SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C.  20549





Form
20-F





ANNUAL REPORT
PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL
YEAR ENDED SEPTEMBER 30, 2007







Commission File No.
0-29320





EIGER
TECHNOLOGY, INC.


(Exact name of
Registrant as specified in its charter)





Ontario,
Canada


(Jurisdiction of
incorporation or organization)





144 Front Street
West, Suite 700


Toronto, Ontario
M5J 2L7


(Address of
principal executive offices)





Securities
registered or to be registered pursuant to Section 12(b) of the
Act:  None





Securities
registered or to be registered pursuant to Section 12(g) of the
Act:





Common Shares,
without par value


(Title of
Class)





Securities for
which there is a reporting obligation pursuant to Section 15(d) of the
Act:  None





Indicate the number
of outstanding shares of each of the Issuer's classes of capital or common stock
as of the close of the period covered by the annual report: 42,389,054 Common
Shares without par value.





Indicate by check
mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.





Yes X
No______





Indicate by check
mark which financial statement item the registrant has elected to
follow.





Item 17    Item
18 ___X___






The Index to
Exhibits is found at Page35











FORWARD LOOKING
STATEMENTS





Forward-Looking
Information is Subject to Risk and Uncertainty.  This report contains
certain “forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. When used in this report, the words
"estimate," "project," "intend," "expect," “anticipate” and similar expressions
are intended to identify forward-looking statements. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as
of the date of this report. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
contemplated in such forward-looking statements. Such risks and uncertainties
include, but are not limited to, those identified under the subheading “Risk
Factors” in Item 3 hereof.








GLOSSARY




The following is a
glossary of some terms that appear in the discussion of the business of Eiger
Technology, Inc. (“the Company”) as contained in this Annual
Report.




“Racino”
            Racino Royale
      Inc., an entity in which the Company has an investment.  Racino
      invests in horseracing and gaming ventures.“Newlook”
            Newlook
      Industries Corp., an entity in which the Company has an investment.
      Newlook invests in wireless ventures.“Wireless
      Age”
            Wireless Age
      Communications, Inc., a majority owned subsidiary of
    Newlook.“InterAmerican”
            InterAmerican
      Gaming Corp., an entity subject to a letter of intent with Racino. Racino
      intends to acquire InterAmerican.





2





TABLE
OF CONTENTS





PagePART
      IItem
      1.
            Identity of
      Directors, Senior Management and AdvisorsNot
      Applicable
            4Item
      2.
            Offer
      Statistics and Expected Timetable – Not Applicable
            4Item
      3.
            Key
      Information
            4Item
      4.
            Information
      on the Company
            8Item
      5.
            Operating and
      Financial Review and Prospects
            14Item
      6.
            Directors,
      Senior Management and Employees
            22Item
      7.
            Major
      Shareholders and Related Party Transactions
            25Item
      8.
            Financial
      Information
            27Item
      9.
            The Offer and
      Listing
            28Item
      10.
            Additional
      Information
            29Item
      11.
            Quantitative
      and Qualitative Disclosure about Market RiskNot
      Applicable
            38Item
      12.
            Description
      of Securities Other than Equity SecuritiesNot
      Applicable
            38PART
      IIItem
      13.
            Defaults,
      Dividend Arrearages and DelinquenciesNot
      Applicable
            38Item
      14.
            Material
      Modifications to the Rights of Security Holders andUse of
      Proceeds – Not Applicable
            38Item
      15.
            Controls and
      Procedures
            38Item
      16.
            Reserved
            39Item
      16A.
            Audit
      Committee Financial Expert
            39Item
      16B.
            Code of
      Ethics
            39Item
      16C.
            Principal
      Accountant Fees and Services
            39Item
      16D.
            Exemptions
      from the Listing Standards for Audit Committee
            39Item
      16E.
            Purchases of
      Equity Securities by the Company and AffiliatedPurchasers
            39








PART
      IIIItem
      17.
            Financial
      Statements – Not Applicable
            39Item
      18.
            Financial
      Statements
            39Item
      19.
            Exhibits
            40SIGNATURES








3





PART
I





Item
      1. Identity of Directors, Senior Management and
  Advisers





Not
Applicable.





Item
      2. Offer Statistics and Expected
Timetable





Not
Applicable.





Item
      3. Key Information





A. Selected
      financial data.





The selected
consolidated financial information set out below has been obtained from
financial statements that reflect the Company’s business
operations.  The financial statements have been prepared in accordance
with accounting principles generally accepted in Canada. For reconciliation to
US GAAP refer to Note 20 of the attached audited statements. The following table
summarizes information pertaining to operations of the Company for the last five
years ended September 30, 2007.





2007
            
            
            
            2006
            *
            
            2005*
              Restated
            
            
            2004
              Restated
            
            
            2003Working
      Capital
            
            $
            (2,193,000
            )
            
            $
            (1,829,000
            )
            
            $
            (1,751,000
            )
            
            $
            (3,277,000
            )
            
            $
            (409,000
            )Revenue
            
            $
            0
            
            
            $
            130,000
            
            
            $
            0
            
            
            $
            5,735,000
            
            
            $
            4,932,000Earnings
      (Loss) fromContinuing
      Operations:
            
            $
            (877,000
            )
            
            $
            481,000
            
            
            $
            (703,000
            )
            
            $
            (3,006,000
            )
            
            $
            (1,184,000
            )Net Earnings
      (Loss):
            
            $
            (1,856,000
            )
            
            $
            92,000
            
            
            $
            (250,000
            )
            
            $
            (6,006,000
            )
            
            $
            (7,551,000
            )Earnings
      (Loss) per Share:
            
            $
            (0.046
            )
            
            $
            (0.002
            )
            
            $
            (0.018
            )
            
            $
            (0.16
            )
            
            $
            (0.21
            )Total
      Assets:
            
            $
            3,869,000
            
            
            $
            2,901,000
            
            
            $
            1,932,000
            
            
            $
            7,287,000
            
            
            $
            15,778,000Net
      Assets:
            
            $
            (1,864,000
            )
            
            $
            (28,000
            )
            
            $
            (492,000
            )
            
            $
            (846,000
            )
            
            $
            9,317,000Long Term
      Debt:
            
            $
            0
            
            
            $
            0
            
            
            $
            0
            
            
            $
            347,000
            
            
            $
            163,000Total
      Liabilities:
            
            $
            2,853,000
            
            
            $
            2,929,000
            
            
            $
            2,424,000
            
            
            $
            8,133,000
            
            
            $
            6,461,000Share
      Capital:
            
            $
            44,286,000
            
            
            $
            43,839,000
            
            
            $
            43,839,000
            
            
            $
            43,839,000
            
            
            $
            42,685,000Stock-Based
      Compensation
            
            $
            1,278,000
            
            
            $
            1,705,000
            
            
            $
            1,333,000
            
            
            $
            -
            
            
            $
            -Retained
      Earnings(Deficit):
            
            $
            (47,428,000
            )
            
            $
            (45,572,000
            )
            
            $
            (45,664,000
            )
            
            $
            (44,685,000
            )
            
            $
            (33,585,000
            )Number of
      Shares:
            
            
            42,389,054
            
            
            
            38,860,174
            
            
            
            38,860,174
            
            
            
            38,860,174
            
            
            
            37,608,951*Reclassified to reflect
      discontinued operations of Newlook Industries Corp.





4





CURRENCY EXCHANGE
INFORMATION





The Company’s
accounts are maintained in Canadian dollars. In this Annual Report, all dollar
amounts are expressed in Canadian dollars except where otherwise
indicated.





The following table
sets forth, for the periods indicated, the high and low closing rates of
exchange of Canadian dollars into United States dollars, the average of such
exchange rates on the close of each day during the periods, and the end of
period rates.  Such rates are shown as, or are derived from, the
reciprocals of the Bank of Canada nominal noon exchange rates in Canadian
dollars.





---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








Fiscal Year
Ended


September
30








2007
            2006
            2005
            2004
            2003High
            1.0585
            0.9134
            0.8630
            0.7912
            0.7506Low
            0.8496
            0.8349
            0.7840
            0.7159
            0.6254Average
            0.9418
            0.8750
            0.8176
            0.7550
            0.6854Period
            1.0088
            0.8947
            0.8630
            0.7912
            0.7408





On March 27, 2008
the exchange rate of Canadian dollars into United States dollars, based upon the
Bank of Canada nominal noon exchange rate was Cdn. $1.00 equals U.S.
$0.985





The following table
sets forth, for the most recent previous six months, the closing rates of
exchange of Canadian dollars into United States dollars. The latest practicable
date for March was on March 27, 2008.





Mar
            Feb
            Jan
            Dec
            Nov
            Oct2008
            2008
            2008
            2007
            2007
            20070.9855
            0.9844
            1.0038
            0.9913
            1.0000
            0.9447








B. Capitalization
and indebtedness.





Not
Applicable.








5








C. Reasons for
      the offer and use of
proceeds.





Not
Applicable.





D. Risk
factors.





The Company’s
operations are subject to a variety of risks and uncertainties. The following
factors are to be considered a list of known material risks that are specific to
the Company or its industries.





Going
Concern


The Company’s
continued existence as a going concern is dependent upon the Company’s ability
to raise additional capital and sustain profitable operations. There is doubt
about the Company's ability to continue as a going concern as the Company has a
working capital deficiency of $2,193,000 and an accumulated deficit of
$47,428,000 as at September 30, 2007. Should the Company be unable to continue
as a going concern, it may be unable to realize the carrying value of its assets
and to meet its liabilities as they become due.





The Company
believes that future share issuances and certain related party efforts will
provide sufficient cash flow for it to continue as a going concern in its
present form, however there can be no assurances that the Company will achieve
such results. Accordingly, the consolidated financial statements do not include
any adjustments related to the recoverability and classification of recorded
asset amounts or the amount and classification of liabilities or any other
adjustments that might be necessary should the Company be unable to continue as
a going concern.





Management
of the Growth of the Company


The implementation
of the Company’s investment strategy could result in a period of rapid
growth.  This growth could place a strain on the Company’s managerial
and financial resources.  Future operating results will depend on the
ability of senior management to manage rapidly changing business conditions, and
to implement and improve the Company’s investee’s technical, administrative,
financial control and reporting systems.  No assurance can be given
that the Company will succeed in these efforts.  The failure to
effectively manage and improve these systems could increase the Company’s costs
and devalue the Company’s investments.





Competition


The Company
investment entity’s face competition in each of its markets and has competitors,
many of which are larger and have greater financial resources.  There
can be no assurance that the Company’s investments will be able to continue to
compete successfully in its markets.  Because the investee’s compete,
in part, on the technical advantages and cost of their products, significant
technical advances by competitors or the achievement by such competitors of
improved operating effectiveness that enable them to reduce prices could reduce
the investee’s competitive advantage in these products and thereby adversely
affect the Company’s financial results and the value of its
investments.








6





Intellectual
Property


The Company’s
investees have not obtained patent protection nor registered trademarks or
copyrights for all of their proprietary technology or products.  As
the investees have not protected all of their intellectual property, their
business may be adversely affected by competitors copying or otherwise
exploiting features of their technology, products, information or services,
which could damage the value of the Company’s investments.




Dependence
on Key Personnel and Skilled Employees


The success of the
Company is dependent, in large part, on certain key personnel and on the ability
to motivate, retain executive level strategic leadership. There can be no
assurance that the Company will be able to attract and retain employees with the
necessary technical, technological and specialized skills given the competitive
state of the employment market for these individuals.  The loss of
such services or the failure by the Company to continue to attract and retain
other key personnel may have a material adverse effect on the Company, including
its ability to make key strategic investments, its ability to grow earnings and
its ability to realize on its investments.




Uncertain
Operating Results


The Company’s
financial operating results may vary and significantly depend on such factors as
the timing of new product announcements, increases in supply costs and changes
in pricing policies of the Company’s investments and its
competitors.  The market price of the Shares may be highly volatile in
response to such fluctuations.




New
Investment Development


There can be no
assurance that the Company will be able to identify, develop and invest in new
entities or ventures that it currently does not participate in.




Foreign
Exchange Rate


Material
depreciation of the Canadian dollar against the U.S. dollar may increase certain
costs impacting the Company’s profitability and cash flow.




Legal
Proceedings Against Foreign Persons


The Company’s
jurisdiction of incorporation falls under the laws of the Province of Ontario,
Canada, and all of the Company’s officers and directors are residents of Canada.
Consequently, it may be difficult for United States investors to affect service
of process within the United States upon the Company or its officers and
directors, or to realize in the United States upon judgments of United States
courts predicated upon civil liabilities under U.S. securities
laws.  Furthermore, it may be difficult for investors to enforce
judgments of the U.S. against the Company or any of the Company’s non-U.S.
resident executive officers or directors. There is substantial doubt whether an
original lawsuit could be brought successfully in Canada against any of such
persons or the Company predicated solely upon civil liabilities arising under
U.S. securities laws.





Item
      4. Information on the Company





A.
            History and
      development of the company.





The Company entered
the energy efficient lighting business in 1991.  The Company’s two
main operating subsidiaries in this non-core business have been K-Tronik N.A.
Inc. and ADH Custom Metal Fabricators Inc. (“ADH”). ADH operated from the
Company’s 55,000 square foot manufacturing and engineering facility located in
Stratford, Ontario.







7





ADH manufactured
and distributed transformer housings, switch housings and electronic data racks,
as well as fluorescent light fixtures and reflectors.  ADH was
wound-up in August 2003. The Stratford property was sold in November
2004.




On April 1, 1998,
the Company purchased 53% of the common stock of K-Tronik International Corp.
(“K-Tronik”).  During fiscal 1998, the Company consolidated two of its
South Korean subsidiaries, Energy Products, Inc. (its South Korean energy saving
products sales arm) and (a manufacturer of electronic ballasts) and, which were
eventually combined under the name “K-Tronik Asia, Inc.” The Company became a
64% shareholder of K-Tronik. On September 15, 2000, the Company sold its 60%
interest in Lexatec VR Systems, Inc. to facilitate focussing on Eiger’s core
business at the time. On December 15, 2004, K-Tronik entered into an agreement
to sell all of its interest in K-Tronik N.A. Inc. and the fixed assets of its
subsidiary, K-Troniks Asia Ltd. Thus, K-Tronik ceased to be engaged in the
business of manufacturing, distributing or selling electronic ballasts. On July
5, 2006, K-Tronik announced its name change to Racino, and implemented a new
strategy focusing on the conduct of horse races and horseracing track
development opportunities.





The Company entered
the computer peripheral business following a series of transactions in September
1999 that resulted in the Company owning a 58% interest in Eiger Net of South
Korea. On July 31, 2004, the remaining operating management shareholders of
Eiger Net, Inc. in South Korea acquired Eiger’s interest in Eiger Net, Inc. for
a nominal sum as required by South Korean law. As such, the purchasers assumed
all of the outstanding liabilities of Eiger Net, Inc. as at that
date.




The Company entered
into the VoIP telecom services business when, through Onlinetel Corp., it
acquired 100% of the shares of Onlinetel, Inc. through a Share Exchange
agreement under the provisions of Chapter 92a of the NGCL (Nevada General
Corporate Law). 99.97% of Onlinetel’s shares have been exchanged pursuant to the
Share Exchange Agreement.





On March 18, 2004,
Newlook completed an agreement to acquire 100% of the outstanding common shares
of Onlinetel by issuing 12,727,273 common shares of Newlook to Eiger. A further
7,272,727 common shares were issued to Eiger in settlement of $1,200,000 of debt
owing from Onlinetel to Eiger.





During fiscal 2007,
the Board of Directors after careful consideration of the business prospects of
the Company, decided to reorganize the Company by discontinuing its investment
in Newlook and selling a large block of its investment in Racino. At this time,
Mr. Gerry Racicot CEO of the Company decided to retire and Mr. John G. Simmonds
was appointed CEO. Later in the year Mr. Jason Moretto stepped down as CFO of
the Company and Mr. Gary Hokkanen was appointed CFO.





The decision to
dispose of the Newlook investment was made in order to generate substantial
amounts of cash for new business investment purposes. Beginning in January 2007,
the Company disposed of 14,260,000 common shares of Newlook and received net
cash proceeds of $1,292,450. 4,000,000 of the 14,260,000 were pursuant to call
options (exercisable at $0.10 per share) granted to investors. As of September
30, 2007,  there are 10,000,000 options (9,100,000 of which are
exercisable at $0.10 per share and 900,000 of which are exercisable at $0.40 per
share) outstanding to acquire the Company’s remaining investment in
Newlook.





Also during fiscal
2007, the Company disposed of substantially all of its investment in Racino. The
Company disposed of 16,021,600 Racino common shares for cash proceeds of
$183,665 and a secured promissory note. As of September 30, 2007, approximately
$624,000 is outstanding under the promissory note. The issuer of the note is in
default under the repayment terms and the Company is considering its options
with the Racino investment.





Recent
Financings





During May 7 and
18, 2007, the Company issued 3,570,000 units at a purchase price of $0.15 per
unit. Each unit consisted of 1 common share and three purchase warrants. One
warrant is exercisable for one year from date of distribution at an exercise
price of $0.25, one warrant is exercisable at $0.50 for a period of one year
beginning one year after date of distribution and one warrant is exercisable at
$0.75 for one year beginning two years after date of distribution.





Other
Recent Developments





Foundation
Venture Leasing Inc. Acquisition of Racino Shares





On
August 8, 2007, Eiger entered into a purchase agreement with Foundation Venture
Leasing Inc. for the sale of 14,021,600 Racino common shares that Eiger owned
for aggregate consideration of US$701,080. The purchase price was to be paid by
Foundation in four tranches and prior to September 1, 2008.


Foundation is part
of the Foundation Markets group, a privately-held Toronto-based
merchant/investment banking group, which raises capital for small- and mid-sized
companies, advises and assists companies going public and specializes in
cross-border, multi-jurisdictional transactions. Through Foundation’s ownership
interest, it is anticipated that Racino will be moving forward with an
acquisition strategy to create shareholder value.





As
of December 20, 2007, Foundation is in default under the repayment terms of a
promissory note which formed part of the purchase price.





InterAmerican
Gaming Corp. Proposed Acquisition





Racino has signed a
non-binding Letter of Intent pursuant to which it proposes to acquire all the
issued and outstanding shares of InterAmerican Gaming Corp (“InterAmerican”), a
Latin America focused casino management company. As part of the acquisition the
board of directors will be reconstituted to include individuals with
commensurate experience in the appropriate sectors and markets.





Eiger Technology,
Inc. is a management holding company with two main investments; Newlook
Industries Corp. (“Newlook”) and Racino Royale, Inc. (“Racino”). Eiger’s head
office is located in Toronto, Ontario and has four staff.







8





Newlook is listed
on the TSX Venture Exchange under symbol “NLI”. Eiger holds a 35% ownership
stake in Newlook. On March 18, 2004, Newlook acquired 100% of the shares of
Onlinetel Corp. (“Onlinetel”). Newlook has discontinued its operations of
Onlinetel effective fiscal 2007. All of Onlinetel’s operations are classified as
discontinued operations. Based in Ontario, Onlinetel is a Canadian provider of
VoIP-based telecommunications services.  The objective of the company
is to continue to build on the technical and cost effective strength of
Voice-over-Internet Protocol ("VoIP") technology, its proprietary applications
and its national network, and by developing and growing its unique ad-based Call
Zone/Call World plan. Onlinetel will continue to market its high-quality,
low-cost services in the same manner that has made them a strong value
proposition for Canadians. On June 28, 2007 Newlook acquired a 53% ownership
interest in Wireless Age Communications, Inc. (“Wireless Age”) a public entity
trading on the NASD OTC Bulletin Board under the symbol “WLSA”. Wireless Age
operates in two segments; 1) independent retail cellular stores, and 2)
distribution of prepaid cellular phone cards, professional grade two-way radios
and ancillary accessories.





Racino is listed on
the NASD OTC Bulletin Board under symbol “RCNR”. Eiger holds 10% of Racino’s
common shares. Racino is currently focusing on implementing its business plan to
conduct of horse-races and horse racing track development
opportunities.  Racino has also entered into a letter of intent to
acquire InterAmerican Gaming Corp. (“InterAmerican”) which is an entity making
investments in the Latin American gaming market.







SELECTED ANNUAL
INFORMATION


Summarized selected consolidated
financial information with respect to the Company for the fiscal years ended
September 30, 2007, 2006 and 2005 is as follows:





2007
            2006*
            2005Total
    revenues
            $ -
            $130,000
            $ -Earnings/(loss) from continuing
      operations
            (877,000)
            506,000
            (703,000)Earnings/(loss) from discontinued
      operations
            (979,000)
            (414,000)
            453,000Earnings/(loss)
            (1,856,000)
            92,000
            (250,000)Earnings/(loss) per share from
      continuing operations
            (0.022)
            0.013
            (0.018)Earnings/(loss) per share from
      discontinued operations
            (0.024)
            (0.011)
            0.012Earnings/(loss) per
      share
            (0.046)
            0.002
            (0.006)Total
assets
            3,869,000
            2,901,000
            1,932,000Total
      liabilities
            5,733,000
            2,234,000
            2,424,000Non-controlling
      interest
            -
            695,000
            -Shareholders’
      deficit
            (1,864,000)
            (28,000)
            (492,000)Cash dividends
      declared
            -
            -
            -*
      Reclassified to reflect discontinued operations of
  Newlook





9








The Company has two
investments, namely, Newlook and Racino.




NEWLOOK INDUSTRIES
CORP.




Newlook has a 100%
ownership stake in Onlinetel Corp. and a 53% ownership interest in Wireless Age
Communications, Inc.




Onlinetel is a
telecommunications software and services company, which harnesses the power of
proprietary soft-switch technology to deliver VoIP communication services to
individuals, businesses and carriers. Utilizing soft switch technology,
Onlinetel converts analog voice conversations to digital I.P. packets and routes
voice calls, phone-to-phone, over the Internet from any wireless or landline
connection. The integration of voice and data networks eliminates the need for
traditional telecom services and provides a substantial increase in
communication cost efficiencies. Onlinetel has disposed of substantially all of
its communications businesses and reflects its results as discontinued
operations.




Wireless Age is
diversified telecommunications entity operating cellular retail stores and
business enterprises distributing pre-paid cellular service cards, professional
grade two-way radios and ancillary electronic products.




RACINO ROYALE,
INC.


Racino began in
June 2006 to enter the business of horse racing and gaming. Out of the gates, it
targeted the province of Saskatchewan. With the support of the Saskatchewan
Standardbred Horsemen’s Association (“SSHA”) and the Saskatchewan Liquor and
Gaming Authority, in short order Racino was operating a track in the province.
Big Valley Raceway in Craven, Saskatchewan — approximately 20 minutes north of
Regina — held an eight-day meet on Sundays from July 23 to September 10, 2006.
Racino intends to apply for race dates again in the future.


Racino entered into
a letter of intent to acquire InterAmerican Gaming Corp. If consummated, Racino
will participate in the development of various racing, gaming and entertainment
ventures in Latin America. InterAmerican is assembling various investments in
new gaming markets through its relationships in its markets.





B.
            Organizational
      structure.





The following is a
list of each material subsidiary of the Company and the jurisdiction of
incorporation and the direct or indirect percentage ownership by the Company of
each subsidiary at the fiscal year ended September 30, 2007:




Name
      of Subsidiary
            Jurisdiction
      of
              Organization
            Percentage
      of Voting Securities Owned of ControlledNewlook
      Industries Corp.  (“Newlook”)
            British
      Columbia
            35%Racino
      Royale, Inc. (“Racino”)
            Nevada
            10%










10





The following is an
organizational chart showing the Company’s material subsidiaries:









C.
            Property,
      plants and equipment.





The Company’s
current property, plants and equipment are comprised primarily of
telecommunications and computer equipment located in Ontario,
Canada.  The Company currently owns no real estate.





Item
      5. Operating and Financial Review and
Prospects





The
      information provided in this section endeavors to summarize the company’s
      financial


condition and
results of operations for the periods specified, including the causes for
material changes to provide an understanding of the company’s business as a
whole. The information also attempts to relate all separate segments of the
company.  The discussion


provided therein
should be read in conjunction with the Company’s consolidated financial
statements and related notes.





A.
            Operating
      results.





Comparative
Analysis Between Fiscal 2007 and 2006





During the year
ended September 30, 2007, Eiger’s ownership interest in Racino was reduced from
50.4% to 10%. Accordingly the Company changed its accounting treatment for the
investment. In previous years the Company consolidated the operating results.
However effective August 1, 2007, the Company began to equity account its
investment in Racino. The operations of Newlook have been recorded as
discontinued operations.





The Company
recorded a continuing operations loss of $877,000 during the year ended
September 30, 2007 compared to earnings of $506,000 during the comparative
period in the prior year.








11








Revenues of
continuing operations during fiscal 2007 were nil compared to $130,000 during
fiscal 2006. The revenues during the year ended September 30, 2006, arose from
Racino during the period the Company consolidated the operations of Racino.
Prior to deconsolidation, occurring during fiscal 2007, Racino did not generate
any revenues.





Selling, general
and administrative expenses were $636,000 during the year ended September 30,
2007 down from $663,000 during the year ended September 30, 2006. Selling,
general and administrative expenses during the year ended September 30, 2007
included wage costs of approximately $196,000, management fees to executive
management of $138,000, accounting fees of $42,000, travel costs of $40,000 and
miscellaneous costs of $203,000. The decrease in selling, general and
administrative costs compared to fiscal 2006 is attributable to the change in
business direction of the Company.





The Company
incurred foreign exchange losses of $40,000, during the year ended September 30,
2007 compared to $25,000 during the comparative period in the prior year.
Foreign exchange losses are incurred upon the translation of US dollar assets
and liabilities converted into Canadian dollars during a period of Canadian
dollar increasing vis-à-vis the US dollar.





Amortization of
property and equipment totaled $12,000 in the current year and $15,000 in
2006.





The Company
recorded other expense items totaling $189,000 in fiscal 2007 compared to other
income of $1,508,000 in 2006.





During the year
ended September 30, 2007, the Company opted to dispose of its investment in
Newlook. The Company sold 10,263,000 common shares and also granted options to
various investors to acquire 14,000,000 additional shares. The Company recorded
an expense of $4,567,000 representing the fair value of the grant of the options
and the adjustment to its fair value as of September 30, 2007. In addition the
Company recorded a gain on dilution of $4,525,000 in March 2007, when the
Company’s investment in Newlook dropped below 50% and changed accounting from
consolidation to equity accounting. The dilution gain represents previously
consolidated operating losses of Newlook that no longer apply to the Company’s
investment in Newlook. The operating results of Newlook have been classified as
discontinued operations and are explained elsewhere in this report.





The Company
disposed of shares of its investment in Newlook and Racino and recorded a net
loss of $97,000 from the disposal of these securities. The Company sold
14,263,000 common shares of Newlook (4,000,000 by way of options exercised) for
a loss of $284,000 and 16,021,600 common shares of Racino for a gain of
$187,000.





The Company changed
from consolidation to equity accounting for its investment in Racino and
recorded a loss of $80,000 for the period after deconsolidation to September 30,
2007. Operating expenses of Racino consolidated into the statement of operations
prior to deconsolidation were $100,000.








12





During the year
ended September 30, 2007, the Company recoded a loss of $15,000 on the writedown
of an advance to a corporation representing the reduction in fair value of the
security provided by the corporation. A loss of $45,000 was recorded during the
year ended September 30, 2006.





The Company earned
interest income of $47,000 from related parties in the current year due to
intercompany balances that previously eliminated upon consolidation now attract
interest payable to Eiger.





Loss per share from
continuing operations during the year ended September 30, 2007 were $0.022
compared to earnings per share of $0.013 in the previous year.





Discontinued
Operations





As described
earlier in this report, management made the decision to dispose of its
investment in Newlook during the second quarter. For this reason, the operating
results of Newlook have been regarded as discontinued operations in the
consolidated statement of operating results. As with Racino (which is still
regarded as a component of continuing operations), the disposal of Newlook
occurred in various transactions. On October 1, 2006, the Company held a 78.5%
ownership interest in Newlook and divested down to 35% at September 30, 2007. In
the second quarter of fiscal 2007, the ownership position of Newlook dropped
below 50%, resulting in a change from consolidation accounting to equity
accounting. However, due to the discontinued operations treatment, all operating
results whether prior or post deconsolidation, are reflected as discontinued
operations.





Net earnings of
Newlook recorded by the Company during the year ended September 30, 2007 totaled
$48,000. Losses prior to deconsolidation were $187,000 and earnings post
deconsolidation were $207,000. Newlook acquired a controlling interest in a
wireless operating company during the second quarter which generated
substantially all of the earnings growth.





Also included in
discontinued operations are accrued severance/retirement obligations of
$1,000,000 to the Company’s former CEO, who retired during the second quarter of
fiscal 2007.





Loss per share from
discontinued operations during the year ended September 30, 2007 was $0.024
compared to $0.011 during fiscal 2006.





Consolidated cash,
cash equivalents and short-term investments at September 30, 2007 was $nil
compared to $102,000 at September 30, 2006. Eiger has no bank debt
facilities.  Over the same period, Eiger’s consolidated accounts
receivable decreased to $33,000 from $262,000. Consolidated accounts payable and
accrued charges decreased to $368,000 from $1,077,000 over the same
period.





The Company’s
deferred revenue declined from $458,000 at September 30, 2006 to $nil at
September 30, 2007 due to the reclassification of Newlook as discontinued
operations.  As the subscription is for a one-year term of service,
the fee is amortized on a monthly basis over the one-year period and the revenue
is deferred until earned.








13





The Company’s
cash-based working capital (net of deferred revenue) of negative $2,193,000 at
September 30, 2007 increased from negative $1,829,000 at the prior year
primarily due to the discontinuance of Newlook as a continuing
operation.





On May 14, 2007,
the Company closed a non-brokered private placement of 3,570,000 units of its
securities at a price of $0.15 per unit. Each unit is comprised of one share and
three share purchase warrants. The warrants, each of which is convertible to one
common share, are exercisable for a period of three years at various exercise
prices. The Company received proceeds of $536,000. If the warrants are fully
exercised, the Company will receive additional cash proceeds of
$5,355,000.





The Company’s
consolidated financial statements for the year ended September 30, 2007 have
been prepared on a going concern basis, in accordance with Canadian generally
accepted accounting principles and accounting principles generally accepted in
the United States of America. The going concern basis of presentation assumes
that the Company will continue in operations for the foreseeable future and will
be able to realize its assets and discharge its liabilities and contingencies in
the normal course of operations.





There is doubt
about the Company's ability to continue as a going concern as the Company has a
working capital deficiency of $2,193,000 as at September 30, 2007 (2006 -
$1,829,000; 2005 - $1,751,000) and an accumulated deficit of $47,428,000 as at
September 30, 2007. The Company's ability to continue as a going concern is
dependent upon the Company's ability to raise additional capital, to increase
sales, satisfy or renegotiate the forebearance agreement and sustain profitable
operations. Should the Company be unable to continue as a going concern, it may
be unable to realize the carrying value of its assets and to meet its
liabilities as they become due.





The Company
believes that future shares issuance and certain sales related efforts will
provide sufficient cash flow for it to continue as a going concern in its
present form, however, there can be no assurances that the Company will achieve
such results. Accordingly, the consolidated financial statements do not include
any adjustments related to the recoverability and classification of recorded
asset amounts or the amount and classification of liabilities or any other
adjustments that might be necessary should the Company be unable to continue as
a going concern.





Comparative
Analysis Between Fiscal 2006 and 2005





For the fiscal year
ended September 30, 2006, Eiger’s restated earnings from continuing operations
of $506,000 ($0.013 per share) improved from a restated $703,000 ($0.018 per
share) loss during the prior year.  During fiscal 2006, the Company
recorded a gain of $1,512,000, of which $732,000 arose from licensing rights
acquired by Racino and $780,000 of which arose from a reduction in the ownership
position in Newlook.





Eiger’s
consolidated operating expenses from continuing operations of $1,075,000
(including 372,000 of non-cash items) for the year ended September 30, 2006
increased 53% from a restated $701,000 (including 238,000 of non-cash items) in
fiscal 2005. The largest component of operating expenses is selling, general and
administrative expenses (“SG&A”), which consists primarily of salaries and
benefits, and the operating costs





14





associated with
sales. Consolidated SG&A, as restated, of $663,000 for the year ended
September 30, 2006 increased 46% from $452,000 in fiscal 2005.





For the fiscal year
ended September 30, 2006, Eiger incurred a loss from discontinued operations of
$414,000 ($0.010 per share) in comparison to earnings of $453,000 ($0.011 per
share) for fiscal 2005.





A.
            Liquidity
      and capital resources.





Comparison of the
Company’s financial position between fiscal year end September 2006 and 2007, is
difficult due to the change in accounting for its ownership in Racino and
Newlook. Ownership positions in both investments declined below 50% during
fiscal 2007 and accordingly are now accounted for as equity investments that are
no longer consolidated. At September 30, 2006, both entities were
consolidated.





The most
significant assets of the Company are receivables from Newlook, Racino and
Foundation Venture Leasing Inc. (an unrelated entity which purchased
substantially all of the Company’s investment in Racino). The Company is owed
$2,856,000 from Newlook (and its subsidiaries) and $80,000 from Racino (and its
subsidiaries and investees). The Newlook balance is regarded as long term
primarily because it has no specific repayment date; however Newlook is
generating substantial free cashflow from its subsidiary and $1,600,000 is
expected to be partially repaid during the next twelve months. The Foundation
Venture Leasing note receivable of $624,000 is secured and is all due within the
next twelve months (although the holder is in default as of balance sheet date).
The Racino $80,000 balance is without specific repayment terms. The Company’s
ability to generate cash for investment purposes is primarily reliant on
Newlook, Racino and Foundation Venture Leasing ability to repay these
balances.





On May 14, 2007,
the Company closed a non-brokered private placement of 3,570,000 units of its
securities at a price of $0.15 per unit. Each unit is comprised of one share and
three share purchase warrants. The warrants, each of which is convertible to one
common share, are exercisable for a period of three years at various exercise
prices. The Company received proceeds of $536,000. If the warrants are fully
exercised, the Company will receive additional cash proceeds of
$5,355,000.





Total liabilities
were $5,733,000 at September 30, 2007 at $2,234,000 at September 30, 2006. The
increase is primarily attributable to the deconsolidation of Newlook and Racino
(which reduced total liabilities) offset by a substantial increase in
liabilities due to the Company recording the fair value of a derivative
financial instrument, pursuant to the provisions of CICA Handbook Section 3855,
of $4,657,000 ($1,777,000 of which is classified as a current liability and
$2,880,000 of which is classified as a long term liability). The derivative
financial instrument is a liability to be settled with out the use of cash and
represents the fair value of options to acquire a total of 10,000,000 Newlook
shares held by Eiger.





Accounts payable
and accrued charges reduced from $1,077,000 at September 30, 2006 to $368,000 at
September 30, 2007. The reduction is primarily the result of deconsolidation of
Racino and Newlook. At September 30, 2007, the Company recorded





15





liabilities of
discontinued operations of $702,000 representing unpaid severance/ retirement
obligations to the Company’s former CEO.





The Company’s
consolidated financial statements for the year ended September 30, 2007 have
been prepared on a going concern basis, in accordance with Canadian generally
accepted accounting principles and accounting principles generally accepted in
the United States of America. The going concern basis of presentation assumes
that the Company will continue in operations for the foreseeable future and will
be able to realize its assets and discharge its liabilities and contingencies in
the normal course of operations.





There is doubt
about the Company's ability to continue as a going concern as the Company has a
working capital deficit of $2,193,000 and an accumulated deficit of $47,428,000
as at September 30, 2007. The Company's ability to continue as a going concern
is dependent upon the Company's ability to raise additional capital, to realize
on its agreements to dispose of investments and sustain profitable operations.
Should the Company be unable to continue as a going concern, it may be unable to
realize the carrying value of its assets and to meet its liabilities as they
become due.





The Company
believes that future shares issuance and proceeds received from the divestiture
of its investments will provide sufficient cash flow for it to continue as a
going concern in its present form, however, there can be no assurances that the
Company will achieve such results. Accordingly, the consolidated financial
statements do not include any adjustments related to the recoverability and
classification of recorded asset amounts or the amount and classification of
liabilities or any other adjustments that might be necessary should the Company
be unable to continue as a going concern.





B.
            Research
      and development, patents and licenses,
  etc.





Research and
development expenses were nil (nil: 2006; nil: 2005) for the year ended
September 30, 2007.




On June 14, 2006,
Racino acquired the exclusive rights for a racetrack development opportunity in
Saskatchewan, Canada and during fiscal 2007 Racino recorded an impairment of the
rights primarily due to inactivity. Racino continues to hold the rights and may
in the future attempt to realize on the rights.





Trend
information.





The Company is not
significantly affected by any particular trends.





C.
            Off-balance sheet
      arrangements.





The Company has no
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on the Company's financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to
investors.








16





Item
      6. Directors, Senior Management and
Employees





A.
            Directors
      and senior management.





The following is a
list of the current directors and senior officers of the Company, their
municipalities of residence, their current position with the Company and their
principal occupations:





John
      G. Simmonds
            King City
      ON
            CEO and
      Director


Director since
September 20, 2005.


Mr. Simmonds is an
entrepreneur with a track record of serving as an executive and on board
positions with several communications, wireless and other businesses. Mr.
Simmonds is founder of merchant bank Simmonds Capital Ltd., and currently serves
as Chairman of Wireless Age Communications Inc., a consolidation of retail,
wholesale and engineering businesses within the wireless products and services
industry. Mr. Simmonds is involved in managing Eiger’s business
operations.





Jason
      R. Moretto
            Vaughan
      ON
            President,
      COO and Director


Director since
January 5, 2004.


Mr. Moretto is a
Chartered Financial Analyst and Certified General Accountant whose previous
experience includes equity research and practicing as an accountant in both
industry and public practice. He also holds a Bachelor of Commerce degree from
the University of Toronto. Mr. Moretto is wholly involved in managing Eiger’s
business operations.





Steven
      Dulmage
            Toronto
      Ontario
            Director


Director since July
17, 2008.


Mr. Dulmage
previously served as the Chief Financial Officer of African Gold Group, Inc., a
company listed on the Toronto Stock Exchange Venture Exchange.  Prior
to joining African Gold Group, Inc., Mr. Dulmage served as a business consultant
from January 2003 through April 2003, as a sales agent of the Equigenesis
Corporation from December 1999 through December 2002, and as a sales agent for
Mantum Corporation from November 1996 until December 1999.  Mr.
Dulmage earned a Bachelor of Arts degree at McMaster University in
1964.  Mr. Dulmage is a C.A. (Chartered Accountant) and is a member of
the Canadian Institute of Chartered Accountants.  Mr. Dulmage was a
director of Travellers Mall.com Inc., a Toronto Stock Exchange Venture Exchange
listed company, from 2000-2004.





Brian
      Cato
            Ajax
      ON
            Director


Director since
March 21, 2006.


Mr. Cato has
extensive experience in the telecommunications sector. He has held many senior
positions with large multinational corporations that include Senior
Vice-President and General Manager of ICG Communications, Inc., General Manager
with S&P Data and General Manager of Onlinetel Corp. among others. Mr. Cato
is a graduate of York University. Mr. Cato is not involved in managing Eiger’s
daily business operations.





17








Neal
      Romanchych
            Aurora
      ON
            Director


Director since
March 21, 2006.


Mr. Romanchych has
over twenty years of experience in the telecommunications sector. Over that
period, he has been involved with several successful start-ups and has held
senior positions with large telecom companies. His past postings include ten
years with Call Net/Sprint Canada (where he was appointed to the Board of
Directors of CNE Fiber Development Corp., its U.S. operating subsidiary), Vice
President of Primus, Vice President of Riptide Inc. and President of Newlook
Industries Corp. Mr. Romanchych holds an Honors Bachelor of Administrative
Studies from Trent University. Mr. Romanchych is not involved in managing
Eiger’s daily business operations.


There are no
arrangements or understandings between any of the officers or directors of the
Company as to their election or employment, nor are there any family
relationships.





Gary
      Hokkanen
            Thornhill
      ON
            Chief
      Financial Officer


Chief Financial
Officer since July 17, 2007


Mr. Hokkanen is a
Certified Management Accountant with over ten years experience in public company
financial management at the executive level.





Carrie
      Weiler
            Nobleton
      ON
            Corporate
      Secretary


Corporate Secretary
since July 17, 2007


Ms. Weiler provides
professional public company corporate secretarial services to various entities.
Ms. Weiler is a member of the Canadian Society of Corporate
Secretaries.








B.
            Compensation.





For the year ended
September 30, 2007 Jason Moretto was compensated $215,000 for his role as
President and Chief Operating Officer of the Company. For the same period, Gary
Hokkanen received $7,500 for his role as CFO of the Company.





Gerry Racicot was
compensated $150,000 for his role as former President and CEO.  In
addition, Mr. Racicot was paid a retirement payment valued at $500,000 of which
$96,000 has been paid by way of the Company transferring 960,000 Newlook
Industries Corp.’s common shares it owns at a deemed price 0f $0.10 per
share.





A total of 4
persons served as members of the administrative, supervisory or management
bodies of the subsidiaries of the Company during fiscal 2007. The aggregate
remuneration paid to such persons was approximately $550,000.





There were no
options granted during fiscal 2007.





No options were
exercised during the Company’s most recently completed financial
year.








18





There are no other
arrangements under which, directors or members of the Company’s administrative,
supervisory or management body, were compensated by the Company during the most
recently completed financial year for their services.





No plan exists, and
no amount has been set aside or accrued by the Company or any of its
subsidiaries, to provide pension, retirement or similar benefits for directors
or officers of the Company, or any of its subsidiaries.





C.
            Board
      practices.





The directors of
the Company are elected annually and hold office until the next annual general
meeting of the Company’s shareholders or until their successors in office are
duly elected or appointed.  All of the Company’s directors were
elected at the Company’s most recent annual general meeting, which took place on
March 20, 2007.  Under the Company Act(Ontario) the
Company is required to hold an annual general meeting no more than 15 months
after its most recent annual general meeting.





There are no
service contracts with the Company or any of it subsidiaries for the directors
providing benefits upon termination of their service.





The Company does
not have an executive committee. The audit committee is currently comprised of
Sidney Harkema, Brian Cato and Neal Romanchych, who are all independent
directors. The committee operates within the guidelines of the Toronto Stock
Exchange.





D.
            Employees.





The Company and its
subsidiaries employed approximately 3 staff worldwide during the last fiscal
year, the same number as employed in the previous fiscal year. The following is
a breakdown of persons employed by main category of activity and geographic
location for the last full financial year:





The Company and its
subsidiaries have no involvement with labour unions. The Company and its
subsidiaries do not employ a significant number of temporary
employees.








Share
ownership.





Directors and
officers





The following table indicates the names
and municipalities of residence for each director and officer of the Company,
and indicates their respective principal occupations for the preceding five
years. The table further indicates the date on which the following persons began
acting as directors or officers of the Company, as the case may be, and states
the number of voting shares of the Company which are beneficially owned by each
of them or over which they have direct or indirect control.





19








Name and
      Address
            Occupation(1)
            Director
    Since
            Number
      of Voting Shares Beneficially Owned or Controlled Directly or Indirectly(2)John G.
      SimmondsKing
      City,ON
            CEO and Director of the
      Company
            September 21,
      2005
            300,000(4)
      (5)Jason R.MorettoVaughan,ON
            President, Chief Operating Officer
      and Director of the Company
            January 5,
    2004
            464,496(4)
      (6)StephenDulmageToronto,ON
            Director of the Company;
      Retired
            July 17,
    2007
            Nil(3) (4)Brian M. CatoAjax,ON
            Director of the Company; VP Call
      Centre Ops., SP Data Response Mgt.
            March 21,
    2006
            Nil(3) (4)NealRomanchychAurora,ON
            Director of the Company; VP
      Sales/Service, 411.ca
            March 21,
    2006
            Nil(3) (4)GaryN.HokkanenThornhill,ON
            Chief Financial
      Officer
            July 17,
    2007
            NilCarrie J.WeilerNobleton,ON
            Corporate
      Secretary
            July 17,
    2007
            170,000(7)








Notes:





(1) For the last five years, each of the
proposed nominees has been engaged in his current principal occupation, except
for Jason Moretto who was previously engaged at BMO Nesbitt Burns; John Simmonds
who was previously engaged at Wireless Age Communications Inc.; Brian Cato who
was previously engaged at Onlinetel and ICG Communications; Neal Romanchych who
was previously engaged at Newlook and Riptide Inc.; andGary Hokkanenwho was employed by Wireless Age
Communications, Inc.





(2) Includes Shares over which control
or direction is exercised. The information as to Shares beneficially owned or
controlled, not being within the knowledge of the Company, has been provided by
the nominees.





(3) Member of the Audit
Committee.





(4) Member of the Corporate Governance
and Compensation Committee





(5) M. Simmonds holds warrants to
purchase 900,000 shares.





(6) Mr. Moretto holds options to
purchase 810,000 shares and warrants to purchase 900,000
shares.





(7) Ms. Weiler holds warrants to
purchase 450,000 shares.





The following table indicates the total
number of voting shares of the Company held by its directors and officers
individually and as a group, and the percentage that such shares form of the
total number of voting shares of the Company issued and
outstanding.


Name
            Number of Shares Beneficially
      Owned or Controlled Directly or Indirectly
            Percentage of
      Total Shares Issued(1)Directors and Officers as a
      Group
            934,496
            2.2%








20








Item
      7. Major Shareholders and Related Party
  Transactions





A. Major
shareholders.





To the Company’s
knowledge no person holds five percent or more of the Company’s common
shares.  There has been no significant change in percentage ownership
held by any major shareholder.





All common
shareholders have identical voting rights.





The following table
indicates the approximate number of record holders of common shares with U.S.
addresses and portion and percentage of common shares so held in the
U.S.  The calculation is based on the total issued and outstanding as
stated in item 6.E.





Number
      of
              U.S.
      Holders
            Number of
      Common shares held in U.S.
            % of Common
      shares
              held in
      U.S.173
            2,654,021
            6.83  %





The computation of
the number and percentage of common shares held in the United States is based
upon the number of common shares held by record holders with United States
addresses and by trusts, estates or accounts with United States addresses as
disclosed to the Company following inquiry to all record holders known to the
trustees, executors, guardians, custodians or the fiduciaries holding common
shares for one or more trusts, estates, or accounts. United States residents may
beneficially own common shares held of record by non-United States
residents.





A substantial
number of common shares are held in “Street Name” by trustees, executors,
guardians, custodians or other fiduciaries, including depositories, brokerage
firms and financial institutions. Management is unable to determine the total
number of individual shareholders that this represents.





To the Company’s
knowledge, the Company is not directly or indirectly owned or controlled by
another corporation(s) or by any foreign government.





The Management does
not anticipate any change in the control of the Company.








B. Related party
transactions.





No director,
executive officer or any of their associates or affiliates has or has had an
interest in material transactions of the Company.





All transactions
within the corporate group listed in note 18 of the consolidated financial
statements for the year ended September 30, 2007, are in the normal course of
business and are recorded at the carrying value. Inter-company transactions and
balances are eliminated upon consolidation.





21








Service fees
charged by directors, officers or corporations owned by management personnel
during the period totaled $1,180,000 (2006 - $300,000; 2005 - $300,000).
Included in the current period is $1,000,000 as a severance/retirement
settlement with the Company’s former CEO.





Included in
accounts payable are payables to directors, officers or corporations owned by
management personnel of $1,006,000 (2006 - $388,000; 2005 - $268,000). $702,000
of the current period amount is due to the Company’s former CEO pursuant to his
severance/retirement settlement and has been classified as discontinued
operations.








C. Interests of
experts and counsel.





Not Applicable








Item
      8. Financial Information





A.
            Consolidated
      Statements and Other Financial
Information.





The following
financial statements have been audited by an independent auditor, are
accompanied by an audit report, and are attached and incorporated
herein:





(a) balance
sheet;





(b) income
statement;





(c) statement
showing changes in equity





(d) cash flow
statement;





(e) related notes
and schedules required by the comprehensive body of accounting standards
pursuant to which the financial statements are prepared; and





(f) a note
analyzing the changes in each caption of shareholders’ equity presented in the
balance sheet.





Incorporated
herewith are the comparative financial statements covering the latest two
financial years, audited in accordance with a comprehensive body of auditing
standards.





Export
Sales





Total Sales
            Export Sales
            Export Sales as % of Total
      Sales$Nil
            $Nil
            0%








22





Legal
Proceedings





There is a
potential claim outstanding against the Company by a former employee for
wrongful dismissal, alleged breach of contract, punitive and aggravated damages
and costs. It is the Company's opinion that there is no merit to the claim of
breach of contract, punitive or aggravated damages. Management believes that
damages resulting from this claim would be immaterial, if any.





There are no
material pending legal proceedings to which the Company is a party or of which
any of its subsidiaries or properties are subject. Management is not aware of
any material proceedings in which any director, any member of senior management,
or any of the Company’s affiliates are a party adverse to, or have a material
interest adverse to the Company or its subsidiaries.





Dividend
Policy





The Company has not
paid dividends on the common shares in any of its last five fiscal years. The
directors of the Company will determine if and when dividends should be declared
and paid in the future based on the Company’s financial position at the relevant
time. All of the common shares of the Company are entitled to an equal share in
any dividends declared and paid.





B. Significant
Changes.





On February 21,
2007, the Company agreed to divest itself of its ownership in Newlook. The
Company also announced its intent to look towards this strategy with its
ownership in Racino. This divestiture will enable Eiger to focus solely on an
acquisition strategy as well as to ensure meeting its capital requirements.
These transactions are subject to all regulatory body approvals.





There have been no
other significant changes since the date of the annual financial statements
included in this document.








Item
9. The Offer and Listing.





A. Offer and listing
details.





Information
regarding the price history of the stock.





Calendar
      Period
              High
      (Cdn$)
              Low
      (Cdn$)
              VolumeMonth
      EndedDecember
      2007
              0.08
              0.05
              1,508,200November
      2007
              0.07
              0.05
              2,303,400October
      2007
              0.08
              0.06
              917,700








23








Quarter
      Ended
            High
      (Cdn$)
            Low
      (Cdn$)
            VolumeSeptember
      2007
            0.13
            0.07
            1,606,300June
      2007
            0.16
            0.11
            2,965,800March
      2007
            0.14
            0.11
            1,962,600December
      2006
            0.20
            0.10
            3,498,000September 30,
      2006
            0.21
            0.12
            1,254,200June 30,
      2006
            0.31
            0.14
            1,410,200March 31,
      2006
            0.40
            0.25
            4,359,400December 31,
      2005
            0.53
            0.15
            4,587,300September 30,
      2005
            0.28
            0.12
            2,879,900June 30,
      2005
            0.28
            0.11
            2,077,700March 31,
      2005
            0.34
            0.14
            2,552,400December 31,
      2004
            0.42
            0.22
            3,756,600





Year
Ended





September 30,
      2004
            1.40
            0.36
            22,063,300September 30,
      2003
            0.85
            0.42
            14,546,807September 30,
      2002
            2.24
            0.37
            32,601,669








Prior to October
11, 1996, all trades were cleared through the TSX-Venture Exchange and
subsequent to that date all trades were cleared on the TSX.





B. Plan of
distribution.





Not
Applicable.





C. Markets.





The common shares
of the Company were listed for trading on the Toronto Stock Exchange (the “TSX”)
on October 11, 1996 and previous to this, on the TSX-Venture Exchange (formerly
the Vancouver Stock Exchange) (the “TSX-V”) on April 3, 1991 under the symbol
“AXA”.





On March 28, 2008
the Company was advised that the Listings Committee of Toronto Stock Exchange
(TSX) has determined to delist the common shares of the Company.  The
TSX Committee believes that the Company has not satisfied the TSX’s Continued
Listing Policies.  The delisting will be effective at the close of
business on April 25, 2008. The Company is investigating alternative Canadian
markets.





The common shares
were listed on the NASD OTC Bulletin Board on October 8, 1997 and trade under
the symbol “ETIFF”.





D. Selling
shareholders.





Not
Applicable.








24





A.
            Dilution.





Not
Applicable.





F. Expenses of the
issue.





Not
Applicable.








Item
      10. Additional Information.





A.
            Share
      capital.





Not
Applicable.





B.
            Memorandum
      and articles of association.





The information
required by Item 10.B. is hereby incorporated by reference from the Company's
previous Report on Form 20-F filed in March of 2006 on the EDGAR
system.





C.
            Material
      contracts.





The Company has not
entered into any material contracts, other than in the ordinary course of
business, during the preceding two years.





D.
            Exchange
      controls.





Canada has no
system of currency exchange controls. There are no exchange restrictions on
borrowing from foreign countries nor on the remittance of dividends, interest,
royalties and similar payments, management fees, loan repayments, settlements of
trade debts or the repatriation of capital.





The Investment
Canada Act (the “ICA”), enacted on June 20, 1985, requires prior notification to
the Government of Canada on the “acquisition of control” of Canadian businesses
by a non-Canadian, as defined by the ICA.  Certain acquisitions of
control, discussed below, are reviewed by the Government of
Canada.  The term “acquisition of control” is defined as one or more
non-Canadian persons acquiring all or substantially all of the assets used in
the Canadian business, or the acquisition of the voting shares of a Canadian
corporation carrying on the Canadian business, or the acquisition of the voting
interests of an entity controlling or carrying on the Canadian
business.  The acquisition of the majority of the outstanding shares
is deemed to be an “acquisition of control” of a corporation.  The
acquisition of less than a majority, but one-third or more, of the voting shares
of a corporation is presumed to be an “acquisition of control” of a corporation
unless it can be established that the purchaser will not control the
corporation.





Investments
requiring notification and review are all direct acquisitions of Canadian
business with assets of Cdn. $5,000,000 or more (subject to the comments below
on WTO investors) and all indirect acquisitions of Canadian businesses (subject
to the comments below on WTO investors) with assets of more than Cdn.
$50,000,000 or with





25





assets of between
$5,000,000 and Cdn. $50,000,000 which represent more than 50% of the value of
the total international transactions.  In addition, specific
acquisitions or new business in designated types of business activities related
to Canada’s cultural heritage or national identity could be reviewed if the
government of Canada considers that it is in the public interest to do
so.





The ICA was amended
with the implementation of the agreement establishing the World Trade
Organization (“WTO”) to provide for special review of thresholds for “WTO
investors”, as defined in the ICA.  “WTO investors” generally
means:





(a) an individual,
other than a Canadian, who is a member of a WTO member (such as, for example,
the United States), or who has the right of permanent residence in relation to
that WTO member.





(b) governments of
WTO members; and





(c) entities that
are not Canadian controlled, but which are WTO investor controlled as determined
by the rules specified in the ICA.





The special review
thresholds for WTO investors do not apply, and general rules described above do
not apply, to the acquisition of control of certain types of businesses
specified in the ICA, including business that is a “cultural
business”.  If the WTO investor rules apply, an investment in the
shares of the Company by or from a WTO investor will be reviewable only if it is
an investment to acquire control of the Company and the value of the assets of
the Company is equal to or greater than a specified amount (the “WTO Review
Threshold”).  The WTO Review Threshold is adjusted annually by using a
formula relating to increases in the nominal gross domestic product of
Canada.  The 1996 WTO Review Threshold is Cdn.
$168,000,000.





If any
non-Canadian, whether or not a WTO investor, acquires control of the Company by
the acquisition of shares, but the transaction is not reviewable as described
above, the non-Canadian is required to notify the Canadian government and to
provide certain basic information relating to the investment.  A
non-Canadian, or non-WTO investor, is required to provide a notice to the
government on the establishment of a new Canadian business.  If the
business of the Company is then a prescribed type of business activity related
to Canada’s cultural heritage or national identity, and if the Canadian
government considers it in the public interest to do so, then the Canadian
government may give a notice in writing within 21 days requiring the investment
to be reviewed.





For non-Canadian
(other than WTO investors), and indirect acquisition of control, by the
acquisition of voting interests of an entity that directly or indirectly
controls the Company, is reviewable if the value of the assets of the Company is
then Cdn. $50,000,000 or more.  If the WTO investor rules apply, then
this requirement does not apply to a WTO investor, or to a person acquiring the
entity from a WTO investor.  Special rules specified in the ICA apply
if the assets of the Company is more than 50% of the value of the assets of the
entity so acquired.  By these special rules, if the non-Canadian
(whether or not a WTO investor) is acquiring control of an entity that directly
or indirectly controls the Company, and the value of the assets of the company
and all other entities carrying on business in Canada, calculated in the manner
provided by the





26





ICA and the
regulations under the ICA, of the assets of all entities, the control of which
is acquired, directly or indirectly, in the transaction of which the acquisition
of control of the Company forms a part, then the threshold for a direct
acquisition of control as discussed above will apply, that is, a WTO Review
Threshold of Cdn. $168,000,000 (n 1996) for a WTO investor or a threshold of
CDN. $5,000,000 for non-Canadian other than a WTO investor.  If the
value exceeds that level the transaction must be reviewed in


the same manner as
a direct acquisition of control by the purchase of shares by the
Company.





If an investment is
renewable, an application for review in the form prescribed by the regulations
is normally required to be filed with the Director appointed under the ICA (the
“Director”) prior to the investment taking place and the investment may not be
consummated until the review has been completed.  There are, however,
certain exceptions.  Applications concerning indirect acquisitions may
be filed up to 30 days after the investment is consummated and applications
concerning reviewable investments in culture-sensitive sectors are required upon
receipt of a notice for review.  In addition, the Minister (a person
designated as such under the ICA) may permit an investment to be consummated
prior to completion of the review, if he is satisfied that the delay would cause
undue hardship to the acquirer or jeopardize the operations of the Canadian
business that is being acquired.  The Director will submit the
application to the Minister, together with any other information or written
undertakings given by the acquirer and any representation submitted to the
Director by a province that is likely to be of net benefit to Canada, taking
into account the information provided and having regard to certain factors of
assessment where they are relevant.  Some of the factors to be
considered are:





(a)  the effect of the
investment on the legal economic activity in Canada, including the effect on
employment, on resource processing, and on the utilization of parts, components
and services produced in Canada;





(b)  the effect of the
investment on exports from Canada;





(c)  the degree and
significance of participation by Canadians in the Canadian business and in any
industry in Canada of which it forms a part;





(d)  the effect of the
investment on productivity, industrial efficiency, technological development,
product innovation and product variety in Canada;





(e)  the effect of the
investment on competition within any industry or industries in
Canada;





(f)  the compatibility
of the investment with national, industrial, economic, and cultural
policies;





(g)  the compatibility
of the investment with national, industrial, economic, and cultural policies
taking into consideration industrial, economic, and cultural objectives
enunciated by the government of legislature of any province likely to be
significantly affected by the investment; and








27





(h)  the contribution of
the investment to Canada’s ability to compete in world markets.





To ensure prompt
review, the ICA set certain time limits for the Director and the
Minister.  Within 45 days after a completed application has been
received, the Minister must notify the acquirer that he is satisfied that the
investment is likely to be of net benefit to Canada, or that he is unable to
complete his review, in which case he shall have


30 additional days
to complete his review (unless the acquirer agrees to longer period), or he is
not satisfied that the investment is likely to be of net benefit to
Canada.





Where the Minister
has advised the acquirer that he is not satisfied that the investment is likely
to be of net benefit to Canada, the acquirer has the right to make
representations and submit undertakings within 30 days of the date of notice (or
any period that is agreed upon between the acquirer and the
Minister).  On the expiration of the 30 day period (or the agreed-upon
extension), the Minister must quickly notify the acquirer that he is not
satisfied that the investment is likely to be of net benefit to
Canada.  In the latter case, the acquirer my not proceed with the
investment or, if the investment has already been consummated, must divest
itself of control of the Canadian business.





The ICA provides
civil remedies for non-compliance with any provision.  There are also
criminal penalties for breach of confidentiality or providing false
information.





Except as provided
in the ICA, there are no limitations under the laws of Canada, the Province of
British Columbia, or in any constituent documents of the Company on the right of
non-Canadians to hold or vote the common shares of the Company.





E.
            Taxation.





Certain
United States Federal Income Tax Consequences





The following is a
general discussion of the material United States Federal income tax law for U.S.
holders that hold such common shares as a capital asset, as defined under United
States Federal income tax law and is limited to discussion of U.S. Holders that
own less than 10% of the common stock.  This discussion does not
address all potentially relevant Federal income tax matters and it does not
address consequences peculiar to persons subject to special provisions of
Federal income tax law, such as those described below as excluded from the
definition of a U.S. Holder.  In addition, this discussion does not
cover any state, local or foreign tax consequences.





The following
discussion is based upon the sections of the Internal Revenue Code of 1986, as
amended to the date hereof (the "Code"), Treasury Regulations, published
Internal Revenue Service ("IRS") rulings, published administrative positions of
the IRS and court decisions that are currently applicable, any or all of which
could be materially and adversely changed, possibly on a retroactive basis, at
any time.  In addition, this discussion does not consider the
potential effects, both adverse and beneficial, of any future legislation which,
if enacted, could be applied, possibly on a retroactive basis, at any
time.  The following
discussion is for general information only and it is not intended to be, nor
should it be construed to be, legal or tax advice to any holder or prospective
holder of common shares of the Company and no opinion or representation with
respect to the United States Federal income tax consequences
to





28





any
such holder or prospective holder is made.  Accordingly, holders and
prospective holders of common shares of the Company should consult their own tax
advisors about the Federal, state, local, and foreign tax consequences of
purchasing, owning and disposing of common shares of the Company.





U.S.
Holders





As used herein, a
"U.S. Holder" is a holder of common shares of the Company who or which is a
citizen or individual resident (or is treated as a citizen or individual
resident) of the United States for federal income tax purposes, a corporation or
partnership created or organized (or treated as created or organized for federal
income tax purposes) in the United States, including only the States and
District of Columbia, or under the law of the United States or any State or
Territory or any political subdivision thereof, or a trust or estate the income
of which is includable in its gross income for federal income tax purposes
without regard to its source, if, (i) a court within the United States is able
to exercise primary supervision over the administration of the trust and (ii)
one or more United States trustees have the authority to control all substantial
decisions of the trust.  For purposes of this discussion, a U.S.
Holder does not include persons subject to special provisions of Federal income
tax law, such as tax-exempt organizations, qualified retirement plans, financial
institutions, insurance companies, real estate investment trusts, regulated
investment companies, broker-dealers and Holders who acquired their stock
through the exercise of employee stock options or otherwise as
compensation.





Distributions on common
shares of the Company





U.S. Holders
receiving dividend distributions (including constructive dividends) with respect
to common shares of the Company are required to include in gross income for
United States Federal income tax purposes the gross amount of such distributions
to the extent that the Company has current or accumulated earnings and profits,
without reduction for any Canadian income tax withheld from such
distributions.  Such Canadian tax withheld may be credited, subject to
certain limitations, against the U.S. Holder's United States Federal income tax
liability or, alternatively, may be deducted in computing the U.S. Holder's
United States Federal taxable income by those who itemize
deductions.  (See more detailed discussion at "Foreign Tax Credit"
below).  To the extent that distributions exceed current or
accumulated earnings and profits of the Company, they will be treated first as a
return of capital up to the U.S. Holder's adjusted basis in the common shares
and thereafter as gain from the sale or exchange of the common
shares.  Preferential tax rates for long-term capital gains are
applicable to a U.S. Holder which is an individual, estate or
trust.  There are currently no preferential tax rates for long-term
capital gains for a U.S. Holder which is a corporation.


Dividends paid on
the common shares of the Company will not generally be eligible for the
dividends received deduction provided to corporations receiving dividends from
certain United States corporations.  A U.S. Holder which is a
corporation may, under certain circumstances, be entitled to a 70% deduction of
the United States source portion of dividends received from the Company if such
U.S. Holder owns shares representing at least 10% of the voting power and value
of the Company.  The availability of this deduction is subject to
several complex limitations, which are beyond the scope of this
discussion.  There is, at present, legislation before the US Congress
which would affect





29





the taxation of
foreign, and in particular, Canadian dividend income accruing to US
residents.  Individual shareholders should consult their tax and legal
advisers as to their particular, individual tax situation.





Foreign Tax
Credit





A U.S. Holder who
pays (or has withheld from distributions) Canadian income tax with respect to
the ownership of common shares of the Company may be entitled, at the option of
the U.S. Holder, to either a deduction or a tax credit for such foreign tax paid
or withheld.  Generally, it will be more advantageous to claim a
credit because a credit reduces United States Federal income taxes on a
dollar-for-dollar basis, while a deduction merely reduces the taxpayer's income
subject to tax.  This election is made on a year-by-year basis and
applies to all foreign taxes paid by (or withheld from) the U.S. Holder during
that year.  There are significant and complex limitations, which apply
to the credit, among which is the general limitation that the credit cannot
exceed the proportionate shares of the U.S. Holder's United States income tax
liability that the U.S. Holder's foreign source income bears to his or its
world-wide taxable income.  In the determination of the application of
this limitation, the various items of income and deduction must be classified
into foreign and domestic sources.  Complex rules govern this
classification process.  There are further limitations on the foreign
tax credit for certain types of income such as "passive income," "high
withholding tax interest," "financial services income," "shipping income" and
certain other classifications of income.  The availability of the
foreign tax credit and the application of the limitations on the credit are fact
specific and holders and prospective holders of common shares of the Company
should consult their own tax advisors regarding their individual
circumstances.





Disposition of common shares
of the Company





A U.S. Holder will
recognize gain or loss upon the sale of common shares of the Company equal to
the difference, if any, between the amount of cash plus the fair market value of
any property received, and the Holder's tax basis in the common shares of the
Company.  This gain or loss will be capital gain or loss if the common
shares are a capital asset in the hands of the U.S. Holder.  Any
capital gain will be a short-term or long-term capital gain or loss depending
upon the holding period of the U.S. Holder.  Gains and losses are
netted and combined according to special rules in arriving at the overall
capital gain or loss for a particular tax year.  Deductions for net
capital losses are subject to significant limitations.  For U.S.
Holders which are individuals, any unused portion of such net capital loss may
be carried over to be used in later tax years until such net capital loss is
thereby exhausted.  For U.S. Holders which are corporations (other
than corporations subject to Subchapter S of the Code), an unused net capital
loss may be carried back three years from the loss year and carried forward five
years from the loss year to be offset against capital gains until such net
capital loss is thereby exhausted.





Canadian
Federal Income Taxation





The following
discussion summarizes the principal Canadian federal income tax considerations
generally applicable to a person who owns one or more common shares of the
Company (the “Shareholder”), and who at all material times for the purposes of
the Income Tax Act (Canada) (the "Canadian Act") deals at arm's length with the
Company,





30





holds all common
shares solely as capital property, is a non-resident of Canada, and does not,
and is not deemed to, use or hold any Common share in or in the course of
carrying on business in Canada.  It is assumed that the common shares
will at all material times be listed on a stock exchange that is prescribed for
the purposes of the Canadian Act.





This summary is
based on the current provisions of the Canadian Act, including the regulations
thereunder, and the Canada-United States Income Tax Convention (1980) (the
"Treaty") as amended. This summary takes into account all specific proposals to
amend the Canadian Act and the regulations thereunder publicly announced by the
government of Canada to the date hereof and the Company's understanding of the
current published administrative and assessing practices of Canada Customs and
Revenue Agency.  It is assumed that all such amendments will be
enacted substantially as currently proposed, and that there will be no other
material change to any such law or practice, although no assurances can be given
in these respects.  Except to the extent otherwise expressly set out
herein, this summary does not take into account any provincial, territorial or
foreign income tax law or treaty.





This summary is
not, and is not to be construed as, tax advice to any particular
Shareholder.  Each prospective and current Shareholder is urged to
obtain independent advice as to the Canadian income tax consequences of an
investment in common shares applicable to the Shareholder’s particular
circumstances.





A Shareholder
generally will not be subject to tax pursuant to the Canadian Act on any capital
gain realized by the Shareholder on a disposition of a Common share unless the
Common share constitutes "taxable Canadian property" to the Shareholder for
purposes of the Canadian Act and the Shareholder is not eligible for relief
pursuant to an applicable bilateral tax treaty.  A Common share that
is disposed of by a Shareholder will not constitute taxable Canadian property of
the Shareholder provided that the Common share is listed on a stock exchange
that is prescribed for the purposes of the Canadian Act (the Toronto Stock
Exchange is so prescribed), and that neither the Shareholder, nor one or more
persons with whom the Shareholder did not deal at arm's length, alone or
together at any time in the five years immediately preceding the disposition
owned, or owned any right to acquire, 25% or more of the issued shares of any
class of the capital stock of the Company.  In addition, the Treaty
generally will exempt a Shareholder who is a resident of the United States for
the purposes of the Treaty, and who would otherwise be liable to pay Canadian
income tax in respect of any capital gain realized by the Shareholder on the
disposition of a Common share, from such liability provided that the value of
the Common share is not derived principally from real property (including
resource property) situated in Canada or that the Shareholder does not have, and
has not had within the 12-month period preceding the disposition, a "permanent
establishment" or "fixed base," as those terms are defined for the purposes of
the Treaty, available to the Shareholder in Canada. The Treaty may not be
available to a non-resident Shareholder that is a U.S. LLC, which is not subject
to tax in the U.S.





Any dividend on a
Common share, including a stock dividend, paid or credited, or deemed to be paid
or credited, by the Company to a Shareholder will be subject to Canadian
withholding tax at the rate of 25% on the gross amount of the dividend, or such
lesser rate as may be available under an applicable income tax
treaty.  Pursuant to the Treaty, the rate of withholding tax
applicable to a dividend paid on a Common share to a





31





Shareholder who is
a resident of the United States for the purposes of the Treaty will be reduced
to 5% if the beneficial owner of the dividend is a company that owns at least
10% of the voting stock of the Company, and in any other case will be reduced to
15%, of the gross amount of the dividend.  It is Canada Customs and
Revenue Agency‘s


position that the
Treaty reductions are not available to a Shareholder that is a "limited
liability company" resident in the United States.  The Company will be
required to withhold any such tax from the dividend, and remit the tax directly
to Canada Customs and Revenue Agency for the account of the
Shareholder.





F.   Dividends and
paying agents.





Not
Applicable.





G.    Statement by
experts.





Not
Applicable.





H.   Documents
on display.





The documents
concerning the Company which are referred to in the document are located at its
principal executive office in Toronto, at the address stated at the beginning of
this document.





I.   Subsidiary
Information.





Not
Applicable.





Item
      11.
            Quantitative
      and Qualitative Disclosures About Market
Risk.





Not
Applicable.





Item
      12.
            Description
      of Securities other than Equity
Securities.





Not
Applicable.


PART
II





Item
      13.
            Defaults,
      Dividend Arrearages and
Delinquencies.





Not
Applicable.





Item
      14.
            Material
      Modifications to the Rights of Security Holders and Use of
      Proceeds.





Not
Applicable.








32





Item
      15.
            Controls
      and Procedures.





Our Chief Executive
Officer, John Simmonds and our Chief Financial Officer, Gary Hokkanen, after
evaluating the effectiveness of the Company’s disclosure controls and procedures
(as defined in US Exchange Act Rule 13(a)-14(c)) as of the date of this Form
20-F, have concluded that, as of such date, the Company’s disclosure controls
and procedures were effective at the reasonable assurance level to ensure that
material


information
relating to the Company was made known to them by others within the Company
particularly during the period in which this Form 20-F was being
prepared.





Under US Exchange
Act Rule 13a-15(e) the term “disclosure controls and procedures” means controls
and other procedures of an issuer that are designed to ensure that information
required to be disclosed by the issuer in the reports that it files or submits
under the US Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the SEC’s rules and
forms.  Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed by an issuer in the reports that it files or submits under the
US Exchange Act is accumulated and communicated to the issuer’s management,
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.





In designing and
evaluating our disclosure controls and procedures, our management recognized
that any controls and procedures, no matter how well designed and operated, can
provide only reasonable, rather than absolute, assurance of achieving the
desired control objectives, and management necessarily was required to apply its
judgment in evaluating the cost-benefit relationship of possible controls and
procedures.





Item
15.A                                Changes
in Internal Control over financial reporting





There were no
significant changes in the Company’s internal controls or in other factors that
could significantly affect these controls subsequent to the date our Chief
Executive Officer and our Chief Accounting Officer completed their evaluation,
nor were there any significant deficiencies or material weaknesses in the
Company’s internal controls requiring corrective actions.





Item
      16.
            [Reserved]





Item
16A.                                Audit
committee financial expert.





The Company’s Board
of Directors has determined that the Company has at least one audit committee
financial expert serving on its audit committee.  The Company’s audit
committee financial expert is Steven Dulmage, who is independent for audit
committee purposes.





Item
16B.                                Code
of Ethics.





The Company has
adopted a code of ethics that applies to its Chief Executive Officer and Chief
Financial Officer.





33





Item
16C.                      Principal
Accountant Fees and Services





(a)           Audit
Fees





The aggregate fees
billed for each of the last two fiscal years for professional services rendered
by the Company’s principal accountant for the audit of the Company’s annual
financial statements, together with services that are normally provided by the
principal accountant in connection with statutory and regulatory filings or
engagements were approximately $$25,000 for the year ending September 30, 2007
and $37,000 for the year ending September 30, 2006.





(b)           Audit-Related
Fees





The aggregate fees
billed for each of the last two fiscal years for assurance and related services
by the principal accountant that were reasonably related to the performance of
the audit or review of the Company’s financial statements but are not reported
under paragraph (a) of this Item were zero ($nil).





(c)           Tax
Fees





The aggregate fees
billed in each of the last two fiscal years for professional services rendered
by the principal accountant for tax compliance, tax advice and tax planning were
$<> for the year ended September 30, 2007 and $<> for the year ended
September 30, 2006 for preparation of the Company’s tax returns.





(d)           All
Other Fees





The aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant other than services disclosed in paragraphs (a)
through (c) of this Item were $nil in the year ending September 30, 2007 and
$nil in the year ending September 30, 2006.





16.D           Exemptions
from the Listing Standards for Audit Committees





The disclosure
required under Exchange Act Rule 10A-3(d) is not applicable to the
Company.





16.E           Purchases
of Equity Securities by the Issuer and Affiliated Purchasers





The Company made no
issuer repurchases, including any made pursuant to a publicly announced plan or
program or made pursuant to a plan or program that was not announced publicly,
in the last two fiscal years.  The Company made no open market issuer
repurchases.








34





PART
III





Item 17.
            Financial
      Statements.





See Item 18.





Item
18.                      Financial
Statements.





The following
financial statements are attached to and form part of this Annual
Report:





Audit
Report


Audited
Consolidated Financial Statements of the Company for the years ended September
30, 2007, September 30, 2006 and September 30, 2005.








Item
19.                      Exhibits.








Exhibit Number
            
            Page1.1
            Certificate
      of Incorporation dated September 8, 1986.
            *1.2
            Certificate
      of Name Change dated November 26, 1999.
            *1.3
            Articles
      (Bylaws) of the Corporation.
            *1.4
            Company Stock
      Option Plan
            *4.a.1
            Plan of
      Exchange dated as of August 3, 2001 between Onlinetel and Eiger
      Technology, Inc.
            **4.a.2
            Share
      Purchase Agreement dated as of November 8, 2001 among ETIFF Holdings Inc.,
      K-Tronik International Corp., and LMC Capital Corp.
            **4.a.3
            Share
      Purchase Agreement dated as of December 19, 2001 among Vision Unlimited
      Equipment Inc., ADH Custom Metal Fabricators Inc., and Newlook Capital
      Corp
            *31
            Section 302
      Certifications32
            Section 906
      Certifications


*Incorporated by reference,
as previously filed with the Commission.














35





SIGNATURES





The registrant
hereby certifies that it meets all of the requirements for filing on Form 20-F
and that it has duly caused and authorized the undersigned to sign this Annual
Report on its behalf.





Eiger Technology, Inc.Date:
      March 31, 2008
              By:
              /s/ Gary
      N. HokkanenName: 
      Gary N. HokkanenTitle:   
       Chief Financial Officer












36










EIGER TECHNOLOGY,
INC.




AND SUBSIDIARIES




CONSOLIDATED FINANCIAL
STATEMENTS




YEARS ENDEDSEPTEMBER 30, 2007, 2006 AND 2005
(RESTATED)




(EXPRESSED IN CANADIAN
DOLLARS)









CONTENTS


Auditors'
      Report
            1Comments by Auditors onCanada-United StatesReporting
      Differences
            2Consolidated Balance
      Sheets
            3Consolidated Statements of
      Operations
            4Consolidated Statements of Cash
      Flows
            5Notes to Consolidated Financial
      Statements
            6 -
  29









F1










AUDITORS' REPORT




To the Shareholders
of


Eiger Technology,
Inc.




We have audited the consolidated balance
sheets ofEiger Technology,
Inc.as atSeptember 30, 2007, 2006 and 2005 and the consolidated
statements of operations and cash flows for each of the years in the three-year
period endedSeptember 30,
2007. The financial
statements are the responsibility of the company's management.  Our
responsibility is to express an opinion on these financial statements based on
our audits.




We conducted our audits in accordance
with Canadian generally accepted auditing standards and the standards of the
Public Company Accounting Oversight Board (United States).  Those standards require
that we plan and perform an audit to obtain reasonable assurance whether the
financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.




In our opinion, these consolidated
financial statements present fairly, in all material respects, the financial
position of the company as at September 30, 2007, 2006 and 2005 and the results
of its operations and its cash flows for the years in the three-year period
ended September 30, 2007 in accordance with Canadian generally accepted
accounting principles.




As described in note 4 to the
consolidated financial statements, the accompanying consolidated financial
statements of the company as atSeptember 30, 2005and for the year then ended have been
restated. We therefore withdraw our previous report dated December 22, 2005 on
those financial statements originally filed.






Toronto, Canada
            LICENSED PUBLIC
      ACCOUNTANTSDecember 20,
      2007





F2










COMMENTS BY AUDITORS ONCANADA- UNITED STATES






REPORTING
DIFFERENCES




The standards of the Public Company
Accounting Oversight Board (United States) require the addition of an explanatory
paragraph when the financial statements are affected by conditions and events
that cast substantial doubt on the company's ability to continue as a going
concern, such as those described in note 2 to the consolidated financial
statements. Although we conducted our audits in accordance with both Canadian
generally accepted auditing standards and the standards of the Public Company
Accounting Oversight Board (United States), our report to the shareholders dated
December 20, 2007 is expressed in accordance with Canadian reporting standards
which do not permit a reference to such conditions and events in the auditors’
report when these are adequately disclosed in the financial
statements.









Toronto, Canada
            LICENSED PUBLIC
      ACCOUNTANTSDecember 20,
      2007





F3





EIGER TECHNOLOGY,
INC.AND
SUBSIDIARIES


Consolidated Balance
Sheets


September 30, 2007, 2006 and 2005





ASSETS
            
            2007
            
            
            2006
            
            
            2005
              (Restated – Note
      4)CurrentCash
            
            $
            -
            
            
            $
            75,000
            
            
            $
            25,000Short-term
      investments
            
            
            -
            
            
            
            27,000
            
            
            
            -Accounts
      receivable
            
            
            33,000
            
            
            
            262,000
            
            
            
            586,000Prepaid expenses and sundry
      assets
            
            
            3,000
            
            
            
            34,000
            
            
            
            59,000Note receivable (note
      6)
            
            
            624,000
            
            
            
            -
            
            
            
            -Current assets of discontinued
      operations  (note 7)
            
            
            -
            
            
            
            -
            
            
            
            3,000Income taxes
      recovery
            
            
            -
            
            
            
            7,000
            
            
            
            
            -Total Current
      Assets
            
            
            660,000
            
            
            
            405,000
            
            
            
            673,000Property and
      Equipment(note8)
            
            
            50,000
            
            
            
            986,000
            
            
            
            1,148,000Advance to
      Corporation(note10)
            
            
            16,000
            
            
            
            31,000
            
            
            
            96,000Investments(note9)
            
            
            207,000
            
            
            
            -
            
            
            
            -Due from
      Related Parties(note11)
            
            
            2,936,000
            
            
            
            -
            
            
            
            -Licensing
      Rights(note
      12)
            
            
            -
            
            
            
            1,479,000
            
            
            
            -Other Asset
            
            
            -
            
            
            
            -
            
            
            
            15,000Total Long-Term
      Assets
            
            
            3,209,000
            
            
            
            2,496,000
            
            
            
            1,259,000Total
Assets
            
            $
            3,869,000
            
            
            $
            2,901,000
            
            
            $
            1,932,000LIABILITIESCurrentBank
      indebtedness
            
            $
            6,000
            
            
            $
            -
            
            
            $
            -Accounts payable and accrued
      charges
            
            
            368,000
            
            
            
            1,077,000
            
            
            
            1,030,000Capital lease obligations –
      current position (note 14)
            
            
            -
            
            
            
            -
            
            
            
            82,000Other payable (note
      15)
            
            
            -
            
            
            
            699,000
            
            
            
            923,000Deferred
      revenue
            
            
            -
            
            
            
            458,000
            
            
            
            387,000Current portion of derivative
      financial instrument (note 13)
            
            
            1,777,000
            
            
            
            -
            
            
            
            -Current liabilities of
      discontinued operations (note 7)
            
            
            702,000
            
            
            
            -
            
            
            
            2,000Total Current
      Liabilities
            
            
            2,853,000
            
            
            
            2,234,000
            
            
            
            2,424,000Derivative
      Financial Instrument(note 13)
            
            
            2,880,000
            
            
            
            -
            
            
            
            -Total Long-Term
      Liabilities
            
            
            2,880,000
            
            
            
            -
            
            
            
            -Total
      Liabilities
            
            
            5,733,000
            
            
            
            2,234,000
            
            
            
            2,424,000Non-Controlling Interests in
      Subsidiaries
            
            
            -
            
            
            
            695,000
            
            
            
            -Commitments and
      Contingencies(note
      16)SHAREHOLDERS’
      DEFICIENCYShare Capital(note
      17)
            
            
            44,286,000
            
            
            
            43,839,000
            
            
            
            43,839,000Contributed
      Surplus(note
      17c)
            
            
            1,278,000
            
            
            
            1,705,000
            
            
            
            1,333,000Accumulated
      Deficit
            
            
            (47,428,000
            )
            
            
            (45,572,000
            )
            
            
            (45,664,000
            )Total Shareholders’
      Deficit
            
            
            (1,864,000
            )
            
            
            (28,000
            )
            
            
            (492,000
            )Total Liabilities and
      Shareholders’ Deficit
            
            $
            3,869,000
            
            
            $
            2,901,000
            
            
            $
            1,932,000





APPROVED ON BEHALF OF THE
      BOARD“JOHN G.
      SIMMONDS”(Director)
            
            “JASON
      MORETTO”(Director)








(The accompanying notes are an integral
part of these consolidated financial statements.)
 F4





EIGER TECHNOLOGY,
INC.AND
SUBSIDIARIES


Consolidated Statements of
Operations


Years EndedSeptember 30, 2007, 2006 and 2005





2007
            
            
            2006
            
            
            2005
              (Restated – Note
      4)Revenues
            
            $
            -
            
            
            $
            130,000
            
            
            $
            -Cost of
      Revenues
            
            
            -
            
            
            
            82,000
            
            
            
            -Gross
Profit
            
            
            -
            
            
            
            48,000
            
            
            
            -ExpensesSelling, general and
      administrative
            
            
            636,000
            
            
            
            663,000
            
            
            
            452,000Amortization of
      property and equipment
            
            
            12,000
            
            
            
            15,000
            
            
            
            20,000Foreign exchange loss
      (gain)
            
            
            40,000
            
            
            
            25,000
            
            
            
            (9,000
            )Stock based
      compensation (note 17 a and c)
            
            
            -
            
            
            
            372,000
            
            
            
            238,000Total
    Expenses
            
            
            688,000
            
            
            
            1,075,000
            
            
            
            701,000Loss from
      Operations
            
            
            (688,000
            )
            
            
            (1,027,000
            )
            
            
            (701,000
            )Other Income
      (Expenses)Interest and bank
      charges
            
            
            (2,000
            )
            
            
            (2,000
            )
            
            
            (2,000
            )Fair value adjustment to
      derivative financial instrument
              (note 13)
            
            
            (4,567,000
            )
            
            
            -
            
            
            
            -Gain on dilution (note
      9)
            
            
            4,525,000
            
            
            
            -
            
            
            
            -Share of  losses of
      equity accounted investee (note 9)
            
            
            (80,000
            )
            
            
            -
            
            
            
            -Writedown of advance to
      corporation (note 10)
            
            
            (15,000
            )
            
            
            (45,000
            )
            
            
            -(Loss)/gain ondisposal of investments (note
      9)
            
            
            (97,000
            )
            
            
            1,512,000
            
            
            
            -Interest
    income
            
            
            47,000
            
            
            
            -
            
            
            
            -Gain on sale of investment in
      subsidiary
            
            
            -
            
            
            
            43,000
            
            
            
            -Total Other Income
      (Expenses)
            
            
            (189,000
            )
            
            
            1,508,000
            
            
            
            (2,000
            )(Loss) Earnings from Continuing
      OperationsBefore Income
      Taxes
            
            
            (877,000
            )
            
            
            481,000
            
            
            
            (703,000
            )Provision for income taxes –
      future (note 19)
            
            
            -
            
            
            
            -
            
            
            
            -(Loss) Earnings before
      Non-Controlling Interests
            
            
            (877,000
            )
            
            
            481,000
            
            
            
            (703,000
            )Non-controlling
      interests
            
            
            -
            
            
            
            (25,000
            )
            
            
            -(Loss) Earnings from Continuing
      Operations
            
            
            (877,000
            )
            
            
            506,000
            
            
            
            (703,000
            )(Loss) Earningsfrom Discontinued
      Operations
              (no tax effect) (note
      7)
            
            
            (979,000
            )
            
            
            (414,000
            )
            
            
            453,000Net (Loss) Earnings and
      Comprehensive Income (Loss)
            
            
            (1,856,000
            )
            
            
            92,000
            
            
            
            (250,000
            )Deficit – Beginning of Year as
      Previously Reported
            
            
            (45,572,000
            )
            
            
            (44,806,000
            )
            
            
            (40,023,000
            )Restatement
      (note 4)
            
            
            -
            
            
            
            (858,000
            )
            
            
            (4,296,000
            )Deficit – Beginning of Year, as
      Restated
            
            
            (45,572,000
            )
            
            
            (45,664,000
            )
            
            
            (44,319,000
            )Change
      in accounting policy (note 5)
            
            
            -
            
            
            
            -
            
            
            
            (1,095,000
            )Deficit – End of
      Year
            
            $
            (47,428,000
            )
            
            $
            (45,572,000
            )
            
            $
            (45,664,000
            )(Loss) Earnings Per Weighted Average
      Number
              of Shares Outstanding – Basic and
      DilutedContinuing
      Operations
            
            $
            (0.022
            )
            
            $
            0.013
            
            
            $
            (0.018
            )Net (Loss)
      Earnings
            
            $
            (0.046
            )
            
            $
            0.002
            
            
            $
            (0.006
            )Weighted Average Number of Shares
      Outstanding
              – Basic and
      Diluted
            
            
            40,198,924
            
            
            
            38,819,054
            
            
            
            38,819,054








(The accompanying notes are an integral
part of these consolidated financial statements.)
 F5





EIGER TECHNOLOGY,
INC.AND
SUBSIDIARIES


Consolidated Statements of Cash
Flows


Years EndedSeptember 30, 2007, 2006 and 2005


2007
            
            
            2006
            
            
            2005
              (Restated – Note
      4)Cash Flows from Operating
      ActivitiesNet(Loss) Earnings from continuing
      operations
            
            $
            (877,000
            )
            
            $
            506,000
            
            
            $
            (703,000
            )Adjustments
      for:Amortization of property and
      equipment
            
            
            12,000
            
            
            
            15,000
            
            
            
            20,000Foreign
      exchange
            
            
            40,000
            
            
            
            -
            
            
            
            -Non-controlling
      interests
            
            
            -
            
            
            
            (25,000
            )
            
            
            -Fair value adjustment on
      derivative financial instrument
            
            
            4,567,000
            
            
            
            -
            
            
            
            -Gain on
      dilution
            
            
            (4,525,000
            )
            
            
            -
            
            
            
            -Stock-based
      compensation
            
            
            -
            
            
            
            372,000
            
            
            
            238,000Share of losses of equity
      accounted investee
            
            
            80,000
            
            
            
            -
            
            
            
            -Writedownof advance to
      corporation
            
            
            15,000
            
            
            
            45,000
            
            
            
            -Loss/(gain) on disposal of
      investments
            
            
            97,000
            
            
            
            (1,512,000
            )
            
            
            -Gain on sale of investment in
      subsidiary
            
            
            -
            
            
            
            (43,000
            )
            
            
            -Funds used in continuing operating
      activities
            
            
            (591,000
            )
            
            
            (642,000
            )
            
            
            (445,000
            )Changes in Non-Cash Working
      Capital:Accounts
      receivable
            
            
            (25,000
            )
            
            
            (15,000
            )
            
            
            345,000Prepaid expenses and sundry
      assets
            
            
            7,000
            
            
            
            13,000
            
            
            
            (16,000
            )Income taxes
      recovery
            
            
            -
            
            
            
            (7,000
            )
            
            
            -Accounts payables and accrued
      charges
            
            
            142,000
            
            
            
            183,000
            
            
            
            (196,000
            )Other
payable
            
            
            -
            
            
            
            -
            
            
            
            -Deferred
    revenue
            
            
            -
            
            
            
            -
            
            
            
            -Net funds used in by continuing
      operating activities
            
            
            (467,000
            )
            
            
            (468,000
            )
            
            
            (312,000
            )Net earningsfrom discontinued
      operations
            
            
            (979,000
            )
            
            
            (414,000
            )
            
            
            453,000Adjustments
      for:Non-cash(earnings)
      expenditures
            
            
            (30,000
            )
            
            
            -
            
            
            
            805,000Loss (gain) on disposal of assets
      of discontinued operations
            
            
            -
            
            
            
            -
            
            
            
            (1,057,000
            )Assets of discontinued
      operations
            
            
            -
            
            
            
            492,000
            
            
            
            5,641,000Liabilities of discontinued
      operations
            
            
            702,000
            
            
            
            (356,000
            )
            
            
            (5,510,000
            )Net funds(used in) provided by discontinuing
      operations
            
            
            (307,000
            )
            
            
            (278,000
            )
            
            
            332,000Cash Flows from
      Investing Activities:Decrease (increase) in short term
      investments
            
            
            -
            
            
            
            -
            
            
            
            8,000Decrease(increase)in advance to related
      parties
            
            
            (1,314,000
            )
            
            
            60,000
            
            
            
            -Acquisition of property and
      equipment
            
            
            (5,000
            )
            
            
            -
            
            
            
            -Proceeds from sale of investment
      in former subsidiaries
            
            
            1,476,000
            
            
            
            43,000
            
            
            
            -Acquisition of licensing
      rights
            
            
            -
            
            
            
            (27,000
            )
            
            
            -Decrease in other
      asset
            
            
            -
            
            
            
            -
            
            
            
            -Net funds provided by investing
      activities
            
            
            157,000
            
            
            
            76,000
            
            
            
            8,000Cash Flows from Financing
      Activities:Proceeds from common stock private
      placement
            
            
            536,000
            
            
            
            -
            
            
            
            -Repayment of capital lease
      obligations
            
            
            -
            
            
            
            -
            
            
            
            -Contributions from non-controlling
      interests, net of share
              issuance
    costs
            
            
            -
            
            
            
            720,000
            
            
            
            -Bank
      indebtedness
            
            
            6,000
            
            
            
            -
            
            
            
            (3,000
            )Net funds provided by (used in)
      financing activities
            
            
            542,000
            
            
            
            720,000
            
            
            
            (3,000
            )Net(Decrease) Increase in
      Cash
            
            
            (75,000
            )
            
            
            50,000
            
            
            
            25,000Cash – Beginning of
      Year
            
            
            75,000
            
            
            
            25,000
            
            
            
            -Cash – End of
      Year
            
            $
            -
            
            
            $
            75,000
            
            
            $
            25,000





(The accompanying notes are an integral
part of these consolidated financial statements.)
 F6
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005










1.
            Organization and Nature of
      Business




Eiger Technology, Inc. (the "Company" or
"Eiger") was originally incorporated as Alexa Ventures Inc. onSeptember 8, 1986under the laws ofBritish Columbia. Currently, the Company is in good
standing, operating under the laws ofOntario.  The Company is listed as an
issuer on the TSX.




The Company has two investments, the
first named Newlook Industries Corp. (“Newlook”), which is in the wireless
business sector and the second named Racino Royale, Inc. (“Racino”) which is
making investments in the horseracing and gaming markets.




Newlook
Industries Corp.




OnOctober 1, 2006, the Company held a 78.5% ownership
interest in Newlook. During the second quarter of fiscal 2007, the Company made
a decision to dispose of its investment in order to focus on other business
opportunities. The common shares forming the Company’s investment were either
sold outright or were subject to options agreements whereby the optionees could
acquire the shares over time. AtSeptember 30, 2007the Company held a 35% ownership
position in Newlook. (see note 9)




Racino
Royale, Inc.




OnOctober 1, 2006, the Company held a 50.4% ownership
interest in Racino. In order to focus on other business opportunities the
Company disposed of substantially all of its interest prior to year end. AtSeptember 30,
2007, the Company held a
10% interest in Racino.




Prior to 2007 the Company consolidated
the operating results and balance sheets of Newlook and Racino with its
financial statements. During fiscal 2007, due to a reduction in ownership
percentage as described below, the investments in Newlook and Racino have been
deconsolidated. The effects of deconsolidation are described in notes 7 and
9.




2.
            Going
    Concern




The accompanying consolidated financial
statements have been prepared on a going concern basis, in accordance with
Canadian generally accepted accounting principles ("GAAP") and accounting
principles generally accepted in theUnited States of America.




The going concern basis of presentation
assumes that the Company will continue in operation for the foreseeable future
and will be able to realize its assets and discharge its liabilities and
contingencies in the normal course of operations.




There is doubt about the Company's
ability to continue as a going concern as the Company has a working capital
deficiency of $2,193,000 as atSeptember 30, 2007(2006 - $1,829,000; 2005 - $1,751,000)
and an accumulated deficit of $47,428,000 as atSeptember 30, 2007.  The Company's ability to
continue as a going concern is dependent upon the Company's ability to raise
additional capital, to increase sales, and sustain profitable
operations.  Should the Company be unable to continue as a going
concern, it may be unable to realize the carrying value of its assets and to
meet its liabilities as they become due.





F7
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







2.
            Going Concern(cont’d)




The Company believes that future share
issuance and certain sales related efforts will provide sufficient cash flow for
it to continue as a going concern in its present form, however, there can be no
assurances that the Company will achieve such results. Accordingly, the
consolidated financial statements do not include any adjustments related to the
recoverability and classification of recorded asset amounts or the amount and
classification of liabilities or any other adjustments that might be necessary
should the Company be unable to continue as a going concern.




3.
            Significant Accounting
      Policies




These consolidated financial statements
have been prepared in accordance with Canadian GAAP which, except as noted in
note 20, is consistent in all material respects with accounting principles
generally accepted in theUnited States of America.  The principal accounting
policies followed by the Company are as follows:




a)
            Basis of
      Presentation




The accompanying consolidated financial
statements include the accounts of Eiger and its subsidiaries as listed in note
18 and are presented in Canadian dollars under the accrual method of
accounting.  All significant intercompany transactions and balances
have been eliminated upon consolidation.




b)
            Short-term
      Investments




Short-term investments are comprised of
Canadian money market funds and short-term commercial paper.  They are
valued at cost plus accrued interest, which approximates market
value.  Short-term investments are written down to market value when
less than cost.




c)
            Property and
      Equipment




Property and equipment are stated at
cost based on the estimated useful lives of the assets, provided using the under
noted annual rates and methods:




Furniture and
      Fixtures
            20%
            Declining
      BalanceComputer
      Equipment
            30%
            Declining
      BalanceTelecommunications
      Equipment
            30%
            Declining
      BalanceLeasehold
      improvements
            10 years
            Straight
    Line








F8





F9
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005










3.
            Significant
      Accounting Policies(cont’d)




d)
            Investments




Investments in other entities are
accounted for using the equity method or cost basis depending upon the level of
ownership and/or the Company's ability to exercise significant influence over
the operating and financial
policies of the investee. Equity investments are recorded at original cost
and adjustedperiodically
to recognize the Company's proportionate share of the investees' net income or
losses after the date of investment. When net losses from an equity accounted
for investment exceed its carrying amount, the investment balance is reduced to
zero and additional losses are not provided for. The Company resumes accounting
for the investment under the equity method when the entity
subsequentlyreports net
income and the Company's share of that net income exceeds the share of net
losses not recognized during the period the equity method was suspended.
Investments are written down only when there is clear evidence that a decline in
value that is other than temporary has occurred. When an equity accounted for
investee issues its own shares, the subsequent reduction in the Company's
proportionate interest in the investee is reflected in income as a deemed
dilution gain proportionate interest in or loss on
disposition.




e)
            Licensing
      Rights




Licensing rights of a former subsidiary
are recorded at cost and are considered to have a perpetual life. Licensing
rights are tested for impairment on a periodic basis or when events or
circumstances dictate.




f)
            Advertising
      Costs




The Company expenses advertising costs
as incurred.




g)
            Long-lived Asset
      Impairment




The carrying values of long-lived assets
are periodically reviewed by management and impairments would be recognized if
the expected future operating non discounted cash flows derived from an asset
were less than carrying value. The Company reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. Recoverability is assessed based on the
carrying amount of a long-lived asset compared to the sum of the future
undiscounted cash flows expected to result from the use and the eventual
disposal recoverable and exceeds its fair value.  No impairments have
been recorded.




h)
            Financial
      Instruments




Unless otherwise noted, it is
management's opinion that the Company is not exposed to significant interest,
currency or credit risks arising from the financial instruments.  The
fair value of the financial instruments approximates their carrying values,
unless otherwise noted.





F10
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







3.
            Significant
      Accounting Policies(cont’d)




h)
            Financial Instruments
      (cont’d)




Credit
Risk




The Company's financial assets that are
exposed to credit risk consist primarily of short-term investments, accounts
receivable, due from related parties, and advance to
corporation.




The Company is exposed to credit risk
from related parties. Amounts due from related parties have no specific
repayment terms and are unsecured.




The Company, in the normal course of
business, is exposed to credit risk from its customers.  Management
believes that sufficient allowance has been made for bad debts in these
financial statements based on a review of accounts on an individual
basis.  The concentration of credit risk in trade accounts receivable
is not considered to be significant due to the Company's large client base;
however, these amounts are collected from an intermediary representing
approximately 0% of accounts receivable at September 30, 2007 (2006 – 81%; 2005
-68%).




The Company is also exposed to credit
risk with respect to its advance to Lexatec VR Systems Inc. and certain
subsidiary investments.  The advance to Lexatec VR Systems Inc. is
partially secured by a pledge of reciprocal shareholdings.




i)
            Revenue
      Recognition




Operating revenues are recognized when
they are earned, specifically, when services are provided, products are
delivered to customers, persuasive evidence of an arrangement exists, amounts
are fixed or determinable, and collectibility is reasonably assured. The
Company's principal sources of revenue are recognized according to the following
methods:




The Company derived revenues from
conducting horse-races.  Revenues are primarily grants received from
the government to subsidize the horse-races and to a much lesser extent from
parimutuel wagering.




Revenues are recognized upon approval by
regulatory authority as a result grant income is recognized subsequent to the
race date; whereas, wagering revenues are recognized on the
race  date.




TheCompany’s former subsidiary deferred
subscription fees received for its advertising based long distance calling
subscription plans.  As the subscription is for a one-year term of
service, the fee is realized as income on a monthly basis over the one-year
period.  When a one-year subscription term expires, customers may
continue service by renewing for another one-year term.  Accordingly,
the subscription fee at the time of renewal would be recognized over the period
of the new subscription term.  Monthly recognized revenue reflects the
portion of existing plus new subscriber revenue.




j)
            Sales of Shares by
      Investees




When an investee sells unissued shares
to new shareholders, the Company records an adjustment to reflect an increase or
decrease in the carrying value of its investment and a resulting gain or loss in
the consolidated statement of operations.





F11
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







3.
            Significant
      Accounting Policies(cont’d)




k)
            Income
  Taxes




The Company accounts for and measures
future tax assets and liabilities in accordance with the asset and liability
method. Under this method, future tax assets and liabilities are recognized for
future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases. Future tax assets and liabilities are measured using
enacted or substantively enacted tax rates expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered
or settled. The effect on future tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the date of enactment
or substantive enactment of the change. When the future realization of income
tax assets does not meet the test of being more likely than not to occur, a
valuation allowance in the amount of the potential future benefit is taken and
no net asset is recognized.




l)
            Earnings (Loss) Per
      Share




Basic earnings (loss) per share is
computed by dividing income available to common shareholders by the weighted
average number of common shares outstanding during the period. The computation
of diluted earnings (loss) per share, according to the treasury stock method,
assumes that any proceeds from the exercise of dilutive stock options and
warrants would be used to repurchase common shares at the average market price
during the period, with the incremental number of shares being included in the
denominator of the diluted earnings (loss) per share calculation. The diluted
earnings (loss) per share calculation assumes the conversion, exercise or
contingent issuance of securities only when such conversion, exercise or
issuance would have a dilutive effect on earnings (loss) per share. Stock
options and share purchase warrants outstanding were not included in the
computation of diluted loss per share as their inclusion would be
anti-dilutive.




m)
            Use of
      Estimates




The preparation of financial statements
in conformity with Canadian generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period.  Actual results could differ
from those estimates.  These estimates are reviewed periodically, and,
as adjustments become necessary, they are reported in earnings in the period in
which they become known.




n)
            Foreign Currency
      Translation




Monetary items denominated in foreign
currencies are translated into Canadian dollars at the foreign currency exchange
rate in effect at each balance sheet date. Non-monetary items in foreign
currencies are translated into Canadian dollars at historical rates of exchange
except for those carried at market which are translated at the foreign currency
exchange rate in effect at each balance sheet date. Revenues and expenses
denominated in foreign currencies are translated into Canadian dollars at the
weighted average foreign current exchange rate for the year. Translation gains
and losses are included in determining net earnings.





F12
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







4.
            Restatement of Previously Issued
      Consolidated Financial
Statements




In 2006, the Company became aware of
certain potential accounting issues affecting certain accounts in the prior
years. The Company conducted an inquiry into these accounting
issues.  As a result, the Company is restating its previously issued
consolidated financial statements for the year endedSeptember 30, 2005due to accounting
errors.




Certain reclassifications of business
units to discontinued operations (note 7) during fiscal 2007 have resulted in
the adjustments presented below to previously reported
restatements.




The effect on the consolidated statement
of operations and the consolidated balance sheet for the year endedSeptember 30, 2005is as follows:


As Previously
      Reported
            
            
            ChangeResulting from
      Restatement
            
            
            Discontinued Operations
      Reclassification
            
            
            RestatedConsolidated Statement of
      Operations:Selling, general and
      administrative (e)
            
            $
            1,681,000
            
            
            $
            (48,000
            )
            
            $
            (1,181,000
            )
            
            $
            452,000Stock-based compensation
      (f)
            
            $
            168,000
            
            
            $
            70,000
            
            
            $
            -
            
            
            $
            238,000Non-controlling interests
      (b)
            
            $
            316,000
            
            
            $
            (316,000
            )
            
            $
            -
            
            
            $
            -Loss from continuing operations
      (b)
            
            $
            (1,460,000
            )
            
            $
            260,000
            
            
            $
            497,000
            
            
            $
            (703,000
            )(Loss) earnings from discontinued
      operations (no tax effect) (g)
            
            $
            (2,486,000
            )
            
            $
            3,436,000
            
            
            $
            (497,000
            )
            
            $
            453,000Net loss
            
            $
            (3,946,000
            )
            
            $
            3,696,000
            
            
            $
            -
            
            
            $
            (250,000
            )(Loss) earnings per weighted
      average number of shares outstanding - basic and
      dilutedContinuing
      operations
            
            $
            (0.040
            )
            
            $
            0.010
            
            
            $
            0.012
            
            
            $
            (0.018
            )Net loss
            
            $
            (0.060
            )
            
            $
            0.050
            
            
            $
            0.016
            
            
            $
            (0.006
            )Weighted average number of shares
      outstanding - basic and diluted
            
            
            38,292,125
            
            
            
            526,929
            
            
            
            -
            
            
            
            38,819,054Consolidated Balance
      Sheet:Short-term investments
      (c)
            
            $
            8,000
            
            
            $
            (8,000
            )
            
            $
            -
            
            
            $
            -Non-controlling interests in
      subsidiaries (b)
            
            $
            308,000
            
            
            $
            (308,000
            )
            
            $
            -
            
            
            $
            --Share capital (c) and
      (d)
            
            $
            43,297,000
            
            
            $
            92,000
            
            
            $
            -
            
            
            $
            43,389,000Accumulated
      deficit
            
            $
            (44,806,000
            )
            
            $
            (858,000
            )
            
            $
            -
            
            
            $
            (45,664,000
            )








F13
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







4.       Restatement
of Previously Issued Consolidated Financial Statements(cont’d)




a)
            Accumulated Comprehensive
      Loss




It was determined that Racino had
inadvertently excluded accumulated comprehensive loss from the determination of
discontinued operations.  The accumulated comprehensive loss primarily
included foreign currency translation adjustments.




b)
            Non-Controlling Interests in
      Subsidiaries




Due to the lack of a guarantee from
non-controlling interests to contribute additional capital to eliminate the
deficit of consolidated subsidiaries, the Company decided not to show a debit
balance in non-controlling interests in subsidiaries in the consolidated balance
sheets




c)
            Treasury
    Shares




With information obtained in 2006, it
was determined that treasury shares and short-term investments were not properly
reflected in the Company's accounting records in the prior
years.




d)
            Reciprocal
      Shares




It was determined that the Company had
inadvertently included reciprocal shareholding balances in its share capital
account for a company that was no longer associated.




e)
            Sales
    Returns




It was determined that sales return
balances were included in the selling, general and administrative expenses
rather than being applied as a deduction to sales.




f)
            Stock-Based
      Compensation




It was determined that stock-based
compensation balances did not include certain amounts from a
subsidiary.  Additionally, the disclosure notes for stock-based
compensation were enhanced to comply with GAAP.




g)
            Discontinued
      Operations




In 2006, it was determined that
discontinued operations were overcharged for the impact of the non-controlling
interests.




As a result of the above items, theSeptember 30,
2005figures, presented for
comparative purposes, have been restated from those previously reported, in
order to properly account for the errors.




h)
            Commodity
    Taxes




In 2005, it was determined that Newlook
had over paid commodity taxes to the provincial government in the amount of
$258,000 in 2004. The correction of this error has been accounted for
retroactively with a restatement of 2004 amounts. As a result of this
restatement, sales and accounts receivable were increased by $258,000 and the
net loss from continuing operations decreased by $258,000. The refund of the
overpayment was received in 2005.





F14
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







5.       Change in Accounting
Policy




Executives and certain senior managers
of the Company participate in the stock-based compensation plan, as described in
note 17.  EffectiveOctober 1, 2004, the Company adopted, on a retroactive
basis, the recommendations of CICA Section 3870, “Stock-based Compensation and
Other Stock-based Payments”.  These recommendations require that
compensation for all equity based awards made to non-employees and employees be
measured and recorded in the consolidated financial statements at fair
value.  The fair value of stock-based compensation is determined using
the Black-Scholes option pricing model.  The resulting value is
charged against income over the vesting periods of the
option.




6.       Note Receivable




OnAugust 8, 2007, the Company disposed of 14,021,600
common shares of Racinoto
a third party in exchange for $29,000 (US$30,000) cash and a secured note
receivable of $667,000 (US$671,000). The third party and the Company entered
into a pledge agreement pursuant to which the debtor has pledged 12,619,460
Racino shares to the Company as security for the third party’s obligation under
the note. The note is non-interest bearing and the repayment terms are as
follows:


August 31,
    2007
            
            $
            69,000September 30,
      2007
            
            
            133,000February 1,
      2008
            
            
            233,000September 1,
      2008
            
            
            232,000$
            667,000




As ofSeptember 30, 2007, the note receivable has been reduced
to $624,000 (US$627,000). Although the note is fully secured the issuer is in
default under the repayment terms of the note.




7.
            Discontinued
      Operations




OnNovember 30, 2004, Alexa Properties Inc. ("Alexa") sold
its property inStratfordconsisting of building and land with
any related encumbrances discharged on that date.  Alexa no longer has
active operations.




OnDecember 15, 2004, Racino entered into an agreement to
sell all of its interest in K-Tronik North America Corp. ("KTNA") and the
property and equipment of its subsidiary, K-Tronik Asia
Corp.  ("KTA")  Racino is no longer engaged in the business
of manufacturing, distributing or selling electronic
ballasts.




During the second quarter of fiscal
2007, the management decided to dispose of its investment in Newlook. The
disposal involved the sale of part of its investment and options to sell the
remainder of the investement.





F15
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







7.       Discontinued
Operations(cont’d)




The operations of Newlook, Alexa, KTNA
and KTA are presented in the consolidated financial statements as discontinued
operations as follows:


2007
            
            
            2006
            
            
            2005Revenue
            
            $
            8,649,000
            
            
            $
            3,629,000
            
            
            $
            4,861,000Cost of revenue and expenses of
      discontinued operations
            
            
            9,628,000
            
            
            
            4,043,000
            
            
            
            6,371,000Loss on discontinued
      operations
            
            
            (979,000
            )
            
            
            (414,000
            )
            
            
            (1,510,000
            )Gain on disposal of assets of
      discontinued operations
            
            
            -
            
            
            
            -
            
            
            
            1,057,000Income
taxes
            
            
            -
            
            
            
            -
            
            
            
            -Earnings (loss) from discontinued
      operations
            
            $
            (979,000
            )
            
            $
            (414,000
            )
            
            $
            (453,000
            )




Assets and liabilities presented in the
consolidated balance sheets include the following assets and liabilities of
discontinued operations:




2007
            
            
            2006
            
            
            2005Current
    assets
            
            $
            -
            
            
            $
            -
            
            
            $
            3,000Property and
      equipment
            
            
            -
            
            
            
            -
            
            
            
            -Assets of discontinued
      operations
            
            $
            -
            
            
            $
            -
            
            
            $
            3,000Current
      liabilities
            
            $
            702,000
            
            
            $
            -
            
            
            $
            2,000Long-term
    debt
            
            
            -
            
            
            
            -
            
            
            
            -Liabilities of discontinued
      operations
            
            $
            702,000
            
            
            $
            -
            
            
            $
            2,000




8.
            Property and
      Equipment


Cost
            
            
            Accumulated
              Amortization
            
            
            2007
              NetBook Value
            
            
            2006
              Net
              Book Value
            
            
            2005
              Net
              Book ValueFurniture and
      fixtures
            
            $
            142,000
            
            
            $
            96,000
            
            
            $
            46,000
            
            
            $
            70,000
            
            
            $
            88,000Telecommunications
      equipment
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            617,000
            
            
            
            882,000Computer
      equipment
            
            
            5,000
            
            
            
            1,000
            
            
            
            4,000
            
            
            
            126,000
            
            
            
            178,000Leasehold
      improvements
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            173,000
            
            
            
            -$
            147,000
            
            
            $
            97,000
            
            
            $
            50,000
            
            
            $
            986,000
            
            
            $
            1,148,000











F16
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







9.           Investments




a)
            Racino




During fiscal 2007, the Company disposed
of a sufficient number of common shares of Racino to reduce the ownership
interest to below 50%. Accordingly the Company changed accounting methods from
consolidation to equity accounting.




As ofSeptember 30, 2007, the Company’s investment inRacino was $Nil.




During the year endedSeptember 30, 2007, the Company recorded its share of
Racino losses post
deconsolidation of $80,000.




During fiscal 2007, the Company disposed
of 16,021,600 Racino shares (14,021,600 shares as described in Note 6) for total
proceeds of $881,000 ($184,000 cash and $697,000 note receivable) and the
Company recorded a gain of $187,000 from the sale
transactions.




During 2006, Racino issued 5,000,000
common shares and 500,000 warrants, to new shareholders as part of the
consideration for certain licensing rights.  The transaction resulted
in a reduction of the Company's ownership interest in Racino from 64.0% to
50.4%.  The Company recorded a $732,000 gain to record an increase in
the carrying value of its investment as a result of the value of licensing
rights received by Racino.




b)
            Newlook




The Company reduced its ownership
position in Newlook from 78.5% at the beginning of fiscal 2007 to 35% atSeptember 30,
2007. In prior years the
Company consolidated Newlook but during the second quarter of fiscal 2007 the
Company deconsolidated Newlook and began to equity account for this
investment.




As ofSeptember 30, 2007, the Newlook investment balance was
$207,000.




The consolidated loss prior to
deconsolidation and the post deconsolidation equity earnings are classified as
discontinued operations.




In fiscal 2007, the Company sold
14,263,000 Newlook shares
for total cash proceeds of $1,866,000 and recorded a loss on disposal of
$285,000. The Company also issued options to
others to acquire its remaining investment in Newlook at $0.10 per share at
specific dates in the future (note 13).




At the deconsolidation of the investment
in Newlook the Company recorded a gain on dilution of $4,525,000, representing previously
consolidated losses no longer attributable to the Company’s carrying value in
the Newlook investment.





F17
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







9.       Investments(cont’d)




On February 14, 2006, Newlook completed
a private placement of 500,000 shares at a price of $0.75 per share and 45,000
shares at a price of $0.50 per share, for a gross proceeds of $397,500 (before
issuance costs of  $70,000).  Also, Newlook issued a total
of 905,000 shares from the exercise of warrants and options on various dates
during the year for gross proceeds of $452,500. These transactions resulted in
the reduction of the Company's ownership interest in Newlook from 90.0% to
78.5%.  The Company recorded a $780,000 gain to reflect an increase in
the carrying value of its investment as a result of the cash proceeds from
issuance of shares by Newlook.




10.Advance to
      Corporation




2007
              
              
              2006
              
              
              2005Advance to Lexatec VR Systems
      Inc.
              
              $
              16,000
              
              
              $
              31,000
              
              
              $
              96,000






The advance noted above is non-interest
bearing has no specific terms of repayment and is secured by a pledge of
reciprocal shareholdings.  In 2006, $21,000 was
collected.  AtSeptember 30, 2007, management recorded a writedown of the
advance to the market value of the security.




11.           Due from Related
Parties




Following the deconsolidation of Newlook
and Racino, the Company began to record amounts due from related
parties.




As atSeptember 30, 2007, amounts due from related parties are
as follows:




Newlook and
      subsidiaries
            
            $
            2,856,000Racino and subsidiaries and
      investments
            
            
            80,000$
            2,936,000




Amounts due from related parties are
unsecured and have no specific repayment dates. Interest accrues on the amounts
from Newlook at Prime + 2% per annum. Amounts due from Racino are non-interest
bearing.





F18
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







12.
            Licensing
      Rights




OnJune 14, 2006, Racino acquired the exclusive rights
for a racetrack development opportunity inSaskatchewan,Canada.  The consideration of
$1,479,000 (US$1,471,000) for the acquired rights consisted of the following:
(a) cash of $22,000 (US$23,000), (b) issuance of 5,000,000 shares of Racino
at  a price of $0.238 (US$0.24) per share for a total amount of
$1,100,00 (US$1,200,000), (c) warrants in the equity of Racino valued at $93,000
(US$94,000), and (d) legal costs of $900 (US$1,000).




The warrants are exercisable at $0.10 US
per share, expiring in three years from the date of
issuance.




The fair value of the warrants was
estimated on the date of issuance using the Black-Scholes option pricing model
with the following weighted average assumptions used:


Dividend
    yield
              0.0%Expected
      volatility
              106%Risk-free interest
      rate
              4.3%Expected
    life
              3
  years




13.
            Derivative Financial
      Instrument




During January 2007, the Company issued
call options to third party investors to acquire 14,000,000 common shares of the
Company’s investment in Newlook exercisable at $0.10 per share expiring in
tranches of 2,000,000 shares on each of March 18, 2007,September 18, 2007, March 18, 2008,
September 18, 2008, March 18, 2009, September 18, 2009 and March 18, 2010. The
Company valued the options collectively at $889,000 at
issuance.




OnSeptember 28, 2007, the Company cancelled options to
acquire 900,000 common shares issued in January 2007 and reissued the options to
Wireless Age Communications Inc., a majority owned subsidiary of Newlook at an
exercise price of $0.40 per share.




Prior to year end 2007, 4,000,000 of the
options were exercised and atSeptember 30, 2007, options to purchase 10,000,000 Newlook
common shares were outstanding. The fair value of the remaining options atSeptember 30,
2007was $4,567,000 of which $1,777,000 has been
classified as a current portion of the derivative financial
liability.




The Company recognized a $4,567,000adjustment to income during 2007
representing changes in fair value during the year.




The estimated fair value of the options
atSeptember 30,
2007was determined using
the Black-Scholes option pricing model with the following weighted average
assumptions:


Risk-free interest
      rate
              5.0%Dividend
    yield
              0%Volatility factor of expected
      market price ofNewlook’s
      shares
              136.2%Average expected option life (in
      years)
              1.4Weighted-average grant date fair
      values ofoptions
    granted
              $0.47


F19
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







14.   Capital Lease
Obligations


2007
            
            
            2006
            
            
            2005Capital lease obligations -
      secured by telecommunications equipment as described in note8having a net book value ofNil(2006 - $261,000; 2005 - $374,000), were repayable in monthly
      installments of principal and interest at rates ranging from 30% to 31%
      per annum.
            
            $
            -
            
            
            $
            -
            
            
            $
            88,000Less:  amount
      representing interest
            
            
            -
            
            
            
            -
            
            
            
            (6,000
            )Present value of net minimum lease
      payments
            
            
            -
            
            
            
            -
            
            
            
            82,000Less: current
      portion
            
            
            -
            
            
            
            -
            
            
            
            (82,000
            )Long-term
    debt
            
            $
            -
            
            
            $
            -
            
            
            $
            -




During the year, the Company paid nil
(2006 - $6,000; 2005 - $76,000) in interest on long-term debt. The capital lease
payments were discharged in 2006.




15.           Other Payable




Pursuant to a Forbearance Agreement
signed on September 30, 2005 with a telecommunications company, the Company's
former subsidiary, Onlinetel Corp. is obligated to pay a principal amount
of  Nil (2006 - $580,000; 2005 – 899,000) plus interest calculated at
an annual rate of 8% per annum.  Newlook unconditionally and
irrevocably guarantees payment of the obligation.  Amendments to the
Forbearance Agreement were signed onMay 25, 2006andDecember 5, 2006. Newlook made payments towards the
outstanding balance of $286,619 onApril 11, 2006and $124,000 onNovember 9, 2006. The Company’s former subsidiary
settled the remaining balance during fiscal 2007.




16.
            Commitments and
      Contingencies




There is a claim outstanding against the
Company by a former employee for wrongful dismissal, alleged breach of contract,
punitive and aggravated damages and costs. It is the Company's opinion that
there is no merit to the claim of breach of contract, punitive or aggravated
damages. Management believes that damages resulting from this claim would be
immaterial, if any.




Pursuant to a settlement agreement with
the Company’s former Chief Executive Officer (“CEO”), the Company granted a
first charge senior security interest over all of its collateral assets as
security for its obligations under the agreement.










F20
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







17.           Share Capital




Authorized: 100,000,000 Common
      Shares without par value




Issued:


2007                                                           
2006                                           2005


No. of
    Shares
            
            
            Amount
            
            
            No. of
    Shares
            
            
            Amount
            
            
            No. of
    Shares
            
            
            AmountBeginning of
      year
            
            
            38,860,174
            
            
            $
            43,861,000
            
            
            
            38,860,174
            
            
            $
            43,861,000
            
            
            
            38,860,174
            
            
            $
            43,861,000Issuedprivate
      placement
            
            
            3,570,000
            
            
            
            536,000
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -exercise of
      options
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -other
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -End of year
            
            
            42,430,174
            
            
            
            44,397,000
            
            
            
            38,860,174
            
            
            
            43,861,000
            
            
            
            38,860,174
            
            
            
            43,861,000Treasury
    shares
            
            
            (41,120
            )
            
            
            (22,000
            )
            
            
            (41,120
            )
            
            
            (22,000
            )
            
            
            (41,120
            )
            
            
            (22,000
            )Warrants
            
            
            -
            
            
            
            (89,000
            )
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -42,389,054
            
            
            $
            44,286,000
            
            
            
            38,819,054
            
            
            $
            43,839,000
            
            
            
            38,819,054
            
            
            $
            43,839,000







During May 7 and 18, 2007, the Company
issued 3,570,000 units at a purchase price of $0.15 per unit. Each unit
consisted of 1 common share and three purchase warrants. One warrant is
exercisable for one year from date of distribution at an exercise price of
$0.25, one warrant is exercisable at $0.50 for a period of one year beginning
one year after date of distribution and one warrant is exercisable at $0.75 for
one year beginning two years after date of distribution.








F21
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005










17.  Share
Capital(cont’d)




a)Stock
    Options




The Company awards unconditional stock
options to employees, officers, directors and others at the recommendation of
the CEO under an incentive stock plan (the "Plan").  Options are
granted at the fair market value of the shares on the day granted, and vest over
various terms.  Compensation expense is recognized
when  options are issued (note 5).  The following is a
continuity schedule of outstanding options for the reporting periods, where
“WAEP” refers to weighted average exercise price and “yrs” refers to
years.




No. of
                Options
              
              
              2007 WAEP
              
              
              No. of
    Options
              
              
              2006
                WAEP
              
              
              No. of
    Options
              
              
              2005
                WAEPBeginning of
      year
              
              
              3,556,000
              
              
              $
              0.60
              
              
              
              5,099,000
              
              
              $
              0.75
              
              
              
              4,942,000
              
              
              $
              1.15Granted
              
              
              -
              
              
              
              -
              
              
              
              725,000
              
              
              
              0.49
              
              
              
              1,000,000
              
              
              
              0.40Exercised
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Forfeited
              
              
              -
              
              
              
              -
              
              
              
              (775,000
              )
              
              
              0.55
              
              
              
              (230,000
              )
              
              
              0.93Expired
              
              
              (765,000
              )
              
              
              0.55
              
              
              
              (1,493,000
              )
              
              
              1.08
              
              
              
              (613,000
              )
              
              
              3.31End of year
              
              
              2,791,000
              
              
              $
              0.63
              
              
              
              3,556,000
              
              
              $
              0.60
              
              
              
              5,099,000
              
              
              $
              0.75




The following table summarizes stock
option information outstanding atSeptember 30, 2007.




ExercisePrices of Options
              Number
      Outstanding and Exercisable
              Weighted-Average
      Remaining Contractual Life
              Weighted
      Average Exercise Price$
      0.40
              1,175,000
              2.57
      yrs
              $
      0.40$
      0.55
              320,000
              1.01
      yrs
              $
      0.55$
      0.57
              100,000
              0.43
      yrs
              $
      0.57$
      0.85
              796,000
              1.50
      yrs
              $
      0.85$
      0.96
              400,000
              1.23
      yrs
              $
      0.96$0.40-$.96
              2,791,000
              1.82
      yrs
              $
      0.63









F22
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







17.           Share
Capital(cont’d)




The following table summarizes stock
option information outstanding atSeptember 30, 2006.




Exercise Price
                of Options
              Number Outstanding and
      Exercisable
              Weighted Average Remaining
      Contractual Life
              Weighted-Average Exercise
      Price$ 0.40
              1,175,000
              3.57 yrs
              $ 0.40$ 0.50
              765,000
              0.59 yrs
              $ 0.50$ 0.55
              320,000
              2.01 yrs
              $ 0.55$ 0.57
              100,000
              1.42 yrs
              $ 0.57$ 0.85
              796,000
              2.50 yrs
              $ 0.85$ 0.96
              400,000
              2.23 yrs
              $ 0.96$0.40-$.96
              3,556,000
              2.34 yrs
              $
  0.60








The following table summarizes stock
option information outstanding atSeptember 30, 2005.




Exercise Price
                of Options
              Number Outstanding and
      Exercisable
              Weighted Average Remaining
      Contractual Life
              Weighted-Average Exercise
      Price$ 0.40
              1,000,000
              3.01 yrs
              $ 0.40$ 0.50
              765,000
              1.43 yrs
              $ 0.50$ 0.55
              320,000
              2.53 yrs
              $ 0.55$ 0.57
              100,000
              2.42 yrs
              $ 0.57$ 0.60
              225,000
              3.64 yrs
              $ 0.60$ 0.75
              1,178,000
              0.55 yrs
              $ 0.75$ 0.85
              796,000
              3.5 yrs
              $ 0.85$ 0.96
              400,000
              3.23 yrs
              $ 0.96$ 1.50
              85,000
              0.36 yrs
              $ 1.50$ 2.52
              150,000
              0.19 yrs
              $ 2.52$ 2.75
              50,000
              0.04 yrs
              $ 2.75$ 3.00
              30,000
              0.08 yrs
              $ 3.00$0.40-$3.00
              5,099,000
              2.11 yrs
              $
  0.75















F23
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







17.           Share
Capital(cont’d)




In 2007, the Company did not award any
options to buy shares of the Company under the Plan.  In 2007, 765,000
options expired unexercised.




The estimated fair value of the options
was determined using the Black-Scholes option pricing model with the following
weighted average assumptions:




2007
              2006
              2005Risk-free interest
      rate
              -
              4.25%
              4.11%Dividend
    yield
              -
              0%
              0%Volatility factor of expected
      market price of thecompany's
      shares
              -
              77%
              62%Expected option life (in
      years)
              -
              3
              5Weighted-average grant date fair
      values of optionsgranted
              -
              $0.04
              $0.22




















No stock options were exercised during
2007, 2006 and 2005.  In 2007, the Company  (recovered)
expensed $nil (2006 - $(57,000); 2005 - $167,000) related to the fair value of
the options granted in 2007, 2006 and 2005, respectively.




Under the Plan, the Company has for
issuance a maximum authorized number of 7,200,000 options to acquire common
shares of the Company of which 4,409,000 options are available.  The
total proceeds that would be generated upon exercise of all issued and
outstanding options is approximately $1,763,600.




b)Warrants




The Company issued warrants to acquire
10,710,000 common shares during fiscal 2007. The warrants were included in units
issued of one common share and three purchase warrants.  The following
is a continuity schedule of outstanding warrants for fiscal
2007.




No. of
    Warrants
            
            
            WAEPBeginning of
      year
            
            $
            -
            
            
            $
            -Granted
            
            
            10,710,000
            
            
            
            0.50Exercised
            
            
            -
            
            
            
            -Forfeited
            
            
            -
            
            
            
            -Expired
            
            
            -
            
            
            
            -End of year
            
            $
            10,710,000
            
            
            $
            0.50










F24
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







17.           Share Capital(cont’d)




The following table summarizes
purchase warrants information outstanding atSeptember 30, 2007.




No.
    Outstanding
            
            Expiry Date
            Exercisable
      Date
            
            WAEP3,570,000
            
            May 7, 2008
            May 7, 2007
            
            $
            0.253,570,000
            
            May 7, 2009
            May 7, 2008
            
            
            0.503,570,000
            
            May 7, 2010
            May 7, 2009
            
            
            0.7510,710,000
            
            
            
            
            $
            0.50




The estimated fair value of the warrants
was determined using the Black-Scholes option pricing model with the following
weighted average assumptions:




Risk-free interest
      rate
              5.0%Dividend
    yield
              0%Volatility factor of expected
      market price of thecompany's
      shares
              82%Average expected option life (in
      years)
              1.5Weighted-average grant date fair
      values ofoptions
    granted
              $0.008


c)Contributed Surplus







Opening
    balance
            
            $
            1,705,000Less: deconsolidation of Newlook
      stock based compensation
            
            
            (516,000
            )Add: Fair value of warrants
      issued
            
            
            89,000Closing
    balance
            
            $
            1,278,000




Contributed surplus opening balance
consisted of stock-based compensation only and the closing balance represents
stock-based compensation of $1,189,000 and fair value of warrants issued during
fiscal 2007 as part of financing.










F25
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







18.           Subsidiaries and Related Party
Transactions




The Company is related to the following
corporations:




Name of
      Corporation
              Nature of
      RelationshipNewlook Industries
      Corp.
              35%
    InvestmentAlexa Properties
      Inc.*
              100%
    SubsidiaryETIFF Holdings
      LLC*
              100%
    SubsidiaryRacino Royale,
      Inc.
              10% Investment of ETIFF Holdings
      LLC
  * Inactive or holding
company only




All transactions within the corporate
group are in the normal course of business and are recorded at  the
exchange value.  Inter-company transactions and balances are
eliminated upon consolidation.




Service fees charged by directors,
officers or corporations owned by management personnel during the period totaled
$1,180,000 (2006 - $300,000; 2005 - $300,000). Included in the current period is
$1,000,000 as a severance/retirement settlement with the Company’s former
CEO.




Included in accounts payable are
payables to directors, officers or corporations owned by management personnel of
$1,006,000 (2006 - $388,000; 2005 - $268,000). $702,000 of the current period
amount is due to the Company’s former CEO pursuant to his severance/retirement
settlement and has been classified as discontinued
operations.










F26
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







19.           Income Taxes




The Company accounts for income taxes
using the asset and liability method.  Tax asset and liability account
balances are determined based on differences between financial reporting and tax
basis of assets and liabilities and are measured using the enacted tax
rate.  The effects of future changes in tax losses are not
anticipated.




The provision for income taxes has been
computed as follows:







2007
              
              
              2006
              
              
              2005Expected income tax expense
      (recovery) at the statutory rate
              
              $
              (670,000
              )
              
              $
              33,000
              
              
              $
              (90,000
              )Increase (decrease) in taxes
      resulting from:Gain on sale of shares by
      subsidiaries
              
              
              -
              
              
              
              (535,000
              )
              
              
              -Non-deductible management
      fees
              
              
              -
              
              
              
              106,000
              
              
              
              -Stock-based
      compensation
              
              
              -
              
              
              
              132,000
              
              
              
              86,000Non-taxable portion of (gains)
      losses
              
              
              18,000
              
              
              
              (6,000
              )
              
              
              (99,000
              )Sale of loss carry forwards and
      tax assets of disposed of subsidiaries
              
              
              4,090,000
              
              
              
              -
              
              
              
              -Non-deductible fair value
      adjustment
              
              
              1,650,000
              
              
              
              -
              
              
              
              -Non-taxable gain on
      dilution
              
              
              (1,634,000
              )
              
              
              -
              
              
              
              -Non-taxable equity
      pick-up
              
              
              21,000
              
              
              
              -
              
              
              
              -Tax rate
      changes
              
              
              (106,000
              )
              
              
              103,000
              
              
              
              (211,000
              )Non-controlling
      interests
              
              
              -
              
              
              
              (9,000
              )
              
              
              -Others
              
              
              4,000
              
              
              
              6,000
              
              
              
              8,000Valuation
      allowances
              
              
              (3,373,000
              )
              
              
              170,000
              
              
              
              306,000Provision for income
      taxes
              
              $
              -
              
              
              $
              -
              
              
              $
              -






The components of future income taxes
are as follows:







2007
              
              
              2006
              
              
              2005Net operating loss carried
      forward
              
              $
              2,445,000
              
              
              $
              5,210,000
              
              
              $
              5,166,000Difference between accounting and
      tax carrying - value of equipment and intangibles
              
              
              22,000
              
              
              
              606,000
              
              
              
              480,000Valuation
      allowance
              
              
              (2,467,000
              )
              
              
              (5,816,000
              )
              
              
              (5,646,000
              )$
              -
              
              
              $
              -
              
              
              $
              -










The Company has tax losses of $6,769,000
(2006 - $14,718,000; 2005- $14,300,000) available to be applied against future
years' taxableincome.  In order to record a future
income tax benefit, it must be more likely than not that the future tax asset
resulting from the tax losses available for carryforward will be realized. Given
the Company's uncertainty regarding profitability, the Company has to set up a
100% valuation allowance in respect of the future income tax asset. The tax
losses expire in years ranging from 2007 through to 2017.





F27
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







20.
            Reconciliation between Canadian
      andUnited
      StatesGenerally
      Accepted Accounting
Principles




These consolidated financial statements
have been prepared in accordance with Canadian GAAP which differs in certain
respects from U.S. GAAP. There were no material differences between Canadian and
U.S. GAAP.




In September 2006, the FASB issued SFAS
No. 157, “Fair Value Measurements” ("SFAS No. 157"), which is effective for
financial statements issued for fiscal years beginning afterNovember 15, 2007. The statement defines fair value,
establishes a framework for measuring fair value in accordance with generally
accepted accounting principles, and expands disclosures about fair value
measurements. The statement codifies the definition of fair value as the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The
standard clarifies the principle that fair value should be based on the
assumptions market participants would use when pricing the asset or liability
and establishes a fair value hierarchy that prioritizes the information used to
develop those assumptions. The Company is currently assessing the potential
impacts of implementing this standard.




In February 2007, the FASB issued FASB Statement
No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities – Including an Amendment
of FASB Statement No. 115” (“SFAS 159”). The fair value option established by
SFAS 159 permits all entities to choose to measure eligible items at fair value
at specified election dates. A business entity will report unrealized gains or
loses on items for which the fair value option has been elected in earnings (or
another performance indication if the business entity does not report earnings)
at each subsequent reporting date. The fair value option: (a) may be applied
instrument by instrument, with a few exceptions, such as investments otherwise
accounted for by the equity method; (b) is irrevocable (unless a new election
date occurs); and (c) is applied only to entire instruments and not to portions
of instruments. FASB No. 159 is effective as of the beginning of the fiscal
years beginning afterNovember 15, 2007. The Company is currently evaluating
what impact, if any, SFAS 159 will have on its financialposition or results of
operations.







OnMay 2, 2007the FASB issued FASB Interpretation
("FIN") No. 48-1, "Definition of Settlement in FASB Interpretation 48" ("FIN
48-1"). FIN 48-1 amends FIN 48, "Accounting for Uncertainty in Income Taxes-an
interpretation of FASB Statement No.  109", to provide guidance on how
an enterprise should determine whether a tax position is effectively settled for
the purpose of recognizing previously unrecognized tax benefits.  The
guidance in FIN 48-1 shall be applied upon the initial adoption of FIN 48. The
Company is currently assessing the potential impacts of implementing this
standard.





F28
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







20.
            Reconciliation
      between Canadian andUnited
      StatesGenerally Accepted Accounting Principles(cont’d)




In  May  2007,  the  FASB  issued  a  FSP  on  FIN
46(R)-7, "Application of FASB Interpretation  No. 46(R) to Investment
Companies" ("FSP FIN 46 (R)-7"). FSP FIN 46(R)-7 addresses the application of
FASB Interpretation No.  46 (revised December 2003), "Consolidation of
Variable Interest Entities", by an entity that
accounts  for  its  investments  in  accordance  with
the specialized accounting
guidance  in  the  Guide.  The Company
is currently assessing the potential impacts of implementing this
standard.






In  June  2007,
the American Institute of Certified Public Accountants ("AICPA")
issued  Statement  of Position ("SOP") No. 07-1,
''Clarification of the Scope of
the  Audit  and  Accounting  Guide
Investment Companies and Accounting by Parent Companies and Equity Method
Investors for Investments in Investment Companies'' ("SOP No.
07-1").  SOP No.  07-1 clarifies when an entity may apply
the provisions of the Audit and Accounting Guide for Investment Companies (the
"Guide").  Investment  companies  that  are
within the scope of the Guide report
investments  at  fair  value;  consolidation  or  use  of  the
equity method for
investments  is  generally  not  appropriate.  SOP
No.  07-1 also addresses the retention of specialized investment
company accounting by a parent company in consolidation or by an equity method
investor. SOP No. 07-1 is effective for fiscal years beginning on or after
December 15, 2007 with early adoption encouraged.  The Company is
currently assessing the potential impacts of implementing this
standard.






In
December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business
Combinations” ("SFAS 141(R)"). This statement replaces SFAS No. 141,
“Business Combinations” and requires an acquirer to recognize the assets
acquired, the liabilities assumed, including those arising from contractual
contingencies, any contingent consideration, and any noncontrolling interest in
the acquiree at the acquisition date, measured at their fair values as of that
date, with limited exceptions specified in the Statement. SFAS 141(R) also
requires the acquirer in a business combination achieved in stages (sometimes
referred to as a step acquisition) to recognize the identifiable assets and
liabilities, as well as the noncontrolling interest in the acquiree, at the full
amounts of their fair values (or other amounts determined in accordance with
SFAS 141(R)). In addition, SFAS 141(R)'s requirement to measure the
noncontrolling interest in the acquiree at fair value will result in recognizing
the goodwill attributable to the noncontrolling interest in addition to that
attributable to the acquirer. SFAS 141(R) amends SFAS No. 109,
“Accounting for Income Taxes”, to require the acquirer to recognize changes in
the amount of its deferred tax benefits that are recognizable because of a
business combination either in income from continuing operations in the period
of the combination or directly in contributed capital, depending on the
circumstances. It also amends SFAS 142, “Goodwill and Other Intangible
Assets”, to, among other things, provide guidance on the impairment testing of
acquired research and development intangible assets and assets that the acquirer
intends not to use. SFAS 141(R) applies prospectively to business
combinations for which the acquisition date is on or after the beginning of the
first annual reporting period beginning on or after December 15, 2008. The
Company is currently assessing the potential impact that the adoption of
SFAS 141(R) could have on its financial statements.












F29
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







20.
            Reconciliation
      between Canadian andUnited
      StatesGenerally Accepted Accounting Principles(cont’d)




In
December 2007, the FASB issued Statement of Financial Accounting Standards
No. 160, “Noncontrolling Interests in Consolidated Financial Statements”
("SFAS 160"). SFAS 160 amends Accounting Research Bulletin 51,
“Consolidated Financial Statements”, to establish accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. It also clarifies that a noncontrolling
interest in a subsidiary is an ownership interest in the consolidated entity
that should be reported as equity in the consolidated financial statements.
SFAS 160 also changes the way the consolidated income statement is
presented by requiring consolidated net income to be reported at amounts that
include the amounts attributable to both the parent and the noncontrolling
interest. It also requires disclosure, on the face of the consolidated statement
of income, of the amounts of consolidated net income attributable to the parent
and to the noncontrolling interest. SFAS 160 requires that a parent
recognize a gain or loss in net income when a subsidiary is deconsolidated and
requires expanded disclosures in the consolidated financial statements that
clearly identify and distinguish between the interests of the parent owners and
the interests of the noncontrolling owners of a subsidiary. SFAS 160 is
effective for fiscal periods, and interim periods within those fiscal years,
beginning on or after December 15, 2008. The Company is currently assessing
the potential impact that the adoption of SFAS 160(R) could have on its
financial statements.






21.           Supplemental Cash Flow
Disclosure




During the year, the Company had cash
flows arising from interest and income taxes paid as
follows:









2007
              
              
              2006
              
              
              2005Interest
    paid
              
              $
              -
              
              
              $
              68,000
              
              
              $
              76,000Income taxes
      paid
              
              $
              -
              
              
              $
              -
              
              
              $
              -








The Company had non-monetary
transactions as follows:




a)
            For the year endedSeptember 30, 2006, Racino acquired licensing rights
      of $1,479,000, of which $1,457,000 was paid by issuing shares and warrants
      (note 12).




22.Segmented
      Information




Prior to fiscal 2007, management
identified two reportable segments, “Newlook” and
“Racino”.  Segmentation was determined on the basis of the types of
goods and services provided.  In 2007 the Company operated in only one
segment known as Corporate.




Newlook consists of Onlinetel Corp. and
Onlinetel Inc., which provides VoIP services to the Canadian long distance
market.  Racino is engaged in a racetrack and casino development
opportunity inSaskatchewan,Canada.










F30
 EIGER TECHNOLOGY,
INC.  AND SUBSIDIARIES
 Notes to Consolidated Financial
Statements
 Years EndedSeptember 30, 2007 , 2006 and 2005







22.           Segmented
Information(cont’d)




Accounting policies for the operating
segments are the same as those described in note 3.  There are no
inter-segment revenues.




The results of the
operations and the amounts invested in these segments are as
follows:


2007
            
            
            2006
            
            
            2005Revenue by
      Segment:Racino
            
            $
            -
            
            
            $
            130,000
            
            
            $
            -Corporate
            
            
            -
            
            
            
            -
            
            
            
            -Total Revenue by
      Segment
            
            $
            -
            
            
            $
            130,000
            
            
            $
            -Net Earnings (Loss) by
      Segment:Racino
            
            $
            -
            
            
            $
            (51,000
            )
            
            $Corporate
            
            
            (877,000
            )
            
            
            557,000
            
            
            
            (703,000
            )Discontinued
            
            
            (979,000
            )
            
            
            (414,000
            )
            
            
            453,000Total Net Earnings (Loss) by
      Segment
            
            $
            (1,856,000
            )
            
            $
            92,000
            
            
            $
            (250,000
            )Amortization by
      Segment:Corporate
            
            $
            12,000
            
            
            $
            -
            
            
            $
            20,000Total Amorization by
      Segment
            
            $
            12,000
            
            
            $
            -
            
            
            $
            20,000







2007
            
            
            2006
            
            
            2005Capital Expenditures by
      Segment:Racino
            
            $
            -
            
            
            $
            -
            
            
            $
            -Corporate
            
            
            5,000
            
            
            
            -
            
            
            
            -Total Capital Expenditures by
      Segment
            
            $
            5,000
            
            
            $
            -
            
            
            $
            -Identifiable Assets  by
      Segment:Newlook
            
            $
            -
            
            
            $
            1,273,000
            
            
            $
            1,762,000Racino
            
            
            -
            
            
            
            1,516,000
            
            
            
            -Corporate
            
            
            3,869,000
            
            
            
            112,000
            
            
            
            167,000Discontinued
            
            
            -
            
            
            
            -
            
            
            
            3,000Total Identifiable Assets by
      Segment
            
            $
            3,869,000
            
            
            $
            2,901,000
            
            
            $
            1,932,000




23.           Comparative
Figures




Certain figures for the years endedSeptember 30,
2006and 2005 have been
reclassified in order to conform with the current year's financial statement
presentation.