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

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

| Nevada                                                        | 20-1211204                          |
|---------------------------------------------------------------|-------------------------------------|
| (State or other Jurisdiction ofIncorporation or Organization) | (I.R.S. EmployerIdentification No.) |
|                                                          |                                |
| 17800 Castleton St., Suite 300City of Industry, CA            | 91748                               |
| (Address of Principal Executive Offices)                      | (Zip Code)                          |

| Common Stock     |
|------------------|
| (Title of Class) |

| Large accelerated filer |   |  ̈ | Accelerated filer         |   | x      |
|-------------------------|--------|--------|---------------------------|--------|--------|
|                    |   |   |                      |   |   |
| Non-accelerated filer   |   |  ̈ | Smaller reporting company |   |  ̈ |

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| 1. | Super Hydro-Oxy:   An oral liquid designed to revitalize and detoxify the human body. |
|----|------------------------------------------------------------------------------------------------------|

| 2. | Super Silica:   An oral liquid designed to support bones, arteries, connective tissue, healthy hair, skin and nails. |
|----|-------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Colloidal Silver:   An oral liquid designed to combat bacterial, fungal and viral infections. |
|----|--------------------------------------------------------------------------------------------------------------|

| 4. | Rooibos Tea:   A popular South African tea believed to promote anti-aging and immune system health. |
|----|--------------------------------------------------------------------------------------------------------------------|

| 5. | Zeolite Plus: An oral liquid designed to detoxify the body, support immune system strength and normalize pH in the body. |
|----|--------------------------------------------------------------------------------------------------------------------------|

| 6. | 2006 Celprotect I:  Ingestible tablets designed to eliminate toxins and viruses (e.g., cold sores) and promote energy. |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| 7. | 2007 Celprotect II:   An oral liquid designed to stimulate cellular metabolism, neutralize toxins, assist in avoiding food poisoning, balance cell life and boost energy. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | 2006 – 2007 Celprotect I:   A kit containing 2006 Celprotect I and 2006 - 2007 Celprotect II. |
|----|--------------------------------------------------------------------------------------------------------------------|

| 9. | Vinegar Tablet:   A pill containing Pectin and Acetic Acid which relieves acid reflux and helps decrease the risk of heart diseases.  Vinegar is high in Potassium and Potassium foods are known to play a role in lowering high blood pressure. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Essential 90+:   An oral spray designed to promote overall health. |
|-----|-----------------------------------------------------------------------------------|

| 11. | Super Re-Vitalizer:   An oral spray designed to promote overall health. |
|-----|----------------------------------------------------------------------------------------|

| 12. | MSM (Methylsulfonymethane):   An oral spray designed to rebuild connective tissue and joints. |
|-----|--------------------------------------------------------------------------------------------------------------|

| 13. | Re-Live Again:   An oral spray designed to increase the release of Human Growth Hormone within the body to increase energy and endurance. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Slim’n Easy:   An oral spray designed to promote and sustain weight loss. |
|-----|------------------------------------------------------------------------------------------------|

| 15. | Perform Plus:   An oral spray designed to promote endurance, performance and increased libido. |
|-----|---------------------------------------------------------------------------------------------------------------|

| 16. | Cordyceps Sinensis:  An oral spray that supports the body’s vital antioxidant enzymes that have anti-aging effects. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 17. | Colostrum:   An oral spray designed to promote anti-aging, weight loss and immune system support. |
|-----|------------------------------------------------------------------------------------------------------------------|

| 18. | Spray-EEZE:   An oral spray designed to alleviate colds and sore throats. |
|-----|------------------------------------------------------------------------------------------|

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| 19. | Memory Plus:   An oral spray designed to overcome the natural processes associated with aging and enhance healthy cognitive ability. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 20. | Vision Plus:   An oral spray designed to nourish the eyes. |
|-----|---------------------------------------------------------------------------|

| 21. | Slumber Plus:   An oral spray designed to aid sleep. |
|-----|---------------------------------------------------------------------|

| 22. | Super Cal:   An oral spray designed to promote bone health. |
|-----|----------------------------------------------------------------------------|

| 23. | Deer Antler Velvet Plus:   An oral spray designed to promote white blood cell count and to help the body handle stress and promote recovery from the effects of injury and fatigue. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24. | GlucoBalance:   An oral spray designed to maintain proper levels of blood sugar for good health. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| 25. | Liver Support:   An oral spray designed to cleanse the liver and rebuild damaged tissue. |
|-----|---------------------------------------------------------------------------------------------------------|

| 26. | CardioSupport:   An oral spray designed to promote heart health. |
|-----|---------------------------------------------------------------------------------|

| 27. | ReishiPlus:   An oral spray designed to help lower blood pressure and decrease elevated cholesterol and triglyceride levels and support the immune system. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | Fountain of Youth: A daily skin care regimen including a synergistic blend of 10 oriental herbs for the purpose of skin brightening, cleaning, and anti-wrinkle effects. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Rooibos Tea Cream: A skin cream containing Alpha-Hydroxy acids, antioxidant, Vitamin B, Vitamin C and Vitamin E, Zinc, Potassium, Calcium, Copper and DHEA. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Gold Cream: A topical cream containing colloidal gold for the purpose of relieving pain associated with arthritis, stiff and swollen joints, sprains, strains, muscle spasms, bursitis and tendonitis. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Bust Cream: An herbal cream containing natural ingredients for the purpose of stimulating the development of the breast tissue and tightening and firming of the breast. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Progesterone Cream: A non-pharmaceutical cream containing natural ingredients for menopausal and postmenopausal women. |
|----|------------------------------------------------------------------------------------------------------------------------|

| 6. | Face Lifting Masque: A 20 minute masque for the purpose of reducing the visible signs of aging while lifting, tightening, and refining the pores of the skin. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Daily Eye Treatment:  A soothing and hydrating eye cream for the purpose of reducing puffiness, fine lines and the effects of stress and fatigue. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Pressed Mineral Powder: A multi-functional face power containing zinc, Vitamins A and E and green tea extract. |
|----|---------------------------------------------------------------------------------------------------------------------|

| 9. | Nia Face and Body Powder: A jar containing face and body powder and a powder puff. |
|----|-----------------------------------------------------------------------------------------|

| 10. | Nia Lip Magic: A lip gloss. Colors include Celebration Red with Pink shimmer and Plum Raisin with Peach shimmer. |
|-----|------------------------------------------------------------------------------------------------------------------|

| 11. | Nia Eye Color: A palette of four color-coordinated eye shadows: Pearl grey, Soft pink, Cranberry and Charcoal. |
|-----|----------------------------------------------------------------------------------------------------------------|

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| 12. | Nia Concealer: A light colored concealer for the purpose of providing coverage for any skin imperfection as in darkness around the eyes, blemishes and to even out skin tones. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | Nia 3 Plus 1 Lash & Line: Mascara and eyeliner package containing two items in each tube:  dark brown mascara and navy blue mascara in one tube and black mascara and black eyeliner in the other tube. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Instant Whitening Cream: A cream for the purpose of brightening overall complexion, lightening age spots, liver spots and sun damaged skin. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Designed lip color:  A long lasting moisturizing lipstick. |
|-----|----------------------------------------------------------------------|

| 16. | Sunscreen UV:  Enhanced SPF 50 power that provides protection against harmful UVA and UVB rays. |
|-----|------------------------------------------------------------------------------------------------------|

| 17. | Facial Hair Removal:  An organic facial hair removal that also moisturizes with an organic Aloe Vera base. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| 18. | Body Hair Removal:  Organic Aloe Vera formula with Sunflower Seed Oil removes unwanted body hair quickly and pain free. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| 19. | The Collection: A makeup kit containing Face Primer, Silk Whipped Foundation, Wet/Dry Powder, Eye Shadow, Black Eye Pencil, Pressed Shimmer Powder, Shimmer Blush, Long Lasting Lipstick, Lip Gloss Palate, Cream Lipstick, and Coordinating Lip Pencils. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20. | Perfume set: A floral fragrance perfume. |
|-----|------------------------------------------|

| 21. | Travel Kits:  An Anti-Aging Skin Care Travel Kit containing products designed for balancing skin tone, increasing hydration, diminishing lines and wrinkles and restoring resiliency. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

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|   | · | political and economic instability in foreign countries, including heightened terrorism and other security concerns, which could subject imported or exported goods to additional or more frequent inspections, leading to delays in deliveries or impoundment of goods, or to an increase in transportation costs of raw materials or finished product; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the imposition of regulations and quotas relating to exports and imports, including quotas imposed by bilateral agreements between the United States from where we source our products and foreign countries, including China; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the imposition of duties, taxes and other charges on exports and imports; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | significant fluctuation of the value of the U.S. dollar against the Hong Kong Dollar, Chinese Yuan and other foreign currencies; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | restrictions on the transfer of funds to or from foreign countries; and |
|--------|--------|-------------------------------------------------------------------------|

|   | · | violations by foreign contractors of labor and wage standards and resulting adverse publicity. |
|--------|--------|------------------------------------------------------------------------------------------------|

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----

----

----

|   |   | • | Quarterly variations in our operating results; |
|--------|--------|---------|------------------------------------------------|

|   |   | • | Operating results that vary from the expectations of investors; |
|--------|--------|---------|-----------------------------------------------------------------|

|   |   | • | Changes in expectations as to our future financial performance, including financial estimates by investors; |
|--------|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   |   | • | Reaction to our periodic filings, or presentations by executives at investor and industry conferences; |
|--------|--------|---------|--------------------------------------------------------------------------------------------------------|

|   |   | • | Changes in our capital structure; |
|--------|--------|---------|-----------------------------------|

|   |   | • | Changes in market valuations of other internet or online service companies; |
|--------|--------|---------|-----------------------------------------------------------------------------|

|   |   | • | Announcements of innovations or new services by us or our competitors; |
|--------|--------|---------|------------------------------------------------------------------------|

|   |   | • | Announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; |
|--------|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | • | Lack of success in the expansion of our business operations; |
|--------|--------|---------|--------------------------------------------------------------|

|   |    | • | Announcements by third parties of significant claims or proceedings against us or adverse developments in pending proceedings; |
|--------|--------------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   |   | • | Additions or departures of key personnel; |
|--------|--------|---------|-------------------------------------------|

|   |   | • | Asset impairment; |
|--------|--------|---------|-------------------|

|   |   | • | Temporary or permanent inability to offer products or services; |
|--------|--------|---------|-----------------------------------------------------------------|

|   |   | • | Rumors or public speculation about any of the above factors; and |
|--------|--------|---------|-----------------------------------------------------------------------|

|   |   | • | Market and volume fluctuations in the stock markets in general. |
|--------|--------|---------|-----------------------------------------------------------------|

|   | · | The Company’s accounting for its interest in Excalibur and its acquisition of a 92% equity interest in Digital Development Partners.  The Company has restated its prior financial statements to address these issues, as described in Note 2 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company’s disclosure on the effectiveness of its disclosure controls and procedures.  Information on the Company’s disclosure controls and procedures and internal control over financial reporting is included in Item 9A of this Annual Report on Form 10-K. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Three Months Ended |   | Low Bid |   |   | High Bid |   |
|------------------------------|--------|--------------|--------|--------|---------------|--------|
|                         |   |         |   |   |          |   |
| June 30, 2009                |   | $            | 2.05   |   |          | $      | 5.50 |   |
| September 30, 2009           |   | $            | 3.01   |   |          | $      | 5.68 |   |
| December 31, 2009            |   | $            | 2.18   |   |          | $      | 5.11 |   |
| March 31, 2010               |   | $            | 1.80   |   |          | $      | 3.03 |   |
|                         |   |         |   |   |          |   |   |   |
| June 30, 2010                |   | $            | 1.90   |   |          | $      | 4.00 |   |
| September 30, 2010           |   | $            | 2.20   |   |          | $      | 2.85 |   |
| December 31, 2010            |   | $            | 0.40   |   |          | $      | 2.36 |   |
| March 31, 2011               |   | $            | 0.58   |   |          | $      | 1.27 |   |

| ITEM 6.  | SELECTED FINANCIAL DATA |
|---------------|-------------------------|

|                                        |   | Years ended March 31, |        |
|---------------------------------------------|--------|-----------------------|-------------|
| Statements of Operations                    |   | 2011                  |        |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                        |   |                  |        |   | (Restated) |   |   | (Restated) |   |   |   |   |   |   |   |
| Net revenue                                 |   | $                     | 13,013,480  |   |   | $ | 21,073,166 |   |   | $ | 18,515,208 |   |   | $ | 40,359,662 |   |   | $ | 19,844,776 |   |
| Operating expenses:                         |   |                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                  |   |                  | 23,927,032  |   |   |   | 26,380,783 |   |   |   | 9,702,045 |   |   |   | 3,693,369 |   |   |   | 1,690,293 |   |
| Other income                                |   |                  | 841,124     |   |   |   | 384,658 |   |   |   | 235,128 |   |   |   | 326,194 |   |   |   | 11,566 |   |
| Interest income                             |   |                  | 1,022,556   |   |   |   | 517,039 |   |   |   | 1,261,708 |   |   |   | 275,538 |   |   |   | 22,819 |   |
| Net income (loss)                           |   |                  | (19,756,880 | ) |   |   | (14,178,943 | ) |   |   | 810,763 |   |   |   | 20,795,695 |   |   |   | 10,063,293 |   |
| Net income (loss) attributable to Company   |   | $                     | (15,409,176 | ) |   | $ | (8,386,643 | ) |   | $ | 2,541,795 |   |   | $ | 20,795,695 |   |   | $ | 10,063,293 |   |
| Net income (loss) per common share:         |   |                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                           |   | $                     | (0.20       | ) |   | $ | (0.11 | ) |   | $ | 0.04 |   |   | $ | 0.37 |   |   | $ | 0.17 |   |
| Weighted average common shares outstanding: |   |                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                           |   |                  | 75,983,203  |   |   |   | 75,983,205 |   |   |   | 66,637,448 |   |   |   | 55,350,545 |   |   |   | 59,821,414 |   |

----

| Balance Sheets                 |   | March 31, |       |
|--------------------------------|--------|-----------|------------|
|                           |   | 2011      |       |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                           |   |      |       |   | (Restated) |   |   | (Restated) |   |   |   |   |   |   |   |
| Current assets                 |   | $         | 47,047,371 |   |   | $ | 43,186,040 |   |   | $ | 47,026,462 |   |   | $ | 19,414,774 |   |   | $ | 2,722,521 |   |
| Total assets                   |   |      | 56,492,067 |   |   |   | 65,739,747 |   |   |   | 79,930,632 |   |   |   | 57,427,420 |   |   |   | 2,826,369 |   |
| Current liabilities            |   |      | 21,988,783 |   |   |   | 11,242,672 |   |   |   | 15,684,199 |   |   |   | 55,687,992 |   |   |   | 3,195,557 |   |
| Contingent liabilities         |   |      | 2,703,409  |   |   |   | 2,904,957 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total liabilities              |   |      | 24,692,192 |   |   |   | 14,147,629 |   |   |   | 15,684,199 |   |   |   | 55,687,992 |   |   |   | 3,195,557 |   |
| Working capital                |   |      | 25,058,588 |   |   |   | 31,943,368 |   |   |   | 31,342,263 |   |   |   | (36,273,218 | ) |   |   | (473,036 | ) |
| Stockholders' equity (deficit) |   |      | 31,799,875 |   |   |   | 51,592,118 |   |   |   | 64,246,433 |   |   |   | 1,739,428 |   |   |   | (369,188 | ) |

|                                                  |   | 6/30/2010 |      |   | 9/30/2010 |   |       | 12/31/2010 |   |   | 3/31/2011  |   |
|-------------------------------------------------------|--------|-----------|-----------|--------|-----------|--------|------------|------------|--------|--------|------------|--------|
|                                                  |   |      |      |   |      |   |       |       |   |   |       |   |
| Net revenue                                           |   | $         | 3,765,872 |   |      | $      | 4,711,418  |       |   | $      | 4,241,906  |   |   | $ | 294,284 |   |
| Gross profit                                          |   |      | 2,413,898 |   |      |   | 2,166,726  |       |   |   | 1,490,175  |   |   |   | (2,672,571 | ) |
| Income tax (expense) benefit                          |   |      | —   |   |      |   | (2,400     | )          |   |   | (143,539   | )      |   |   | 76,739 |   |
| Net income (loss)                                     |   |      | 173,797   |   |      |   | (4,875,804 | )          |   |   | (3,400,260 | )      |   |   | (11,654,613 | ) |
| Non-controlling interest                              |   |      | 474,453   |   |      |   | 2,792,696  |       |   |   | 876,257    |   |   |   | 204,298 |   |
| Net income (loss) attributable to Company             |   |      | 648,250   |   |      |   | (2,083,108 | )          |   |   | (2,524,003 | )      |   |   | (11,450,315 | ) |
| Net income (loss) per common share, basic and diluted |   |      | 0.01      |   |      |   | (0.03      | )          |   |   | (0.03      | )      |   |   | (0.15 | ) |

|                                                  |   | 6/30/2009  |      |   | 9/30/2009  |   |      | 12/31/2009 |   |   | 3/31/2010  |   |
|-------------------------------------------------------|--------|------------|-----------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                  |   | (Restated) |      |   | (Restated) |   |      | (Restated) |   |   | (Restated) |   |
| Net revenue                                           |   | $          | 5,046,677 |   |       | $      | 6,183,310 |       |   | $      | 4,507,110  |   |   | $ | 5,336,069 |   |
| Gross profit                                          |   |       | 2,990,559 |   |       |   | 3,662,664 |       |   |   | 2,199,553  |   |   |   | 2,968,911 |   |
| Income tax (expense) benefit                          |   |       | -         |   |       |   | -         |       |   |   | -          |   |   |   | (4,505 | ) |
| Net income (loss)                                     |   |       | 548,128   |   |       |   | 1,321,576 |       |   |   | 37,492     |   |   |   | (16,086,139 | ) |
| Non-controlling interest                              |   |       | 574,173   |   |       |   | 546,195   |       |   |   | 485,564    |   |   |   | 4,186,368 |   |
| Net income (loss) attributable to Company             |   |       | 1,122,301 |   |       |   | 1,867,771 |       |   |   | 523,056    |   |   |   | (11,899,771 | ) |
| Net income (loss) per common share, basic and diluted |   |       | 0.01      |   |       |   | 0.02      |       |   |   | 0.01       |   |   |   | (0.15 | ) |

----

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

|               |   | Increase (I) or |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------|--------|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item               |   | Decrease (D)         |   | Reason                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|               |   |                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Sales revenue, net |   | D                         |   | Sales are recorded net of commissions we pay the Affiliates who are responsible for the sales, and the commission is paid to Affiliates upon receipt of sales orders which is even before revenue can be recognized.  In March 2011, $15 million of sales orders and payments were received. Out of the $15 million, only $3.5 million was recognized as revenue in accordance with our revenue recognition policy, but full commission expenses of $10 million related to these orders have been credited to the Affiliates’ accounts and were recorded as a reduction of revenue in this year, which resulted in a decrease in net revenue. Undelivered orders at year end, which is recorded as Unearned Revenue, will be recognized as revenue once they are delivered. |
|               |   |                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Shipping charges   |   | D                         |   | Decrease in sales and we do not collect shipping fees for the sales made through our reverse auction program since products sold under this program are shipped directly by the manufacturer of the product.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

| Gross Profit as a % of total revenue            |         | D      |         | Gross profit, as a % of total revenue, was 26% during fiscal 2011 compared with 56% during the year ended March 31, 2010.  The main reasons for the decrease in gross profit were a decrease in sales, while having a significant increase in commission expense incurred for the significant increase in unearned revenue for the year and shipping costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-------------------------------------------------|--------------|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Selling, general and administrative expenses    |    | I      |    | Increase in (a) the inclusion of the general and administrative expenses of Tian Quan water plant with our expenses during the current period; (b) professional fees related to higher audit fees and Sarbanes-Oxley Act compliance; (c) higher rental expenses associated with the new corporate office in the US; and (d) increase in marketing expenses due to higher commission is paid out this year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Depreciation                                    |         | D      |         | Excalibur’s depreciation expenses for the year ended March 31, 2011 decreased as result of impairment of transportation equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Impairment of investment                        |         | I      |         | We used $5 million of our excess cash to invest in a convertible note receivable bearing 8% interest during the year.  On March 12, 2011, the note was converted into 8,474,576 shares of CTX Virtual Technologies, Inc.. The common stock of CTX is quoted on the Pink OTC market. Because of the lack of a sufficiently active market, we do not believe that quoted market prices for CTX’s common stock are a reliable indicator of fair value. Despite repeated inquiries and requests to CTX for current financial information that would allow us to assess the recoverability of our investment, we have not been able to obtain any information to enable us to assess the fair value of this investment. Accordingly, our management concluded that it would be prudent to conclude, in the absence of persuasive evidence to the contrary, that the investment should be considered impaired and therefore we have provided an impairment loss of $5 million during the period. |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Impairment loss of equipment                    |         | D      |         | Further impairment of transportation equipment was recognized as the net book value of the Excalibur transportation equipment exceeded its market value as a result of damage sustained by OceanLaLa.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Impairment loss of loan receivable              |    | I      |    | We determined during the period that the related party, to whom we made the loan, would not be able to repay the loan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Interest income                                 |         | I      |         | Increase in investment in corporate notes and bonds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Gain on disposal of held-to-maturity securities |         | I      |         | We sold all our corporate notes in November 2010 as the issuers of some securities experienced significant deteriorations in their creditworthiness.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Foreign exchange loss                           |         | D      |         | Changes in foreign exchange rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Other losses                                    |         | I      |         | Other losses represent loss resulting from a security breach in the Members area, in which an Affiliate was able to access the system in a manner that enabled them to alter the way the system’s automated transactions functioned and thus were able to create unauthorized, fraudulent transactions within the system.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                            |         |   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Income tax expenses                             |    | I      |    | Provision for tax liabilities due to subpart F income received in prior year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

|                                 |         | Increase (I) or |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------|--------------|---------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item                                 |         | Decrease (D)         |         | Reason                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Sales revenue, net                   |         | I                         |         | Sales are recorded net of the commissions we pay the Affiliates who are responsible for the sales.  We lowered the commission payout to our Affiliates by approximately 15% during the fiscal year ended March 31, 2010.  The reduction in commissions increased our sales revenue.                                                                                                                                                                                                                                                                 |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Shipping charges                     |         | D                         |         | We do not collect shipping fees for the sales made through our reverse auction program since products sold under this program are shipped directly by the manufacturer of the product.                                                                                                                                                                                                                                                                                                                                                                                  |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Gross Profit as a % of total revenue |         | I                         |         | Gross profit, as a % of total revenue, was 56% during fiscal 2010 compared with 55% during the year ended March 31, 2009.  The increase in our gross percentage was the result of increased sales revenue.  Sales revenue increased due primarily to a reduction in the amount of commissions we paid our Affiliates, and not as a result of increased product sales.  If sales revenue increased primarily as a result of product sales, there would have been a corresponding increase in cost of goods sold as well as shipping costs. |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Depreciation                         |         | I                         |         | Depreciation expenses increased compared with the year ended March 31, 2009, primarily related to the vessel OceanLaLa, which was acquired by Excalibur in October 2008.                                                                                                                                                                                                                                                                                                                                                                                                |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Interest income                      |         | D                         |         | Decline in interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Impairment loss of equipment         |         | I                         |         | The net book value of OceanLaLa exceeded its market value after it was damaged.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Foreign exchange loss                |         | I                         |         | Changes in foreign exchange rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                 |         |                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Other income, net                    |    | D                         |    | Other income represents fees received for educational training classes conducted by the Company.  During the year ended March 31, 2010 group leaders conducted more of the classes and we did not receive any fees for the classes conducted by the group leaders.                                                                                                                                                                                                                                                                                            |

----

|                                                |   | Year Ended March 31, |       |
|-----------------------------------------------------|--------|-------------------------------------|------------|
|                                                |   | 2011                                |       |   | 2010 |   |   | 2009 |   |
| Net cash provided by (used in) operating activities |   | $                                   | 4,547,136  |   |   | $ | 4,912,068 |   |   | $ | (11,024,088 | ) |
| Net cash (used in) investing activities             |   |                                | (7,180,044 | ) |   |   | (13,904,536 | ) |   |   | (18,158,923 | ) |
| Net cash provided by (used in) financing activities |   |                                | -          |   |   |   | (193,992 | ) |   |   | 52,848,489 |   |
| Effect of exchange rate changes on cash             |   |                                | 3,604      |   |   |   | 31,404 |   |   |   | (241,533 | ) |
| Net increase (decrease) in cash                     |   | $                                   | (2,629,304 | ) |   | $ | (9,155,056 | ) |   | $ | 23,423,945 |   |

|                          |   | Increase (I) or |   |                                                                                                                                                                                                                                                                                    |
|-------------------------------|--------|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Category                      |   | Decrease (D)         |   | Reason                                                                                                                                                                                                                                                                                  |
|                          |   |                      |   |                                                                                                                                                                                                                                                                                    |
| Cash and cash equivalents     |   | D                         |   | We used some of our excess cash to invest in securities available for sale during the year ended March 31, 2011. We also reclassified $8,949,324 as securities available for sale that were reported as cash and cash equivalents at March 31, 2010.                                    |
|                          |   |                      |   |                                                                                                                                                                                                                                                                                    |
| Securities available for sale |   | I                         |   | We used some of our excess cash to invest in securities available for sale during the year ended March 31, 2011.                                                                                                                                                                        |
|                          |   |                      |   |                                                                                                                                                                                                                                                                                    |
| Inventories                   |   | D                         |   | Increase in product sales orders by year end.                                                                                                                                                                                                                                           |
|                          |   |                      |   |                                                                                                                                                                                                                                                                                    |
| Property and equipment        |   | D                         |   | On August 8, 2010, OceanLaLa, the ship owned by Excalibur, was damaged when sailing in the Taiwan Strait. As a result of the damage, we estimated that the net book value of the ship exceeded its market value, and as a result, an impairment loss of $5.4 million has been provided. |

----

| Held-to-maturity securities |         | D      |         | We sold all our corporate notes in November 2010 as the issuers of some securities experienced significant deteriorations in their creditworthiness.                  |
|-----------------------------|--------------|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |         |   |         |                                                                                                                                                                  |
| Loans to related parties    |         | D      |         | We recorded an impairment loss of $1,567,000 during the period, as we determined that the related party to whom we made the loan would not be able to repay the loan. |
|                        |         |   |         |                                                                                                                                                                  |
| Accounts payable            |         | I      |         | Marketing expenses accrued during the year have not been fully paid to the public relation company by year end.                                                       |
|                        |         |   |         |                                                                                                                                                                  |
| Unearned revenue            |         | I      |         | Temporary delay in deliveries of product to Affiliates resulted in higher unearned revenues.                                                                          |
|                        |         |   |         |                                                                                                                                                                  |
| Non-controlling interest    |    | D      |    | This item represents the interests in Excalibur and Digital Development Partners, Inc. owned by others.                                                               |

| Principal Amount |      |   | Interest Rate |   |   | Due Date |
|-----------------------|-----------|--------|--------------------|--------|--------|---------------|
|                  |      |   |               |   |   |          |
| $                     | 1,564,717 |   |               |   | 0      | %             |   | Due on demand |
| $                     | 100,000   |   |               |   | 8      | %             |   | August 20, 2011 |
| $                     | 250,000   |   |               |   | 8      | %             |   | September 1, 2011 |
| $                     | 200,000   |   |               |   | 8      | %             |   | October 12, 2011 |
| $                     | 1,100,000 |   |               |   | 8      | %             |   | November 13, 2011 |
| $                     | 90,000    |   |               |   | 8      | %             |   | November 24, 2011 |
| $                     | 2,500,000 |   |               |   | 8      | %             |   | November 25, 2011 |
| $                     | 330,000   |   |               |   | 8      | %             |   | January 5, 2012 |
| $                     | 100,000   |   |               |   | 8      | %             |   | January 7, 2012 |
| $                     | 100,000   |   |               |   | 8      | %             |   | January 25, 2012 |
| $                     | 120,000   |   |               |   | 8      | %             |   | February 1, 2012 |
| $                     | 160,000   |   |               |   | 8      | %             |   | February 11, 2012 |
| $                     | 140,000   |   |               |   | 8      | %             |   | March 10, 2012 |
| $                     | 130,000   |   |               |   | 8      | %             |   | April 3, 2012 |
| $                     | 512,000   |   |               |   | 8      | %             |   | April 30, 2012 |
| $                     | 260,000   |   |               |   | 8      | %             |   | June 5, 2012 |
| $                     | 150,000   |   |               |   | 8      | %             |   | June 28, 2012 |
| $                     | 400,000   |   |               |   | 8      | %             |   | July 6, 2012 |
|                  |      |   |               |   |   |          |   |   |
| $                     | 8,206,717 |   |               |   |   |          |   |   |

----

|           |   | Total  |    |   | 2012   |   |    | 2013   |   |   | 2014    |   |   | 2015   |   |   | Thereafter |   |
|----------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|------------|--------|
|           |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |       |   |
| Lease payments |   | $      | 690,500 |   |   | $      | 484,248 |   |   | $      | 206,252 |   |   |   | -      |   |       |   | - |   |   |   | - |   |

----

----

----

|                                                                                                  | Page(s) |
|-------------------------------------------------------------------------------------------------------|---------|
|                                                                                                  |    |
| Reports of Independent Registered Public Accounting Firm                                              | F-1     |
|                                                                                                  |    |
| Reports of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting | F-2     |
|                                                                                                  |    |
| Consolidated Financial Statements                                                                     |    |
|                                                                                                  |    |
| Consolidated Balance Sheets                                                                           | F-4     |
|                                                                                                  |    |
| Consolidated Statements of Operations                                                                 | F-5     |
|                                                                                                  |    |
| Consolidated Statement of Changes in Stockholders’ Equity                                       | F-6     |
|                                                                                                  |    |
| Consolidated Statements of Cash Flows                                                                 | F-7     |
|                                                                                                  |    |
| Notes to Consolidated Financial Statements                                                            | F-8     |

----

|  |    |       REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To The Board of Directors and Stockholders ofEFT Holdings, Inc.City of Industry, California We have audited the accompanying consolidated balance sheets of EFT Holdings, Inc. (the Company) and subsidiaries as of March 31, 2011 and 2010, and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for each of the three years in the period ended March 31, 2011. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of EFT Holdings, Inc. and subsidiaries as of March 31, 2011 and 2010, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2011, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), EFT Holdings, Inc.’s internal controls over financial reporting as of March 31, 2011, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 17, 2011 expressed an adverse opinion thereon. As described in Note 2, the Company determined it was necessary to restate the 2010 and 2009 consolidated financial statements. /s/ Child, Van Wagoner and Bradshaw, PLLCSalt Lake City, UtahAugust 17, 2011 |
|--|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  |    |    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ONINTERNAL CONTOL OVER FINANCIAL REPORTING To the Board of Directors and Stockholders ofEFT Holdings, Inc.City of Industry, California We have audited the EFT Holdings Inc. and subsidiaries’ (the Company) internal control over financial reporting as of March 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO criteria”). EFT Holdings, Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting.  Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.  Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of the internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.  We believe that our audit provides a reasonable basis for our opinion. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statement for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. A material weakness is a control deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.  We have identified the following material weaknesses of the company’s internal control over financial reporting. These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2011 financial statements, and this report does not affect our report dated August 17, 2011 on those financial statements. The items listed below are material weaknesses in the Company’s internal controls.  The final item consists of several significant deficiencies that have been aggregated to a material weakness that allowed the security breach that was not caught in a timely manner and resulted in a significant loss to the Company. |
|--|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | The Company initiated material investments without the proper approval of the Board of Directors. |
|--------|---------------------------------------------------------------------------------------------------|

| · | The Company has one individual, a consultant, with the ability and knowledge to create changes, and move them into the information system’s production environment. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company has one individual, a consultant, with full control over the development, test and production of its information systems production environment. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company’s information systems developer records changes in a manual log.  The Company’s information system does not have proper tools in place to track changes made in its system. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Web-based application security controls are not adequate to prevent a breach in the Company’s information system. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | There is a lack of the information system resources needed to properly execute controls, including logical and physical access controls. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                         |   | March 31, 2011 |        |   | March 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-------------|--------|--------------------------|--------|
|                                                                                                                                                                                         |   |                     |        |   | (Restated)               |   |
| ASSETS                                                                                                                                                                                       |   |                     |        |   |                     |   |
| Current assets                                                                                                                                                                               |   |                     |        |   |                     |   |
| Cash and cash equivalents                                                                                                                                                                    |   | $                        | 26,805,205  |   |                     | $      | 29,434,509 |   |
| Securities available for sale                                                                                                                                                                |   |                     | 16,773,970  |   |                     |   | 9,740,712 |   |
| Inventories                                                                                                                                                                                  |   |                     | 2,488,068   |   |                     |   | 2,971,713 |   |
| Prepaid expenses                                                                                                                                                                             |   |                     | 554,570     |   |                     |   | 942,192 |   |
| Other receivables                                                                                                                                                                            |   |                     | 425,558     |   |                     |   | 96,914 |   |
| Total current assets                                                                                                                                                                         |   |                     | 47,047,371  |   |                     |   | 43,186,040 |   |
|                                                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| Restricted cash                                                                                                                                                                              |   |                     | 193,992     |   |                     |   | 193,992 |   |
| Property and equipment, net                                                                                                                                                                  |   |                     | 8,722,774   |   |                     |   | 15,370,975 |   |
| Held-to-maturity securities                                                                                                                                                                  |   |                     | -           |   |                     |   | 4,763,165 |   |
| Loans to related parties                                                                                                                                                                     |   |                     | -           |   |                     |   | 1,567,000 |   |
| Security deposit                                                                                                                                                                             |   |                     | 527,930     |   |                     |   | 658,575 |   |
| Total assets                                                                                                                                                                                 |   | $                        | 56,492,067  |   |                     | $      | 65,739,747 |   |
|                                                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| Current liabilities                                                                                                                                                                          |   |                     |        |   |                     |   |   |   |
| Accounts payable                                                                                                                                                                             |   | $                        | 1,962,119   |   |                     | $      | 1,424,459 |   |
| Commission payable                                                                                                                                                                           |   |                     | 8,346,853   |   |                     |   | 6,380,408 |   |
| Other liabilities                                                                                                                                                                            |   |                     | 304,029     |   |                     |   | 720,698 |   |
| Unearned revenues                                                                                                                                                                            |   |                     | 11,327,787  |   |                     |   | 2,673,680 |   |
| Due to related parties                                                                                                                                                                       |   |                     | 47,995      |   |                     |   | 43,427 |   |
| Total current liabilities                                                                                                                                                                    |   |                     | 21,988,783  |   |                     |   | 11,242,672 |   |
|                                                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| Contingent liabilities                                                                                                                                                                       |   |                     | 2,703,409   |   |                     |   | 2,904,957 |   |
| Total liabilities                                                                                                                                                                            |   |                     | 24,692,192  |   |                     |   | 14,147,629 |   |
|                                                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| Stockholders' equity                                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| EFT Holdings, Inc. stockholders' equity:                                                                                                                                                     |   |                     |        |   |                     |   |   |   |
| Preferred stock, $.001 par value, 25,000,000 shares authorized, none issued and outstanding                                                                                                  |   |                     | -           |   |                     |   | - |   |
| Common stock, $0.00001 par value, 4,975,000,000 shares authorized, 75,983,201 shares issued and outstanding at March 31, 2011 and 75,983,205 shares issued and outstanding at March 31, 2010 |   |                     | 760         |   |                     |   | 760 |   |
| Additional paid in capital                                                                                                                                                                   |   |                     | 52,854,891  |   |                     |   | 52,854,891 |   |
| Retained deficit                                                                                                                                                                             |   |                     | (19,358,694 | )      |                     |   | (3,949,518 | ) |
| Accumulated other comprehensive income (loss)                                                                                                                                                |   |                     | 462,790     |   |                     |   | 126,469 |   |
| Total EFT Holdings, Inc. stockholders' equity                                                                                                                                                |   |                     | 33,959,747  |   |                     |   | 49,032,602 |   |
| Non-controlling interests                                                                                                                                                                    |   |                     | (2,159,872  | )      |                     |   | 2,559,516 |   |
| Total stockholders' equity                                                                                                                                                                   |   |                     | 31,799,875  |   |                     |   | 51,592,118 |   |
|                                                                                                                                                                                         |   |                     |        |   |                     |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                                                   |   | $                        | 56,492,067  |   |                     | $      | 65,739,747 |   |

----

|                                                                          |   | Year Ended     |        |
|-------------------------------------------------------------------------------|--------|----------------|-------------|
|                                                                          |   | March 31, 2011 |        |   | March 31, 2010 |   |   | March 31, 2009 |   |
|                                                                          |   |           |        |   | (Restated) |   |   | (Restated) |   |
| Sales revenues, net                                                           |   | $              | 9,277,352   |   |   | $ | 16,776,314 |   |   | $ | 12,846,809 |   |
| Shipping charges                                                              |   |           | 3,579,905   |   |   |   | 4,006,080 |   |   |   | 5,657,625 |   |
| Transportation income - Excalibur                                             |   |           | 156,223     |   |   |   | 290,772 |   |   |   | 10,774 |   |
|                                                                          |   |           | 13,013,480  |   |   |   | 21,073,166 |   |   |   | 18,515,208 |   |
| Cost of goods sold                                                            |   |           | 6,161,273   |   |   |   | 4,869,900 |   |   |   | 5,780,447 |   |
| Shipping costs                                                                |   |           | 1,873,867   |   |   |   | 1,224,231 |   |   |   | 2,204,502 |   |
| Operating costs - Excalibur                                                   |   |           | 1,580,112   |   |   |   | 3,157,348 |   |   |   | 250,179 |   |
|                                                                          |   |           | 9,615,252   |   |   |   | 9,251,479 |   |   |   | 8,235,128 |   |
| Gross profit                                                                  |   |           | 3,398,228   |   |   |   | 11,821,687 |   |   |   | 10,280,080 |   |
| Operating expenses:                                                           |   |           |        |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                                  |   |           | 8,702,936   |   |   |   | 6,960,102 |   |   |   | 6,979,326 |   |
| Depreciation                                                                  |   |           | 1,255,415   |   |   |   | 2,284,127 |   |   |   | 409,582 |   |
| Impairment of investment                                                      |   |           | 5,000,000   |   |   |   | - |   |   |   | - |   |
| Impairment of goodwill                                                        |   |           | -           |   |   |   | 8,935,848 |   |   |   | - |   |
| Impairment of loan receivable                                                 |   |           | 1,567,000   |   |   |   | - |   |   |   | - |   |
| Impairment of transportation equipment                                        |   |           | 5,400,000   |   |   |   | 6,141,261 |   |   |   | - |   |
| Royalty expenses                                                              |   |           | 2,001,681   |   |   |   | 2,059,445 |   |   |   | 2,313,137 |   |
| Total operating expenses                                                      |   |           | 23,927,032  |   |   |   | 26,380,783 |   |   |   | 9,702,045 |   |
| Net operating income (loss)                                                   |   |           | (20,528,804 | ) |   |   | (14,559,096 | ) |   |   | 578,035 |   |
|                                                                          |   |           |        |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                                        |   |           |        |   |   |   |   |   |   |   |   |   |
| Interest income                                                               |   |           | 1,022,556   |   |   |   | 517,039 |   |   |   | 1,261,708 |   |
| Gain on disposal of held-to-maturity securities                               |   |           | 243,855     |   |   |   | - |   |   |   | - |   |
| Gain on disposal of available for sale securities                             |   |           | 119,919     |   |   |   | - |   |   |   | - |   |
| Dividend income                                                               |   |           | 41,119      |   |   |   | 13,437 |   |   |   | - |   |
| Foreign exchange gain (loss)                                                  |   |           | (3,675      | ) |   |   | (248,645 | ) |   |   | (1,661,245 | ) |
| Other losses                                                                  |   |           | (640,193    | ) |   |   | - |   |   |   | - |   |
| Other income (expense)                                                        |   |           | 57,543      |   |   |   | 102,827 |   |   |   | 634,665 |   |
| Total other income (expense)                                                  |   |           | 841,124     |   |   |   | 384,658 |   |   |   | 235,128 |   |
|                                                                          |   |           |        |   |   |   |   |   |   |   |   |   |
| Net income (loss)  before income taxes and non-controlling interest |   |           | (19,687,680 | ) |   |   | (14,174,438 | ) |   |   | 813,163 |   |
| Income taxes expense                                                          |   |           | ( 69,200    | ) |   |   | (4,505 | ) |   |   | ( 2,400 | ) |
| Net income (loss)                                                             |   |           | (19,756,880 | ) |   |   | (14,178,943 | ) |   |   | 810,763 |   |
| Non-controlling interests                                                     |   |           | 4,347,704   |   |   |   | 5,792,300 |   |   |   | 1,731,032 |   |
| Net income (loss) attributable to EFT Holdings Inc.                           |   | $              | (15,409,176 | ) |   | $ | (8,386,643 | ) |   | $ | 2,541,795 |   |
| Net income per common share                                                   |   |           |        |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                             |   | $              | (0.20       | ) |   | $ | ( 0.11 | ) |   | $ | 0.04 |   |
| Weighted average common shares outstanding                                    |   |           |        |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                             |   |           | 75,983,203  |   |   |   | 75,983,205 |   |   |   | 66,637,448 |   |

----

|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   | Accumulated        |        |    |          |   |       |   |   |
|---------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|--------|------------|--------|--------|---------------|--------|--------|--------------------|-------------|---------|---------------|--------|------------|--------|--------|
|                                                    |   |              |       |   |    |   |   | Additional |   |   | Retained      |   |   | Other              |        |    |          |   |       | Total  |   |
|                                                    |   | Common Stock |       |   | Paid-In |   |   | Earnings   |   |   | Comprehensive |   |   | Non-Controlling    |        |    | Stockholders' |   |
|                                                    |   | Shares            |       |   | Amount  |   |   | Capital    |   |   | (Deficits)    |   |   | Income (Loss) |        |    | Interests     |   |       | Equity |   |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |
| BALANCE, APRIL 1, 2008                                  |   |              | 61,022,414 |   |    | $      | 610    |       |   | $      | 6,552         |   |   | $                  | 1,895,330   |    |          | $      | (163,064   | )      |   | $ | - |   |   | $ | 1,739,428 |   |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| Shares issued to former shareholders                    |   |              | 66,667     |   |    |   | 1      |       |   |   | (1            | )      |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | - |   |
| Issuance of common stock to employee                    |   |              | 4,084      |   |    |   | -      |       |   |   | 16,731        |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | 16,731 |   |
| Issuance of common stock in private placement offering  |   |              | 14,890,040 |   |    |   | 149    |       |   |   | 43,919,414    |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | 43,919,563 |   |
| Issuance of warrants in private placement offering      |   |              | -          |   |    |   | -      |       |   |   | 8,912,195     |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | 8,912,195 |   |
| Acquisition of subsidiary with non-controlling interest |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | -          |   |   |   | 10,757,296 |   |   |   | 10,757,296 |   |
| Comprehensive income:                                   |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| Net income                                              |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | 2,541,795   |    |          |   | -          |   |   |   | (1,731,032 | ) |   |   | 810,763 |   |
| Foreign currency translation adjustment                 |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | (772,332   | )      |   |   | (809,992 | ) |   |   | (1,582,324 | ) |
| Unrealized loss on securities available for sale        |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | (327,219   | )      |   |   | - |   |   |   | (327,219 | ) |
| Total comprehensive income                              |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | 1,098,780 |   |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| BALANCE, MARCH 31, 2009 - restated                      |   |              | 75,983,205 |   |    | $      | 760    |       |   | $      | 52,854,891    |   |   | $                  | 4,437,125   |    |          | $      | (1,262,615 | )      |   | $ | 8,216,272 |   |   | $ | 64,246,433 |   |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| Acquisition of subsidiary with non-controlling interest |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | -          |   |   |   | 381 |   |   |   | 381 |   |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                   |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                                |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | (8,386,643  | )       |          |   | -          |   |   |   | (5,792,300 | ) |   |   | (14,178,943 | ) |
| Unrealized gain on securities available for sale        |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | 245,623    |   |   |   | - |   |   |   | 245,623 |   |
| Foreign currency translation adjustment                 |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | 1,143,461  |   |   |   | 135,163 |   |   |   | 1,278,624 |   |
| Total comprehensive income                              |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | (12,654,696 | ) |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| BALANCE, MARCH 31, 2010 - restated                      |   |              | 75,983,205 |   |    | $      | 760    |       |   | $      | 52,854,891    |   |   | $                  | (3,949,518  | )       |          | $      | 126,469    |   |   | $ | 2,559,516 |   |   | $ | 51,592,118 |   |
| Retirement of common stock                              |   |              | (4         | )      |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | - |   |
| Comprehensive income:                                   |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                                |   |              |       |   |    |   | -      |       |   |   | -             |   |   |               | (15,409,176 | )  |          |   | -          |   |   |   | (4,347,704 | ) |   |   | (19,756,880 | )  |
| Unrealized gain on securities available for sale        |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | 206,198    |   |   |   | - |   |   |   | 206,198 |   |
| Foreign currency translation adjustment                 |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | 130,123    |   |   |   | (371,684 | ) |   |   | (241,561 | ) |
| Total comprehensive income                              |   |              | -          |   |    |   | -      |       |   |   | -             |   |   |               | -           |    |          |   | -          |   |   |   | - |   |   |   | (19,792,243 | ) |
|                                                    |   |              |       |   |    |   |   |       |   |   |          |   |   |               |        |    |          |   |       |   |   |   |   |   |   |   |   |   |
| BALANCE, MARCH 31, 2011                                 |   |              | 75,983,201 |   |    | $      | 760    |       |   | $      | 52,854,891    |   |   | $                  | (19,358,694 | )       |          | $      | 462,790    |   |   | $ | (2,159,872 | ) |   | $ | 31,799,875 |   |

----

|                                                                                               |   | Year Ended          |        |
|----------------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                               |   | March 31, 2011 |        |   | March 31, 2010 |   |   | March 31, 2009 |   |
|                                                                                               |   |                     |        |   | (Restated) |   |   | (Restated) |   |
| Cash flows from operating activities:                                                              |   |                     |        |   |   |   |   |   |   |
| Net income (loss)                                                                                  |   | $                        | (19,756,880 | ) |   | $ | (14,178,943 | ) |   | $ | 810,763 |   |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                     |        |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                     | 1,255,415   |   |   |   | 2,284,127 |   |   |   | 409,582 |   |
| Bond premium amortization                                                                          |   |                     | 9,625       |   |   |   | - |   |   |   | - |   |
| Stock based compensation                                                                           |   |                     | -           |   |   |   | - |   |   |   | 16,731 |   |
| Gain from securities available for sale                                                            |   |                     | (119,919    | ) |   |   | - |   |   |   | - |   |
| Gain from held-to-maturity securities                                                              |   |                     | (243,855    | ) |   |   | - |   |   |   | - |   |
| Impairment of investment                                                                           |   |                     | 5,000,000   |   |   |   | - |   |   |   | - |   |
| Impairment of goodwill                                                                             |   |                     | -           |   |   |   | 8,935,848 |   |   |   | - |   |
| Impairment of loan receivable                                                                      |   |                     | 1,567,000   |   |   |   | - |   |   |   | - |   |
| Impairment of transportation equipment                                                             |   |                     | 5,400,000   |   |   |   | 6,141,261 |   |   |   | - |   |
| Changes in operating assets and liabilities:                                                       |   |                     |        |   |   |   |   |   |   |   |   |   |
| Inventories                                                                                        |   |                     | 483,646     |   |   |   | 937,231 |   |   |   | (1,289,511 | ) |
| Prepaid expenses and other receivables                                                             |   |                     | 228,801     |   |   |   | 2,407,919 |   |   |   | (257,840 | ) |
| Accounts payable                                                                                   |   |                     | 520,964     |   |   |   | (2,399,492 | ) |   |   | (1,258,563 | ) |
| Commission payable                                                                                 |   |                     | 1,966,445   |   |   |   | 402,439 |   |   |   | (5,648,236 | ) |
| Other liabilities                                                                                  |   |                     | (418,213    | ) |   |   | (300,787 | ) |   |   | (1,547,424 | ) |
| Unearned revenues                                                                                  |   |                     | 8,654,107   |   |   |   | 682,465 |   |   |   | (1,954,590 | ) |
| Income tax payable                                                                                 |   |                     | -           |   |   |   | - |   |   |   | (305,000 | ) |
| Net cash provided by (used in) operating activities                                                |   |                     | 4,547,136   |   |   |   | 4,912,068 |   |   |   | (11,024,088 | ) |
|                                                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                              |   |                     |        |   |   |   |   |   |   |   |   |   |
| Assets acquired in acquisition of Digital Development                                              |   |                     | -           |   |   |   | 381 |   |   |   | - |   |
| Investments                                                                                        |   |                     | (5,000,000  | ) |   |   | - |   |   |   | (15,985,269 | ) |
| Additions to fixed assets                                                                          |   |                     | (470,297    | ) |   |   | (1,353,248 | ) |   |   | (276,654 | ) |
| Notes receivable - related party                                                                   |   |                     | -           |   |   |   | 1,197,839 |   |   |   | (1,897,000 | ) |
| Advancement to related party                                                                       |   |                     | (33,000     | ) |   |   | - |   |   |   | - |   |
| Refund by related party                                                                            |   |                     | 33,000      |   |   |   | - |   |   |   | - |   |
| Purchase of corporate notes                                                                        |   |                     | -           |   |   |   | (4,800,184 | ) |   |   | - |   |
| Proceeds from redemption of corporate notes                                                        |   |                     | 500,000     |   |   |   | - |   |   |   | - |   |
| Proceeds from corporate notes                                                                      |   |                     | 4,497,395   |   |   |   | - |   |   |   | - |   |
| Purchase of securities available for sale                                                          |   |                     | (10,915,397 | ) |   |   | (8,949,324 | ) |   |   | - |   |
| Proceeds from securities available for sale                                                        |   |                     | 4,208,255   |   |   |   | - |   |   | - |   |
| Net cash (used in) investing activities                                                            |   |                     | (7,180,044  | ) |   |   | (13,904,536 | ) |   |   | (18,158,923 | ) |
|                                                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                              |   |                     |        |   |   |   |   |   |   |   |   |   |
| Restricted cash                                                                                    |   |                     | -           |   |   |   | (193,992 | ) |   |   | - |   |
| Proceeds from issuance of common stock and warrants                                                |   |                     | -           |   |   |   | - |   |   |   | 52,848,489 |   |
| Net cash provided by (used in) financing activities                                                |   |                     | -           |   |   |   | (193,992 | ) |   |   | 52,848,489 |   |
| Effect of exchange rate changes on cash                                                            |   |                     | 3,604       |   |   |   | 31,404 |   |   |   | (241,533 | ) |
| Net increase (decrease) in cash                                                                    |   |                     | (2,629,304  | ) |   |   | (9,155,056 | ) |   |   | 23,423,945 |   |
| Cash, beginning of period                                                                          |   |                     | 29,434,509  |   |   |   | 38,589,565 |   |   |   | 15,165,620 |   |
| Cash, end of period                                                                                |   | $                        | 26,805,205  |   |   | $ | 29,434,509 |   |   | $ | 38,589,565 |   |
|                                                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                 |   |                     |        |   |   |   |   |   |   |   |   |   |
| Income taxes paid in cash                                                                          |   | $                        | 145,939     |   |   | $ | 4,505 |   |   | $ | 2,400 |   |

----

----

| 1. | Excalibur: |
|----|------------|

|   | 1.1 | For the three months ended December 31, 2008, Excalibur recorded a deferred tax benefit for its net operating loss.  Because the realization of the benefit of this net operating loss was not more likely than not, no benefit should have been recognized. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2 | The Company consolidates Excalibur based on quarterly data for the prior fiscal quarter. For the three months ended March 31, 2009 (Excalibur information for the fiscal quarter ended December 31, 2008) and June 30, 2009 (Excalibur information for the fiscal quarter ended March 31, 2009), the Company did not use the correct periods and partially duplicated Excalibur’s results of operations. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1.3 | During the three months ended December 31, 2008, Excalibur previously recorded a prepaid asset of approximately $14.8 million for deposits on two ships purportedly made by certain shareholders of Excalibur. Neither the deposits nor the ships are owned or controlled by Excalibur, and the existence of these deposits is the subject of litigation as described in Note 17. When Excalibur was consolidated beginning on January 15, 2010, this purported prepayment was treated as a stock subscription receivable and excluded from Excalibur’s assets to be consolidated.  However, an exchange loss previously recorded by Excalibur related to these deposits was not adjusted. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.4 | The Company did not consistently adjust Excalibur’s financial statements to reflect the elimination of inter-company interest income and expense. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.5 | Because of Excalibur’s continuing losses, the Company previously considered that the amount by which the carrying value of its investment in Excalibur exceeded the Company’s share of Excalibur’s net assets should be written off. The amount to be written off has been adjusted as a result of the above adjustments. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                               |   | Year Ended          |      |   | Three Months Ended |   |      | Year Ended              |   |
|----------------------------------------------------|--------|--------------------------|-----------|--------|------------------------------|--------|-----------|------------------------------|--------|
|                                               |   | March 31, 2009 |      |   | June 30, 2009      |   |      | September 30, 2009 |   |   | December 31, 2009 |   |   | March 31, 2010 |   |   | March 31, 2010 |   |
|                                               |   |                     |      |   |                         |   |      |                         |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to EFT Holdings Inc |   |                     |      |   |                         |   |      |                         |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                     |      |   |                         |   |      |                         |   |   |   |   |   |   |   |   |   |   |
| Adjustments for -                                  |   |                     |      |   |                         |   |      |                         |   |   |   |   |   |   |   |   |   |   |
| Deferred tax benefit reversed                      |   | $                        | (214,141  | )      |                         |   | -         |                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Duplication of reporting periods                   |   |                     | 269,355   |   |                         |   | 490,920   |                         |   |   | - |   |   |   | - |   |   |   | (490,920 | ) |   |   | - |   |
| Exchange losses related to prepayment              |   |                     | 437,322   |   |                         |   | -         |                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Omission of depreciation expenses                  |   |                     | (176,029  | )      |                         |   | -         |                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Impairment of goodwill                             |   |                     | -         |   |                         |   | 1,080,969 |                         |   |   | - |   |   |   | - |   |   |   | (1,838,120 | ) |   |   | (757,151 | ) |
| Inter-company interest                             |   |                     | 98,391    |   |                         |   | -         |                         |   |   | - |   |   |   | - |   |   |   | 333,554 |   |   |   | 333,554 |   |
| Exchange rate differences                          |   |                     | (1,765    | )      |                         |   | (41,663   | )                            |   |   | (5,946 | ) |   |   | 1,577 |   |   |   | (71,098 | ) |   |   | (117,130 | ) |
|                                               |   |                     | 413,133   |   |                         |   | 1,530,226 |                         |   |   | (5,946 | ) |   |   | 1,577 |   |   |   | (2,066,584 | ) |   |   | (540,727 | ) |
|                                               |   |                     |      |   |                         |   |      |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) - as previously reported         |   |                     | 2,128,662 |   |                         |   | (407,924  | )                            |   |   | 1,873,715 |   |   |   | 521,479 |   |   |   | (9,833,186 | ) |   |   | (7,845,916 | ) |
|                                               |   |                     |      |   |                         |   |      |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) – as restated              |   | $                        | 2,541,795 |   |                         | $      | 1,122,302 |                         |   | $ | 1,867,769 |   |   | $ | 523,056 |   |   | $ | (11,899,770 | ) |   | $ | (8,386,643 | ) |

----

| 2. | Digital Development Partners: |
|----|-------------------------------|

----

|                                               |   | March 31, 2010   |       |   | March 31, 2009 |   |
|----------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                               |   | As PreviouslyReported |       |   | As Restated         |   |   | As PreviouslyReported |   |   | As Restated |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |
| Current assets                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |
| Cash and cash equivalents                          |   | $                          | 29,434,509 |   |                     | $      | 29,434,509 |   |   | $ | 38,181,837 |   |   | $ | 38,589,565 |   |
| Securities available for sale                      |   |                       | 9,740,712  |   |                     |   | 9,740,712 |   |   |   | 508,746 |   |   |   | 508,746 |   |
| Inventories                                        |   |                       | 2,971,713  |   |                     |   | 2,971,713 |   |   |   | 3,908,629 |   |   |   | 3,908,940 |   |
| Prepaid expenses                                   |   |                       | 942,192    |   |                     |   | 942,192 |   |   |   | 2,551,298 |   |   |   | 2,923,023 |   |
| Other receivables                                  |   |                       | 96,914     |   |                     |   | 96,914 |   |   |   | 33,504 |   |   |   | 1,096,188 |   |
| Short-term notes receivable – Excalibur      |   |                       | -          |   |                     |   | - |   |   |   | 4,064,717 |   |   |   | - |   |
| Total current assets                               |   |                       | 43,186,040 |   |                     |   | 43,186,040 |   |   |   | 49,248,731 |   |   |   | 47,026,462 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Restricted cash                                    |   |                       | 193,992    |   |                     |   | 193,992 |   |   |   | - |   |   |   | - |   |
| Property and equipment, net                        |   |                       | 15,370,975 |   |                     |   | 15,370,975 |   |   |   | 360,156 |   |   |   | 22,020,413 |   |
| Investments in bonds                               |   |                       | 4,763,165  |   |                     |   | 4,763,165 |   |   |   | - |   |   |   | - |   |
| Equity method investment – Excalibur         |   |                       | -          |   |                     |   | - |   |   |   | 17,129,314 |   |   |   | - |   |
| Loans to related parties                           |   |                       | 1,567,000  |   |                     |   | 1,567,000 |   |   |   | 1,897,000 |   |   |   | 1,897,000 |   |
| Security deposit                                   |   |                       | 658,575    |   |                     |   | 658,575 |   |   |   | 31,121 |   |   |   | 50,909 |   |
| Goodwill                                           |   |                       | 5,000      |   |                     |   | - |   |   |   | - |   |   |   | 8,935,848 |   |
|                                               |   |                       | 22,558,707 |   |                     |   | 22,553,707 |   |   |   | 19,417,591 |   |   |   | 32,904,170 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                       |   | $                          | 65,744,747 |   |                     | $      | 65,739,747 |   |   | $ | 68,666,322 |   |   | $ | 79,930,632 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                   |   |                       | 2,346,835  |   |                     |   | 1,424,459 |   |   |   | 3,610,195 |   |   |   | 6,424,740 |   |
| Commission payable                                 |   |                       | 6,380,408  |   |                     |   | 6,380,408 |   |   |   | 5,977,969 |   |   |   | 5,977,969 |   |
| Other liabilities                                  |   |                       | 720,698    |   |                     |   | 720,698 |   |   |   | 697,583 |   |   |   | 1,247,851 |   |
| Unearned revenues                                  |   |                       | 2,673,680  |   |                     |   | 2,673,680 |   |   |   | 1,991,215 |   |   |   | 1,991,215 |   |
| Due to related parties                             |   |                       | 43,427     |   |                     |   | 43,427 |   |   |   | - |   |   |   | 42,424 |   |
| Total current liabilities                          |   |                       | 12,165,048 |   |                     |   | 11,242,672 |   |   |   | 12,276,962 |   |   |   | 15,684,199 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Contingent liabilities                             |   |                       | 2,904,957  |   |                     |   | 2,904,957 |   |   |   | - |   |   |   | - |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                  |   |                       | 15,070,005 |   |                     |   | 14,147,629 |   |   |   | 12,276,962 |   |   |   | 15,684,199 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity:                        |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| EFT Holdings Inc. stockholders’ equity       |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Common stock                                       |   |                       | 760        |   |                     |   | 760 |   |   |   | 760 |   |   |   | 760 |   |
| Additional paid-in capital                         |   |                       | 52,854,891 |   |                     |   | 52,854,891 |   |   |   | 52,854,891 |   |   |   | 52,854,891 |   |
| Retained earnings (deficit)                        |   |                       | (3,821,924 | )      |                     |   | (3,949,518 | ) |   |   | 4,023,992 |   |   |   | 4,437,125 |   |
| Accumulated other comprehensive income (loss)      |   |                       | (469,326   | )      |                     |   | 126,469 |   |   |   | (490,283 | ) |   |   | (1,262,615 | ) |
| Total EFT Holdings Inc. stockholders’ equity |   |                       | 48,564,401 |   |                     |   | 49,032,602 |   |   |   | 56,389,360 |   |   |   | 56,030,161 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Non-controlling interests                          |   |                       | 2,110,341  |   |                     |   | 2,559,516 |   |   |   | - |   |   |   | 8,216,272 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total stockholders’ equity                   |   |                       | 50,674,742 |   |                     |   | 51,592,118 |   |   |   | 56,389,360 |   |   |   | 64,246,433 |   |
|                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity   |   | $                          | 65,744,747 |   |                     | $      | 65,739,747 |   |   | $ | 68,666,322 |   |   | $ | 79,930,632 |   |

----

|                                                                          |   | Year Ended March 31, 2010 |        |   | Year Ended March 31, 2009 |   |
|-------------------------------------------------------------------------------|--------|---------------------------|-------------|--------|---------------------------|--------|
|                                                                          |   | As PreviouslyReported     |        |   | As Restated               |   |   | As PreviouslyReported |   |   | As Restated |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |
| Sales revenue, net                                                            |   | $                         | 16,776,314  |   |                      | $      | 16,776,314 |   |   | $ | 12,846,809 |   |   | $ | 12,846,809 |   |
| Shipping charge                                                               |   |                      | 4,006,080   |   |                      |   | 4,006,080 |   |   |   | 5,657,625 |   |   |   | 5,657,625 |   |
| Transportation income - Excalibur                                             |   |                      | -           |   |                      |   | 290,772 |   |   |   | - |   |   |   | 10,774 |   |
|                                                                          |   |                      | 20,782,394  |   |                      |   | 21,073,166 |   |   |   | 18,504,434 |   |   |   | 18,515,208 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                            |   |                      | 4,869,900   |   |                      |   | 4,869,900 |   |   |   | 5,780,447 |   |   |   | 5,780,447 |   |
| Shipping cost                                                                 |   |                      | 1,224,231   |   |                      |   | 1,224,231 |   |   |   | 2,204,502 |   |   |   | 2,204,502 |   |
| Operating costs - Excalibur                                                   |   |                      | -           |   |                      |   | 3,157,348 |   |   |   | - |   |   |   | 250,179 |   |
|                                                                          |   |                      | 6,094,131   |   |                      |   | 9,251,479 |   |   |   | 7,984,949 |   |   |   | 8,235,128 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                  |   |                      | 14,688,263  |   |                      |   | 11,821,687 |   |   |   | 10,519,485 |   |   |   | 10,280,080 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                           |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                                  |   |                      | 7,093,907   |   |                      |   | 6,960,102 |   |   |   | 6,564,511 |   |   |   | 6,979,326 |   |
| Depreciation                                                                  |   |                      | 77,110      |   |                      |   | 2,284,127 |   |   |   | 51,514 |   |   |   | 409,582 |   |
| Impairment of transportation equipment                                        |   |                      | -           |   |                      |   | 6,141,261 |   |   |   | - |   |   |   | - |   |
| Impairment of goodwill                                                        |   |                      | -           |   |                      |   | 8,935,848 |   |   |   | - |   |   |   | - |   |
| Royalty expenses                                                              |   |                      | 2,059,445   |   |                      |   | 2,059,445 |   |   |   | 2,313,137 |   |   |   | 2,313,137 |   |
| Total operating income (loss)                                                 |   |                      | 9,230,462   |   |                      |   | 26,380,783 |   |   |   | 8,929,162 |   |   |   | 9,702,045 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net operating income (loss)                                                   |   |                      | 5,457,801   |   |                      |   | (14,559,096 | ) |   |   | 1,590,323 |   |   |   | 578,035 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                                        |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                               |   |                      | 546,471     |   |                      |   | 517,039 |   |   |   | 1,246,433 |   |   |   | 1,261,708 |   |
| Investment income                                                             |   |                      | 13,437      |   |                      |   | 13,437 |   |   |   | - |   |   |   | - |   |
| Loss from equity method investment                                            |   |                      | (5,744,421  | )      |                      |   | - |   |   |   | (2,063,686 | ) |   |   | - |   |
| Equity method investment write-off                                            |   |                      | (8,178,697  | )      |                      |   | - |   |   |   | - |   |   |   | - |   |
| Foreign exchange gain (loss)                                                  |   |                      | (133,437    | )      |                      |   | (248,645 | ) |   |   | 723,357 |   |   |   | (1,661,245 | ) |
| Other income (expense)                                                        |   |                      | 88,780      |   |                      |   | 102,827 |   |   |   | 634,635 |   |   |   | 634,665 |   |
| Total other income (expense)                                                  |   |                      | (13,407,867 | )      |                      |   | 384,658 |   |   |   | 540,739 |   |   |   | 235,128 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)  before income taxes and non-controlling interest |   |                      | (7,950,066  | )      |                      |   | (14,174,438 | ) |   |   | 2,131,062 |   |   |   | 813,163 |   |
| Income taxes expense                                                          |   |                      | (4,505      | )      |                      |   | (4,505 | ) |   |   | (2,400 | ) |   |   | (2,400 | ) |
| Extraordinary gain                                                            |   |                      | 100,531     |   |                      |   | - |   |   |   | - |   |   |   | - |   |
| Net income (loss)                                                             |   |                      | (7,854,040  | )      |                      |   | (14,178,943 | ) |   |   | 2,128,662 |   |   |   | 810,763 |   |
| Non-controlling interest                                                      |   |                      | 8,124       |   |                      |   | 5,792,300 |   |   |   | - |   |   |   | 1,731,032 |   |
| Net income (loss) attributable to EFT Holdings Inc.                           |   | $                         | (7,845,916  | )      |                      | $      | (8,386,643 | ) |   | $ | 2,128,662 |   |   | $ | 2,541,795 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                           |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                             |   | $                         | (0.10       | )      |                      | $      | (0.11 | ) |   | $ | 0.03 |   |   | $ | 0.04 |   |
|                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                                    |   |                      | 75,983,205  |   |                      |   | 75,983,205 |   |   |   | 66,637,448 |   |   |   | 66,637,448 |   |

----

|                                                |   | Three Months Ended    |       |    | Three Months Ended |   |       | Three Months Ended    |   |
|-----------------------------------------------------|--------|-----------------------|------------|---------|--------------------|--------|------------|-----------------------|--------|
|                                                |   | June 30, 2009         |       |    | September 30, 2009 |   |       | December 31, 2009     |   |
|                                                |   | As PreviouslyReported |       |    | As Restated        |   |       | As PreviouslyReported |   |   | As Restated |   |   | As PreviouslyReported |   |   | As Restated |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |
| Sales revenue, net                                  |   | $                     | 3,989,316  |    |               | $      | 3,989,316  |                  |   | $ | 5,125,444 |   |   | $ | 5,125,444 |   |   | $ | 3,362,196 |   |   | $ | 3,362,196 |   |
| Shipping charge                                     |   |                  | 1,054,080  |    |               |   | 1,054,080  |                  |   |   | 995,490 |   |   |   | 995,490 |   |   |   | 965,520 |   |   |   | 965,520 |   |
| Transportation income - Excalibur                   |   |                  | -          |    |               |   | 3,281      |                  |   |   | - |   |   |   | 62,376 |   |   |   | - |   |   |   | 179,394 |   |
|                                                |   |                  | 5,043,396  |    |               |   | 5,046,677  |                  |   |   | 6,120,934 |   |   |   | 6,183,310 |   |   |   | 4,327,716 |   |   |   | 4,507,110 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                  |   |                  | 960,448    |    |               |   | 960,448    |                  |   |   | 1,365,484 |   |   |   | 1,365,483 |   |   |   | 1,048,913 |   |   |   | 1,048,913 |   |
| Shipping cost                                       |   |                  | 301,900    |    |               |   | 301,900    |                  |   |   | 286,468 |   |   |   | 286,468 |   |   |   | 334,879 |   |   |   | 334,879 |   |
| Operating costs - Excalibur                         |   |                  | -          |    |               |   | 793,770    |                  |   |   | - |   |   |   | 868,695 |   |   |   | - |   |   |   | 923,765 |   |
|                                                |   |                  | 1,262,348  |    |               |   | 2,056,118  |                  |   |   | 1,651,952 |   |   |   | 2,520,646 |   |   |   | 1,383,792 |   |   |   | 2,307,557 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                        |   |                  | 3,781,048  |    |               |   | 2,990,559  |                  |   |   | 4,468,982 |   |   |   | 3,662,664 |   |   |   | 2,943,924 |   |   |   | 2,199,553 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses        |   |                  | 2,306,319  |    |               |   | 2,524,505  |                  |   |   | 2,253,548 |   |   |   | 2,501,530 |   |   |   | 2,398,664 |   |   |   | 2,601,802 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net operating income (loss)                         |   |                  | 1,474,729  |    |               |   | 466,054    |                  |   |   | 2,215,434 |   |   |   | 1,161,134 |   |   |   | 545,260 |   |   |   | (402,249 | ) |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                              |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                     |   |                  | 164,932    |    |               |   | 165,054    |                  |   |   | 134,462 |   |   |   | 134,663 |   |   |   | 426,577 |   |   |   | 426,601 |   |
| Investment loss – 48.81% Excalibur            |   |                  | (1,080,969 | )       |               |   | -          |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss from equity method investment                  |   |                  | (996,734   | )       |               |   | -          |                  |   |   | (514,854 | ) |   |   | - |   |   |   | (464,566 | ) |   |   | - |   |
| Foreign exchange gain (loss)                        |   |                  | 886        |    |               |   | (112,212   | )                     |   |   | (5,038 | ) |   |   | (17,951 | ) |   |   | 751 |   |   |   | (351 | ) |
| Other income (expense)                              |   |                  | 29,232     |    |               |   | 29,232     |                  |   |   | 43,711 |   |   |   | 43,730 |   |   |   | 13,457 |   |   |   | 13,491 |   |
| Total other income (expense)                        |   |                  | (1,882,653 | )       |               |   | 82,074     |                  |   |   | (341,719 | ) |   |   | 160,442 |   |   |   | (23,781 | ) |   |   | 439,741 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)  before income taxes    |   |                  | (407,924   | )       |               |   | 548,128    |                  |   |   | 1,873,715 |   |   |   | 1,321,576 |   |   |   | 521,479 |   |   |   | 37,492 |   |
| Income taxes expense                                |   |                  | -          |    |               |   | -          |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) before non-controlling interest   |   |                  | (407,924   | )  |               |   | 548,128    |                  |   |   | 1,873,715 |   |   |   | 1,321,576 |   |   |   | 521,479 |   |   |   | 37,492 |   |
| Non-controlling interest                            |   |                  | -          |    |               |   | 574,173    |                  |   |   | - |   |   |   | 546,195 |   |   |   | - |   |   |   | 485,564 |   |
| Net income (loss) attributable to EFT Holdings Inc. |   | $                     | (407,924   | )       |               | $      | 1,122,301  |                  |   | $ | 1,873,715 |   |   | $ | 1,867,771 |   |   | $ | 521,479 |   |   | $ | 523,056 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share:                 |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                   |   | $                     | (0.01      | )       |               | $      | 0.01       |                  |   | $ | 0.02 |   |   | $ | 0.02 |   |   | $ | 0.01 |   |   | $ | 0.01 |   |
|                                                |   |                  |       |    |               |   |       |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding          |   |                  | 75,983,205 |    |               |   | 75,983,205 |                  |   |   | 75,983,205 |   |   |   | 75,983,205 |   |   |   | 75,983,205 |   |   |   | 75,983,205 |   |

----

----

| Machinery and equipment        | 3-8 years |
|--------------------------------|-----------|
| Computers and office equipment | 3-5 years |
| Automobiles                    | 5 years   |
| Leasehold improvements         | 5 years   |
| Transportation equipment       | 12 years  |

----

----

| Products sold for  |
|-----------------------------------|
| 0-2 months                        | 2% of cost |
| 3-4 months                        | 1.5% of cost |
| 5-6 months                        | 1% of cost |

----

|                                                                    |   | Year Ended March 31, |        |
|-------------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                                    |   | 2011                                |        |   | 2010 |   |   | 2009 |   |
|                                                                    |   |                                |        |   |   |   |   |   |   |
| Weighted average warrants outstanding                                   |   |                                | 14,890,040  |   |   |   | 14,890,040 |   |   |   | 14,890,040 |   |
| Total                                                                   |   |                                | 14,890,040  |   |   |   | 14,890,040 |   |   |   | 14,890,040 |   |
|                                                                    |   |                                |        |   |   |   |   |   |   |   |   |   |
| Historical Numerator:                                                   |   |                                |        |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to EFT Holdings, Inc                     |   | $                                   | (15,409,176 | ) |   | $ | (8,386,643 | ) |   | $ | 2,541,795 |   |
|                                                                    |   |                                |        |   |   |   |   |   |   |   |   |   |
| Denominator:                                                            |   |                                |        |   |   |   |   |   |   |   |   |   |
| Weighted-average shares used for basic and diluted net income per share |   |                                | 75,983,203  |   |   |   | 75,983,205 |   |   |   | 66,637,448 |   |
| Basic and diluted net income (loss) per share                           |   | $                                   | (0.20       | ) |   | $ | (0.11 | ) |   | $ | 0.04 |   |

----

| Pronouncement   |         | Issued              |         | Title                                                                                                                                                                                                                                    |
|-----------------|--------------|---------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2010-26 |         | October  2010  |         | Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the Financial Accounting Standards Board (“FASB”) Emerging Issues Task Force) |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2010-27 |         | December  2010 |         | Other Expenses (Topic 720): Fees Paid to the Federal Government by Pharmaceutical Manufacturers (a consensus of the FASB Emerging Issues Task Force)                                                                                     |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2010-28 |         | December  2010 |         | Intangibles—Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (a consensus of the FASB Emerging Issues Task Force)                 |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2010-29 |         | December  2010 |         | Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations (a consensus of the FASB Emerging Issues Task Force)                                                                      |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2011-01 |    | January  2011  |    | Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20                                                                                                          |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2011-02 |    | April  2011    |    | Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring                                                                                                                    |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2011-03 |    | April  2011    |    | Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements                                                                                                                                      |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2011-04 |    | May  2011      |    | Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”)                                    |
|            |         |                |         |                                                                                                                                                                                                                                     |
| ASU No. 2011-05 |    | June  2011     |    | Comprehensive Income (Topic 220): Presentation of Comprehensive Income                                                                                                                                                                   |

----

| Level 1— | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|---------------------|------------------------------------------------------------------------------------------------------------------|

| Level 2 — | Other inputs that are directly or indirectly observable in the marketplace. |
|---------------------------|-----------------------------------------------------------------------------|

| Level 3 — | Unobservable inputs which are supported by little or no market activity. |
|---------------------------|--------------------------------------------------------------------------|

----

|                                |   | March 31, 2011 |       |
|-------------------------------------|--------|--------------------------|------------|
|                                |   | Level 1             |       |   |   |   |   |   |   |   |   |   |
|                                |   | Quoted Prices       |       |   | Level 2 |   |   |   |   |   |   |   |
|                                |   | in Active           |       |   | Significant |   |   | Level 3 |   |   |   |   |
|                                |   | Markets for         |       |   | Other |   |   | Significant |   |   |   |   |
|                                |   | Identical                |       |   | Observable |   |   | Unobservable |   |   |   |   |
|                                |   | Assets                   |       |   | Inputs |   |   | Inputs |   |   | Total |   |
| Securities available for sale       |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Corporate notes                   |   | $                        | 16,773,970 |   |   | $ | - |   |   | $ | - |   |   | $ | 16,773,970 |   |
|                                |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets measured at fair value |   | $                        | 16,773,970 |   |   | $ | - |   |   | $ | - |   |   | $ | 16,773,970 |   |

|                                |   | March 31, 2010 |      |
|-------------------------------------|--------|--------------------------|-----------|
|                                |   | Level 1             |      |   |   |   |   |   |   |   |   |   |
|                                |   | Quoted Prices       |      |   | Level 2 |   |   |   |   |   |   |   |
|                                |   | in Active           |      |   | Significant |   |   | Level 3 |   |   |   |   |
|                                |   | Markets for         |      |   | Other |   |   | Significant |   |   |   |   |
|                                |   | Identical                |      |   | Observable |   |   | Unobservable |   |   |   |   |
|                                |   | Assets                   |      |   | Inputs |   |   | Inputs |   |   | Total |   |
| Securities available for sale       |   | $                        | 9,740,712 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,740,712 |   |
| Total assets measured at fair value |   | $                        | 9,740,712 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,740,712 |   |

|                           |   | March 31, |       |   | March 31, |   |
|--------------------------------|--------|----------------|------------|--------|----------------|--------|
|                           |   | 2011           |       |   | 2010           |   |
|                           |   |           |       |   |           |   |
| Construction in progress       |   | $              | 980,656    |   |           | $      | 804,410 |   |
| Transportation equipment       |   |           | 11,611,785 |   |           |   | 17,065,379 |   |
| Leasehold improvements         |   |           | 507,831    |   |           |   | 418,582 |   |
| Automobiles                    |   |           | 239,097    |   |           |   | 154,724 |   |
|                           |   |           |       |   |           |   |   |   |
| Computer equipment             |   |           | 162,198    |   |           |   | 144,696 |   |
| Furniture & fixtures       |   |           | 93,939     |   |           |   | 68,461 |   |
| Machinery and equipment        |   |           | 118,145    |   |           |   | 49,903 |   |
|                           |   |           | 13,713,651 |   |           |   | 18,706,155 |   |
| Less: Accumulated depreciation |   |           | (4,990,877 | )      |           |   | (3,335,180 | ) |
|                           |   | $              | 8,722,774  |   |           | $      | 15,370,975 |   |

----

| Corporate notes:                  |   | Net Carrying Value |      |   | Sales Proceeds |   |      | Gross realizedgain |   |
|----------------------------------------|--------|------------------------------|-----------|--------|---------------------|--------|-----------|-------------------------|--------|
|                                   |   |                         |      |   |                |   |      |                    |   |
| Long-term held-to-maturity securities: |   |                         |      |   |                |   |      |                    |   |
| Due after one year through five years  |   | $                            | 1,478,480 |   |                | $      | 1,573,015 |                    |   | $ | 94,535 |   |
| Due after five years through ten years |   |                         | 1,068,875 |   |                |   | 1,151,275 |                    |   |   | 82,400 |   |
| Due after ten years                    |   |                         | 1,706,185 |   |                |   | 1,773,105 |                    |   |   | 66,920 |   |
| Total                                  |   | $                            | 4,253,540 |   |                | $      | 4,497,395 |                    |   | $ | 243,855 |   |

| Corporate notes:                   |   | AmortizedCost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
|-----------------------------------------|--------|---------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|--------|
| Short-term held-to-maturity securities: |   |          |      |   |                 |   |   |                  |   |   |      |   |
| Due in one year or less                 |   | $             | 507,885   |   |                 | $      | 4,505  |                  |   | $      | -         |   |   | $ | 512,390 |   |
| Total                                   |   | $             | 507,885   |   |                 | $      | 4,505  |                  |   | $      | -         |   |   | $ | 512,390 |   |
|                                    |   |          |      |   |                 |   |   |                  |   |   |      |   |   |   |   |   |
| Long-term held-to-maturity securities:  |   |          |      |   |                 |   |   |                  |   |   |      |   |   |   |   |   |
| Due after one year through five years   |   | $             | 1,482,874 |   |                 | $      | 27,491 |                  |   | $      | -         |   |   | $ | 1,510,365 |   |
| Due after five years through ten years  |   |          | 1,065,519 |   |                 |   | -      |                  |   |   | (15,924   | )      |   |   | 1,049,595 |   |
| Due after ten years                     |   |          | 1,706,887 |   |                 |   | 13,771 |                  |   |   | -         |   |   |   | 1,720,658 |   |
| Total                                   |   | $             | 4,255,280 |   |                 | $      | 41,262 |                  |   | $      | (15,924   | )      |   | $ | 4,280,618 |   |

----

|                        |   | Excalibur International Marine Corporation |        |
|-----------------------------|--------|-----------------------------------------------------------|-------------|
|                        |   | December 31, 2010                               |        |   | December 31, 2009 |   |
|                        |   | NTD*                                                      |        |   | USD |   |   | NTD |   |   | USD |   |
| Total assets                |   |                                                      | 275,825,320 |   |   |   | 8,059,124 |   |   |   | 480,601,504 |   |   |   | 14,907,918 |   |
| Total liabilities           |   |                                                      | 357,481,305 |   |   |   | 12,247,563 |   |   |   | 319,434,380 |   |   |   | 9,908,629 |   |
| Net assets                  |   |                                                      | (81,655,985 | ) |   |   | (4,188,439 | ) |   |   | 161,167,124 |   |   |   | 4,999,289 |   |
| 48.81%  ownership |   |                                                      | (39,856,286 | ) |   |   | (2,044,377 | ) |   |   | 78,665,673 |   |   |   | 2,440,153 |   |

| Excalibur International Marine Corp. Shareholders’ List |   |
|----------------------------------------------------------------------------------------|--------|
| Shareholders’ Name                                                          |   | # of shares |   |   | % |   |
| EFT Investment                                                                         |   |   | 58,567,750 |   |   |   | 48.81 |   |
| Yeuh-Chi Liu                                                                           |   |   | 4,766,000 |   |   |   | 3.97 |   |
|                                                                                   |   |   |   |   |   |   | 52.78 |   |
| Lu, TsoChun                                                                            |   |   | 10,000,000 |   |   |   | 8.33 |   |
| Chiao, Jen-Ho                                                                          |   |   | 8,200,000 |   |   |   | 6.83 |   |
| Lin, Ming-i                                                                            |   |   | 5,170,000 |   |   |   | 4.31 |   |
| Wang Zhi Yun                                                                           |   |   | 5,000,000 |   |   |   | 4.17 |   |
| Wen Investment                                                                         |   |   | 4,000,000 |   |   |   | 3.33 |   |
| Steve Hsiao                                                                            |   |   | 3,938,250 |   |   |   | 3.28 |   |
| Others                                                                                 |   |   | 20,358,000 |   |   |   | 16.97 |   |
| Total                                                                                  |   |   | 120,000,000 |   |   |   | 100 |   |

----

|                 |   | March 31 , 2011 |    |   | March 31, 2010 |   |
|----------------------|--------|--------------------------------|---------|--------|--------------------------|--------|
|                 |   |                           |    |   |                     |   |
| Payroll liabilities  |   |                           | 35,834  |   |                     |   | 645,900 |   |
| Warranty liabilities |   |                           | 88,784  |   |                     |   | 43,346 |   |
| Accrued expenses     |   |                           | 88,353  |   |                     |   | - |   |
| Others               |   |                           | 91,058  |   |                     |   | 31,452 |   |
|                 |   | $                              | 304,029 |   |                     | $      | 720,698 |   |

|                                                  |   | March 31, 2011 |    |   | March 31, 2010 |   |
|-------------------------------------------------------|--------|--------------------------|---------|--------|--------------------------|--------|
| Warranty liability as at beginning of period, current |   | $                        | 43,346  |   |                     | $      | 51,684 |   |
| Cost accrued/(reversal) of costs                      |   |                     | 59,312  |   |                     |   | (8,338 | ) |
| Service obligations honored                           |   |                     | (13,874 | )      |                     |   | - |   |
| Warranty liability as at end of period, current       |   | $                        | 88,784  |   |                     | $      | 43,346 |   |

----

|                           |   | March 31, 2011 |   |   | March 31, 2010 |   |
|--------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|
| Amount due to related parties: |   | $                        | 47,995 |   |                     | $      | 43,427 |   |

----

|                      |   | Year Ended March 31, |   |
|---------------------------|--------|-------------------------------------|--------|
|                      |   | 2011                                |   |   | 2010 |   |   | 2009 |   |
| Current:                  |   |                                |   |   |   |   |   |   |   |
| Domestic                  |   | $                                   | 2,400  |   |   | $ | 2,506 |   |   | $ | 2,400 |   |
| Foreign                   |   |                                | -      |   |   |   | 1,999 |   |   |   | - |   |
| Provision for prior years |   |                                | 66,800 |   |   |   | - |   |   |   | - |   |
| Deferred                  |   |                                | -      |   |   |   | - |   |   |   | - |   |
| Income tax expenses       |   | $                                   | 69,200 |   |   | $ | 4,505 |   |   | $ | 2,400 |   |

|                                                                                |   | Year Ended March 31, |       |
|-------------------------------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                                                |   | 2011                                |       |   | 2010 |   |   | 2009 |   |
|                                                                                |   |                                |       |   |   |   |   |   |   |
| Income tax at U.S. statutory rate                                                   |   | $                                   | (5,701,395 | ) |   | $ | (3,103,058 | ) |   | $ | 940,464 |   |
| State tax                                                                           |   |                                | 2,400      |   |   |   | 2,506 |   |   |   | 2,400 |   |
| Indefinitely invested earnings / incurred losses of  foreign subsidiaries |   |                                | 5,695,474  |   |   |   | 3, 101,717 |   |   |   | (949,847 | ) |
| Nondeductible expenses                                                              |   |                                | 5,921      |   |   |   | 3,340 |   |   |   | 9,383 |   |
| Provision for prior years                                                           |   |                                | 66,800     |   |   |   | - |   |   |   | - |   |
| Income tax expenses                                                                 |   | $                                   | 69,200     |   |   | $ | 4,505 |   |   | $ | 2,400 |   |

----

| Year Ending March 31, |   |   |    |
|--------------------------------------|--------|--------|---------|
|                                 |   |   |    |
| 2012                                 |   |   | 360,000 |   |
| 2013                                 |   |   | 90,000  |   |

| Year Ending March 31, |   |   |   |
|--------------------------------------|--------|--------|--------|
|                                 |   |   |   |
| 2012                                 |   |   | 10,800 |   |
| 2013                                 |   |   | 8,100  |   |

----

----

----

|   | a) | A third party will be engaged to perform application vulnerability scanning to identify vulnerabilities, and also to perform application and network level penetration testing to attempt to exploit the identified vulnerabilities within the FMA application, and our corporate network.  Resulting vulnerabilities will be addressed and corrected; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Additional controls and procedures will be implemented within the program change and code development process, to allow for proper segregation of duties and prevention of a single resource from controlling the entire process. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | We hired a chief financial officer with previous experience as the chief financial officer of a publicly traded company listed in the United Kingdom. The new chief financial officer is a fellow member of Certified General Accountants (Canada) and Association of Chartered Certified Accountants. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We hired additional experienced staff accountants to enhance our ability to segregate responsibilities and provide additional oversight in the various accounting functions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We implemented new internal controls to properly evaluate revenue recognition criteria. |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | We implemented new internal controls to sufficiently mitigate cut-off errors in revenue. |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | We implemented new internal controls related to the proper oversight of work performed by our controller. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | We implemented new internal controls over the period-end financial reporting process. |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | We implemented new internal controls to deter or mitigate management override. |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | We implemented new internal controls to correctly and accurately record business combinations. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | We also implemented controls over our controlled subsidiary, Excalibur International Marine Corporation. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

----

| Name           |         |  Age |         | Title                                    |
|----------------|--------------|-----------|--------------|----------------------------------------------------|
| Jack Jie Qin   |         | 51        |         | President, Chief Executive Officer, and a Director |
| Jeffery Cheung |         | 51        |         | Principal Financial and Accounting Officer         |
| Jerry B. Lewin |         | 56        |         | Director                                           |
| Visman Chow    |         | 56        |         | Director                                           |
| Norman Ko      |         | 47        |         | Director                                           |
| Pyng Soon      |    | 51        |    | General Counsel of the Company                     |

----

----

| Name and PrincipalPosition         |   | Fiscal YearEndedMarch 31, |   | Salary (1) |    |   | StockAwards (2) |   |    | OptionAwards(2) |   |   | Total   |   |
|----------------------------------------------|--------|-------------------------------------|--------|-----------------|---------|--------|----------------------|--------|---------|-----------------|--------|--------|---------|--------|
|                                         |   | 2011                                |   | $               | 235,583 |   |                 |   | — |            |   |   | — |   |   | $ | 235,583 |   |
| Jack Jie Qin (3)                             |   | 2010                                |   | $               | 205,000 |   |                 |   | — |            |   |   | — |   |   | $ | 205,000 |   |
| (Principal Executive Officer)                |   | 2009                                |   | $               | 86,750  |   |                 |   | — |            |   |   | — |   |   | $ | 86,750 |   |
|                                         |   | 2011                                |   | $               | 141,350 |   |                 |   | — |            |   |   | — |   |   | $ | 141,350 |   |
| George Curry (4))                            |   | 2010                                |   | $               | 132,000 |   |                 |   | — |            |   |   | — |   |   | $ | 132,000 |   |
| (Chief Marketing Officer)                    |   | 2009                                |   | $               | 120,000 |   |                 |   | — |            |   |   | — |   |   | $ | 120,000 |   |
|                                         |   | 2011                                |   | $               | 115,500 |   |                 |   | — |            |   |   | — |   |   | $ | 115,500 |   |
| Sharon Tang (5)                              |   | 2010                                |   | $               | 103,950 |   |                 |   | — |            |   |   | — |   |   | $ | 103,950 |   |
| (Principal Financial Officer)                |   | 2009                                |   | $               | 126,000 |   |                 |   | — |            |   |   | — |   |   | $ | 126,000 |   |
| Angy Chin (6)                                |   | 2011                                |   |            | — |   |                 |   | — |            |   |   | — |   |   |   | — |   |
| (Principal Financial Officer)                |   | 2010                                |   | $               | 116,125 |   |                 |   | — |            |   |   | — |   |   | $ | 116,125 |   |
| Pyng Soon(7)                                 |   | 2011                                |   | $               | 138,682 |   |                 |   | — |            |   |   | — |   |   | $ | 138,682 |   |
| (General counsel)                            |   | 2010                                |   | $               | 126,075 |   |                 |   | — |            |   |   | — |   |   | $ | 126,075 |   |
| Jeffery Cheung (8)                           |   | 2011                                |   | $               | 4,969   |   |                 |   | — |            |   |   | — |   |   | $ | 4,969 |   |
| (Principal Financial and Accounting Officer) |   |                                |   |            |    |   |                 |   |    |            |   |   |    |   |   |   |   |   |

| (1) | The dollar value of base salary (cash and non-cash) earned and any bonus (cash and non-cash) earned. |
|-----|------------------------------------------------------------------------------------------------------|

| (2) | To date, we have not adopted a stock option plan, a stock bonus plan or any other type of incentive plan.  We have not issued any options to our executive officers, directors or employees or paid them other payments. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Jack Jie Qin was also our Chief Financial Officer from May 2010 to March 2011. |
|-----|--------------------------------------------------------------------------------|

| (4) | George Curry resigned as our Chief Marketing officer and a director of us on March 31, 2011 and still remains an employee of us. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (5) | Sharon Tang was our principal financial officer between June 2008 and February 2010. |
|-----|--------------------------------------------------------------------------------------|

| (6) | Angy Chin was our principal financial officer between February 15, 2010 and May 18, 2010. |
|-----|-------------------------------------------------------------------------------------------|

| (7) | Pyng Soon was appointed as the general counsel of our company in January 2009. |
|-----|--------------------------------------------------------------------------------|

| (8) | Jeffery Cheung was appointed as our principal financial and accounting officer on March 21, 2011. |
|-----|---------------------------------------------------------------------------------------------------|

| Name          |   | Fees Earned orPaid in Cash |   |   | Stock Awards |   |    | Option Awards |   |   | Total   |   |
|---------------|--------|------------------------------------------------|--------|--------|-------------------|--------|---------|--------------------|--------|--------|---------|--------|
| Jerry B Lewin |   | $                                              | 24,000 |   |              |   | — |               |   |   | — |   |   | $ | 24,000 |   |
| Visman Chow   |   | $                                              | 24,000 |   |              |   | — |               |   |   | — |   |   | $ | 24,000 |   |
| Norman Ko     |   | $                                              | 48,000 |   |              |   | — |               |   |   | — |   |   | $ | 48,000 |   |

----

|   | The Board of Directors |
|--------|------------------------|
|   | Jack Jie Qin           |
|   | Jerry B. Lewin         |
|   | Visman Chow            |
|   | Norman Ko              |

| Name                                               |   | Number of SharesBeneficially Owned |       |   | Percent of SharesOutstanding |   |
|----------------------------------------------------|--------|---------------------------------------------------|------------|--------|----------------------------------------|--------|
| Jack Jie Qin                                       |   |                                              | 1,000      |   |                                   |   | * |   |
| Jeffery Cheung                                     |   |                                              | —    |   |                                   |   | — |   |
| Jerry B. Lewin                                     |   |                                              | —    |   |                                   |   | — |   |
| Visman Chow                                        |   |                                              | —    |   |                                   |   | — |   |
| Norman Ko                                          |   |                                              | —    |   |                                   |   | — |   |
| Pyng Soon                                          |   |                                              | —    |   |                                   |   | — |   |
| Dragon Win Management, Ltd. (1)               |   |                                              | 50,099,000 |   |                                   |   | 65.93 | % |
| Officers and directors as a group (6 persons) |   |                                              | 1,000      |   |                                   |   | * |   |

----

|               |   | 2011   |    |   | 2010   |   |
|--------------------|--------|--------|---------|--------|--------|--------|
| Audit Fees         |   | $      | 162,000 |   |   | $      | 125,000 |   |
| Audit-Related Fees |   |   | 17,448  |   |   |   | 14,302 |   |
| Tax Fees           |   |   | 13,500  |   |   |   | 7,000 |   |
| All Other Fees     |   |   | 14,918  |   |   |   | 7,530 |   |

----

| (a) | The following documents are filed as part of this report: |
|-----|-----------------------------------------------------------|

| (1) | Consolidated Financial Statements: |
|-----|------------------------------------|

|   | · | Reports of Independent Registered Public Accounting Firm |
|--------|--------|----------------------------------------------------------|

|   | · | Consolidated Balance Sheets |
|--------|--------|-----------------------------|

|   | · | Consolidated Statements of Operations |
|--------|--------|---------------------------------------|

|   | · | Consolidated Statements of Changes in Stockholders’ Equity |
|--------|--------|------------------------------------------------------------------|

|   | · | Consolidated Statements of Cash Flows |
|--------|--------|---------------------------------------|

|   | · | Notes to the Consolidated Financial Statements |
|--------|--------|------------------------------------------------|

| (2) | Consolidated Financial Statement Schedule: |
|-----|--------------------------------------------|

| (3) | Exhibits: |
|-----|-----------|

| Exhibit No.: | Description:                                                                                                                                                                                                                                |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                                                                                        |
| 3.1(1)            | Articles of Incorporation of GRG, Inc. (now EFT Holdings, Inc.).                                                                                                                                                                            |
|              |                                                                                                                                                                                                                                        |
| 3.1.1(1)          | Articles of Merger filed December 28, 2004 between HumWare Media Corporation, World Wide Golf Web, Inc. and GRG, Inc.                                                                                                                       |
|              |                                                                                                                                                                                                                                        |
| 3.1.2(1)          | Certificate of Amendment, effective November 7, 2007, to the Articles of Incorporation of HumWare Media Corporation                                                                                                                         |
|              |                                                                                                                                                                                                                                        |
| 3.1.3             | Articles of Merger filed December 13, 2010 between QCSC, Inc. and EFT Biotech Holdings, Inc.                                                                                                                                                |
|              |                                                                                                                                                                                                                                        |
| 3.2(3)            | By-laws                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                        |
| 4.1(1)            | Form of Common Stock Certificate                                                                                                                                                                                                            |
|              |                                                                                                                                                                                                                                        |
| 4.2(1)            | Form of Warrant to purchase one share of Common Stock for a purchase price of $3.80 per share until the second anniversary date of the date of issuance                                                                                     |
|              |                                                                                                                                                                                                                                        |
| 10.1(3)           | Share Exchange Agreement, dated as of the 1st day of November, 2007, by and among EFT Holdings, Inc. (formerly HumWare Media Corporation), a Nevada corporation; certain EFT Shareholders and EFT BioTech Corporation, a Nevada corporation |
|              |                                                                                                                                                                                                                                        |
| 10.2(2)           | Subscription Agreement for Units in connection with the Registrant’s Regulation S Private Placement                                                                                                                                   |
|              |                                                                                                                                                                                                                                        |
| 10.3(3)+          | Employment Agreement, dated May 10, 2008, between EFT BioTech Holdings, Inc. and Sharon Tang                                                                                                                                                |
|              |                                                                                                                                                                                                                                        |
| 10.4(5)           | $500,000 Loan Agreement (the “Agreement”), dated November 24, 2008, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower).         |
|              |                                                                                                                                                                                                                                        |
| 10.5(5)           | First Extension of $500,000 Loan, dated December 25, 2008                                                                                                                                                                                   |

----

| 10.6(5)   | Second Extension of $500,000 Loan, dated May 25, 2009                                                                                                                                                                                                      |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                       |
| 10.7(6)   | $2,000,000 Loan Agreement (the “Agreement”) and promissory note, dated September 23, 2008, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower). |
|      |                                                                                                                                                                                                                                                       |
| 10.8(5)   | First Extension of $2,000,000 Loan, dated November 25, 2008                                                                                                                                                                                                |
|      |                                                                                                                                                                                                                                                       |
| 10.9(5)   | Second Extension of $2,000,000 Loan, dated May 25, 2009                                                                                                                                                                                                    |
|      |                                                                                                                                                                                                                                                       |
| 10.10(6)  | $600,000 Loan Agreement, dated May 13, 2009, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower).                                                           |
|      |                                                                                                                                                                                                                                                       |
| 10.11(6)  | Addendum to $600,000 Loan Agreement, dated May 13, 2009, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower).                                               |
|      |                                                                                                                                                                                                                                                       |
| 10.12 (7) | $330,000 Loan Agreement, dated July 14, 2008, between EFT BioTech  Holdings, Inc. (Lender) and Yeuh-Chi Liu (Borrower)                                                                                                                           |
|      |                                                                                                                                                                                                                                                       |
| 10.13 (7) | Addendum to $330,000 Loan Agreement, dated July 15, 2008, between BioTech Holdings, Inc. and Yeuh-Chi Liu                                                                                                                                                  |
|      |                                                                                                                                                                                                                                                       |
| 10.14 (7) | $1,567,000 Loan Agreement, dated July 25, 2008, between BioTech Holdings, Inc. (Lender) and Yeuh-Chi Liu (Borrower)                                                                                                                                        |
|      |                                                                                                                                                                                                                                                       |
| 10.15(8)  | Subscription agreement with Excalibur International Marine Corporation                                                                                                                                                                                     |
|      |                                                                                                                                                                                                                                                       |
| 10.16(8)  | Extension of $2,000,000 loan with Excalibur International Marine Corporation                                                                                                                                                                               |
|      |                                                                                                                                                                                                                                                       |
| 10.17(8)  | Extension of $600,000 loan with Excalibur International Marine Corporation                                                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                       |
| 10.18(8)  | Extension of $500,000 loan with Excalibur International Marine Corporation                                                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                       |
| 10.19     | Consultancy Agreement, dated March 31, 2010, between EFT International Limited and JFL Capital Limited                                                                                                                                                     |
|      |                                                                                                                                                                                                                                                       |
| 10.20     | Employment Agreement, dated January 1, 2009, between EFT Biotech Holdings Inc. and Jack Jie Qin                                                                                                                                                            |
|      |                                                                                                                                                                                                                                                       |
| 10.21     | Employment Letter, dated December 20, 2010, between EFT (HK) Limited and Chueng, Chung Man Cyril                                                                                                                                                           |
|      |                                                                                                                                                                                                                                                       |
| 10.22     | Employment Agreement, dated January 1, 2009, between EFT Biotech Holdings Inc. and Pyng Soon                                                                                                                                                               |
|      |                                                                                                                                                                                                                                                       |
| 10.23     | English Translation of Form of Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park                                                                                                                        |
|      |                                                                                                                                                                                                                                                       |
| 10.24     | English Translation of Agreement Regarding the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated May 31, 2011, among Jack Jie Qin, Meifu Development Co., Ltd. and EFT Investment Co., Ltd.    |
|      |                                                                                                                                                                                                                                                       |
| 10.25     | English Translation of Agreement Regarding the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated May 31, 2011, among Jack Jie Qin, Transglobe Life Insurance Inc. and EFT Investment Co., Ltd. |
|      |                                                                                                                                                                                                                                                       |
| 10.26     | English Translation of Amendment Agreement to the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated July 1, 2011, among Jack Jie Qin, Meifu Development Co., Ltd. and EFT Investment Co., Ltd. |
|      |                                                                                                                                                                                                                                                       |
| 10.27     | English Translation of Agreement to Amend the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated July 7, 2011, among Jack Jie Qin, Transglobe Life Insurance Inc. and EFT Investment Co., Ltd.  |
|      |                                                                                                                                                                                                                                                       |
| 14.1(3)   | Code of Ethics                                                                                                                                                                                                                                             |
|      |                                                                                                                                                                                                                                                       |
| 21.1      | List of Subsidiaries                                                                                                                                                                                                                                       |
|      |                                                                                                                                                                                                                                                       |
| 31        | Rule 13a-14(a) Certifications                                                                                                                                                                                                                              |
|      |                                                                                                                                                                                                                                                       |
| 32        | Section 1350 Certifications                                                                                                                                                                                                                                |

----

| (1) | Filed as an exhibit to Form 10 (File No.: 001-34222) filed with the SEC on December 10, 2008 and incorporated by reference herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed as an exhibit to Form 10-Q for the quarter ended December 31, 2008 (File No.: 001-34222) filed with the SEC on February 13, 2009 and incorporated by reference herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed as an Exhibit to Amendment No. 1 to Form 10 (File No.: 001-34222) filed with the SEC on April 13, 2009 and incorporated by reference herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | Filed as an Exhibit to Amendment No. 2 to Form 10 (File No.: 001-34222) filed with the SEC on April 21, 2009 and incorporated by reference herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Filed as an Exhibit to Form 10-K (File No.: 001-34222) filed with the SEC on July 17, 2009 and incorporated by reference herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (6) | Filed as an Exhibit to Amendment No. 4 to Form 10 (File No.: 001-34222) filed with the SEC on September 3, 2009 and incorporated by reference herein. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Filed as an Exhibit to Amendment No. 5 to Form 10 (File No.: 001-34222) filed with the SEC on October 19, 2009 and incorporated by reference herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Filed as an Exhibit to Amendment No. 9 to Form 10 (File No.: 001-34222) filed with the SEC on April 16, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------|

----

|   | EFT HOLDINGS, INC.    |
|--------|-----------------------|
|   |                  |   |
|   | By:                   | /s/ Jack Jie Qin |
|   |                  | Jack Jie Qin, Principal Executive Officer |
|   |                  |   |
|   | Date: August 23, 2011 |

| Signature          |   | Title                            |   | Date                 |
|--------------------|--------|----------------------------------|--------|----------------------|
|               |   |                             |   |                 |
| /s/ Jack Jie Qin   |   | Director and Principal           |   | August 23, 2011 |
| Jack Jie Qin       |   | Executive Officer                |   |                 |
|               |   |                             |   |                 |
| /s/ Jeffery Cheung |   | Director and Principal           |   | August 23, 2011 |
| Jeffery Cheung     |   | Financial and Accounting Officer |   |                 |
|               |   |                             |   |                 |
| /s/ Jerry B. Lewin |   |                             |   | August 23, 2011 |
| Jerry B. Lewin     |   | Director                         |   |                 |
|               |   |                             |   |                 |
| /s/ Visman Chow    |   |                             |   |                 |
| Visman Chow        |   | Director                         |   | August 23, 2011 |
|               |   |                             |   |                 |
| /s/ Norman Ko      |   |                             |   |                 |
| Norman Ko          |   | Director                         |   | August 23, 2011 |

----

| Exhibit No.: | Description:                                                                                                                                                                                                                                               |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                                                                                                       |
| 3.1(1)            | Articles of Incorporation of GRG, Inc. (now EFT Holdings, Inc.).                                                                                                                                                                                           |
|              |                                                                                                                                                                                                                                                       |
| 3.1.1(1)          | Articles of Merger filed December 28, 2004 between HumWare Media Corporation, World Wide Golf Web, Inc. and GRG, Inc.                                                                                                                                      |
|              |                                                                                                                                                                                                                                                       |
| 3.1.2(1)          | Certificate of Amendment, effective November 7, 2007, to the Articles of Incorporation of HumWare Media Corporation                                                                                                                                        |
|              |                                                                                                                                                                                                                                                       |
| 3.1.3             | Articles of Merger filed December 13, 2010 between QCSC, Inc. and EFT Biotech Holdings, Inc.                                                                                                                                                               |
|              |                                                                                                                                                                                                                                                       |
| 3.2(3)            | By-laws                                                                                                                                                                                                                                                    |
|              |                                                                                                                                                                                                                                                       |
| 4.1(1)            | Form of Common Stock Certificate                                                                                                                                                                                                                           |
|              |                                                                                                                                                                                                                                                       |
| 4.2(1)            | Form of Warrant to purchase one share of Common Stock for a purchase price of $3.80 per share until the second anniversary date of the date of issuance                                                                                                    |
|              |                                                                                                                                                                                                                                                       |
| 10.1(3)           | Share Exchange Agreement, dated as of the 1st day of November, 2007, by and among EFT Holdings, Inc. (formerly HumWare Media Corporation), a Nevada corporation; certain EFT Shareholders and EFT BioTech Corporation, a Nevada corporation                |
|              |                                                                                                                                                                                                                                                       |
| 10.2(2)           | Subscription Agreement for Units in connection with the Registrant’s Regulation S Private Placement                                                                                                                                                  |
|              |                                                                                                                                                                                                                                                       |
| 10.3(3)+          | Employment Agreement, dated May 10, 2008, between EFT BioTech Holdings, Inc. and Sharon Tang                                                                                                                                                               |
|              |                                                                                                                                                                                                                                                       |
| 10.4(5)           | $500,000 Loan Agreement (the “Agreement”), dated November 24, 2008 , between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower).                       |
|              |                                                                                                                                                                                                                                                       |
| 10.5(5)           | First Extension of $500,000 Loan, dated December 25, 2008                                                                                                                                                                                                  |
|              |                                                                                                                                                                                                                                                       |
| 10.6(5)           | Second Extension of $500,000 Loan, dated May 25, 2009                                                                                                                                                                                                      |
|              |                                                                                                                                                                                                                                                       |
| 10.7(6)           | $2,000,000 Loan Agreement (the “Agreement”) and promissory note, dated September 23, 2008, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower). |
|              |                                                                                                                                                                                                                                                       |
| 10.8(5)           | First Extension of $2,000,000 Loan, dated November 25, 2008                                                                                                                                                                                                |
|              |                                                                                                                                                                                                                                                       |
| 10.9(5)           | Second Extension of $2,000,000 Loan, dated May 25, 2009                                                                                                                                                                                                    |
|              |                                                                                                                                                                                                                                                       |
| 10.10(6)          | $600,000 Loan Agreement, dated May 13, 2009, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower).                                                           |
|              |                                                                                                                                                                                                                                                       |
| 10.11(6)          | Addendum to $600,000 Loan Agreement, dated May 13, 2009, between the EFT Biotech Holdings, Inc. (as the Lender), EFT Investment Co., LTD., and Excalibur International Marine Corporation (as the Borrower).                                               |
|              |                                                                                                                                                                                                                                                       |
| 10.12 (7)         | $330,000 Loan Agreement, dated July 14, 2008, between EFT BioTech  Holdings, Inc. (Lender) and Yeuh-Chi Liu (Borrower)                                                                                                                           |
|              |                                                                                                                                                                                                                                                       |
| 10.13 (7)         | Addendum to $330,000 Loan Agreement, dated July 15, 2008, between BioTech Holdings, Inc. and Yeuh-Chi Liu                                                                                                                                                  |
|              |                                                                                                                                                                                                                                                       |
| 10.14 (7)         | $1,567,000 Loan Agreement, dated July 25, 2008, between BioTech Holdings, Inc. (Lender) and Yeuh-Chi Liu (Borrower)                                                                                                                                        |

----

| 10.15(8) | Subscription agreement with Excalibur International Marine Corporation                                                                                                                                                                                        |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                          |
| 10.16(8) | Extension of $2,000,000 loan with Excalibur International Marine Corporation                                                                                                                                                                                  |
|     |                                                                                                                                                                                                                                                          |
| 10.17(8) | Extension of $600,000 loan with Excalibur International Marine Corporation                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                          |
| 10.18(8) | Extension of $500,000 loan with Excalibur International Marine Corporation                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                          |
| 10.19    | Consultancy Agreement, dated March 31, 2010, between EFT International Limited and JFL Capital Limited                                                                                                                                                        |
|     |                                                                                                                                                                                                                                                          |
| 10.20    | Employment Agreement, dated January 1, 2009, between EFT Biotech Holdings Inc. and Jack Jie Qin                                                                                                                                                               |
|     |                                                                                                                                                                                                                                                          |
| 10.21    | Employment Letter, dated December 20, 2010, between EFT (HK) Limited and Chueng, Chung Man Cyril                                                                                                                                                              |
|     |                                                                                                                                                                                                                                                          |
| 10.22    | Employment Agreement, dated January 1, 2009, between EFT Biotech Holdings Inc. and Pyng Soon                                                                                                                                                                  |
|     |                                                                                                                                                                                                                                                          |
| 10.23    | English Translation of Form of Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park                                                                                                                           |
|     |                                                                                                                                                                                                                                                          |
| 10.24    | English Translation of Agreement Regarding the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated May 31, 2011, among Jack Jie Qin, Meifu Development Co., Ltd. and EFT Investment Co., Ltd.       |
|     |                                                                                                                                                                                                                                                          |
| 10.25    | English Translation of Agreement Regarding the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated May 31, 2011, among Jack Jie Qin, Transglobe Life Insurance Inc. and EFT Investment Co., Ltd.    |
|     |                                                                                                                                                                                                                                                          |
| 10.26    | English Translation of Amendment Agreement to the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated July 1, 2011, among Jack Jie Qin, Meifu Development Co., Ltd. and EFT Investment Co., Ltd.    |
|     |                                                                                                                                                                                                                                                          |
| 10.27    | English Translation of Amendment Agreement to the "Pre-sale Building Unit Purchase and Sale Agreement, A5 Building, Taipei Enterprise Headquarters Park," dated July 1, 2011, among Jack Jie Qin, Transglobe Life Insurance Inc. and EFT Investment Co., Ltd. |
|     |                                                                                                                                                                                                                                                          |
| 14.1(3)  | Code of Ethics                                                                                                                                                                                                                                                |
|     |                                                                                                                                                                                                                                                          |
| 21.1     | List of Subsidiaries                                                                                                                                                                                                                                          |
|     |                                                                                                                                                                                                                                                          |
| 31       | Rule 13a-14(a) Certifications                                                                                                                                                                                                                                 |
|     |                                                                                                                                                                                                                                                          |
| 32       | Section 1350 Certifications                                                                                                                                                                                                                                   |

----

| (1) | Filed as an exhibit to Form 10 (File No.: 001-34222) filed with the SEC on December 10, 2008 and incorporated by reference herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed as an exhibit to Form 10-Q for the quarter ended December 31, 2008 (File No.: 001-34222) filed with the SEC on February 13, 2009 and incorporated by reference herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed as an Exhibit to Amendment No. 1 to Form 10 (File No.: 001-34222) filed with the SEC on April 13, 2009 and incorporated by reference herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed as an Exhibit to Amendment No. 2 to Form 10 (File No.: 001-34222) filed with the SEC on April 21, 2009 and incorporated by reference herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Filed as an Exhibit to Form 10-K (File No.: 001-34222) filed with the SEC on July 17, 2009 and incorporated by reference herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (6) | Filed as an Exhibit to Amendment No. 4 to Form 10 (File No.: 001-34222) filed with the SEC on September 3, 2009 and incorporated by reference herein. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Filed as an Exhibit to Amendment No. 5 to Form 10 (File No.: 001-34222) filed with the SEC on October 19, 2009 and incorporated by reference herein. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Filed as an Exhibit to Amendment No. 9 to Form 10 (File No.: 001-34222) filed with the SEC on April 16, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------|

----