ |                     (193,646) |   | $ |                          25,478 |
|                                            |   |   |   |   |   |   |   |   |
| Current      liabilities:                       |   |   |   |   |   |   |   |   |
| Bank      overdraft                             | $ |                                  - |   |   |                          20,471 |   | $ |                          20,471 |
| Accounts      payable and accrued expenses      |   |                          81,800 |   |   |                       367,239 |   |   |                       449,039 |
| Line      of credit                             |   |                          14,995 |   |   |                                  - |   |   |                          14,995 |
| Notes      payable – current portion      |   |                                  - |   |   |                            4,997 |   |   |                            4,997 |
| Due      to related party                       |   |                                  - |   |   |                          95,000 |   |   |                          95,000 |
| Shareholder      loan                           |   |                       508,410 |   |   |                          40,647 |   |   |                       549,057 |
| Total      current liabilities                  |   |                       607,205 |   |   |                       526,354 |   |   |                    1,133,559 |
| Notes      payable-noncurrent portion           |   |                                  - |   |   |                            4,997 |   |   |                            4,997 |
| Total      liabilities                          |   |                       607,205 |   |   |                       531,351 |   |   |                    1,138,556 |
|                                            |   |   |   |   |   |   |   |   |
| Preferred      Stock                            |   |   |   |   |   |   |   |                                  - |
| Common      Stock                               |   |                          35,158 |   |   |                                  (1) |   |   |                          35,157 |
| Additional      paid in capital                 |   |                        (35,158) |   |   |                  11,877,144 |   |   |                  11,841,986 |
| Accumulated      deficit                        |   |                     (378,081) |   |   |                (12,612,140) |   |   |                (12,990,221) |
| Total      stockholders deficit                 |   |                     (378,081) |   |   |                     (734,997) |   |   |                  (1,113,078) |
|                                            |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders deficit | $ |                       229,124 |   | $ |                     (203,646) |   | $ |                          25,478 |
|                                            |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Operations       |
|-------------------------------------------------|
| For      the year December 31, 2008             |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Net      sales                                  |   |                       293,584 |   |   |                             (460) |   |   |                       293,124 |
| Cost      of Sales                              |   |                       147,251 |   |   |                            5,351 |   |   |                       152,602 |
| Gross      Profit                               |   |                       146,333 |   |   |                            5,811 |   |   |                       140,522 |
|                                            |   |   |   |   |   |   |   |   |
| Selling      general and administrative         |   |                       509,536 |   |   |                    7,078,199 |   |   |                    7,587,735 |
| Net      loss before other income and expense   |   |                     (363,203) |   |   |                  (7,084,010) |   |   |                  (7,447,213) |
| Interest      Expense                           |   |                          10,702 |   |   |                       412,650 |   |   |                       423,352 |
| Net      Loss                                   |   |                     (373,905) |   |   |                  (7,496,660) |   |   |                  (7,870,565) |
|                                            |   |   |   |   |   |   |   |   |
| Net      loss per share basic and fully diluted |   |                      (0.01) |   |   |                          (0.175) |   |   |                     (0.185) |
|                                            |   |   |   |   |   |   |   |   |
| Basic      and fully diluted weighted average   |   |   |   |   |   |   |   |   |
| number      of shares outstanding               |   |              27,931,258 |   |   |                  14,716,123 |   |   |              42,647,381 |
|                                            |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Cashflows           |
|----------------------------------------------------|
| For      the year December 31, 2008                |
|                                               |   |  As |   |   |  Restatement |   |   |  As |
|                                               |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Cashflow      from operating activities:           |   |   |   |   |   |   |   |   |
| Net      Loss                                      |   |                 (373,905) |   |   |              (7,496,660) |   | $ |              (7,870,565) |
| Adjustments      to reconcile net loss to net      |   |   |   |   |   |   |   |   |
| loss      to net cash used in operating activities |   |   |   |   |   |   |   |   |
| Depreciation                                       |   |                      2,500 |   |   |                      3,567 |   |   |                      6,067 |
| Common      stock issued for compensation          |   |                           - |   |   |                6,761,663 |   |   |                6,761,663 |
| Change      in operating assets and liabilities    |   |   |   |   |   |   |   |   |
| Decrease      (Increase) in:                       |   |   |   |   |   |   |   |   |
| Accounts      receivable                           |   |                   (10,000) |   |   |                      7,325 |   |   |                     (2,675) |
| Other      assets                                  |   |                     (6,100) |   |   |                     (5,638) |   |   |                   (11,738) |
| Bank      overdraft                                |   |                           - |   |   |                    20,471 |   |   |                    20,471 |
| Accounts      payable and accrued expenses         |   |                    83,662 |   |   |                  365,239 |   |   |                  448,901 |
| Net      cash provided by in operating activities  |   |                 (303,843) |   |   |                 (344,033) |   |   |                 (647,876) |
|                                               |   |   |   |   |   |   |   |   |
| Cashflow      from investing activities:           |   |   |   |   |   |   |   |   |
| Fixed      assets purchased                        |   |                   (23,681) |   |   |                      6,549 |   |   |                   (17,132) |
| Net      cash used in Investing activities         |   |                   (23,681) |   |   |                      6,549 |   |   |                   (17,132) |
|                                               |   |   |   |   |   |   |   |   |
| Cashflow      from financing activities:           |   |   |   |   |   |   |   |   |
| Proceeds      from related party                   |   |                           - |   |   |                    95,000 |   |   |                    95,000 |
| Proceeds      from line of credit                  |   |                    14,995 |   |   |                           - |   |   |                    14,995 |
| Proceeds      from note payable-net of payments    |   |                           - |   |   |                      9,994 |   |   |                      9,994 |
| Proceeds      from shareholder loan                |   |                  504,372 |   |   |                    40,647 |   |   |                  545,019 |
| Net      cash provided in financing activities     |   |                  519,367 |   |   |                  145,641 |   |   |                  665,008 |
|                                               |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash               |   |                  191,843 |   |   |                 (191,843) |   |   |                           - |
| Cash      beginning period                         |   |   |   |   |                           - |   |   |                           - |
| Cash,      ending period                           |   |                  191,843 |   |   |                 (191,843) |   | $ |                           - |

----

| Consolidated      Statement of Stockholders Deficit             |
|-----------------------------------------------------------------|
| For      the year December 31, 2008                             |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   | Restatement |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | As      Originally Presented | Adjustment | As      Restated |
|                                                            |   |   |   | Additional |   | Total |   |   |   |   | Additional |   | Total |
|                                                            |   |   | Paid-in | Retained | Stockholder’s |   |   |   | Paid-in | Retained | Stockholder’s |
|                                                            | Shares | Amount |   | Capital | Earnings | Equity |   | Shares | Amount |   | Capital | Earnings | Equity |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31,2007                                   |   |       20,794,427 |  $ |              20,704 |  $ |          (20,704) |  $ |               (4,176) |  $ |              (4,176) |                         - |   |       50,136,668 |  $ |           50,137 |  $ |       5,065,343 |  $ |           (5,119,656) |  $ |            (4,176) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss -2008                                             |   |   |   |   |   |   |          (373,905) |   |          (373,905) |           (7,496,660) |   |   |   |   |   |   |          (7,870,565) |   |     (7,870,565) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reverse      Stock Split 1:20                                   |   |                      - |   |                      - |   |                    - |   |   |   |   |                         - |   |     (47,629,631) |   |         (47,630) |   |            47,630 |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      Issued for consulting fee @ $.50/share              |   |                      - |   |                      - |   |                    - |   |   |   |                   - |             6,373,222 |   |       12,746,444 |   |           12,746 |   |       6,360,476 |   |   |   |      6,373,222 |
| Recapitalization      as per Stock Purchase Agreement           |   |         14,453,481 |   |               14,453 |   |           (14,453) |   |   |   |                   - |                         - |   |      20,704,427 |   |          20,704 |   |          (20,704) |   |   |   |                 - |
| Shares      returned by former Chairman and cancelled           |   |                      - |   |                      - |   |                    - |   |   |   |                  - |                         - |   |          (800,000) |   |              (800) |   |                 800 |   |   |   |                  - |
| Miscellaneous      Issuance                                     |   |                      - |   |                      - |   |                    - |   |   |   |                   - |                            191 |   |                   185 |   |                  (1) |   |                  192 |   |   |   |                191 |
| Value      of beneficial conversion feature of convertible note |   |   |   |   |   |                    - |   |   |   |                   - |                     388,250 |   |   |   |   |   |          388,250 |   |   |   |         388,250 |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2008                                  |   |   35,247,908 |  $ |         35,157 |  $ |      (35,157) |  $ |      (378,081) |  $ |          (378,081) |        (734,997) |   |  35,158,093 |  $ |      35,157 |  $ |  11,841,986 |  $ |    (12,990,221) |  $ |      (1,113,078) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| Consolidated  Balance      Sheet      |
|-------------------------------------------------|
| As      of December 31, 2007                    |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Current      assets:                            |   |   |   |   |   |   |   |   |
| Accounts      receivable                        |   |                                  - |   |   |                                  - |   |   |                                  - |
| Total      current assets                       |   |                                  - |   |   |                                  - |   |   |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Property      and equipment, net                |   |                                  - |   |   |                                  - |   |   |                                  - |
| Other      assets                               |   |                                  - |   |   |                                  - |   |   |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Total      assets                               | $ |                                  - |   | $ |                                  - |   | $ |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Current      liabilities:                       |   |   |   |   |   |   |   |   |
| Accounts      payable                           |   |                               138 |   |   |                                  - |   |   |                               138 |
| Credit      card payable                        |   |                                  - |   |   |                                  - |   |   |                                  - |
| Line      of credit                             |   |                                  - |   |   |                                  - |   |   |                                  - |
| Accrued      interest                           |   |                                  - |   |   |                                  - |   |   |                                  - |
| Bank      overdraft                             |   |   |   |   |                                  - |   |   |                                  - |
| Shareholder      loan                           |   |                            4,038 |   |   |                                  - |   |   |                            4,038 |
| Total      current liabilities                  |   |                            4,176 |   |   |                                  - |   |   |                            4,176 |
| Total      liabilities                          |   |                            4,176 |   |   |                                  - |   |   |                            4,176 |
|                                            |   |   |   |   |   |   |   |   |
| Preferred      Stock                            |   |   |   |   |   |   |   |                                  - |
| Common      Stock                               |   |                          20,704 |   |   |                          29,433 |   |   |                          50,137 |
| Additional      paid in capital                 |   |                        (20,704) |   |   |                    5,086,047 |   |   |                    5,065,343 |
| Accumulated      deficit                        |   |                          (4,176) |   |   |                  (5,115,480) |   |   |                  (5,119,656) |
| Total      stockholders deficit                 |   |                          (4,176) |   |   |                                  - |   |   |                          (4,176) |
|                                            |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders deficit | $ |                                  - |   | $ |                                  - |   | $ |                                  - |
|                                            |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Operations       |
|-------------------------------------------------|
| For      the year December 31, 2007             |
|                                            |   |  As |   |   |  Restatement |   |   |  As |
|                                            |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Net      Sales                                  |   |                                  - |   |   |                                  - |   |   |                                  - |
| Cost      of Sales                              |   |                                  - |   |   |                                  - |   |   |                                  - |
| Gross      Profit                               |   |                                  - |   |   |                                  - |   |   |                                  - |
|                                            |   |   |   |   |   |   |   |   |
| Selling      general and administrative         |   |                            4,176 |   |   |                                  - |   |   |                            4,176 |
| Net      loss before other income and expense   |   |                          (4,176) |   |   |                                  - |   |   |                          (4,176) |
| Interest      Expense                           |   |   |   |   |   |   |   |   |
| Loss      from disposal of asset                |   |                                  - |   |   |                     (318,446) |   |   |                     (318,446) |
| Net      Loss                                   |   |                          (4,176) |   |   |                     (318,446) |   |   |                     (322,622) |
|                                            |   |   |   |   |   |   |   |   |
| Net      loss per share basic and fully diluted |   |                   (0.0002) |   |   |                        (0.0088) |   |   |                   (0.0090) |
|                                            |   |   |   |   |   |   |   |   |
| Basic      and fully diluted weighted average   |   |   |   |   |   |   |   |   |
| number      of shares outstanding               |   |              20,704,427 |   |   |                  17,057,241 |   |   |              37,761,668 |

----

| Consolidated      Statement of Cashflows           |
|----------------------------------------------------|
| For      the year December 31, 2007                |
|                                               |   |  As |   |   |  Restatement |   |   |  As |
|                                               |   |  Originally      Presented |   |   |  Adjustment |   |   |  Restated |
| Cashflow      from operating activities:           |   |   |   |   |   |   |   |   |
| Net      Loss                                      |   |                     (4,176) |   |   |                 (318,446) |   | $ |                 (322,622) |
| Adjustments      to reconcile net loss to net      |   |   |   |   |   |   |   |   |
| loss      to net cash used in operating activities |   |   |   |   |   |   |   |   |
| Depreciation                                       |   |                           - |   |   |                           - |   |   |                           - |
| Loss      on disposal of assets                    |   |                           - |   |   |                  318,446 |   |   |                  318,446 |
| Change      in operating assets and liabilities    |   |   |   |   |   |   |   |   |
| Decrease      (Increase) in:                       |   |   |   |   |   |   |   |   |
| Accounts      receivable                           |   |                           - |   |   |                           - |   |   |                           - |
| Other      assets                                  |   |                           - |   |   |                           - |   |   |                           - |
| Bank      overdraft                                |   |                         138 |   |   |                           - |   |   |                         138 |
| Accrued      interest                              |   |                           - |   |   |   |   |   |   |
| Automotive      loan                               |   |                           - |   |   |                           - |   |   |                           - |
| Net      cash provided by in operating activities  |   |                     (4,038) |   |   |                  - |   |   |                    (4,038) |
|                                               |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |
| Cashflow      from financing activities:           |   |   |   |   |   |   |   |   |
| Proceeds      from line of credit                  |   |                           - |   |   |                           - |   |   |   |
| Proceeds      from shareholder loan                |   |                      4,038 |   |   |                           - |   |   |                      4,038 |
| Net      cash provided in financing activities     |   |                      4,038 |   |   |                           - |   |   |                      4,038 |
|                                               |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash               |   |                           - |   |   |                           - |   |   |                           - |
| Cash      beginning period                         |   |   |   |   |                           - |   |   |                           - |
| Cash,      ending period                           |   |                           - |   |   |                           - |   | $ |                           - |
|                                               |   |   |   |   |   |   |   |   |

----

| Consolidated      Statement of Stockholders Deficit |
|-----------------------------------------------------|
| For      the year December 31, 2007                 |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   | Restatement |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                | As      Originally Presented | Adjustment | As      Restated |
|                                                |   |   |   | Additional |   | Total |   |   |   |   | Additional |   | Total |
|                                                |   |   | Paid-in | Retained | Stockholder’s |   |   |   | Paid-in | Retained | Stockholder’s |
|                                                | Shares | Amount |   | Capital | Earnings | Equity |   | Shares | Amount |   | Capital | Earnings | Equity |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31,2006                       |   |       20,794,427 |  $ |              20,704 |  $ |          (20,704) |  $ |                     - |  $ |                   - |                (27,107) |   |      33,636,668 |  $ |          33,637 |  $ |       4,736,290 |  $ |          (4,797,037) |  $ |          (27,107) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss -2007                                 |   |   |   |   |   |   |               (4,176) |   |              (4,176) |              (318,446) |   |   |   |   |   |   |             (322,622) |   |        (322,622) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for notes payable to chairman    |   |                      - |   |                      - |   |                    - |   |                     - |   |                   - |               345,553 |   |       16,500,000 |   |           16,500 |   |          329,053 |   |   |   |         345,553 |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2007                      |   |   20,794,427 |  $ |         20,704 |  $ |      (20,704) |  $ |         (4,176) |  $ |              (4,176) |                  - |   |  50,136,668 |  $ |      50,137 |  $ |   5,065,343 |  $ |      (5,119,659) |  $ |            (4,176) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

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| Major      classes of property and equipment at December 31, consist of the      following: |   |   |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|

|                                                                                                                 |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                 |   | 2008   |   |   | 2007   |   |
| Furniture      and equipment                                                                                         |   | $      | 16,241 |   |   | $      | - |   |
| Leasehold      improvements                                                                                          |   |   | 890    |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Total      Notes Payable                                                                                             |   | $      | 17,131 |   |   | $      | - |   |
| Less:      accumulated depreciation                                                                                  |   |   | (6,066 | )      |   |   | - |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Net      property and equipment                                                                                      |   | $      | 11,065 |   |   | $      | - |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Depreciation      expense totaled $6,066 and $0 for the periods ended December 31, 2008 and      2007, respectively. |   |

|                                                               |   |   |     |   |   |   |   |
|--------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|
|                                                               |   |   |     |   |   |   |
|                                                               |   | 2008   |     |   | 2007   |   |
| Notes      Payable with Diana Perlman                              |   | $      | 299,658  |   |   | $      | -      |   |
|                                                               |   |   |     |   |   |   |   |   |
| Notes      payable with Resort Marketing.                          |   |   | 95,000   |   |   |   | -      |   |
|                                                               |   |   |     |   |   |   |   |   |
| Advance      payable with Mike Borish CEO                          |   |   | 243,579  |   |   |   | -      |   |
|                                                               |   |   |     |   |   |   |   |   |
| Advance      payable with Edmund Curtis COO                        |   |   | 2,177    |   |   |   | -      |   |
|                                                               |   |   |     |   |   |   |   |   |
| Advance      payable with John Holwel, Director and Vice President |   |   | 3,643    |   |   |   | -      |   |
|                                                               |   |   |     |   |   |   |   |   |
| Total      Notes Payable                                           |   | $      | 644,057  |   |   | $      | -      |   |
| less:  Current      Portion                              |   |   | (644,057 | )      |   |   | -      |   |
|                                                               |   |   |     |   |   |   |   |   |
| Long      Term Portion                                             |   | $      | -        |   |   | $      | -      |   |

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|                                              |                  |       |   |                  |   |     |   |
|---------------------------------------------------|-----------------------|------------|--------|-----------------------|--------|----------|--------|
|                                              | December      31,2008 |       |   | December 31,2007 |   |
| Current:                                          |                  |       |   |                  |   |     |   |
|          Federal                   | $                     | -          |   |                  | $      | -        |   |
|          State                     |                  |       |   |                  |   |     |   |
| Deferred:                                         |                  |       |   |                  |   |     |   |
|          Federal                   | $                     | 2,676,000  |   |                  | $      | 109,000  |   |
|          State                     |                  | 433,000    |   |                  |   | 18,000   |   |
|                                              |                  | 3,109,000  |   |                  |   | 127,000  |   |
| Benefit      from the operating loss carryforward |                  | (3,109,000 | )      |                  |   | (127,000 | )      |
| (Benefit)      provision for income taxes, net    | $                     | -          |   |                  | $      | -        |   |

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|                                   |                  |    |   |                  |   |    |   |
|----------------------------------------|-----------------------|---------|--------|-----------------------|--------|---------|--------|
|                                   | December      31,2008 |    |   | December 31,2007 |   |
| Statutory      federal income tax rate |                  | 34.0%   |   |                  |   | 34.0%   |   |
| State      income taxes and other      |                  | 5.5%    |   |                  |   | 5.5%    |   |
| Valuation      allowance               |                  | (39.5%) |   |                  |   | (39.5%) |   |
|  Effective      tax rate          |                  | -       |   |                  |   | -       |   |

|                                                    |                  |             |   |                  |   |             |    |
|---------------------------------------------------------|-----------------------|------------------|--------|-----------------------|--------|------------------|---------|
|                                                    | December      31,2008 |             |   | December 31,2007 |   |
| Net      operating loss carryforward                    |                  | 5,132,000        |   |                  |   | 2,169,000        |    |
| Accrued      liabilities                                |                  | 146,000          |   |                  |   | -                |    |
|  Valuation      allowance                          |                  |  (5,278,000 | )      |                  |   |  (2,169,000 |  ) |
|           Deferred income tax asset | $                     |  -          |   |                  | $      |  -          |    |

| NOTE      14 –      LOSSES PER SHARE                                                                     |   |
|----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   |   |   |   |   |   |
| The      following table represents the computation of basic and diluted losses per      share at December 31: |   |

|                                                                                               |   |   |       |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                               |   | 2008   |       |   | 2007   |   |
|                                                                                               |   |   |       |   |   |   |
| Losses      available for common shareholders                                                      |   |   | (7,870,565 | )      |   |   | (322,622 | ) |
|                                                                                               |   |   |       |   |   |   |   |   |
| Weighted      average common shares outstanding                                                    |   |   | (0.185     | )      |   |   | (0.009 | ) |
|                                                                                               |   |   |       |   |   |   |   |   |
| Basic      and fully diluted loss per share                                                        |   |   | 42,647,381 |   |   |   | 37,761,668 |   |
|                                                                                               |   |   |       |   |   |   |   |   |
| Net      loss per share is based upon the weighted average shares of common stock      outstanding |   |

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