**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, 2006







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: 38,860,174 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 Page 38




1




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.




The
      following is a glossary of some terms that appear in the discussion of the
      business of the Company as contained in this Annual Information
      Form.






“Electronic ballast”
            A component that starts a fluorescent
              lamp.“Racino”
            A horrse racing track that also
              includes slot machines, video lottery terminals or other casino features,
              in addition to betting on races.“VoIP”
            Voice
              over Internet Protocol is a term used in telecommunications for a set
              of
              facilities for managing the delivery of voice information over
              broadband.
                A major advantage of VoIP is that it avoids the tolls charged by
                ordinary
                telephone service.






2









TABLE
                  OF CONTENTSPagePART
                  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
              13Item
                  6
              Directors,
                  Senior Management and Employees
              21Item
                  7.
              Major
                  Shareholders and Related Party Transactions
              24Item
                  8.
              Financial
                  Information
              26Item
                  9.
              The
                  Offer and Listing
              27Item
                  10.
              Additional
                  Information
              28Item
                  11.
              Quantitative
                  and Qualitative Disclosure about Market RiskNot
                  Applicable
              37Item
                  12.
              Description
                  of Securities Other than Equity SecuritiesNot
                  Applicable
              37PART
                  IIItem
                  13.
              Defaults,
                  Dividend Arrearages and Delinquencies  - Not
                  Applicable
              37Item
                  14.
              Material
                  Modifications to the Rights of Security Holders and Use
                  of Proceeds – Not Applicable
              37Item
                  15.
              Controls
                  and Procedures
              37Item
                  16.
              Reserved
              38Item
                  16A.
              Audit
                  Committee Financial Expert
              38Item
                  16B.
              Code
                  of Ethics
              38Item
                  16C.
              Principal
                  Accountant Fees and Services
              38Item
                  16D.
              Exemptions
                  from the Listing Standards for Audit Committee
              38Item
                  16E.
              Purchases
                  of Equity Securities by the Company and Affiliated Purchasers
              38PART
                  IIIItem
                  17.
              Financial
                  Statements – Not Applicable
              38Item
                  18.
              Financial
                  Statements
              38Item
                  19.
              Exhibits
              38








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
        18 of
        the attached audited statements. The following table summarizes information
        pertaining to operations of the Company for the last five years ended September
        30, 2006.
 
 2006
              2005
              2004
              2003
              2002Restated
              RestatedWorking
                  Capital
              ($1,829,000)
              ($1,751,000)
              ($3,277,000)
              ($409,000)
              $4,941,000Revenue
              $3,759,000
              $4,861,000
              $5,735,000
              $4,932,000
              $1,917,000Earnings
                  (Loss) fromOperations:
              $92,000
              ($1,200,000)
              ($3,006,000)
              ($1,184,000)
              ($3,032,000)Net
                  Earnigs (Loss):
              $92,000
              ($250,000)
              ($6,006,000)
              ($7,551,000)
              ($5,032,000Earnings
                  (Loss) per Share:
              ($0.00)
              ($0.01)
              ($0.16)
              ($0.21)
              ($0.14)Total
                  Assets:
              $2,901,000
              $1,932,000
              $7,287,000
              $15,778,000
              $23,758,000Net
                  Assets:
              ($28,000)
              ($492,000)
              ($846,000)
              $9,317,000
              $16,418,000Long
                  Term Debt:
              $0
              $0
              $347,000
              $163,000
              $590,000Total
                  Liabilities:
              $2,234,000
              $2,424,000
              $8,133,000
              $6,461,000
              $7,340,000Share
                  Capital:
              $43,839,000
              $43,839,000
              $43,839,000
              $42,685,000
              $42,235,000Stock-Based
                  Compensation
              $1,705,000
              $1,333,000Retained
                  Earnings(Deficit):
              
              ($45,572,000)
              ($45,664,000)
              ($44,685,000)
              ($33,585,000)
              ($26,034,000)Number
                  of Shares:
              38,860,174
              38,860,174
              38,860,174
              37,608,951
              36,615,853











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 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
 
 2006
              2005
              2004
              2003
              2002High
              0.9134
              0.8630
              0.7912
              0.7506
              0.6654Low
              0.8349
              0.7840
              0.7159
              0.6254
              0.6179Average
              0.8750
              0.8176
              0.7550
              0.6854
              0.6359Period
              0.8947
              0.8630
              0.7912
              0.7408
              0.6300
 
  On
        March
        29, 2007 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.
        $0.8637.
 
 The
        following table sets forth, for the most recent previous six months, the
        high
        and low rates of exchange of Canadian dollars into United States dollars.
        The
        latest practicable date for March was on March 29, 2007.
   5
 
 
 MAR
              FEB
              JAN
              DEC
              NOV
              OCT2007
              2007
              2007
              2006
              2006
              2006High
              0.8637
              0.8647
              0.8598
              0.8787
              0.8884
              0.8972Low
              0.8462
              0.8419
              0.8440
              0.8569
              0.8699
              0.8760
 
 B. ***Capitalization
          and indebtedness.***
 
 Not
          Applicable.
 
 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, to increase sales, satisfy or renegotiate
          the forbearance agreement 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 $1,829,000 and an accumulated deficit of
          $45,572,000 as at September 30, 2006. 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.
 
 *Management
          of the Growth of the Company*
 The
          implementation of the Company’s business strategy could result in a period of
          rapid growth. This growth could place a strain on the Company’s managerial,
          operational and financial resources and information systems. 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
          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 adversely affect its ability to sell and deliver its products and
          services.
 
 *Competition*
 The
          Company faces competition in each of its markets and has competitors, many
          of
          which are larger and have greater financial resources than the Company.
          There
          can be no assurance that the Company will be able to continue to compete
          successfully in its markets. Because the Company competes, in part, on
          the
          technical advantages and cost of its 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 Company’s competitive advantage in these products and thereby
          adversely affect the Company’s business and financial
          results.


6
 *New
          Products and Technological Change*
 The
          market for the Company’s products is characterized by rapidly changing
          technology, evolving industry standards and frequent new product introductions,
          which may be comparable or superior to the Company’s products. The Company’s
          success will depend upon market acceptance of its existing products and
          its
          ability to enhance its existing products and to introduce new products
          and
          features to meet changing customer requirements. There can be no assurance
          that
          the Company will be successful in identifying, manufacturing and marketing
          new
          products or enhancing its existing products on a timely and cost-effective
          basis
          or, that such new products will achieve market acceptance. In addition,
          there
          can be no assurance that products or technologies developed by others will
          not
          render the Company’s products or technologies non-competitive or
          obsolete.
 
 *New
          Market Development*
 There
          can
          be no assurance that the Company will be able to identify, develop and
          export to
          countries or geographic areas in which it is not presently selling.
 
 *Intellectual
          Property*
 The
          Company has not obtained patent protection nor registered trademarks or
          copyrights for all of its proprietary technology or products. As the Company
          has
          not protected all of its intellectual property, its business may be adversely
          affected by competitors copying or otherwise exploiting features of the
          Company’s technology, products, information or services.
 
 *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 and attract highly skilled persons.
          The
          employment market for skilled technology employees is tight. There can
          be no
          assurance that the Company will be able to attract and retain employees
          with the
          necessary technical and technological 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
          develop
          new products, its ability to grow earnings and its ability to accelerate
          revenue
          growth.
 
 *Relationship
          with Production Employees*
 Although
          the employees of the Company are not unionized, there can be no assurance
          that
          this will not occur. Management of the Company is of the opinion that the
          unionization of its operations would have a detrimental effect on the Company’s
          ability to remain competitive.
 
 *Uncertain
          Operating Results*
 The
            Company’s operating results have varied and may continue to vary significantly
            depending on such factors as the timing of new product announcements,
            increases
            in the cost of raw materials and changes in pricing policies of the Company
            and
            its competitors. The market price of the Shares may be highly volatile
            in
            response to such fluctuations.




7











*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. Similarily,
      material appreciation of the Canadian dollar against the U.S. dollar may
      decrease certain costs impacting the Company's profitability and cash
      flow.





*Employment
      Contracts/Reliance Upon Officers*


The
      Corporation has not entered into an employment contract with all of its
      executive officers, upon whose personal efforts and abilities the Corporation
      is
      largely dependent. The loss or unavailability to the Corporation of these
      individuals may have a materially adverse effect upon the Corporation's
      business.





*Legal
      Proceedings Against Foreign Persons*


The
      Corporation’s jurisdiction of incorporation falls under the laws of the Province
      of Ontario, Canada, and all of the Corporation’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
      Corporation 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 Corporation 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. 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”) for $275,000, plus options entitling the holders to acquire
      up to 250,000 common shares of the Company. 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 Royale,
      and began to implement a new strategy focusing on the conduct of horse races
      and
      horseracing track development opportunities.






8




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. This was affected through payment of
        a US
        $1,000,000 cash consideration and 500,000 common shares of the Company issued
        for a combined aggregate value of US $1,500,000. Additionally, 600,000 common
        shares of the Company were issued on February 29, 2000 pursuant to this
        agreement. 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. Eiger has issued 1,800,000 shares
        on a
        pro rata basis for 100% of the shares of Onlinetel, Inc.
 As
        consideration for the acquisition of Onlinetel, Inc. Eiger was to issue a
        maximum of 9,000,000 common shares comprised of 1,800,000 shares issued to
        the
        former shareholders of Onlinetel and up to an additional 7,200,000 shares
        pursuant to an earn out provision totalling 1,800,000 shares per year, over
        a
        period of four years, with possible extension provisions for an additional
        period of four years, based on Onlinetel’s ability to meet the following
        operating benchmarks and Eiger’s approval:




2002
              2003
              2004
              2005Revenue
              $19,083,488
              $37,347,766
              $50,849,180
              $59,867,184Net
                  Income
              $2,442,015
              $6,212,532
              $9,352,747
              $13,848,741
   Under
        the
        formula in the agreements, if any of the above targets is not met in any
        of the
        above noted years, any gross sales or net income earned or achieved in that
        year
        is added to the targets of subsequent years. None of these targets have been
        met.
  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. Immediately prior to the
        transaction, Eiger owned 100% of the shares of Onlinetel, and over 80% of
        the
        shares of Newlook.
   9
   **Recent
        Financings**
 
 *2006
        Newlook Private Placement*
 On
        February 8, 2006, Newlook completed a private placement of 500,000 units
        of its
        securities at a price of $0.75 per unit. Each unit was comprised of one share
        and one-half warrant. Each warrant is convertible to one common share for
        a
        period of one year at an exercise price of $1.00 per share. The private
        placement was fully subscribed, for which Newlook received proceeds of $375,000.
        All warrants expired unexercised.
 
 *2004
        Newlook Private Placement*
 On
        March
        18, 2004, Newlook closed a private placement of 1,000,000 units of its
        securities at a price of $1.00 per unit. Each unit was comprised of one share
        and one warrant. Each warrant was convertible to one common share for a period
        of one year at an exercise price of $1.25 per share. The warrants’ exercise
        price was subsequently re-priced to $0.50 per share and the term extended
        to
        March 17, 2006. The private placement was fully subscribed, for which Newlook
        received proceeds of $1,000,000. Newlook subsequently received $470,000 from
        the
        exercise of the warrants.
  *March
        2003 Private Placement*
 On
        March
        27, 2003, the Company closed a private placement of units at $0.45 with a
        1-year
        warrant to purchase an additional share for $0.55. The shares and warrants
        comprising the private placement carried a hold period of four months commencing
        from the date of their issuance, being July 26, 2003. Insiders of the company
        purchased a total of 310,598 units at $0.46 per unit. The higher price to
        insiders resulted in the issuance of 993,098 units for total proceeds of
        $450,000.
  
  **Other
        Recent Developments**
  *Eiger
        to Divest Newlook Subsidiary*
  On
        February 21, 2007 the Company agreed to divest itself of its ownership in
        Newlook. Eiger will also be looking towards this strategy with its ownership
        in
        Racino Royale. This divestiture will enable Eiger to focus solely on its
        acquisition strategy as well as to ensure meeting its capital requirements.
        It
        is projected that the Newlook divestiture, if completed, would net an estimated
        $2 million. The divestiture of Newlook is subject to all regulatory body
        approvals.
  *Racino
        Revitalized Regional Harness Racing in Saskatchewan*
  Racino
        operated eight weeks of harness racing at Big Valley Raceway in Craven,
        Saskatchewan. The race meet started on July 23, 2006, and ran every Sunday
        thereafter to September 10, 2006.
  *Development
        Rights Acquired for Saskatchewan Racetrack*
 On
        June
        21, 2006, Racino announced that it had acquired the exclusive rights agreement
        for a racino development opportunity in Regina, Saskatchewan, with the
        Saskatchewan Standardbred Horsemen’s Association (“SSHA”). Since the province
        already offers Video Lottery Terminal (VLT) gaming, Racino and the SSHA will
        be
        vying for VLT operation at a new facility.
   10
  *New
        Management for Racino*
 On
        June
        13, 2006, Racino announced the appointment of John Simmonds to the positions
        of
        President and Chief Executive Officer with a mandate to implement a corporate
        strategy focusing on the conduct of horse races and horse racing track
        development opportunities. Racino also appointed Jason Moretto as Chief
        Financial Officer. Both were named to Racino’s Board of Directors. Gerry
        Racicot, prior Chief Executive Officer, was appointed Chairman.
 
  ***B.***
            ***Business
                overview.*** 
 The
        Company has two principal subsidiaries, namely, Newlook and Racino.
  *NEWLOOK
        INDUSTRIES CORP.*
  Newlook
        has a 100% ownership stake in Onlinetel Corp., a next-generation
        telecommunications software and services company, which harnesses the power
        of
        proprietary soft-switch technology to deliver state of the art 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.
  By
        leveraging its technology platform and scalable network infrastructure,
        Onlinetel has taken advantage of disruptive pricing and delivers multiple
        communication offerings to its customers. Onlinetel offers telephony services
        for international calling, long distance calling subscriptions plans and
        Internet access. Through its Intelliswitch application, Onlinetel has pioneered
        and developed a new media for advertisers, enabling individuals and businesses
        to benefit from free long distance while sponsors benefit from one-to-one
        advertisements to callers. Through the use of the proprietary “Ad-Tree”
software, sponsors are able to focus on a targeted consumer base.
  Onlinetel
        delivers toll-quality communications at the lowest long distance rates possible.
        With reduced investment cost burdens, Onlinetel’s soft-switch technology
        reliably scales to service millions of callers. Onlinetel’s continued expansion
        of its own national network along with seamless and virtual connections
        worldwide with leading carriers extends Onlinetel’s reach to the global
        community.
  Onlinetel
        began in 1994 as Stratford Telecom, providing flat-rate phone service between
        Stratford and Kitchener-Waterloo, Ontario. In 1997, Eyesurf was founded,
        offering Internet service for the Kitchener-Waterloo region. Onlinetel was
        incorporated in 2000. In August 2001, Eiger acquired Onlinetel, Stratford
        Telecom and Eyesurf. In April 2002, Onlinetel launched the first VoIP-based
        pay-per call, dial-around service in Ontario and in the next month established
        a
        national VoIP network from Victoria, BC to Halifax, NS. In March 2004, Eiger
        took Onlinetel public through Newlook. The
        shares of Newlook trade on the TSX-Venture Exchange.
   11
  *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.
 
 Since
        then, as a continuing show of goodwill towards the province’s horsemen, as well
        as to prove to the government that it is committed to developing racing in
        Saskatchewan, Racino is currently discussing operating another standardbred
        meet
        in Craven in 2007.
 Racino
        has helped to revitailize the province’s standardbred racing industry, which had
        previously been in a state of decline. Racino and the SSHA’s long term goal is
        to build a racino in Regina. The racino model relies on slots and/or VLTs
        to
        subsidize the racing product, and has more than proven itself across Canada,
        most notably in Ontario.
  
 **Description
        of Principal Products**
  Newlook
        serves the retail and business market segments of the long distance industry
        across Canada through its subsidiary, Onlinetel. Onlinetel’s foundation blocks
        are a national and scalable VoIP network infrastructure, toll-quality service
        and best long distance rates possible. Upon these foundation blocks, Onlinetel
        provides multiple innovative products and services, producing four main revenue
        streams. These revenue streams include:
  1.
            Call
                Zone/Call World - Free, sponsor-subsidized, ad-based provincial calling
                with no-ad international calling.  2.
            Subscription
                Plans - Traditional long distance and Internet plans for the residential
                and small office/home office market.  3.
            Advertising
                - New media services for sponsors on the Call Zone free calling
                network.  4.
            10-10-580
                - Dial-around services for pay-per-call domestic and international
                calling.  Racino
        does not currently sell any products. At this time, it is in the planning
        stages
        to operate race meets in Saskatchewan for the 2007 season.
  **Sales
          and Revenue Analysis**
  Sales
                  Fiscal 2006
                  Fiscal 2005
                  Fiscal 2004Telecommunication Services
                  $ 3,629,000
                  $ 4,857,000
                  $ 5,735,000Horseracing Services
                  $ 130,000
                  -
                  -
  
 The
          VoIP-based telecommunication services are offered to the Canadian long
          distance
          market. The horseracing services relate to activities in Saskatchewan,
          Canada.
          The Company’s main business is not materially seasonal.
  **Marketing
          and Distribution Channels**
 
 Newlook’s
          Onlinetel subsidiary markets its telephony services through various advertising
          and promotional medium, including its own advertising based calling network
          and
          internal sales staff. By focusing on delivering Canadians a high-quality,
          premium-value service offering competitive national rates, the subscription
          base
          has expanded primarily through customers’ word of mouth.
  Racino
          operations have been limited to operating a 2006 race meet in Saskatchewan.
          The
          2006 racing schedule was promoted through word-of-mouth and some minor
          advertising.
  ***C.***
              ***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,
          2006:
  **Name
                    of Subsidiary**
                **Jurisdiction
                    of**
                  **Organization**
                **Percentage
                    of Voting Securities Owned of Controlled**Newlook
                    Industries Corp. (“Newlook”)
                British
                    Columbia
                78.5%Racino
                    Royale, Inc. (“Racino”)
                Nevada
                50.4%
 
   12
  The
            following is an organizational chart showing the Company’s material
            subsidiaries:
 
  ***D.***
                ***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 2006 and 2005*
 
 Consolidated
            cash, cash equivalents and short-term investments at September 30, 2006
            was
            $102,000 compared to $25,000 at September 30, 2005. Eiger has no bank
            debt
            facilities. Over the same period, Eiger’s consolidated accounts receivable
            decreased to $262,000 from $586,000, as a lower emphasis was put on the
            dial-around 10-10-580 business resulting in decreased service volumes,
            which
            relies on a third party for billing and collection services. Consolidated
            accounts payable and accrued charges increased marginally to $1,077,000
            from
            $1,030,000 over the same period. The Company focused on reducing debt
            (other
            payable and capital lease obligations described in notes 12 and 11,
            respectively, in the consolidated financial statements for the year ended
            September 30, 2006) over 2006 and as such, debt of $699,000 at year-end
            improved
            from $1,005,000 at September 30, 2005. Capital lease obligations in the
            amount
            of $82,000 at September 30, 2005, were fully discharged in 2006 as equipment
            leases were fully paid down.
 
 13
  The
            Company’s deferred revenue of $458,000 at year-end was 18% higher than $387,000
            at September 30, 2005 due to a higher weighted-average annual subscription
            base
            for the Call Zone calling plan. 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.
 
 The
            Company’s cash-based working capital (net of deferred revenue) of negative
            $1,829,000 at September 30, 2006 increased slightly from negative $1,751,000
            at
            the prior year primarily due to the decline in accounts receivable from
            lower
            dial-around service volumes outweighing the decrease in debt over
            2006.
 
 On
            February 8, 2006, the Eiger subsidiary, Newlook, closed a non-brokered
            private
            placement of 500,000 units in its securities at a price of $0.75 per
            unit. Each
            unit is comprised of one share and one-half share purchase warrant. The
            warrants, each of which is convertible to one common share upon exercise,
            are
            exercisable for a period of one year at an exercise price of $1.00 per
            warrant.
            As the private placement was fully subscribed, Newlook received proceeds
            of
            $375,000. If the warrants are fully exercised, Newlook will receive an
            additional $250,000.
 
 The
            Company’s consolidated financial statements for the year ended September 30,
            2006 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 $1,829,000 as at September 30, 2006
            (2005 -
            $1,751,000; 2004 - $3,277,000) and an accumulated deficit of $45,572,000
            as at
            September 30, 2006. 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.
 
  14
  *Comparative
            Analysis Between Fiscal 2005 and 2004*
 
 For
            the
            fiscal year ended September 30, 2005, Eiger’s restated loss from continuing
            operations of $1.2 million ($0.03 per share) improved 60% from a restated
            $3.0
            million ($0.08 per share) during the prior year. These include net restated
            non-cash expenses amounting to $697,000 in fiscal 2005 and a restated
            $768,000
            in fiscal 2004. Reported restated net loss (including non-recurring and
            discontinued operations) of $250,000 ($0.006 per share) compared to a
            restated
            $6.0 million ($0.16 per share) during the previous year. Revenues for
            the period
            were $4.9 million, compared to $5.7 million in the preceding year.
 
 Eiger’s
            consolidated operating expenses from continuing operations of $2.5 million
            (including 697,000 of non-cash items) for the year ended September 30,
            2005
            decreased 37% from a restated $4.0 million (including 768,000 of non-cash
            items)
            in fiscal 2004. 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 associated with sales. Consolidated
            SG&A, as restated, of $1.6 million for the year ended September 30, 2005
            decreased 44% from $3.0 million in fiscal 2004.
 
 On
            December 15, 2004, KTI entered into an agreement to sell all of its interest
            in
            KTNA and the fixed assets of its subsidiary, KTA. As such, KTI is no
            longer
            engaged in the business of manufacturing, distributing or selling electronic
            ballasts and therefore, KTI results for the fiscal year are presented
            as
            discontinued operations on the financial statements for fiscal
            2005.
 
 Subsidiary
            Newlook’s total revenues for fiscal 2005 were $4.9 million versus $5.7 million
            in the previous year. Net loss from continuing operations for the fiscal
            year
            was $541,000 ($0.02 per share), compared to $2.4 million ($0.14 per share)
            in
            fiscal 2004. Net loss was $580,000 ($0.02 per share; including $39,000
            from
            discontinued operations) vis a vis a net loss of $2.7 million ($0.14
            per share;
            including $288,000 from discontinued operations) in the prior year.
 
 During
            the fiscal year, Newlook’s gross margin increased to $1.3 million (27% margin)
            in fiscal 2005 from $960,000 (17% margin) over the prior period, despite
            a 15%
            decline in revenues year-over-year. The mix in revenues changed substantially
            during the fiscal year as the Newlook focused on Call Zone, a
            sponsor-subsidized, ad-based provincial calling service launched in October
            2003
            as well as the Call World international calling service launched in March
            2004
            that is made available to all Call Zone subscribers. Call World currently
            offers
            special rates such as to Canada and the U.S. for 2.9 cents per minute
            among
            others.
   15
  The
            improvement in Newlook’s gross profit margin in the year was due mainly to a
            change in the composition of sales and lower network costs. A significant
            portion of revenues in fiscal 2005 came from a corporate focus on Call
            Zone,
            which was more established relative to the prior “launch” year. In fiscal 2004,
            the Newlook launched its own proprietary ad-based calling network. As
            such, the
            focus over fiscal 2004 had been to build up a proprietary subscriber
            base at the
            expense of generating a large proportion of revenues from advertising.
            To
            attract sponsors to advertise on the Call Zone network, a large enough
            pool of
            advertising capacity has to be created to be able to offer the exposure
            certain
            sponsors require to meet their basic advertising demands. It is anticipated
            that
            the initiatives developed in fiscal 2004 and 2005 to build, develop and
            expand
            the proprietary ad-based network will provide the Newlook significant
            opportunities to sell sponsor time on the network in fiscal 2006 and
            into the
            future. As advertising becomes a greater component of overall revenues
            in the
            future, it is anticipated that gross margins will increase
            accordingly.
 
 Newlook’s
            SG&A expenses decreased in fiscal 2005 by 49% to $1.2 million from $2.3
            million in the prior year due mainly to a strategy to reduce costs such
            as
            advertising, promotion, human resources and those related to the development
            and
            deployment of the expanded VoIP system. A major advertising and promotional
            campaign was embarked in fiscal 2004 to coincide with the expansion of
            the Call
            Zone in Ontario and Quebec. The initiative was not met with any success.
            In
            fiscal 2005, the size of management had been scaled back and all call
            centre
            functions became in-house after having been expanded and outsourced to
            accommodate for enhanced hours of operation and French-speaking capabilities
            in
            the previous year. Additionally, Onlinetel was located in Toronto for
            the entire
            year, having been in Kitchener for most of fiscal 2004.
 
 Newlook’s
            financial expenses decreased to $157,000 during the fiscal year from
            $268,000 in
            the prior year chiefly due to the interest paid as part of the equipment
            lease
            obligations the Newlook made in order to expand its VoIP network and
            establish
            Call Zone in Ontario, Quebec and Alberta during fiscal 2004. The lease
            terms
            established were aggressive, in that they are to be paid over a 24 month
            period.
            As these terms expire between May 31, 2005 to March 31, 2006, financial
            expenses
            will likely decline and the resultant cash flow is anticipated to increase
            dramatically.
 
 For
            fiscal 2005, Newlook’s positive EBITDA (earnings before interest, taxes,
            depreciation and amortization) of $56,000 (including $70,000 of non-cash
            expenses) improved significantly from an EBITDA loss of $1,363,000 in
            the prior
            year. Cash EPS was $0.00 for the fiscal year versus negative $0.09 in
            the
            previous year.
 
 In
            2004,
            Newlook had overpaid commodity taxes to the provincial government in
            the amount
            of $258,000. Even though this overpayment was discovered and refunded
            in 2005,
            the correction of this error has been accounted for retroactively with
            a
            restatement of the prior year’s amounts. As a result of this restatement,
            Newlook’s fiscal 2004 sales and accounts receivable were increased by $258,000
            and the net loss from continuing operations decreased by $258,000.
   16
  During
            fiscal 2004, Newlook management determined that there was an impairment
            of the
            goodwill and as a result, goodwill of $336,172 was charged to income
            for the
            year. Additionally, a $98,000 future income tax asset taken in fiscal
            2003 was
            reversed during the subsequent year as management determined that it
            not likely
            at this point to be realized through the reduction of future income tax
            payments.
 
 Eiger
            believes it has sufficient capital to support expected operating levels
            at its
            current subsidiaries. Consolidated cash and marketable securities at
            September
            30, 2005 was a restated $25,000 compared to a restated $8,000 at September
            30,
            2004. The Company’s consolidated accounts receivable decreased to $586,000 from
            $1.1 million and consolidated accounts payable, accrued liabilities and
            other
            payable increased to $2.0 million from $1.9 million over the year ended
            September 30, 2004. Total consolidated debt (capital lease obligations)
            at
            fiscal year end was $0 compared to $82,000 at September 30, 2004.
 
 At
            September 30, 2005, Newlook’s cash position of $39,000 had not changed
            significantly from $55,000 at the prior year-end. Net equipment decreased
            by 27%
            to $1.1 million at year-end due to amortization taken on the telecommunications
            equipment acquired for the expansion of Onlinetel’s VoIP telecom network in
            Ontario, Quebec and Alberta.
 
 Newlook’s
            accounts receivable of $584,000 dropped from $999,000 over the year as
            a lower
            emphasis was put on the dial-around business, which relies on a third
            party for
            billing and collection services. To a lesser extent, the wholesale business
            was
            more prevalent in fiscal 2004, and is more collection-intensive than
            the other
            revenue streams. Additionally, the fiscal 2004 year end receivables balance
            has
            been restated to include $258,000 owing from the provincial government
            for
            commodity tax overpayments discovered in 2005.
 
 Newlook’s
            accounts payable and accrued charges of $727,000 and other payable of
            $923,000
            at September 30, 2005 were collectively lower than $1.9 million in the
            prior
            year as positive cash flow was applied to pay down supplier accounts.
            Long-term
            debt including current portion decreased to $82,000 at year end from
            $462,000 at
            the previous year as a result of the equipment leases being paid down
            and
            expiring. Deferred revenue of $387,000 in fiscal 2005 relates to subscription
            fees for the Call Zone calling plan launched during the prior year. 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.
            Advances from parent company increased marginally over the year to $2,289,000
            from $2,052,084 to reflect payments made by Eiger for Newlook.
 
 Concurrent
            with the closing of the Onlinetel acquisition in fiscal 2004, Newlook
            closed a
            private placement of 1,000,000 units of its securities at a price of
            $1.00 per
            unit. Each unit was comprised of one share and one warrant. Each warrant
            is
            convertible to one common share for a period of two years at an exercise
            price
            of $0.50 per share. The private placement was fully subscribed, for which
            Newlook received proceeds of $1,000,000. If all warrants are exercised,
            Newlook
            will receive an additional $500,000 in fiscal 2006.
   17
  During
            fiscal 2004, Newlook management determined that there was an impairment
            of the
            goodwill and as a result, goodwill of $336,172 was charged to income
            for the
            year. Additionally, a $98,000 future income tax asset taken in fiscal
            2003 was
            reversed during the subsequent year as management determined that it
            not likely
            at this point to be realized through the reduction of future income tax
            payments.
 
 
 ***B.***
                ***Liquidity
                    and capital resources****.* 
  Consolidated
            cash, cash equivalents and short-term investments at September 30, 2006
            was
            $102,000 compared to $25,000 at September 30, 2005. Eiger has no bank
            debt
            facilities. Over the same period, Eiger’s consolidated accounts receivable
            decreased to $262,000 from $586,000, as a lower emphasis was put on the
            dial-around 10-10-580 business resulting in decreased service volumes,
            which
            relies on a third party for billing and collection services. Consolidated
            accounts payable and accrued charges increased marginally to $1,077,000
            from
            $1,030,000 over the same period. The Company focused on reducing debt
            (other
            payable and capital lease obligations described in notes 12 and 11,
            respectively, in the consolidated financial statements for the year ended
            September 30, 2006) over 2006 and as such, debt of $699,000 at year-end
            improved
            from $1,005,000 at September 30, 2005. Capital lease obligations in the
            amount
            of $82,000 at September 30, 2005, were fully discharged in 2006 as equipment
            leases were fully paid down.
  The
            Company’s deferred revenue of $458,000 at year-end was 18% higher than $387,000
            at September 30, 2005 due to a higher weighted-average annual subscription
            base
            for the Call Zone calling plan. 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.
  The
            Company’s cash-based working capital (net of deferred revenue) of negative
            $1,829,000 at September 30, 2006 increased slightly from negative $1,751,000
            at
            the prior year primarily due to the decline in account receivable from
            lower
            dial-around service volumes outweighing the decrease in debt over
            2006.
   On
            February 8, 2006, the Eiger subsidiary, Newlook, closed a non-brokered
            private
            placement of 500,000 units in its securities at a price of $0.75 per
            unit. Each
            unit is comprised of one share and one-half share purchase warrant. The
            warrants, each of which is convertible to one common share upon exercise,
            are
            exercisable for a period of one year at an exercise price of $1.00 per
            warrant.
            As the private placement was fully subscribed, Newlook received proceeds
            of
            $375,000. All warrants expired unexercised.
   18
  The
            Company’s consolidated financial statements for the year ended September 30,
            2006 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 $1,829,000 as at September 30, 2006
            (2005 -
            $1,751,000; 2004 - $3,277,000) and a accumulated deficit of $45,572,000
            as at
            September 30, 2006. 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.
  Pursuant
            to a Forbearance Agreement signed on September 30, 2005 with a
            telecommunications company, the Company’s subsidiary, Onlinetel Corp. is
            obligated to pay a principal amount of $580,000 (2005 - $899,000, 2004
            - Nil)
            plus interest calculated at an annual rate of 8% per annum. The payable
            is
            secured by an interest in all of the present and future personal property
            of
            Onlinetel Corp., ranking senior in priority to all liens security interest,
            encumberances and charges. Newlook unconditionally and irrevocably guarantees
            payment to the obligation. Amendments to the Forbearance Agreement were
            signed
            on May 25, 2006 and December 5, 2006. Newlook made payments towards the
            outstanding balance of $286,619 on April 11, 2006 and $124,000 on November
            9,
            2006. The remaining amount is due February 28, 2007. Due to these payments,
            associated interest charges should be lower going forward.
  On
            November 2, 2005, the Company entered into a 5 year operating lease agreement
            for premise occupancy, effective February 1, 2006. Under the terms of
            the
            agreement, the Company is committed to rental payments as follows:
   2006
                  
                  $
                  30,0002007
                  
                  
                  30,0002008
                  
                  
                  30,0002009
                  
                  
                  30,0002010
                  
                  
                  30,000$
                  150,000
   19
  ***C.***
                  ***Research
                      and development, patents and licenses, etc***. 
 Research
              and development expenses were nil (nil: 2005; nil: 2004) for the year
              ended
              September 30, 2006.
  On
              June
              14, 2006, Racino acquired the exclusive rights for a racetrack development
              opportunity in Saskatchewan, Canada. The consideration of $1,318,000
              US (or
              $1,479,000 CAD as translated) for the acquired rights consisted of
              the
              following: (a) cash of $23,000 US, (b) issuance of 5,000,000 shares
              of Racino at
              a price of $0.24 US per share for a total amount of $1,200,000 US,
              (c) warrants
              in the equity of Racino valued at $94,000 US, and (d) legal costs of
              $1,000 US.
              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
  ***D.***
                  ***Trend
                      information****.* 
 The
              Company is not significantly affected by any particular trends.
 
 ***E.***
                  ***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.
 
 ***F.***
                  ***Tabular
                      disclosure of contractual
                      obligations.*** The
                following table sets forth the Company’s contractual obligations for the periods
                indicated:
  Payments
                        Due By PeriodContractual
                        Obligations:
                    Total
                    <
                        1 year
                    1-3
                        years
                    4-5
                        years
                    >
                        5 yearsLong-Term
                        Debt(1)
                    $599,000
                    $599,000
                    nil
                    nil
                    nilOccupancy
                        Agreement(2)
                    $417,000
                    $77,000
                    $306,000
                    $34,000
                    nil
 (1)  *For
              details of the Company debt, see note 12 to the consolidated financial
              statements.*
   20
 **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:
 
 **Gerry
              A. Racicot**   Norwich
              ON   President,
              C.E.O., and Director
 Director
              since August 21, 1992.
 Mr.
              Racicot has a long career in administration, management and self-employment.
              The
              majority of these years were spent as an Investment Account Executive
              at a major
              Canadian brokerage house (Burns Fry), import/export wholesale distribution
              and
              retail business (Red Mountain Holdings Inc. - Stedmans). Mr. Racicot
              is wholly
              involved in managing Eiger’s business operations.
 
 **Jason
              R. Moretto**   Vaughan
              ON   C.F.O.
              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.
 
 **John
              G. Simmonds**   King
              ON   C.O.O.
              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.
 
 **Sidney
              S. Harkema**   Orillia
              ON   Director
 Director
              since August 22, 1992.
 Mr.
              Harkema founded and built one of Canada’s largest privately owned transport and
              express companies (Harkema Trucking Group). He served as President
              and Chairman
              of the Board for 27 years. He has since sold the entire trucking operation,
              cartage equipment and all 18 terminals located throughout the country
              and has
              devoted his time to public service organizations (principally as Chairman
              of the
              Huntley St. Group of Ministries). Mr. Harkema is not involved in managing
              Eiger’s daily business operations.
 
 **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.
   21
  **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.
 
 ***B.***
                  ***Compensation.*** 
 For
              the
              year ended September 30, 2006 Gerry Racicot was compensated $150,000
              for his
              role as President of the Company. For the same period, Jason Moretto
              received
              $150,000 for his role as CFO of the Company.
 
 A
              total
              of 6 persons served as members of the administrative, supervisory or
              management
              bodies of the subsidiaries of the Company during fiscal 2006. The aggregate
              remuneration paid to such persons was approximately $300,000.
 
 The
              following is a list of stock options granted during the last full fiscal
              year to
              members of the Company’s executives.
 
 
 Name
                    Quantity
                    Exercise price
                    ExpiryGerry
                        Racicot
                    425,000
                    $0.40
                    April
                        20, 2011Jason
                        Moretto
                    Nil
                    n/a
                    n/a
 None
              of
              the above options were exercised during the Company’s most recently completed
              financial year.
 
 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.
   22
  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 16 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:
  Location
                    Administrative/Sales/Clerical
                    Marketing
                    ManufacturingCanada
                    16
                    0
                    0
 
 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.
 
   23
  ***Share
              ownership.***
  **Name
                        and Address**
                    **Occupation**
                    **Director
                        Since**
                    **Number
                        of Voting Shares Beneficially Owned or**
                      **Controlled
                        Directly or Indirectly****Gerry
                        A. Racicot**
                      Norwich,
                        ON
                    President,
                        Chief Executive Officer and Director
                    August
                        21, 1992
                    1,724,880(1)**Jason
                        R. Moretto**
                      Vaughan,
                        ON
                    Chief
                        Financial Officer and Director of the Company;
                    January
                        5, 2004
                    164,496(2)**John
                        G. Simmonds**
                      King,
                        ON
                    Director
                        of the Company; President & CEO of Simmonds Mercantile &
                        Management Inc.
                    September
                        20, 2005
                    Nil(3)**Sidney
                        S. Harkema**
                      Orillia,
                        ON
                    Director
                        of the Company; Retired
                    August
                        21, 1992
                    1,514,100(4)**Brian
                        Cato**
                      Ajax,
                        ON
                    Director
                        of the Company; Consultant
                    March
                        21, 2006
                    Nil(5)**Neal
                        Romanchych**
                      Aurora,
                        ON
                    Director
                        of the Company; Self-Employed
                    March
                        21, 2006
                    Nil(6)
 
 (1)
              Mr.
              Racicot holds options to purchase 2,050,000 shares.
 (2)
              Mr.
              Moretto holds options to purchase 810,000 shares.
 (3)
              Mr.
              Simmonds holds no options.
 (4)
              Mr.
              Harkema holds options to purchase 110,000 shares.
 (5)
              Mr.
              Cato holds no options.
 (6)
              Mr.
              Romanchych holds no options.
 
 
 **Name**
                    **Number
                        of Shares Beneficially Owned or Controlled Directly or
                        Indirectly**
                    **Percentage
                        of Total Shares
                        Issued**(1)**Directors
                        and Officers as a Group**
                    3,403,476
                    8.8%
 (1)
              Based on a total of 38,860,174 common shares issued and outstanding
              as at March
              27, 2007.
  At
              the
              discretion of the Board, the stock option plan may be exercised in
              consideration
              of
 services
              rendered and to be rendered by key personnel and consultants to the
              Company,
 its
              subsidiaries and affiliates.
 
 **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
                        %
   24
  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 16 of the consolidated
              financial statements for the year ended September 30, 2006, are in
              the normal
              course of business and are recorded at the carrying value. Inter-company
              transactions and balances are eliminated upon consolidation.
 
 Service
              fees charged by directors, officers or corporations owned by management
              personnel during the fiscal 2006 totaled $300,000. Included in accounts
              payable
              at September 30, 2006 is a payable to directors, officers or corporations
              owned
              by management personnel of $387,750.
 
 
 C. ***Interests
              of experts and counsel.***
 
 Not
              Applicable
 
  25
  **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
 $3,759,000    $Nil    0%
 
 ***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.
 
 
 26
 
 ***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
                          EndedFebruary,
                          2007
                      0.14
                      0.12
                      535,500January,
                          2007
                      0.15
                      0.11
                      966,000December,
                          2006
                      0.14
                      0.10
                      1,216,700November,
                          2006
                      0.20
                      0.10
                      1,555,800October,
                          2006
                      0.14
                      0.10
                      725,500Quarter
                          EndedSeptember
                          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
                      3,756,600Year
                          EndedSeptember
                          30, 2004
                      1.40
                      0.36
                      22,063,300September
                          30, 2003
                      0.85
                      0.42
                      14,546,807September
                          30, 2002
                      2.24
                      0.37
                      32,601,699
  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.
  27
  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”.
 
 The
              common shares were listed on the NASD OTC Electronic Bulletin Board
              on October
              8, 1997 and trade under the symbol “ETIFF”.
 
 
 D. ***Selling
              shareholders.***
  Not
              Applicable.
 
 ***E.***
                  ***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.
    28
 
 ***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.
   29
  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 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.
   30
  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 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:
   31
  (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
 
 (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.
   32
  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 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.
   33
  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 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.
   34
  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, 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.
   35
  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 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.
  36
  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.
 
 **Item
              15. Controls and Procedures.**
  Our
                Chief
                Executive Officer and President, Gerry Racicot and our Chief Financial
                Officer,
                Jason Moretto, 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.
 
 **15.D**  **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.
    37
 
 **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 Sidney Harkema, 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. The code of ethics may be viewed on the
              Company’s
              website, www.eigertechnology.com.
 
  **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 $40,000 for the year ending
                September
                30, 2006 and $18,000 for the year ending September 30, 2005.
 
 **(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 $5,000 for the year ended September 30, 2006 and
                $2,000 for
                the year ended September 30, 2005 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, 2006 and $nil in the year ending September 30, 2005.
 
 **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.
   **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, 2006, September 30, 2005 and September 30, 2004.
 
 
  **Item
              19. Exhibits.**
   
  
 **Exhibit
                        Number**
                      
                      **Page**1.1
                      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*
                      Incorporatedby
                        reference, as previously filed with the Commission
 
 
   
 .
 
 
 
 **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.
 
 /s/
              GERRY RACICOT
 
 Gerry
              Racicot
 President
              and C.E.O.
  March
              27,
              2007


38


**EIGER
        TECHNOLOGY, INC.**
  **AND
        SUBSIDIARIES**
  CONSOLIDATED
        FINANCIAL STATEMENTS
  YEARS
        ENDED SEPTEMBER 30, 2006, 2005 (RESTATED) AND 2004 (RESTATED)
  (EXPRESSED
        IN CANADIAN DOLLARS)
  **CONTENTS**
    
 Auditors' Report
              **1**Comments by Auditors on Canada - United
                States Reporting Differences
              **2**Consolidated Balance Sheets
              **3**Consolidated Statements of
                Operations
              **4**Consolidated Statements of Cash
                Flows
              **5**Notes to Consolidated Financial
                Statements
              **6-32**





-1-
 **AUDITORS'
          REPORT**
  To
          the
          Shareholders of
 **Eiger
          Technology, Inc.**
  We
          have
          audited the consolidated balance sheets of **Eiger
          Technology, Inc.** as at
          September 30, 2006, 2005 and 2004 and the consolidated statements of operations
          and cash flows for each of the years in the three-year period ended September
          30, 2006. 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, 2006,
          2005
          and 2004 and the results of its operations and its cash flows for the years
          in
          the three-year period ended September 30, 2006 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 at September 30, 2005
          and
          2004 and for the years then ended have been restated. We therefore withdraw
          our
          previous report dated December 22, 2005 on those financial statements originally
          filed.
   "SF
          Partnership, LLP"
 CHARTERED
          ACCOUNTANTS
 The
          Madison Centre
 4950
          Yonge Street, Suite 400
 **Toronto,
          Ontario Canada  M2N 6K1**
 Telephone:
          416-250-1212   Fax:
          416-250-1225   email: general@sfgroup.ca
 December
          29, 2006
   -2-
 
 **EIGER
            TECHNOLOGY, INC. AND SUBSIDIARIES**
 Consolidated
            Balance Sheets
 September
            30, 2006, 2005 and 2004
  **2006**
                
                
                2005
                
                
                2004Restated
                  - (Note 4)
                
                
                Restated
                  - (Note 4)**ASSETS****Current**Cash
                
                **$**
                **75,000**
                
                $
                25,000
                
                $
                -Short‐term investments
                
                
                **27,000**
                
                
                -
                
                
                8,000Accounts receivable, net allowance for doubtfulaccounts (note 6)
                
                
                **262,000**
                
                
                586,000
                
                
                1,087,000Prepaid expenses and sundry assets
                
                
                **34,000**
                
                
                59,000
                
                
                21,000Current assets of discontinued operations (note 7)
                
                
                **-**
                
                
                3,000
                
                
                3,393,000Income taxes recovery
                
                
                **7,000**
                
                
                -
                
                
                -**Total
                    Current Assets**
                
                
                **405,000**
                
                
                673,000
                
                
                4,509,000**Property
                    and Equipment**(note
                    8)
                
                
                **986,000**
                
                
                1,148,000
                
                
                1,558,000**Advance
                    to Corporation**(note
                    9)
                
                
                **31,000**
                
                
                96,000
                
                
                96,000**Licensing
                    Rights (**note
                    10)
                
                
                **1,479,000**
                
                
                -
                
                
                -**Other
                    Asset**
                
                
                **-**
                
                
                15,000
                
                
                15,000**Assets
                    of Discontinued Operations**(note
                    7)
                
                
                **-**
                
                
                -
                
                
                1,109,000**Total
                    Long-Term Assets**
                
                
                **2,496,000**
                
                
                1,259,000
                
                
                2,778,000**Total
                    Assets**
                
                **$**
                **2,901,000**
                
                $
                1,932,000
                
                $
                7,287,000**LIABILITIES****Current**Bank indebtedness
                
                **$**
                **-**
                
                $
                -
                
                $
                3,000Accounts payable and accrued charges
                
                
                **1,077,000**
                
                
                1,030,000
                
                
                1,904,000Capital lease obligations - current portion (note 11)
                
                
                **-**
                
                
                82,000
                
                
                380,000Other payable (note 12)
                
                
                **699,000**
                
                
                923,000
                
                
                -Deferred revenue (note 13)
                
                
                **458,000**
                
                
                387,000
                
                
                333,000Current liabilities of discontinued operations (note 7)
                
                
                **-**
                
                
                2,000
                
                
                5,166,000**Total
                    Current Liabilities**
                
                
                **2,234,000**
                
                
                2,424,000
                
                
                7,786,000**Capital
                    Lease Obligations**(note
                    11)
                
                
                **-**
                
                
                -
                
                
                82,000**Liabilities
                    of Discontinued Operations**(note
                    7)
                
                
                **-**
                
                
                -
                
                
                265,000**Total
                    Long-Term Liabilities**
                
                
                **-**
                
                
                -
                
                
                347,000**Total
                    Liabilities**
                
                
                **2,234,000**
                
                
                2,424,000
                
                
                8,133,000**Non-Controlling
                    Interests in Subsidiaries**
                
                
                **695,000**
                
                
                -
                
                
                -**Commitments
                    and Contingencies**(note
                    14)**SHAREHOLDER'S
                    DEFICIT****Share
                    Capital**(note
                    15)
                
                
                **43,839,000**
                
                
                43,839,000
                
                
                43,839,000**Stock-Based
                    Compensation**(note
                    15)
                
                
                **1,705,000**
                
                
                1,333,000
                
                
                -**Accumulated
                    Deficit**
                
                
                **(45,572,000**
                **)**
                
                (45,664,000
                )
                
                (44,685,000
                )**Total
                    Shareholder's Deficit**
                
                
                **(28,000**
                **)**
                
                (492,000
                )
                
                (846,000
                )**Total
                    Liabilities and Shareholder's Deficit**
                
                **$**
                **2,901,000**
                
                $
                1,932,000
                
                $
                7,287,000
 **APPROVED
          ON BEHALF OF THE BOARD**
 **"GERRY
          RACICOT"**(Director)                                                                           
                    **"JASON
          MORETTO"**(Director)
 
  
  (The
                accompanying notes are an integral part of these consolidated financial
                statements.)
  -
                3
                -
   **EIGER
          TECHNOLOGY, INC. AND SUBSIDIARIES**
 Consolidated
          Statements of Operations
 Years
          Ended September 30, 2006, 2005 and 2004
  **2006**
                  
                  
                  2005
                  
                  
                  2004Restated
                    - Note 4)
                  
                  
                  (Restated
                    - Note 4)**Revenues**
                  
                  **$**
                  **3,759,000**
                  
                  $
                  4,861,000
                  
                  $
                  5,735,000**Cost
                      of Revenues**
                  
                  
                  **2,791,000**
                  
                  
                  3,581,000
                  
                  
                  4,778,000**Gross
                      Profit**
                  
                  
                  **968,000**
                  
                  
                  1,280,000
                  
                  
                  957,000**Expenses**Selling, general and administrative
                  
                  
                  **1,479,000**
                  
                  
                  1,633,000
                  
                  
                  2,925,000Amortization of property and equipment
                  
                  
                  **348,000**
                  
                  
                  459,000
                  
                  
                  321,000Amortization of intangibles
                  
                  
                  **-**
                  
                  
                  -
                  
                  
                  13,000Foreign exchange loss (gain)
                  
                  
                  **25,000**
                  
                  
                  (9,000
                  )
                  
                  -Stock-based compensation (note 15)
                  
                  
                  **372,000**
                  
                  
                  238,000
                  
                  
                  -**Total
                      Expenses**
                  
                  
                  **2,224,000**
                  
                  
                  2,321,000
                  
                  
                  3,259,000**Loss
                      from operations**
                  
                  
                  **(1,256,000**
                  **)**
                  
                  (1,041,000
                  )
                  
                  (2,302,000
                  )**Other
                      Income (Expenses)**Interest and bank charges
                  
                  
                  **(187,000**
                  **)**
                  
                  (159,000
                  )
                  
                  (270,000
                  )Goodwill impairment loss
                  
                  
                  **-**
                  
                  
                  -
                  
                  
                  (336,000
                  )Writedown of advance to corporation (note 9)
                  
                  
                  **(45,000**
                  **)**
                  
                  -
                  
                  
                  -Gain on sale of shares by subsidiaries (note 15)
                  
                  
                  **1,512,000**
                  
                  
                  -
                  
                  
                  -Gain on sale of investment in subsidiary
                  
                  
                  **43,000**
                  
                  
                  -
                  
                  
                  -**Total
                      Other Income (Expenses)**
                  
                  
                  **1,323,000**
                  
                  
                  (159,000
                  )
                  
                  (606,000
                  )**Earnings
                      (Loss) from Continuing Operations****before Income Taxes**
                  
                  
                  **67,000**
                  
                  
                  (1,200,000
                  )
                  
                  (2,908,000
                  )Provision for income taxes - future (note 17)
                  
                  
                  **-**
                  
                  
                  -
                  
                  
                  98,000**Earnings
                      (Loss) before Non-Controlling Interests**
                  
                  
                  **67,000**
                  
                  
                  (1,200,000
                  )
                  
                  (3,006,000
                  )Non-controlling interests
                  
                  
                  **(25,000**
                  **)**
                  
                  -
                  
                  
                  -**Earnings
                      (Loss) from Continuing Operations**
                  
                  
                  **92,000**
                  
                  
                  (1,200,000
                  )
                  
                  (3,006,000
                  )**Earnings
                      (Loss) from Discontinued Operations**(no tax effect) (note 7)
                  
                  
                  **-**
                  
                  
                  950,000
                  
                  
                  (3,000,000
                  )**Net
                      Earnings (Loss)**
                  
                  
                  **92,000**
                  
                  
                  (250,000
                  )
                  
                  (6,006,000
                  )**Deficit
                      - beginning of year, as previously reported**
                  
                  
                  **(44,806,000**
                  **)**
                  
                  (40,023,000
                  )
                  
                  (33,585,000
                  )Restatement (Note 4)
                  
                  
                  **(858,000**
                  **)**
                  
                  (4,296,000
                  )
                  
                  (5,094,000
                  )**Deficit
                      - beginning of year, as restated**
                  
                  
                  **(45,664,000**
                  **)**
                  
                  (44,319,000
                  )
                  
                  (38,679,000
                  )Change in accounting policy - (note 5)
                  
                  
                  **-**
                  
                  
                  (1,095,000
                  )
                  
                  -**Deficit
                      -end of year**
                  
                  **$**
                  **(45,572,000**
                  **)**
                  $
                  (45,664,000
                  )
                  $
                  (44,685,000
                  )**Earnings
                      (Loss) Per Weighted Average Number****of
                      Shares Outstanding - Basic and diluted**Continuing Operations
                  
                  **$**
                  **0.002**
                  
                  $
                  (0.031
                  )
                  $
                  (0.078
                  )****Net earnings (loss)
                  
                  **$**
                  **0.002**
                  
                  $
                  (0.006
                  )
                  $
                  (0.156
                  )**Weighted
                      Average Number of Shares****Outstanding
                      - Basic and Diluted**
                  
                  
                  **38,819,054**
                  
                  
                  38,819,054
                  
                  
                  38,409,417
  (The
                accompanying notes are an integral part of these consolidated financial
                statements.)
  -
                4
                -
   **EIGER
          TECHNOLOGY, INC.** **** **AND
          SUBSIDIARIES**
 Consolidated
          Statements of Cash Flows
 Years
          Ended September 30, 2006, 2005 and 2004
 
  **2006**
                
                
                2005
                
                
                2004(Restated
                  - Note 4)
                
                
                (Restated-
                  Note 4)**Cash
                    Flows from Operating Activities**Net earnings (loss) from continuing operations
                
                **$**
                **92,000**
                
                $
                (1,200,000
                )
                $
                (3,006,000
                )Adjustments for:Amortization of property and equipment
                
                
                **348,000**
                
                
                459,000
                
                
                321,000Amortization of intangibles
                
                
                **-**
                
                
                -
                
                
                13,000Non‐controlling interests
                
                
                **(25,000**
                **)**
                
                -
                
                
                -Future income taxes
                
                
                **-**
                
                
                -
                
                
                98,000Goodwill impairment loss
                
                
                **-**
                
                
                -
                
                
                336,000Stock‐based compensation
                
                
                **372,000**
                
                
                238,000
                
                
                -Writedown of advance to corporation
                
                
                **45,000**
                
                
                -
                
                
                -Gain on sale of shares by subsidiaries
                
                
                **(1,512,000**
                **)**
                
                -
                
                
                -Gain on sale of investment in subsidiary
                
                
                **(43,000**
                **)**
                
                -
                
                
                -Funds used in continuing operating activities
                
                
                **(723,000**
                **)**
                
                (503,000
                )
                
                (2,238,000
                )Changes in non‐cash working capitalAccounts receivable
                
                
                **324,000**
                
                
                501,000
                
                
                (102,000
                )Prepaid expenses and sundry assets
                
                
                **25,000**
                
                
                (38,000
                )
                
                10,000Income taxes recovery
                
                
                **(7,000**
                **)**
                
                -
                
                
                -Accounts payable and accrued charges
                
                
                **47,000**
                
                
                (874,000
                )
                
                999,000Other payable
                
                
                **(224,000**
                **)**
                
                923,000
                
                
                -Deferred revenue
                
                
                **71,000**
                
                
                54,000
                
                
                333,000Net funds (used in) provided by continuingoperating activiteis
                
                
                **(487,000**
                **)**
                
                63,000
                
                
                (998,000
                )Net earnings (loss) from discontinued operations
                
                
                **-**
                
                
                950,000
                
                
                (3,000,000
                )Adjustments for:Non‐cash foreign currency translation adjustment
                
                
                **-**
                
                
                366,000
                
                
                -Loss (gain) on disposal of assets of discontinuedoperations
                
                
                **-**
                
                
                (1,057,000
                )
                
                205,000Assets of discontinued operations
                
                
                **3,000**
                
                
                5,556,000
                
                
                8,150,000Liabilities of discontinued operations
                
                
                **(2,000**
                **)**
                
                (5,429,000
                )
                
                (4,762,000
                )Net funds provided by discontinuing operations
                
                
                **1,000**
                
                
                386,000
                
                
                593,000**Cash
                    Flows from Investing Activities**Decrease (increase) in short‐term investments
                
                
                **(27,000**
                **)**
                
                8,000
                
                
                23,000Decrease in advance to corporation
                
                
                **20,000**
                
                
                -
                
                
                -Acquisition of property and equipment
                
                
                **(186,000**
                **)**
                
                (49,000
                )
                
                (589,000
                )Proceeds from sale of investment in subsidiary
                
                
                **43,000**
                
                
                -
                
                
                -Acquisition of licensing rights
                
                
                **(27,000**
                **)**
                
                -
                
                
                -Decrease in other asset
                
                
                **15,000**
                
                
                -
                
                
                -Net funds used in investing activities
                
                
                **(162,000**
                **)**
                
                (41,000
                )
                
                (566,000
                )**Cash
                    Flows from Financing Activities**Repayment of capital lease obligations
                
                
                **(82,000**
                **)**
                
                (380,000
                )
                
                -Contributions from non‐controlling interests, net ofshare insurance costs
                
                
                **780,000**
                
                
                -
                
                
                -Bank indebtedness
                
                
                **-**
                
                
                (3,000
                )
                
                (72,000
                )Proceeds from issuance of common shares
                
                
                **-**
                
                
                -
                
                
                937,000Net funds provided by (used in) financing activities
                
                
                **698,000**
                
                
                (383,000
                )
                
                865,000**Net
                    Increase (Decrease) in Cash**
                
                
                **50,000**
                
                
                25,000
                
                
                (106,000
                )**Cash
                    ‐ beginning of****year**
                
                
                **25,000**
                
                
                -
                
                
                106,000**Cash
                    ‐ end of****year**
                
                **$**
                **75,000**
                
                $
                25,000
                
                $
                -
  (The
                accompanying notes are an integral part of these consolidated financial
                statements.)
  -
                5
                -
    **1.**
                **Organization
                    and Nature of Business**
  Eiger
          Technology, Inc. (the "Company" or "Eiger") was originally incorporated
          as Alexa
          Ventures Inc. on September 8, 1986 under the laws of British Columbia.
          Currently, the Company is in good standing, operating under the laws of
          Ontario.
          The Company is listed as an issuer on the TSX.
  Through
          its subsidiaries, the Company is engaged in developing Voice over Internet
          Protocol ("VoIP") based long distance calling and the business of owning
          or
          leasing horse racetracks and/or the conducting of horse-races.
  **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 the
          United
          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 $1,829,000 as at September 30, 2006
          (2005 -
          $1,751,000; 2004 - $3,277,000) and an accumulated deficit of $45,572,000
          as at
          September 30, 2006. 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 forbearance 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.
  **3.**
                **Significant
                    Accounting Policies**
  These
          consolidated financial statements have been prepared in accordance with
          Canadian
          GAAP which, except as noted in note 18, are consistent in all material
          respects
          with accounting principles generally accepted in the United States of America.
          The principal accounting policies followed by the Company are as
          follows:
 
  -
                6
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **3.**
                **Significant
                    Accounting Policies**(cont'd)
  a)
                Basis
                    of Presentation
  The
          accompanying consolidated financial statements include the accounts of
          Eiger and
          its subsidiaries as listed in note 16 and are presented in Canadian dollars
          under the accrual method of accounting. The Company's principal subsidiaries
          are
          Newlook Industries Corp. ("Newlook") and Racino Royale, Inc. (“Racino”). Past
          subsidiaries, Eiger Net, Inc., Alexa Properties Inc. and K Tronik North
          American
          Corp. are presented as discontinued operations as at July 31, 2004, November
          30,
          2004 and December 15, 2004, respectively, as discussed in note 7. All
          significant intercompany transactions and balances have been eliminated
          upon
          consolidation.
  On
          March
          18, 2004, Newlook completed its acquisition of all the issued and outstanding
          shares of Onlinetel Corp. ("Onlinetel") from Eiger. As the transaction
          has been
          deemed a re-organization and not a business combination, Newlook's interest
          in
          Onlinetel has been treated as a transfer of ownership interest between
          related
          parties where there has not been a substantive change in equity ownership.
          Accordingly, due to the transfer of the interests using this method, Eiger's
          statements of operations, retained earnings and cash flows have been prepared
          using historical costs as if Newlook and Onlinetel had been combined for
          all
          periods presented.
  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 undernoted annual rates and methods:
  Furniture and Fixtures
                  20%
                  Declining BalanceComputer Equipment
                  30%
                  Declining BalanceTelecommunications Equipment
                  30%
                  Declining BalanceLeasehold
                    improvements
                  10
                    years
                  Straight
                    Line
 
  
  -
                7
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **3.**
                **Significant
                    Accounting Policies**(cont'd)
  d)
                Goodwill
  Goodwill
          is the residual amount that results when the purchase price of an acquired
          business exceeds the sum of the amounts allocated to the identifiable tangible
          and intangible assets acquired, less liabilities assumed, based on their
          fair
          values. When the Company enters into a business combination, the purchase
          method
          of accounting is used. Goodwill is assigned as of the date of the business
          combination to reporting units that are expected to benefit from the business
          combination. Goodwill is not amortized but instead is tested for impairment
          annually or more frequently if events or changes in circumstances indicate
          that
          the asset might be impaired.
  e)
                Licensing
                    Rights
  Licensing
          rights 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. 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.
  Credit
                    Risk
  The
          Company's financial assets that are exposed to credit risk consist primarily
          of
          short-term investments, accounts receivable, and advance to corporation.
  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 81% of accounts receivable at September 30, 2006 (2005 -
          68%; 2004
          - 46%) .
  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.
 
  -
                8
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **3.**
                **Significant
                    Accounting Policies**(cont'd)
  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:
  i)
                Advertising
                    based long distance calling subscription plans are recorded as
                    revenue on
                    a monthly basis as services are provided;
  ii)
                Traditional
                    long distance calling and Internet subscription plans are recorded
                    as
                    revenue as the services or products are
                    provided;
  iii)
                New
                    media services for sponsors on the advertising based calling
                    network are
                    recorded in the period the advertising airs on the Company's
                    network;
  iv)
                Dial
                    around long distance casual calling services are recorded as
                    revenue in
                    the month in which the services are provided;
                    and
  v)
                The
                    Company currently derives its 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.
  Deferred
          revenue includes subscriber deposits and amounts received from subscribers
          related to services and subscriptions to be provided in future periods
          as
          described in note 13.
  j)
                Sales
                    of Shares by Subsidiaries
  When
          a
          subsidiary 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.
 
  -
                9
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **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.
 
  -
                10
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **3.**
                **Significant
                    Accounting Policies**(cont'd)
  n)
                Foreign
                    Currency Translation
  The
          functional currency of the Company is the Canadian dollar. The Company's
          foreign
          operations are classified as integrated for foreign currency translation
          purposes. Monetary assets and liabilities denominated in foreign currencies
          are
          translated at the rate of exchange in effect at the balance sheet date.
          Non-monetary items are translated at historical rates. Revenues and expenses,
          except for amortization, are translated at average year rates. Exchange
          gains
          and losses arising from the translation of monetary assets and liabilities
          are
          included in the determination of income for the period.
  **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 years ended September 30, 2005
          and
          2004 due to accounting errors.
  The
          effect on the consolidated statement of operations and the consolidated
          balance
          sheet for the year ended September 30, 2005 is as follows:
  **As
                      Previously****Reported**
                  
                  
                  **Change**
                  
                  
                  **Restated****Consolidated
                      Statement of Operations:**Selling, general and administrative (e)
                  
                  $
                  1,681,000
                  
                  $
                  (48,000
                  )
                  $
                  1,633,000Stock‐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
                  
                  
                  (1,200,000
                  )(Loss) earnings from discontinued operations(no tax effect) (g)
                  
                  
                  (2,486,000
                  )
                  
                  3,436,000
                  
                  
                  950,000Net loss
                  
                  
                  (3,946,000
                  )
                  
                  3,696,000
                  
                  
                  (250,000
                  )(Loss) earnings per weighted average number ofshares outstanding - basic and dilutedContinuing operations
                  
                  
                  (0.040
                  )
                  
                  0.010
                  
                  
                  (0.030
                  )Net loss
                  
                  
                  (0.060
                  )
                  
                  0.050
                  
                  
                  (0.010
                  )Weighted average number of shares outstanding -basic and diluted
                  
                  
                  38,292,125
                  
                  
                  526,929
                  
                  
                  38,819,054**Consolidated
                      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
                  )
  
  -
                11
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **4.**
                **Restatement
                    of Previously Issued Consolidated Financial Statements**(cont'd)
  The
          effect on the consolidated statement of operations and the consolidated
          balance
          sheet for the year ended September 30, 2004 is as follows:
  **As
                      Previously**
                  
                  
                  **Increase****Reported**
                  
                  
                  **(Decrease)**
                  
                  
                  **Restated****Consolidated
                      Statement of Operations:**Selling, general and administrative (e)
                  
                  $
                  2,944,000
                  
                  $
                  (19,000
                  )
                  $
                  2,925,000Non‐controlling interests (b)
                  
                  
                  (730,000
                  )
                  
                  730,000
                  
                  
                  -Loss from continuing operations (b)
                  
                  
                  (2,276,000
                  )
                  
                  (730,000
                  )
                  
                  (3,006,000
                  )Loss from discontinued operations (no tax effect) (g)
                  
                  
                  (3,904,000
                  )
                  
                  904,000
                  
                  
                  (3,000,000
                  )Net loss
                  
                  
                  (6,180,000
                  )
                  
                  174,000
                  
                  
                  (6,006,000
                  )Loss per weighted average number of sharesoutstanding - basic abd dilutedContinuing operations
                  
                  
                  (0.06
                  )
                  
                  (0.02
                  )
                  
                  (0.08
                  )Net loss
                  
                  
                  (0.10
                  )
                  
                  (0.06
                  )
                  
                  (0.16
                  )Weighted average number of shares outstanding ‐
                  
                  
                  37,666,513
                  
                  
                  742,904
                  
                  
                  38,409,417basic and diluted**Consolidated
                      Balance Sheet:**Short‐term investments (c)
                  
                  
                  30,000
                  
                  
                  (22,000
                  )
                  
                  8,000Non‐controlling interests in subsidiaries (b)
                  
                  
                  4,356,000
                  
                  
                  (4,356,000
                  )
                  
                  -Share capital (c) and (d)
                  
                  
                  43,297,000
                  
                  
                  92,000
                  
                  
                  43,389,000Accumulated deficit
                  
                  
                  (39,765,000
                  )
                  
                  (4,920,000
                  )
                  
                  (44,685,000
                  )
   a)
                Accumulated
                    Comprehensive Loss
  It
          was
          determined that Racino had inadvertently excluded accumulated comprehensive
          loss
          from the determination of discontinued operations in 2005. 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 for 2005 and 2004.
 
  -
                12
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **4.**
                **Restatement
                    of Previously Issued Consolidated Financial Statements**(cont'd)
  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 in 2005 and 2004.
  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
          in
          2005 and 2004.
  f)
                Stock-Based
                    Compensation
  It
          was
          determined that stock-based compensation balances did not include certain
          amounts from a subsidiary in 2005. 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 in 2005 and 2004.
  As
          a
          result of the above items, the September 30, 2005 and 2004 figures, 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.
 
  -
                13
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **5.**
                **Change
                    in Accounting Policy**
  Executives
          and certain senior managers of the Company participate in the stock-based
          compensation plan, as described in note 15. Effective October 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.
  For
          fiscal years prior to 2005, the Company applied the intrinsic value based
          method
          of accounting for stock-based compensation awards granted to employees,
          as
          permitted by GAAP. As the Company has selected the retroactive application
          without restatement method, the impact on net income of adopting the fair
          value
          based method in the comparative period is disclosed in note 15(c).
  **6.**
                **Accounts
                    Receivable**
  Accounts
          receivable are reported net of an allowance for doubtful accounts of $Nil
          (2005
          - $Nil; 2004 - $Nil).
  **7.**
                **Discontinued
                    Operations**
  On
          July
          31, 2004, the management of Eiger Net, Inc. ("Eiger Net") in South Korea
          acquired Eiger's interest in Eiger Net 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.
  On
          November 30, 2004, Alexa Properties Inc. ("Alexa") sold its property in
          Stratford consisting of building and land with any related encumbrances
          discharged on that date. Alexa no longer has active operations.
  On
          December 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.
 
  -
                14
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
    **7.**
                **Discontinued
                    Operations******(cont'd)
  The
          operations of Eiger Net, Alexa, KTNA and KTA are presented in the consolidated
          financial statements as discontinued operations as follows:
  **2006**
                  
                  
                  2005
                  
                  
                  2004Revenue
                  
                  $
                  **-**
                  
                  $
                  -
                  
                  $
                  7,524,000Cost
                      of revenue and expenses of discontinued operations
                  
                  
                  **-**
                  
                  
                  107,000
                  
                  
                  10,319,000Loss
                      on discontinued operations
                  
                  
                  **-**
                  
                  
                  (107,000
                  )
                  
                  (2,795,000
                  )Gain
                      (loss) on disposal of assets of discontinuedoperations
                  
                  
                  **-**
                  
                  
                  1,057,000
                  
                  
                  (205,000
                  )Income
                      taxes
                  
                  
                  **-**
                  
                  
                  -
                  
                  
                  -Earnings
                      (loss) from discontinued operations
                  
                  $
                  **-**
                  
                  $
                  950,000
                  
                  $
                  (3,000,000
                  )
  
  Assets
          and liabilities presented in the consolidated balance sheets include the
          following assets and liabilities of discontinued operations:
  
 **2006**
                
                
                2005
                
                
                2004Current
                    assets
                
                $
                **-**
                
                $
                3,000
                
                $
                3,393,000Property
                    and equipment
                
                
                **-**
                
                
                -
                
                
                1,109,000Assets
                    of discontinued operations
                
                $
                -
                
                $
                3,000
                
                $
                4,502,000Current
                    liabilities
                
                
                **-**
                
                
                2,000
                
                
                5,166,000Long‐term
                    debt
                
                
                **-**
                
                
                -
                
                
                265,000Liabilities
                    of discontinued operations
                
                $
                -
                
                $
                2,000
                
                $
                5,431,000
  
 
 
 -
                15
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **8.**
              **Property
                  and Equipment**
  **2006**
                
                
                2005
                
                
                2004**Accumulated**
                
                
                **Net
                    Book**
                
                
                Net
                    Book
                
                
                Net
                    Book**Cost**
                
                
                **Amortization**
                
                
                **Value**
                
                
                Value
                
                
                ValueFurniture
                    and fixtures
                
                $
                **172,000**
                
                $
                **102,000**
                
                $
                **70,000**
                
                $
                88,000
                
                $
                102,000Telecommunications
                    equipment
                
                
                **1,867,000**
                
                
                **1,249,000**
                
                
                **617,000**
                
                
                882,000
                
                
                1,200,000Computer
                    equipment
                
                
                **467,000**
                
                
                **341,000**
                
                
                **126,000**
                
                
                178,000
                
                
                254,000Leasehold
                    improvements
                
                
                **185,000**
                
                
                **12,000**
                
                
                **173,000**
                
                
                -
                
                
                2,000$
                **2,691,000**
                
                $
                **1,704,000**
                
                $
                **986,000**
                
                $
                1,148,000
                
                $
                1,558,000
 
  **9.**
              **Advance
                  to Corporation**
 
 **2006**
              
              
              2005
              
              
              2004Advance
                to Lexatec VR Systems Inc.
              
              $
              **31,000**
              
              $
              $96,000
              
              $
              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. At September 30, 2006, management recorded a writedown of the
        advance
        to the market value of the security.
  **10.**
              **Licensing
                  Rights**
  On
        June
        14, 2006, Racino acquired the exclusive rights for a racetrack development
        opportunity in Saskatchewan, Canada. The consideration of $1,318,000 US (or
        $1,479,000 CAD as translated) for the acquired rights consisted of the
        following: (a) cash of $23,000 US, (b) issuance of 5,000,000 shares of Racino
        at
        a price of $0.24 US per share for a total amount of $1,200,000 US, (c) warrants
        in the equity of Racino valued at $94,000 US, and (d) legal costs of $1,000
        US.
  The
        warrants are exercisable at $0.10 US per share, expiring in three yeas 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
  
 
 -
                16
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **11.**
              **Capital
                  Lease Obligations**
  **2006** 2005 2004
  **2006**
                
                
                2005
                
                
                2004Capital
                    lease obligations ‐ secured by telecommunications equipment as described
                    in note 8 having a net book value of $261,000 (2005 ‐ $374,000; 2004 ‐
                    $534,000), were repayable in monthly installments of principal
                    and
                    interest at rates ranging from 30% to 31% per annum.
                
                $
                **-**
                
                $
                88,000
                
                $
                538,000Less:
                    amount representing interest
                
                
                **-**
                
                
                (6,000
                )
                
                (76,000
                )Present
                    value of net minimum lease payments
                
                
                **-**
                
                
                82,000
                
                
                462,000Less:
                    current portion
                
                
                **-**
                
                
                (82,000
                )
                
                (380,000
                )Long‐term
                    debt
                
                $
                **-**
                
                $
                -
                
                $
                82,000
 
  During
        the year, the Company paid $6,000 (2005 - $76,000; 2004 - $146,000) in interest
        on long-term debt. The capital lease payments were discharged in the current
        year.
  **12.**
              **Other
                  Payable**
  Pursuant
        to a Forbearance Agreement signed on September 30, 2005 with a
        telecommunications company, the Company's subsidiary, Onlinetel Corp. is
        obligated to pay a principal amount of $580,000 (2005 - $899,000, 2004 -
        Nil)
        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 on May 25, 2006 and December 5,
        2006.
        Newlook made payments towards the outstanding balance of $286,619 on April
        11,
        2006 and $124,000 on November 9, 2006. The remaining amount is due February
        28,
        2007. The payable is secured by an interest in all of the present and future
        personal property of Onlinetel Corp., ranking senior in priority to all liens
        security interest, encumbrances and charges.
  **13.**
              **Deferred
                  Revenue**
  The
        Company 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.
 
 
 -
                17
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **14.**
              **Commitments
                  and Contingencies**
  a)
              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.
  b)
              On
                  November 2, 2005, the Company entered into a 5 year operating lease
                  agreement for premise occupancy, effective February 1,
                  2006.
  Under
        the
        terms of the agreement, the Company is committed to rental payments as
        follows:
  2007
                    $         
                        77,0002008
                    102,0002009
                    102,0002010
                    102,0002011
                    34,000$     
                        417,000
  
 
 
  **15.**
              **Share
                  Capital**
  Authorized:
        100,000,000 Common Shares without par value
  Issued:
  **2006**
                
                
                
                
                
                2,005
                
                
                
                
                
                2004**No.
                    of**
                
                
                
                
                
                No.
                    of
                
                
                
                
                
                No.
                    of**Shares**
                
                
                **Amount**
                
                
                Shares
                
                
                Amount
                
                
                Shares
                
                
                AmountBeginning
                    of yearIssued
                
                
                **38,860,174**
                
                $
                **43,861,000**
                
                
                38,860,174
                
                $
                43,861,000
                
                
                37,608,951
                
                $
                43,249,000‐ private placement‐ exercise of options
                
                
                **-**
                
                
                **-**
                
                
                -
                
                
                -
                
                
                993,098
                
                
                556,000‐ other
                
                
                **-**
                
                
                **-**
                
                
                -
                
                
                -
                
                
                130,000
                
                
                56,000**-**
                
                
                **-**
                
                
                -
                
                
                -
                
                
                128,125
                
                
                -End
                      of year
                
                
                **38,860,174**
                
                
                **43,861,000**
                
                
                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
                )**38,819,054**
                
                $
                **43,839,000**
                
                
                38,819,054
                
                $
                43,839,000
                
                
                38,819,054
                
                $
                43,839,000
  
   
 
 -
                18
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **15.**
              **Share
                  Capital**(cont'd)
  a) **Stock
        Options** - **Eiger**
  The
        Company awards unconditional stock options to employees, officers, directors
        and
        others at the recommendation of the Chief Executive Officer ("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**
                **2006**
                No.
                    of
                2005
                No.
                    of
                2004**Options**
                **WAEP**
                Options
                WAEP
                Options
                WAEPBeginning
                    of year
                **5,099,000**
                **$
                    0.75**
                4,942,000
                $
                    1.15
                4,246,000
                $
                    1.83Granted
                **725,000**
                **0.49**
                1,000,000
                0.40
                1,636,000
                0.86Exercised
                **-**
                **-**
                -
                -
                (130,000)
                0.43Forfeited
                **(775,000)**
                **0.55**
                (230,000)
                0.93
                (10,000)
                0.85Expired
                **(1,493,000)**
                **1.08**
                (613,000)
                3.31
                (800,000)
                4.29End
                    of year
                **3,556,000**
                **$
                    0.60**
                5,099,000
                $
                    0.75
                4,942,000
                $
                    1.15
 The
        following table summarizes stock option information outstanding at September
        30,
        2006.
  NumberOutstanding
                
                Weighted‐AverageExercise
                    Prices
                and
                
                Remaining
                Weighted‐Averageof
                    Options
                Exercisable
                
                Contractual
                    Life
                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‐$0.96**
                **3,556,000**
                
                **2.34
                    yrs**
                **$0.60**
  
 -
                19
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **15.**
              **Share
                  Capital**(cont'd)
  a) **Stock
        Options** - **Eiger** (cont'd)
  The
        following table summarizes stock option information outstanding at September
        30,
        2005.
  NumberOutstanding
                
                Weighted‐AverageExercise
                    Prices
                and
                
                Remaining
                Weighted‐Averageof
                    Options
                Exercisable
                
                Contractual
                    Life
                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
   The
        following table summarizes stock option information outstanding at September
        30,
        2004.
  NumberOutstanding
                
                Weighted‐AverageExercise
                    Prices
                and
                
                Remaining
                Weighted‐Averageof
                    Options
                Exercisable
                
                Contractual
                    Life
                Exercise
                    Price$0.50
                765,000
                
                2.43
                    yrs
                $0.50$0.55
                320,000
                
                3.53
                    yrs
                $0.55$0.57
                100,000
                
                3.42
                    yrs
                $0.57$0.60
                225,000
                
                4.64
                    yrs
                $0.60$0.75
                1,178,000
                
                1.55
                    yrs
                $0.75$0.85
                946,000
                
                4.50
                    yrs
                $0.85$0.96
                400,000
                
                4.23yrs
                $0.96$1.08
                80,000
                
                0.41
                    yrs
                $1.08$1.40
                263,000
                
                0.07
                    yrs
                $1.40$1.50
                85,000
                
                1.36
                    yrs
                $1.50$2.52
                150,000
                
                1.19
                    yrs
                $2.52$2.75
                50,000
                
                1.04
                    yrs
                $2.75$3.00
                30,000
                
                1.08
                    yrs
                $3.00$4.75
                350,000
                
                0.70
                    yrs
                $4.75$0.50‐$4.75
                4,942,000
                
                2.60
                    yrs
                $1.15
  
 
  -
                20
                -
  
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
   **15.**
              **Share
                  Capital**(cont'd)
  a) **Stock
        Options** - **Eiger** (cont'd)
  In
        2006,
        the Company awarded to employees, directors and consultants a total of 725,000
        options to buy shares of the Company under the Plan. These options carry
        a term
        of five years, exercise prices ranging from $0.40 to $0.75. In 2006, 300,000
        options were cancelled of the 725,000 options granted.
  The
        estimated fair value of the options was determined using the Black-Scholes
        option pricing model with the following weighted average
        assumptions:
  **2006**
                2005
                2004Risk‐free
                    interest rate
                **4.25%**
                4.11%
                4.50%Dividend
                    yield
                **0%**
                0%
                0%Volatility
                    factory of expected market price of the Company's shares
                **77%**
                62%
                65%Expected
                    option life (in years)
                **3**
                5
                5Weighted‐average
                    grant date fair values of options granted
                **$0.04**
                $0.22
                $0.55options
                    granted
  No
        stock
        options were exercised during 2006 and 2005. In 2004 proceeds from the exercise
        of stock options of $56,000 was credited to share capital. In 2006, the Company
        (recovered) expensed $(57,000) (2005 - $167,000; 2004 - $Nil) related to
        the
        fair value of the options granted in 2006, 2005 and 2004,
        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 3,644,000 options
        are
        available. The total proceeds that would be generated upon exercise of all
        issued and outstanding options is approximately $2,146,100.
  b) **Stock
        Options** - **Newlook**
  The
        Company's subsidiary, Newlook, awards unconditional stock options to employees,
        officers, directors and others at the recommendation of the CEO under an
        incentive stock plan (the "Newlook - 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".
 
 
 -
                21
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **15.**
              **Share
                  Capital**(cont'd)
  b) **Stock
        Options** - **Newlook** (cont'd)
  **No.
                    of**
                **2006**
                No.
                    of
                2005
                No.
                    of
                2004**Options**
                **WAEP**
                Options
                WAEP
                Options
                WAEPBeginning
                    of year
                **2,120,000**
                **$
                    0.47**
                1,050,000
                $
                    0.88
                400,000
                $
                    0.55Granted
                **1,550,000**
                **0.64**
                1,470,000
                0.45
                1,000,000
                0.88Exercised
                **(10,000)**
                **0.50**
                -
                -
                (50,000)
                0.50Forfeited
                **(400,000)**
                **0.46**
                (400,000)
                1.59
                (300,000)
                0.50Expired
                **-**
                **-**
                -
                -
                -
                -End
                    of year
                **3,260,000**
                **$
                    0.56**
                2,120,000
                $ 
                    0.48
                1,050,000
                $
                    0.88
  The
        following table summarizes stock option information outstanding at September
        30,
        2006.
  NumberOutstanding
                
                Weighted‐AverageExercise
                    Prices
                and
                
                Remaining
                Weighted‐Averageof
                    Options
                Exercisable
                
                Contractual
                    Life
                Exercise
                    Price**$0.40**
                **550,000**
                
                **3.32
                    yrs**
                **$0.40****$0.50**
                **910,000**
                
                **2.64
                    yrs**
                **$0.50****$0.55**
                **400,000**
                
                **0.25
                    yrs**
                **$0.55****$0.65**
                **1,400,000**
                
                **4.56
                    yrs**
                **$0.65****$0.40‐$0.65**
                **3,260,000**
                
                **3.29
                    yrs**
                **$0.55**
   The
        following table summarizes stock option information outstanding at September
        30,
        2005.
  NumberOutstanding
                
                Weighted‐AverageExercise
                    Prices
                and
                
                Remaining
                Weighted‐Averageof
                    Options
                Exercisable
                
                Contractual
                    Life
                Exercise
                    Price$0.40
                800,000
                
                4.38
                    yrs
                $0.40$0.50
                920,000
                
                3.63
                    yrs
                $0.50$0.55
                400,000
                
                1.72
                    yrs
                $0.55$0.40‐$0.55
                2,120,000
                
                3.55
                    yrs
                $0.47
  
 
 -
                22
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **15.**
              **Share
                  Capital**(cont'd)
  b) **Stock
        Options** - **Newlook** (cont'd)
  The
        following table summarizes stock option information outstanding at September
        30,
        2004.
  NumberOutstanding
                
                Weighted‐AverageExercise
                    Prices
                and
                
                Remaining
                Weighted‐Averageof
                    Options
                Exercisable
                
                Contractual
                    Life
                Exercise
                    Price$0.50
                450,000
                
                4.24
                    yrs
                $0.50$0.55
                400,000
                
                2.72
                    yrs
                $0.55$2.68
                200,000
                
                4.50
                    yrs
                $2.68$0.50‐$2.68
                1,050,000
                
                3.71
                    yrs
                $0.93
   In
        2006,
        Newlook awarded to employees, directors and consultants a total of 1,550,000
        options to buy shares of Newlook under the Newlook - Plan. These options
        carry a
        term of five years, exercise price was $0.65. In 2006, 400,000 options were
        cancelled of the 1,550,000 option granted.
  The
        estimated fair value of the option was determined using the Black-Scholes
        option
        pricing model with the following weighted average assumptions:
  **2006**
                2005
                2004Risk‐free
                    interest rate
                **3.75%**
                3.64%
                4.50%Dividend
                    yield
                **0%**
                0%
                0%Volatility
                    factory of expected market price of the Newlook's shares
                **78%**
                25%
                65%Expected
                    option life (in years)
                **3**
                5
                5Weighted‐average
                    grant date fair values of options granted
                **$0.30**
                $0.06
                0.05
   10,000
        stock options were exercised during 2006 (2005 - Nil; 2004 -50,000). The
        proceeds from the exercise of stock options of $5,000 was credited to share
        capital (2005 - Nil; 2004 - $25,000).
  Under
        the
        Newlook - Plan, Newlook has for issuance a maximum authorized number of
        5,200,000 options to acquire common shares of Newlook of which 1,940,000
        options
        are available. The total proceeds that would be generated upon exercise of
        all
        issued and outstanding options is approximately $1,805,000.
 
 
 -
                23
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **15.**
              **Share
                  Capital**(cont'd)
  c) **Stock-Based Compensation Pro-forma**
  The
        table
        below presents pro-forma net earnings (loss) using the fair market value
        method
        of accounting for stock-based compensation:
  **2006**
                
                2005
                
                2004Restated
                
                
                RestatedNet
                    earnings (loss) from continuing operations‐ as reported
                
                
                **92,000**
                
                
                (1,200,000
                )
                
                (3,006,000
                )Add:
                    Stock‐based compensation includedin net earnings (loss)
                
                
                **372,000**
                
                
                238,000
                
                
                -Deduct:
                    Stock‐based compensationdetermined under the fair value method
                
                
                **(372,000**
                **)**
                
                (238,000
                )
                
                (900,000
                )Net
                    earnings (loss) from continuing operations‐ pro‐forma
                
                
                **92,000**
                
                
                (1,200,000
                )
                
                (3,906,000
                )Net
                    earnings (loss) from discontinued operations‐ pro‐forma
                
                
                **-**
                
                
                950,000
                
                
                (3,000,000
                )Total
                    pro‐forma net earnings (loss)
                
                
                **92,000**
                
                
                (250,000
                )
                
                (6,906,000
                )Weighted
                    average basic and diluted earnings (loss)
                
                
                **0.002**
                
                
                (0.006
                )
                
                (0.180
                )per share - pro-forma
  d) **Sale of Shares by Subsidiarie** s
  As
        discussed in note 10, Racino issued 5,000,000 common shares and 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.
  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.
 
 
 -
                24
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **16.**
              **Subsidiaries
                  and Related Party
                  Transactions**
  The
        Company is related to the following corporations:
  ****
 **Name of
                  Corporation**
                **Nature of
                  Relationship**Newlook Industries Corp.
                78.5% SubsidiaryVision Unlimited Equipment
                  Inc.*
                100%
                  Subsidiary of Newlook Industries Corp.A.D.H. Custom Metal
                  Fabricators Inc.*
                100%
                  Subsidiary of Vision Unlimited Equipment Inc.Alexa Properties
                  Inc.*
                100%
                  SubsidiaryETIFF Holdings LLC*
                100% SubsidiaryRacino Royale, Inc.
                50.4% Subsidiary of ETIFF Holdings
                  LLCOnlinetel Corp.
                100% Subsidiary of Newlook Industries
                  Corp.Onlinetel Inc .
                100% Subsidiary of Onlinetel
                  Corp.6584292 Canada
                  Inc.
                100%
                  Subsidiary of Racino Royale, Inc.
  **
        Inactive or
        holding company only*
  All
        transactions within the corporate group are in the normal course of business
        and
        are recorded at the carrying 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 $300,000 (2005 - $300,000; 2004 -
        $325,750).
  Included
        in accounts payable is a payable to directors, officers or corporations owned
        by
        management personnel of $387,750 (2005 - $267,500; 2004 - $Nil).
 
 
 -
                25
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **17.**
              **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:
  **2006**
                
                
                2005
                
                
                2004Expected
                    income tax expense (recovery) at the statutoryrate
                    of 35.40% (2005 ‐ 36.12%, 2004 ‐ 34.68%)
                
                $
                **33,000**
                
                $
                (90,000
                )
                $
                (1,974,000
                )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**
                
                
                86,000
                
                
                -Non‐taxable
                    gains
                
                
                **(6,000**
                **)**
                
                (99,000
                )
                
                -Non‐deductible
                    losses
                
                
                **-**
                
                
                -
                
                
                44,000Tax
                    rate changes
                
                
                **103,000**
                
                
                (211,000
                )
                
                (93,000
                )Non‐controlling
                    interests
                
                
                **(9,000**
                **)**
                
                -
                
                
                -Others
                
                
                **6,000**
                
                
                8,000
                
                
                -Valuation
                    allowances
                
                
                **170,000**
                
                
                306,000
                
                
                2,121,000Provision
                    for income taxes
                
                $
                **-**
                
                $
                -
                
                $
                98,000
  The
        components of future income taxes are as follows:
  **2006**
                
                
                2005
                
                
                2004Net
                    operating loss carried forward
                
                $
                **5,210,000**
                
                $
                5,166,000
                
                $
                5,075,000Difference
                    between accounting and tax carrying-
                    value of equipment and intangibles
                
                
                **606,000**
                
                
                480,000
                
                
                266,000Valuation
                    allowance
                
                
                **(5,816,000**
                **)**
                
                (5,646,000
                )
                
                (5,341,000
                )$
                **-**
                
                $
                -
                
                $
                -
  
 
 -
                26
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **17.**
              **Income
                  Taxes**(cont'd)
  The
        Company has tax losses of $14,718,000 available to be applied against future
        years' taxable income. 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 2005 through to 2016.
   **18.**
              **Reconciliation
                  Between Canadian and United States Generally Accepted Accounting
                  Principles**
  These
        consolidated financial statements have been prepared in accordance with Canadian
        GAAP which differs in certain respects from U.S. GAAP. Significant differences
        between Canadian and U.S. GAAP are summarized below.
  a)
              U.S.
                  GAAP requires the measurement and reporting of "comprehensive income".
                  Comprehensive income includes net income and all other changes
                  to
                  Shareholders' Deficit other than amounts received from or paid
                  to
                  shareholders. The impact on the Company's consolidated financial
                  statements is presented below.
  b)
              Reconciliation
                  to U.S. GAAP is as follows:
   **2006**
                
                
                2005
                
                
                2004Net
                    earnings (loss) under Canadian GAAP
                
                $
                **92,000**
                
                $
                (250,000
                )
                $
                (6,006,000
                )Net
                    earnings (loss) under U.S. GAAP
                
                
                **92,000**
                
                
                (250,000
                )
                
                (6,006,000
                )Foreign
                    currency translation adjustment
                
                
                **-**
                
                
                -
                
                
                -Comprehensive
                    earnings (loss) under U.S. GAAP
                
                $
                **92,000**
                
                $
                (250,000
                )
                $
                (6,006,000
                )Accumulated
                    deficit under Canadian GAAP
                
                $
                **(45,572,000**
                **)**
                $
                (45,664,000
                )
                $
                (44,685,000
                )Accumulated
                    deficit under U.S. GAAP
                
                $
                **(45,572,000**
                **)**
                $
                (45,664,000
                )
                $
                (44,685,000
                )
 
 -
                27
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **18.**
              **Reconciliation
                  Between Canadian and United States Generally Accepted Accounting
                  Principles**(cont'd)
  c)
              Recent
                  Accounting Pronouncements
  In
        February 2006, the Financial Accounting Standards Board ("FASB") issued SFAS
        No.
        155, "Accounting for Certain Hybrid Financial Instruments—an amendment of FASB
        Statements No. 133 and 140” (“SFAS No. 155”). This statement permits fair value
        of remeasurement for any hybrid financial instrument that contains an embedded
        derivative that otherwise would require bifurcation; clarifies which interest
        only strips and principal only strips are not subject to the requirements
        of
        SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities";
        establishes a requirement to evaluate interests in securitized financial
        assets
        to identify interests that are freestanding derivatives or that are hybrid
        financial instruments that contain an embedded derivative requiring bifurcation;
        clarifies that concentrations of credit risk in the form of subordination
        are
        not embedded derivatives; and amended SFAS No. 140, "Accounting for Transfers
        and Servicing of Financial Assets and Extinguishments of Liabilities", to
        eliminate the prohibition on a qualifying special purpose entity from holding
        a
        derivative financial instrument that pertains to a beneficial interest other
        than another derivative financial instrument. SFAS No. 155 is effective for
        all
        financial instruments acquired, issued, or subject to a remeasurement (new
        basis) event occurring after the beginning of an entity’s first fiscal year that
        begins after September 15, 2006. The Company is currently reviewing the effect,
        if any, the proposed guidance will have on its financial position.
  In
        March
        2006, FASB issued SFAS No. 156, "Accounting for Servicing of Financial Assets",
        which amends SFAS No. 140, Accounting for Transfers and Servicing of Financial
        Assets and Extinguishments of Liabilities" (“SFAS No. 156”). In a significant
        change to current guidance, SFAS No. 156 permits an entity to choose either
        of
        the following subsequent measurement methods for each class of separately
        recognized servicing assets and servicing liabilities: (1) Amortization Method
        or (2) Fair Value Measurement Method. SFAS No. 156 is effective as of the
        beginning of an entity’s first fiscal year that begins after September 15, 2006.
        The Company is currently reviewing the effect, if any, the proposed guidance
        will have on its financial position.
  In
        June
        2006 FASB issued Financial Accounting Standards Interpretation No. 48,
“Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 clarifies the
        accounting for uncertainty in income taxes recognized in an enterprises’
financial statements in accordance with SFAS No. 109, “Accounting for Income
        Taxes” ("SFAS No. 109"). FIN 48 prescribes a recognition threshold and
        measurement attributable for the financial statement recognition and measurement
        of a tax position taken or expected to be taken in a tax return. FIN 48 also
        provides guidance on derecognition, classification, interest and penalties,
        accounting in interim periods, disclosures and transitions. FIN 48 is effective
        for fiscal years beginning after December 15, 2006. The Company is currently
        reviewing the effect, if any, FIN 48 will have on its financial
        position.
 
 
 -
                28
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **18.**
              **Reconciliation
                  Between Canadian and United States Generally Accepted Accounting
                  Principles**(cont'd)
  c)
              Recent
                  Accounting Pronouncements (cont'd)
  In
        September 2006, the SEC staff issued Staff Accounting Bulletin No. 108 (“SAB No.
        108”), “Considering the Effects of Prior Year Misstatements when Quantifying
        Misstatements In Current Year Financial Statements”, SAB No. 108 was issued to
        provide consistency in how registrants quantify financial statement
        misstatements. The Company is required to and will initially apply SAB No.
        108
        in connection with the preparation of its annual financial statements for
        the
        year ending September 30, 2007. The Company does not expect the application
        of
        SAB No. 108 to have a material effect on its financial position and results
        of
        operations.
  In
        September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” ("SFAS
        No. 157"), which is effective for calendar year companies on January 1, 2008.
        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
        September 2006, the FASB issued SFAS No. 158, “Employers' Accounting for Defined
        Benefit Pension and Other Postretirement Plans an amendment of FASB Statements
        No. 87, 88, 106 and 132 (R)” ("SFAS No. 158"). SFAS No. 158 requires an employer
        to recognize the funded status of a defined benefit postretirement plan as
        an
        asset or liability in its statement of financial position and to recognize
        changes in that funded status in the year in which the changes occur through
        comprehensive income. The funded status of a benefit plan is defined as the
        difference between the fair value of the plan assets and the plans benefit
        obligation. For a pension plan the benefit obligation is the projected benefit
        obligation and for any other postretirement benefit plan, such as a retiree
        health care plan, the benefit obligation is the accumulated postretirement
        benefit obligation. SFAS No. 158 requires an employer to recognize as a
        component of other comprehensive income, net of tax, the gains and losses
        and
        prior service costs or credits that arise during the period but that are
        not
        recognized as components of net periodic benefit costs pursuant to SFAS No.
        87
“Employers’ Accounting for Pensions”. SFAS No. 158 also requires an employer to
        measure the funded status of a plan as of the date of its year end. Additional
        footnote disclosure is also required about certain effects on net periodic
        benefit cost for the next year that arise from the delayed recognition of
        gains
        or losses, prior service costs or credits, and transition asset or obligation.
        Except for the year end measurement requirement, SFAS No. 158 is effective
        for
        the year ending December 31, 2006. The Company does not anticipate that the
        adoption of this statement will have a material effect on its financial
        condition or operations.
 
 
 -
                29
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **19.**
              **Supplemental
                  Cash Flow Disclosure**
  During
        the year, the Company had cash flows arising from interest and income taxes
        paid
        as follows:
  **2006**
                  
                  
                  2005
                  
                  
                  2004Interest
                      paid
                  
                  $
                  **68,000**
                  
                  $
                  76,000
                  
                  $
                  173,000Income
                      taxes paid
                  
                  $
                  **-**
                  
                  $
                  -
                  
                  $
                  -
  The
        Company had non-monetary transactions as follows:
  a)
              For
                  the year ended September 30, 2006, Racino acquired licensing rights
                  of
                  $1,479,000, of which $1,452,000 was paid by issuing shares and
                  warrants
                  (note 10).
  b)
              For
                  the year ended September 30, 2004, property and equipment of $102,000
                  were
                  acquired through capital lease.
 
 
 -
                30
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **20.**
              **Segmented
                  Information**
  Management
        has identified two reportable segments, “Newlook” and “Racino”. Segmentation is
        determined on the basis of the types of goods and services provided.
  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 in Saskatchewan, Canada.
  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:
  **2006**
                
                
                2005
                
                
                2004Revenue
                    by Segment:Newlook
                
                $
                **3,629,000**
                
                $
                4,861,000
                
                $
                5,735,000Racino
                
                
                **130,000**
                
                
                -
                
                
                -Total
                    Revenue by Segment
                
                $
                **3,759,000**
                
                $
                4,861,000
                
                $
                5,735,000Net
                    Earnings (Loss) by Segment:Newlook
                
                $
                **(830,000**
                **)**
                $
                (580,000
                )
                $
                (2,662,000
                )Racino
                
                
                **(51,000**
                **)**
                
                -
                
                
                -Corporate
                
                
                **973,000**
                
                
                (620,000
                )
                
                (344,000
                )Discontinued
                
                
                -
                
                
                950,000
                
                
                (3,000,000
                )Total
                    Net Earnings (Loss) by Segment
                
                $
                **92,000**
                
                $
                (250,000
                )
                $
                (6,006,000
                )Amortization
                    by Segment:Newlook
                
                $
                **334,000**
                
                $
                439,000
                
                $
                309,000Corporate
                
                
                **14,000**
                
                
                20,000
                
                
                12,000Total
                    Amortization by Segment
                
                $
                **348,000**
                
                $
                459,000
                
                $
                321,000
  
 -
                31
                -
 
 **EIGER
                TECHNOLOGY, INC.** **AND SUBSIDIARIES**
 Notes
                to
                Consolidated Financial Statements
 September
                30, 2006, 2005 (Restated) and 2004
                (Restated)
 
  **20.**
              **Segmented
                  Information**(cont'd)
   **2006**
                
                
                2005
                
                
                2004Capital
                    Expenditures by Segment:Newlook
                
                **$**
                **186,000**
                
                $
                49,000
                
                $
                684,000Corporate
                
                
                -
                
                
                -
                
                
                7,000Total
                    Capital Expenditures by Segment
                
                **$**
                **186,000**
                
                $
                49,000
                
                $
                691,000Identifiable
                    Assets by Segment:Newlook
                
                $
                **1,273,000**
                
                $
                1,762,000
                
                $
                2,563,000Racino
                
                
                **1,516,000**
                
                
                -
                
                
                -Corporate
                
                
                **112,000**
                
                
                167,000
                
                
                222,000Discontinued
                
                
                -
                
                
                3,000
                
                
                4,502,000Total
                    Identifiable Assets by Segment
                
                $
                **2,901,000**
                
                $
                1,932,000
                
                $
                7,287,000
  **21**.
              **Comparative
                  Figures**
  Certain
        figures for the years ended September 30, 2005 and 2004 have been reclassified
        in order to conform with the current year's financial statement
        presentation.