UNITED
STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D. C. 20549

FORM 10-KSB

ANNUAL REPORT PURSUANT
TO SECTIONS 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

For
the fiscal year ended December 31, 2003

SKYBRIDGE
WIRELESS, INC. (Name of Small Business Issuer in its charter)

|Nevada                                                         | 88-0391722                          
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of
incorporation or organization) | (I.R.S. Employer
Identification No.)

6565 Spencer St. Suite
205Las Vegas, Nevada 89119(Address
of principal executive offices) (Zip Code)

(702) 897-8704 (Issuers telephone number, including area code)

| | Securities | registered
under Section 12(b) of the Act: None
| | ---------- | -----------------------------------------------

| | Securities | registered under Section 12(g) of the Act: Common Stock, $.001 par value per share(Title of Class)
| | ---------- | --------------------------------------------------------------------------------------------------

Indicate by check mark whether
SkyBridge Wireless, Inc. (SkyBridge) (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 Ness was required to file such reports),
and (2) been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

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

SkyBridges revenues for the
fiscal year ended December 31, 2003, were: $47,502.

Check whether the issuer has filed
all documents and reports required to be filed by Section 12, 13, or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed by a court. Yes [X] No[  ].

The aggregate market value of the
voting stock held by non-affiliates, based upon the average bid and ask price as of March
1, 2004 of the Common Stock, was approximately $3,648,640.

As of March 1, 2004, SkyBridge had
approximately 403,989,120 shares of common stock outstanding.

Transitional Small Business
Disclosure Format (check one): Yes [ ] No [X].

1

TABLE OF CONTENTS

|PART I                                                               | PAGE
|-------------------------------------------------------------------- | ----
|ITEM 1.  DESCRIPTION OF BUSINESS                                     | 3   
|ITEM 2.  DESCRIPTION OF PROPERTY                                     | 6   
|ITEM 3.  LEGAL PROCEEDINGS                                           | 7   
|PART II                                                             
|ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS    | 7   
|ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION   | 8   
|ITEM 7.  FINANCIAL STATEMENTS                                        | 10  
|ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ACCOUNTING   
|AND FINANCIAL DISCLOSURE                                             | 10  
|PART III                                                            
|ITEM 9.  DIRECTORS,EXECUTIVE OFFICERS,PROMOTERS AND CONTROL PERSONS;
|COMPLIANCE WITH SECTION 16(a)OF THE EXCHANGE ACT                     | 10  
|ITEM 10. EXECUTIVE COMPENSATION                                      | 11  
|ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL                   
|OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                | 11  
|ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS              | 12  
|ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K                            | 12  
|ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES                      | 13  
|SIGNATURES                                                           | 13  

2

PART I

ITEM 1. Description of
Business

Introduction

| | Our
company is SkyBridge Wireless, Inc. (sometimes referred to as the Company or
SkyBridge) and it is a development stage company with limited revenues,
incorporated in Nevada with our offices located in Las Vegas. The business of the Company
is to further develop a business supplying high-speed fixed wireless Internet access to
businesses and communities in some of the nations fastest-growing metropolitan
markets, with initial efforts in Las Vegas, Nevada, a very dynamic market. Our plan is
non-exclusive; we are considering other services and products to pursue which may
complement our business and meet the needs or demands of business customers in the months
ahead.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Wireless
service allows customers to use the Internet at speeds up to 50 times faster than
todays dial-up modems. As the demand for more information, communication and
entertainment grows, so does the need for solutions to provide these services at high
speed and at an acceptable cost.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | SkyBridges
fixed wireless broadband access provides a high speed solution at a fraction of the cost
of wireline T-1 data connections, and can be installed and operational in a much shorter
time than many other data solutions. Wireless, though very competitive, represents one of
todays fastest-growing industry sectors.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We
are in need of capital, and we are subject to numerous business risks, so no assurance can
be made that SkyBridge will accomplish its goals, including becoming a profitable
business.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Companys principal executive offices are located at 6565 Spencer St, Suite 205, Las
Vegas, Nevada, 89119, and its telephone number is (702) 897-8704.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

Past
History

| | Our
Company, publicly owned, was previously called Entertainment Internet, Inc.
(ENIN for short), which was incorporated in Nevada on April 20, 1992 under
another previous name of West Tech Services, Inc. Our Company changed its name to
Entertainment Internet, Inc. in 1998 and became inactive sometime during the year 2000. On
November 20, 2000, ENIN filed a voluntary petition for bankruptcy in the United States
Bankruptcy Court and emerged from bankruptcy under Chapter 7 pursuant to a Bankruptcy
Court Order entered on November 28, 2001 with no remaining assets or liabilities.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
March 31, 2003, ENIN consummated an agreement to acquire all of the outstanding capital
stock of SkyBridge Wireless, Inc., in exchange for 330,000,000 shares of the
Companys common stock (ENIN Transaction). SkyBridge Wireless, Inc.,
currently our subsidiary, was originally incorporated on December 20, 2002 under the laws
of the State of Nevada and was a privately owned company. Prior to the ENIN Transaction,
ENIN was a non-operating public shell company with no operations, nominal net assets and
76,554,120 shares of common stock issued and outstanding; and SkyBridge Wireless, Inc. was
a development stage company interested in pursuing the high speed wireless internet
business.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
ENIN Transaction is considered to be a capital transaction in substance, rather than a
business combination. Inasmuch, the ENIN Transaction is equivalent to the issuance of
stock by a development stage company (SkyBridge Wireless, Inc.) for the net monetary
assets of a non-operational public shell company (Entertainment Internet, Inc.),
accompanied by a recapitalization. The accounting for the ENIN Transaction is identical to
that resulting from a reverse acquisition, except goodwill or other intangible assets were
not recorded. The Company recognized an acquisition cost of $7,449, which is the net
balance of the par value of the issuance of common stock related to the ENIN Transaction
totaling $7,655 less the cash received from ENIN totaling $206. Accordingly, financial
statements in this Report are primarily the historical financial statements of SkyBridge
Wireless, Inc., the private company which then became part of the public company as part
of the ENIN Transaction. Note, as part of the ENIN Transaction, ENIN changed its name to
SkyBridge Wireless, Inc.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Current
Business

| | The
business of the Company is to further develop a business supplying high-speed fixed
wireless Internet access to businesses and communities in some of the nations
fastest-growing metropolitan markets, with initial efforts in Las Vegas, Nevada, a very
dynamic market. Wireless service allows customers to use the Internet at speeds up to 50
times faster than todays dial-up modems. As the demand for more information,
communication and entertainment grows, so does the need for solutions to provide these
services at high speed and at an acceptable cost. SkyBridges fixed wireless
broadband access provides a high speed solution at a fraction of the cost of wireline T-1
data connections, and can be installed and operational in a much shorter time than many
other data solutions.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

| | Our
plan is non-exclusive; we are considering other services and products to pursue which may
complement our business and meet the needs or demands of business customers in the months
ahead. We are looking for new opportunities for business.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Competition

| | Competition
comes from numerous suppliers, almost any source which supplies internet access, though
more specific competition should be viewed as sources supplying high speed
services like or somewhat like our Company. In this regard, numerous established providers
exist including Fixed Wireless, Telco, and Cable Broadband, and many of them have
substantially more resources and market share than us. However, we dont view, in our
opinion, that market penetration by other Fixed Wireless Providers is prominent, and we
believe many of these providers are using inefficient and insecure technology, including
802.11b technology. DSL and Fiber solutions provided by local Telco companies are limited
to available facilities and capacity. Cable Broadband providers are plagued by limited
facilities in a rapidly growing market, and over selling the already limited network.
Competitive providers of these services are also unable to provide the rapid deployment of
Internet Access services within the 3 business days that SkyBridge Wireless can deploy
virtually the same service. Consider we are expressing our opinion on these issues.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Business
Plan

| | SkyBridge
is a Fixed Wireless Internet Broadband company that currently specializes in providing
high speed fixed wireless internet access to businesses initially in the Southern Nevada
markets. SkyBridge Wireless business strategy revolves around the need to provide
quality fixed wireless Internet Access service to clients, in the process fully satisfying
their internet data needs, at a fraction of the time and cost of traditional wireline
providers. Over the next 9 months SkyBridge plans to expand its access points from its
current 4 locations to 13 locations around the Las Vegas Valley. The Companys intent
is to gain as many customers as possible in a short period of time, while maintaining a
higher than average level of service and support for the customers and their needs.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Our
business needs new towers and new customers as part of what we must do to potentially
succeed, the goal being to build shareholder value and be self sufficient from operational
cash flow without the need for equity or debt transactions. We seek to expand the number
of towers which we control, and increase the number of paying customers, initially in the
Las Vegas area. We seek to joint venture or license our business model to third parties in
other geographical areas as part of expansion to new cities. Our plan includes becoming
profitable based upon cash flow from customers, though we are currently non-profitable and
suffering from significant demands for cash to meet both operational expenses and larger
expansion costs. Managements plan, in this regard, is to raise financing through a
combination of equity and debt financing. Management believes approximately $5,000,000
will be sufficient to finance the continuing development for the next twelve months.
However, there is no assurance that our Company will be successful in raising such
financing or in otherwise becoming profitable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Services
and Equipment

| | SkyBridge
provides highly cost competitive fixed wireless broadband access for small to large
commercial clients in markets under served by DSL, cable or high-cost wireline carriers.
SkyBridges technology platform provides exceptional reliability and up-times, high
quality inexpensive Customer Premise Equipment (CPE), and inexpensive network operation
and support costs. SkyBridge also offers a variety of high speed wireless Point to Point
connections that can be engineered to support IT data projects or applications.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

| | SkyBridge
is also involved in Broadband Wireless Network Engineering & Integration. This service
includes: Wireless design and planning, Network design documentation, Hardware
specifications and recommendations, Site survey statistics, Topography graphs and antenna
plotting information, path calculations and link probability statistics, and installation
where our crews deploy wireless networks with the quality and timeliness a customer
demands. Proper installation is essential for any wireless system to maintain reliability,
low-maintenance and the ability to withstand harsh environmental conditions.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SkyBridge
currently has basic communication services available for its clients:

| | o
o
o
o
o
o
o | 256Kbits
512Kbits
768Kbits
1Mbit
1.5Mbit
Point to Point Connections
Wireless Network Integration
| | ------------- | ------------------------------------------------------------------------------------------------

| | We
obtain our hardware and software from third parties. We utilize various pieces of
equipment and software from third parties including communication towers, software, and
cables. SkyBridge Wireless, Inc. provides a Fixed Wireless point to Multipoint network
that interconnects customers to an Access Point allowing the customer access to the
internet. Fixed Wireless Broadband is an Internet Access service designed to take the
place of Cable/DSL, Fiber and T1 services from the telephone company and does not require
satellite feeds, a government license, or even local phone services. SkyBridge Wireless
Fixed Wireless systems use a small microwave antenna that is attached to a radio at the
customer premises. The Customer Premise Equipment (CPE) is pointed back to the Access
Point (AP)typically a tall building or radio towerto create a Wireless Local
Loop (WLL). From the CPE the customer can attach their computer system or company network
via a RJ-45 Ethernet connection and connect directly to the Internet.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Current
Locations

| | We
have a secure equipment cabinet and co-location facilities at The Rio Hotel and
Casinos communications facility. This location provides us with access to direct
fiber on a national backbone network for our Internet Access backhaul. The Rio Hotel and
Casino is one of our major Wireless Access Points (WAP), which allows us to broadcast over
240 degrees of line of sight to the south, west, north, and northeast areas of Las Vegas.
We currently have 3MBits of redundant high-speed fiber bandwidth from Cox Communications
Business Services national fiber network; which interconnects with AT&T and Level 3
Communications. This bandwidth is burstable from the 3MB floor up to 155MB and can be
upgraded at any time with very quick response times, because of having direct access to
the national fiber network. The wireless backbone interconnects here and handles all
customer traffic. This location also houses our in-house Network-wide monitoring, and
Policy Server, which will also use this fiber connection for access. This location is
exclusive to us by the site license for broadcasting and uses the specific frequencies
that are being used by our broadcast and backhaul networks.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | SkyBridge
Wireless also utilizes the rooftop at the Las Vegas Hilton. This site is at the north end
of the Las Vegas Strip, and is positioned for direct access of Wireless Broadband services
to the entire east and north markets of Las Vegas. This will also allow SkyBridge Wireless
to broadcast its services to the far north, west, and east sections of the city, when new
customers are obtained, which areas are lacking broadband services. SkyBridge Wireless
plans to use this site to expand its wireless backbone to be able to deliver cost
effective service to new SkyBridge Wireless Access Points. (This site is directly
connected to SkyBridge Wireless High Speed network via FCC licensed 23GHz 45MBit
microwave connections with High speed fiber redundancy.)
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

Demand
For Wireless Speed and Efficiency

| | There
is a demand for speed and increased efficiency in business to business communications.
Then there is the increasing amount of content that involves a bigger volume of data
files, more Internet services, information, entertainment and communication. As the desire
for more information, communication and entertainment grows, so does the need for
solutions to provide these services at high speed, high reliability and at an acceptable
cost. Wireless has always been an alternative for high-speed connections, but never has
the range of choices been as great or the rate of innovation as rapid. Fixed Wireless
Broadband connections can deliver data rates from 256Kbps to 650 Mbps. These wireless
connections serve the same function as a wireline  interconnecting private networks,
bypassing a local exchange carrier or connecting to the Internet.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

What
is Fixed Wireless Broadband Access?

| | Fixed-wireless
systems can be used for almost anything that a cable is used for, whether the cable is a
T1 circuit, a cable television cable, an Ethernet cable or a fiber optic cable.
Fixed-wireless systems are designed so that they emulate cable connections, and they use
the same type of interfaces and protocols, such as T1, frame relay, Ethernet and ATM.
Fixed-wireless systems are also used for voice communications as well as for carrying
television programming. But most fixed-wireless systems are data-centric, such as for
Internet access, or is flexible in supporting both voice and data communications.
Fixed-wireless systems match cable-based systems for all important parameters, including
delay, bit-error rate (1 in 100 million or better) and throughput (1 Mbps to 650 Mbps).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Many
applications that operate over a cable should be able to operate over a fixed-wireless
system. Today fewer than 20 percent of buildings have fiber to them, and only about 60
percent are close enough to a central office (12,000 feet or 3.5 km) to take advantage of
DSL technology. A wireless connection could be the only option for high-speed
communications. Reasons to consider wireless include lower costs, faster deployment,
greater flexibility and better reliability. You also do not need to be a radio engineer to
take advantage of fixed-wireless communications. Wireless communications offers tremendous
flexibility and ever-improving performance, wireless offers more than sufficient bandwidth
for many applications. Fixed Wireless systems operate at frequencies that require Line of
sight (LOS) and that have broadcast distances that vary from a few feet to tens of miles.
Fixed Wireless Internet Access is distinctly different from wired services (Cable/DSL,
T-1, or Fiber) by its potential transport speed, ease and rapid installation, reliability
and affordability  among other reasons.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Employees

| | The
Company currently has three (3) Full-time employees all of whom are officers of the
Company. It also has two (2) part-time employees.
| | -----------------------------------------------------------------------------------------------------------------------------------------

ITEM
2. Description of Properties

Facilities

| | The
office is a functional and utilitarian office space located at 6565 Spencer St, Suite 205
Las Vegas, Nevada, one of the fastest expanding population areas in the country. It is
located on the southwest side of the city for line of site applications for the Radio
Frequency (RF) network. The office space is conveniently located close to all major roads
and freeways and the airport for easy dispatch of installation and maintenance crews. We
have other property related rights as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We
have a secure equipment cabinet and co-location facilities at the Las Vegas Rio Hotel and
Casinos communications facility. This location provides us with access to direct
fiber on a national backbone network for our Internet Access backhaul.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Rio Hotel and Casino is one of our major Wireless Access Points (WAP), which allows us to
broadcast to over 240 degrees of line of sight to the south, west, north, and northeast
areas of Las Vegas. We currently have 5MBits of redundant high-speed bandwidth from Cox
Communications national fiber network; which interconnects with AT&T and Level 3
Communications. This bandwidth is burstable from the 5MB floor up to 100MB and can be
upgraded at any time with very quick response times, because of having direct access to
the national fiber network. The wireless backbone interconnects here and handles all
customer traffic. This location also houses our in-house Internet, E-Mail, DNS,
Network-wide monitoring, and Policy Server, which will also use this fiber connection for
access. This location is exclusive to us by the site license for broadcasting and using
the specific frequencies that are being used by our broadcast and backhaul networks.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

| | SkyBridge
Wireless has secured an arrangement for use of the rooftop at the Las Vegas Hilton. This
site is at the north end of the Las Vegas Strip, and is positioned for direct access of
Wireless Broadband services to the entire east and north markets of Las Vegas. This
currently allows SkyBridge Wireless to broadcast its services to the far north section of
the city, which is lacking in true broadband services to the market. This site is directly
connected to SkyBridge Wireless High Speed network via FCC licensed 23GHz 45MBit
microwave connections.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEM 3. Legal Proceedings

None.

PART II

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market

The Companys stock is currently
listed on the OTC Bulletin Board under the symbol SBWL.

The following table shows the high
and low bid prices of the Companys common stock as reported for the periods
indicated. The quotations shown reflect inter-dealer prices, without retail mark-up,
mark-down or commission and may not necessarily represent actual transactions.

|Year Ended December 31, 2002 |               |      
|---------------------------- | ------------- | -----
|First Quarter                | $     0.15  $ | 0.002
|Second Quarter               | $     0.20  $ | 0.15 
|Third Quarter                | $     0.20  $ | 0.20 
|Fourth Quarter               | $     0.20  $ | 0.10 

|Year Ended December 31, 2003 |               |      
|---------------------------- | ------------- | -----
|First Quarter                | $     0.11  $ | 0.11 
|Second Quarter               | $     0.40  $ | 0.03 
|Third Quarter                | $     0.17  $ | 0.03 
|Fourth Quarter               | $     0.11  $ | 0.014

Holders of Common Equity

As of March 1, 2004 there were 242
shareholders of record of the Companys common stock, a figure that does not take
into account those shareholders whose certificates are held in the name of depositories,
financial intermediaries, clearing houses, broker-dealers or other nominees such as the
Depository Trust Company (DTC) and its own nominee, Cede & Company.

Dividends

The Company has declared a stock dividend on October 10, 2003 of one share of NET stock
for each share of SkyBridge owned October 10, 2003. As of the date of this report, the shares have not been
issued and is pending legal compliance and related issues to complete the transaction.

The Company has not declared or paid a cash dividend to stockholders as to the Company
since it was originally organized. The Board of Directors presently intends to retain any earnings to finance
necessary operations and does not expect to authorize cash dividends in the foreseeable future. Any payment of
cash dividends in the future will depend upon earnings, capital requirements and other factors.

7

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

General

SkyBridge is a development stage
company that started its business in 2002. SkyBridge intends to continue its network
expansion business so that it may commence material sales in the third and fourth quarter
of 2004, as estimated by Management. The Company has limited resources for cash outlay,
however the proposed expansion continues through 2004. During 2003, the Company continued
to engage in activities to raise capital through equity financing. In March, 2004
SkyBridge signed an agreement with May Davis Group, NY, NY for help to raise up to
$5,000,000 on a best efforts basis, and the Company is exploring other debt and equity
opportunities. No assurance exists the Company will successfully raise the capital.

Management expects sales levels will
be limited in thethird and fourth quarters of 2004 but should consistently
increase into 2005.

During the year ended December 31,
2003, the Company incurred a net loss of $2,070,896 or a loss of $0.01 per share.

The Company has a limited operating
history upon which an evaluation of the Company, its current business and its prospects
can be based. The Companys prospects must be considered in light of the risks,
uncertainties, expenses and difficulties frequently encountered by companies in their
early stages of development. Such risks include, the Companys inability to
anticipate and adapt to a developing market, the failure of the companys
infrastructure, changes in laws that adversely affect the Companys business, the
ability of the Company to manage its operations, including the amount and timing of
capital expenditures and other costs relating to the expansion of the Companys
operations, the introduction and development of different or more extensive communities by
direct and indirect competitors of the Company, including those with greater financial,
technical and marketing resources, the inability of the Company to attract, retain and
motivate qualified personnel and general economic conditions.

The Company has achieved no
significant revenue or profits to date, and the Company anticipates that it will continue
to incur net losses for the foreseeable future. As of December 31, 2003, the Company had
an accumulated deficit of $2,103,896.

The Company expects that its
operating expenses will increase significantly, especially as it fine-tunes its business
plan. To the extent that increases in its operating expenses precede or are not
subsequently followed by commensurate increases in revenues, or that the Company is unable
to adjust operating expense levels accordingly, the Companys business, results of
operations and financial condition would be materially and adversely affected. There can
be no assurances that the Company can achieve or sustain profitability or that the
Companys operating losses will not increase in the future.

The Companys independent
auditor issued an explanatory paragraph as to their substantial doubt as to the
Companys ability to continue as a going concern, in their Report for the financial
statements of December 31, 2003. Without realization of additional capital, it would be
unlikely for the Company to continue as a going concern. The Company plans to raise
operating capital via equity and/or debt offerings. However, there are no assurances that
such offerings will be successful or sufficient to fund the operations of the Company. In
the event the offerings are insufficient, the Company has not formulated a plan to
continue as a going concern.

Plan of Operation

In light of limited revenues, during
the next 12 months, the Company will actively seek out funding partners. Because the
Company lacks cash and other capital resources, it may be necessary for the officers and
directors to either advance funds to the Company or to accrue expenses until such time as
a successful business operations can be made, however there is no agreement with them for
them to do so, nor is there any assurance that they will or any advances will be
sufficient.

Management intends to hold expenses to a minimum and to obtain services on a
contingency basis or for shares when possible.

8

As to labor expenses moving forward,
the Company intends to use 3 full-time and 2 part-time employees and will add other
employees as needed. Outside advisors or consultants will be used only if they can be
obtained for minimal cost or on a deferred payment basis or for stock.

Management is confident that the
Company will be able to operate and to continue its search for funding opportunities for
at least the next 12 months.

Liquidity and Capital
Resources

The Company needs cash over the
ensuing 12 months in order to carry out its business activities, the Company has received
a commitment from a New York brokerage firm to raise up to $5 million dollars, but on a
best efforts basis. In spite of being able to meet cash needs that are currently
anticipated, there can be no assurance that the Company will have the ability to acquire
all the needed funds to complete its business plan.

Results of Operations

The Company generated $47,502 in
revenues from its for the year ended December 31 of 2003. Limited sales only began
in May 2003.

The Company is currently in
negotiations with one major domestic, national retailer that may want to utilize Company
services and products. Whether or not an agreement or any benefits are obtained, it
continues to seek potential customers, though it is significantly restrained due to the
need for capital.

The Company continues to make final
arrangements to set up products in select areas in the third and fourth quarter of 2004.
The Company expects to have an agreement in place with at least one major retailer by
summer, 2004, however there is no assurances that any agreement will be completed by then
or in the future.

In September 2003, the Company entered into an agreement to
acquire 100% of the outstanding capital stock of (NET) N-E-T Service
Corporation (NET Transaction), which was owned and controlled by Company
President Jim Wheeler, in exchange for 500,000 shares of the Companys common stock.
The material asset that NET has is a distribution license with an Oregon company for a
voice over IP system used in connection with the Internet. The system would allow
businesses to connect their phone systems through the Internet. The
Companys plan is to use Net as a future vehicle for acquisitions, mergers and
similar transactions, apart from consideration of Internet business it may plan for NET to
undertake. In February, 2004, the company completed the purchase of the NET transaction through the issuance
of the 500,000 shares.

Although the Company has achieved
limited sales in 2003, in Managements opinion, substantial business activity
occurred which has helped to move the Company towards its objectives. The activities
include product development, market development, and creation of vendor/customer
relationships and the signing of an agreement to supply the company with up to $5 million
dollars for expansion on a best efforts basis. The staff and consultants continue to move
forward with positive results, though the Company remains non-profitable. The yearly
activities were financed primarily through the infusion of capital from the sale of
restricted stock and payment of services with stock.

Dividend Policy

The Company has declared a stock dividend on October 10, 2003 of one share of NET stock
for each share of SkyBridge owned October 10, 2003. As of the date of this report, the shares have not been
issued and is pending legal compliance and related issues to complete the transaction.

The Company has not declared or paid a cash dividend to stockholders as to the Company
since it was originally organized. The Board of Directors presently intends to retain any earnings to finance
necessary operations and does not expect to authorize cash dividends in the foreseeable future. Any payment of
cash dividends in the future will depend upon earnings, capital requirements and other factors.

9

ITEM 7. Financial Statements.

Attached.

ITEM 8.   Changes in and Disagreements with Accountants.

None.

PART III

ITEM 9.   Directors, Executive Officers, Promoters and Control Persons

Executive Officers and
Directors

The executive officers and Directors
of the Company are as follows:

James A. Wheeler (CEO &
Director), age 43.James is a senior executive with 20 years experience in operations:
call center, human resources and administration management. James has extensive expertise
in telecom, information technologies and web-based systems. Over the years, but not
currently, as CEO of a consulting firm in Las Vegas, NV a company that offers management
consulting to start-ups, turn-a-rounds and operations, James negotiated new contracts and
assigned personnel to projects. He also led staff to timely completion of projects which
included being a consultant to a web-based company, and established company website for
retail market and inventory controls and negotiated service level agreements with web
companies. From June 2002 to present he has been CEO and a Director of SkyBridge Wireless,
Inc., our subsidiary company located in Las Vegas, NV in the business of being a Fixed
Wireless Service Provider. From August 1999 to December 2002 Mr. Wheeler was the President
of Executive Management Services, a company located in Las Vegas, NV, in the business of
consulting with start-up companies, turn-a-rounds and operations. He has a AA degree in
Business Administration, 1981  N/W Nazarene University, Nampa, ID, and a BA Business
Administration, 2000  Americus University, Washington, D.C. and MBA Business
Administration, 2002  Americus University, Washington, D.C.

Jason Neiberger (President &
Director), age 31. Jason has worked with Computer Network and Internet systems, for 10
years. From June 2002 to present Jason Neiberger is the President and Director of
SkyBridge Wireless, Inc., our subsidiary company located in Las Vegas, NV in the business
of being a Fixed Wireless Service Provider. From July 2000 to July 2002 Jason Neiberger
was the CTO and General Manager of LANwaves, Inc., a company located in Las Vegas, NV in
the business of being a Fixed Wireless Service Provider. From April 1997 to July 2000
Jason Neiberger was IT Director of TechnoTwist, LLC and Secure Independence, Inc., a
company located in Las Vegas, NV in the business of being a national Internet Service
Provider. He holds various certifications as follow:

CompuMaster, Microsoft
Solution Provider, 1998Denver, CO Certification MCP

CompuMaster, Microsoft Solution
Provider 1998Denver, CO Certification MCP

CompuMaster, Microsoft
Solution Provider, 1999Chicago, IL Certification MCP

Cisco Career
Certifications, 1999Los Angeles, CA CCNA

10

Two Rivers Technologies,
1999Las Vegas, NV Certification of
Telecommunications Fundamentals

KarlNet, Inc., 2001Dublin,
OH Certification  RF
Techniques and Deployment

Proxim / Western, 2002Las
Vegas, NV Certification  RF
Equipment Training and Deployment

MapleNet, Inc., 2003Goshen,
IN Certification 
Wireless Technician

RF Systems &
Associates, 2004Las Vegas, NVCertification  RF Communications

Kristine Neiberger (Secretary
& Treasurer),age 23, Kristine, Jasons wife, has worked with in business
management for approximately three years. From June 2002 to present Kristine Neiberger is
the Secretary and Treasurer of SkyBridge Wireless, Inc., our subsidiary company located in
Las Vegas, NV in the business of being a Fixed Wireless Service Provider. From May 2000 to
March 2002 Kristine Neiberger was the Office Manager and Business Development Manager of
Digital Color & Graphics, a company located in Anaheim, CA in the business of Graphic
design and development. She has a Bachelor of Science degree from Riverside Community
College Riverside, CA, year , in General Accounting.

Gene Crusie (Director), age 35.Gene Crusie is the co-founder and Chief Technical Officer at MapleNet, Inc., located
in  Goshen, Indiana, a company that is in the business of Internet related business. He has a Bachelor of
Science degree in electrical engineering, 1994, from Purdue University, as well as a
Bachelor of Science degree in organizational management from Goshen College, 1996. He is an owner and Chief
Technical Officer at Maple Net from 1999 to present.

Section 16(a) Disclosure

Section 16(a) of the Securities
Exchange Act of 1934, as amended, requires our officers, directors and persons who
beneficially own more than ten percent of a registered class of our equity securities to
file reports of ownership and changes in ownership with the SEC and the National
Association of Securities Dealers, Inc. Officers, directors and ten percent shareholders
are charged by SEC regulation to furnish us with copies of all Section 16(a) forms they
file. We believe that, during the fiscal year ended December 31, 2003, all filing
requirements applicable to our executive officers, directors and ten percent shareholders
were fulfilled.

ITEM 10. Executive
Compensation

The Company has not adopted a final
bonus, stock option, stock issuance, profit sharing, or deferred compensation plan for the
benefit of its employees, officers, directors or consultants. Because there is nothing
further to disclose under this Item, the Company has not prepared a Summary Compensation
Table as would otherwise be required, except the following is the salary to officers for
this past year ended December 31, 2003:

*James Wheeler            $ 30,000
**Jason Neiberger          $ 38,900
Kristine Neiberger           $ 2,125

* Does not include unpaid accrued salary of $150,000.
** Does not include unpaid accrued salary of $141,100.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth
information, to the best of the Companys knowledge, as of March 1, 2004, 2003, with
respect to each person known to own directly and/or beneficially 5% or more of the common
capital stock of the Company, each Director and officer and all Directors and officers as
a group. As of March 1, 2004 , there were a total of 403,989,120 common shares issued and
outstanding.

11

|Title of             
           Name and Address
Class: Common         of Beneficial Owner | Amount and Nature of
Beneficial Ownership | Percent
of Class
|------------------------------------------------------------------------------------------- | ----------------------------------------- | ----------------
|James Wheeler                                                                               | 13,000,000                                | 32.2%           
|PO Box 96507                                                                                | Direct                                   
|Las Vegas, NV 89193                                                                        
|                                                                                           
|Jason Neiberger(1)                                                                          | 17,000,000                                | 42.1%I          
|6565 Spencer St Suite 205                                                                   | Direct                                   
|Las Vegas, NV 89119                                                                        
|                                                                                           
|Gene Crusie                                                                                 | 300,000                                   | 0%              
|6565 Spencer St Suite 205                                                                  
|Las Vegas, NV 89119                                                                        
|                                                                                           
|Kristine Neiberger(1)                                                                       | 150,000                                   | .04%            
|6565 Spencer St Suite 205                                                                   | Direct                                   
|Las Vegas, NV 89119                                                                        
|                                                                                           
|All directors, officers and                                                                
|persons owning 5% or more                                                                   | 33,150,000                                | 75%             
|as a group                                                                                 

(1)    
          Kristine and Jason are husband and wife and so may vote their shares together,
          though they disclaim beneficial ownership of one anothers stock.

ITEM 12. Certain
Relationships and Related Transactions

In September 2003, the Company
acquired 100% of the outstanding capital stock of (NET) N-E-T Service
Corporation (NET Transaction), which was owned and controlled by Company
President Jim Wheeler, in exchange for 500,000 shares of the Companys common stock.
.. The material asset that NET has is a distribution license with an Oregon company for a
voice over IP system used in connection with the Internet. The system would allow
businesses to connect their phone systems through the Internet. The Company recorded an
intangible asset and another liability for the license totaling $47,000. The
Companys plan is to use Net as a future vehicle for acquisitions, mergers and
similar transactions, apart from consideration of Internet business it may plan for NET to
undertake.

A consultant to the Company,
Bud Wheeler, is the father to James Wheeler. All compensation and arrangements
with Bud Wheeler are approved by the Board of Directors. Kristine Neiberger is the wife of
Jason Neiberger.

ITEM 13.   Exhibits and Reports on Form 8-K

(a)    
          Exhibits.

|Exhibit
Number  | Description*                                                                                                                                                                                         
|--------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1
   
3.2
4.1 | Officer's Certificate and Restated Articles of Incorporation of the
Company filed with the State of Nevada on September 2003.
By-laws, adopted on December 20, 2002
Specimen common stock certificate

*   On file with the U.S. Securities and Exchange Commission.

(b)    
          Reports on Form 8-K.

None.

12

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

The aggregate fees, for the years
ended December 31, 2002, and 2003, respectively, for professional services of our pricipal
accountant for the audit of our financials and reviews under Form 10-QSB, are: $ 0 and $ 12,100.

Audit-Related Fees

None.

Tax Fees

None.

All Other Fees

None.

Audit Committee

None.

Hours By Others

None.

SIGNATURES

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

|Dated: March 30, 2004 | SkyBridge Wireless, Inc.
(Registrant)
 By: /s/  James Wheeler 
 James Wheeler, CEO | /s/ Jason Neiberger
Jason Neiberger, President
|--------------------- | ---------------------------------------------------------------------------------- | ----------------------------------------------

In accordance with the Exchange Act, this report has been signed by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

|Dated: March 30, 2004 | SkyBridge Wireless, Inc.
(Registrant)
 By: /s/  James Wheeler 
 James Wheeler, CEOPrincipal Executive OfficerPrincipal Financial OfficerDirector | /s/ Jason Neiberger
Jason Neiberger, PresidentDirector
|--------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------

13

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY)FINANCIAL STATEMENTS DECEMBER 31, 2003 (With Report of
Independent Certified Public Accountants Thereon)

---

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) FINANCIAL STATEMENTS

TABLE OF CONTENTS

|                                                   | PAGE NO
|-------------------------------------------------- | -------
|Report of Independent Certified Public Accountants | F-1    
|Financial statements                              
|Balance sheet                                      | F-2    
|Statements of operations                           | F-3    
|Statements of stockholders' deficit                | F-4    
|Statements of cash flows                           | F-5    
|Notes to financial statements                      | F-6    

REPORT
OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Board of Directors
and StockholdersSkyBridge Wireless, Inc. (A Development Stage
Company)Las Vegas, Nevada

We have audited the accompanying
balance sheet of SkyBridge Wireless, Inc. (A Development Stage Company) as of December 31,
2003, and the related statements of operations, stockholders deficit, and cash flows
for the year then ended, for the period from December 20, 2002 (Date of Inception) through
December 31, 2002, and for the period from December 20, 2002 (Date of Inception) through
December 31, 2003. These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these financial statements
based on our audit.

We conducted our audit in accordance
with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
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 audit provides a reasonable basis for our
opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of SkyBridge Wireless, Inc. as of December 31, 2003, and the results of its
activities and cash flows for the year then ended, for the period from December 20, 2002
(Date of Inception) through December 31, 2002, and for the period from December 31, 2002
(Date of Inception) through December 31, 2003 in conformity with accounting principles
generally accepted in the United States of America.

The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern. As
discussed in Note 1 to the financial statements, the Company has suffered losses from
operations and current liabilities exceed current assets, all of which raise substantial
doubt about its ability to continue as a going concern. Managements plans in regards
to these matters are also described in Note 1. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

L.L. Bradford &
Company, LLCFebruary 2, 2004Las Vegas, Nevada

F-1

Skybridge Wireless, Inc.(Development Stage
Company)BALANCE SHEET

|                                                     | December 31, 2003
|---------------------------------------------------- | -----------------
|ASSETS                                               |                  
|Current assets                                       |                  
|Cash                                                 |                  
|                                                     |                  
|Total current assets                                 |                  
|Fixed assets, net                                    |                  
|                                                     |                  
|Total assets                                         |                  
|                                                     |                  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                |                  
|Current liabilities                                  |                  
|Accounts payable                                     |                  
|Due to related parties                               |                  
|                                                     |                  
|Total current liabilities                            |                  
|                                                     |                  
|Total liabilities                                    |                  
|Commitments and contingencies                        |                  
|Stockholders' deficit                                |                  
|Common stock; $0.001 par value; 1,000,000,000 shares |                  
|authorized, 401,714,120 shares issued and            |                  
|outstanding                                          |                  
|Additional paid-in capital                           |                  
|Accumulated deficit during the development stage     |                  
|                                                     |                  
|Total stockholders' deficit                          |                  
|                                                     |                  
|Total liabilities and stockholders' deficit          |                  
|                                                     |                  

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

F-2

Skybridge Wireless, Inc.(Development Stage
Company) STATEMENT OF OPERATIONS

|                                          | For the year ended
December 31, 2003 | December 20, 2002
(Inception) through
December 31, 2002 | December 20, 2002
(Inception) through
December 31, 2003
|----------------------------------------- | ------------------------------------ | ------------------------------------------------------- | -------------------------------------------------------
|Revenue                                   |                                      |                                                         | $                                                      
|Cost of revenue                           |                                      |                                                         |                                                        
|                                          |                                      |                                                         |                                                        
|Gross profit                              |                                      |                                                         |                                                        
|Operating expenses                        |                                      |                                                        
|Depreciation                              |                                      |                                                         |                                                        
|Consulting and professional fees          |                                      |                                                         |                                                        
|Other general and administrative expenses |                                      |                                                         |                                                        
|                                          |                                      |                                                         |                                                        
|Total operating expenses                  |                                      |                                                         |                                                        
|                                          |                                      |                                                         |                                                        
|Loss from operations                      |                                      |                                                         |                                                        
|Other expenses                            |                                      |                                                        
|Bad debt related to other receivable      |                                      |                                                         |                                                        
|Entertainment Internet acquisition cost   |                                      |                                                         |                                                        
|                                          |                                      |                                                         |                                                        
|Loss before provision for income taxes    |                                      |                                                         |                                                        
|Provision for income taxes                |                                      |                                                         |                                                        
|                                          |                                      |                                                         |                                                        
|Net loss                                  |                                      |                                                         | $                                                      
|                                          |                                      |                                                         |                                                        
|Basic and diluted loss per common share   |                                      |                                                         | $                                                      
|                                          |                                      |                                                         |                                                        
|Basic and diluted weighted average        |                                      |                                                        
|common shares outstanding                 |                                      |                                                         |                                                        
|                                          |                                      |                                                         |                                                        

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

F-3

Skybridge Wireless, Inc. (Development Stage
Company) STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIT

|                                              | Common StockShares         Amount | Additional
Paid-In
Capital | Other
Receivable | Deficit
During
Development
Stage | Total
Stockholders'
Deficit
|--------------------------------------------- | --------------------------------- | -------------------------- | ---------------- | -------------------------------- | ---------------------------
|Balance at December 20, 2002 (Inception)      |                                   |                            |                  | --                               |                            
|Issuance of common stock to founders for      |                                   |                           
|services, $0.001                              |                                   |                            |                  | 330,000,000                      |                            
|Net loss                                      |                                   |                            |                  | --                               |                            
|                                              |                                   |                            |                  |                                  |                            
|Balance December 31, 2002                     |                                   |                            |                  | 330,000,000                      |                            
|Issuance of common stock for acquisition of   |                                   |                           
|The Entertainment Internet, Inc., $0.001      |                                   |                            |                  | 76,554,120                       |                            
|Issuance of common stock for cash             |                                   |                            |                  | 15,150,000                       |                            
|Cancellation of common stock                  |                                   |                            |                  | (75,000,000                      | )                          
|Issuance of common stock for services         |                                   |                            |                  | 54,350,000                       |                            
|Issuance of common stock in satisfaction      |                                   |                           
|of due to related party                       |                                   |                            |                  | 60,000                           |                            
|Options granted for services                  |                                   |                            |                  | --                               |                            
|Issuance of common stock for other receivable |                                   |                            |                  | 600,000                          |                            
|Bad debt related to other receivable          |                                   |                            |                  | --                               |                            
|Reduction in due to related party             |                                   |                           
|through paid-in capital                       |                                   |                            |                  | --                               |                            
|Net loss                                      |                                   |                            |                  | --                               |                            
|                                              |                                   |                            |                  |                                  |                            
|Balance December 31, 2003                     |                                   |                            |                  | 401,714,120                      |                            
|                                              |                                   |                            |                  |                                  |                            

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

F-4

Skybridge Wireless, Inc.(Development Stage
Company)STATEMENTS OF CASH FLOWS

|                                                        | For the year ended
December 31, 2003 | December 20, 2002
(Inception) Through
December 31, 2002 | December 20, 2002
(Inception) Through
December 31, 2003
|------------------------------------------------------- | ------------------------------------ | ------------------------------------------------------- | -------------------------------------------------------
|Cash flows from operating activities:                   |                                      |                                                         |                                                        
|Net loss                                                |                                      |                                                        
|                                                        |                                      |                                                         | $                                                      
|Adjustments to reconcile net loss to                    |                                      |                                                        
|net cash used by operating activities:                  |                                      |                                                        
|Stock based compensation                                |                                      |                                                         |                                                        
|Entertainment Internet acquisition costs                |                                      |                                                         |                                                        
|Depreciation                                            |                                      |                                                         |                                                        
|Bad debt related to other receivable                    |                                      |                                                         |                                                        
|Changes in operating assets and liabilities             |                                      |                                                        
|Change in accounts payable                              |                                      |                                                         |                                                        
|                                                        |                                      |                                                         |                                                        
|Net cash used by operating activities                   |                                      |                                                         |                                                        
|Cash flows from investing activities:                   |                                      |                                                        
|Purchase of fixed assets                                |                                      |                                                         |                                                        
|                                                        |                                      |                                                         |                                                        
|Net cash used in investing activities                   |                                      |                                                         |                                                        
|Cash flows from financing activities:                   |                                      |                                                        
|Proceeds from issuance of common stock                  |                                      |                                                         |                                                        
|Change in due to related parties                        |                                      |                                                         |                                                        
|Cash received through acquisition                       |                                      |                                                        
|of Entertainment Internet                               |                                      |                                                         |                                                        
|                                                        |                                      |                                                         |                                                        
|Net cash provided by financing activities               |                                      |                                                         |                                                        
|Net change in cash                                      |                                      |                                                         |                                                        
|Beginning cash balance                                  |                                      |                                                         |                                                        
|                                                        |                                      |                                                         |                                                        
|Ending cash balance                                     |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        
|Supplemental disclosure of cash flow:                   |                                      |                                                        
|Cash paid for interest                                  |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        
|Cash paid for income taxes                              |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        
|Schedule of non-cash investing and financing activities |                                      |                                                        
|Purchase of an intangible asset through other liability |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        
|Issuance of 76,554,120 shares of common stock for       |                                      |                                                        
|acquisition of Entertainment Internet                   |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        
|Issuance of 60,000 shares of common stock in            |                                      |                                                        
|satisfaction of due to related party                    |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        
|Reduction in due to related party                       |                                      |                                                        
|through paid-in capital                                 |                                      |                                                         | $                                                      
|                                                        |                                      |                                                         |                                                        

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

F-5

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) NOTES TO FINANCIAL STATEMENTS

1.    
          DESCRIPTION OF BUSINESS, HISTORY, AND SUMMARY OF SIGNIFICANT POLICIES

| | Description
of business  SkyBridge Wireless, Inc. (hereinafter referred to as the
Company) is a development stage company incorporated on December 20, 2002
under the laws of the state of Nevada. The business purpose of the Company is to develop a
wireless network which provides access to the internet.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | History
 Entertainment Internet, Inc. (ENIN) was incorporated in Nevada on April
20, 1992 under the name of West Tech Services, Inc. ENIN underwent several amendments
until 1998, when it changed its name to Entertainment Internet, Inc. and became inactive
after 2000. On November 20, 2000, ENIN filed a voluntary petition for bankruptcy in the
United States Bankruptcy Court under Chapter 11. ENIN emerged from bankruptcy under
Chapter 7 pursuant to a Bankruptcy Court Order entered on November 28, 2001 with no
remaining assets or liabilities.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
March 31, 2003, ENIN consummated an agreement to acquire all of the outstanding capital
stock of SkyBridge Wireless, Inc., in exchange for 330,000,000 shares of the
Companys common stock (ENIN Transaction). Prior to the ENIN Transaction,
ENIN was a non-operating public shell company with no operations, nominal net assets and
76,554,120 shares of common stock issued and outstanding; and SkyBridge Wireless, Inc. was
a development stage company. The ENIN Transaction is considered to be a capital
transaction in substance, rather than a business combination. Inasmuch, the ENIN
Transaction is equivalent to the issuance of stock by a development stage company
(SkyBridge Wireless, Inc.) for the net monetary assets of a non-operational public shell
company (Entertainment Internet, Inc.), accompanied by a recapitalization. The accounting
for the ENIN Transaction is identical to that resulting from a reverse acquisition, except
goodwill or other intangible assets will not be recorded. The Company recognized an
acquisition cost of $7,449, which is the net balance of the par value of the issuance of
common stock related to the ENIN Transaction totaling $7,655 less the cash received from
ENIN totaling $206. Accordingly, these financial statements are the historical financial
statements of SkyBridge Wireless, Inc.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Going
concern  The accompanying financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. The Company is in the development stage and
incurred a net loss of approximately $2,071,000 for the year ended December 31, 2003, with
an accumulated loss during the development stage of approximately $2,104,000. The
Companys current liabilities exceed its current assets by approximately $589,000 as
of December 31, 2003.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | These
conditions give rise to substantial doubt about the Companys ability to continue as
a going concern. These financial statements do not include adjustments relating to the
recoverability and classification of reported asset amounts or the amount and
classification of liabilities that might be necessary should the Company be unable to
continue as a going concern. The Companys continuation as a going concern is
dependent upon its ability to obtain additional financing or sale of its common stock as
may be required and ultimately to attain profitability.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Managements
plan, in this regard, is to raise financing of approximately $5,000,000 through a
combination of equity and debt financing. Management believes this amount will be
sufficient to finance the continuing development for the next twelve months. However,
there is no assurance that the Company will be successful in raising such financing.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Amended
articles of incorporation  In March 2003, a Certificate of Amendment to the
Articles of Incorporation changed the number of authorized shares of common stock to
100,000,000. In September 2003, a Certificate of Amendment to the Articles of
Incorporation changed the authorized shares from 100,000,000 shares to 1,000,000,000
shares.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-6

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) NOTES TO FINANCIAL
STATEMENTS

1.    
          DESCRIPTION OF BUSINESS, HISTORY, AND SUMMARY OF SIGNIFICANT POLICIES(CONTINUED)

| | Stock
split  In September 2003, the Companys Board of Directors adopted a
resolution whereby it approved a 10-to-1 stock split of the issued and outstanding shares
of common stock. Accordingly, the accompanying financial statements have been
retroactively restated to reflect the stock splits as if such stock splits occurred as of
the Companys date of inception.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Use
of estimates  The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Fixed
assets  Fixed assets are stated at cost less accumulated depreciation.
Depreciation is provided principally on the straight-line method over the estimated useful
lives of the assets which is primarily 3 years. The cost of repairs and maintenance is
charged to expense as incurred. Expenditures for property betterments and renewals are
capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated
depreciation are removed from the accounts and any gain or loss is reflected in other
income (expense).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company periodically evaluates whether events and circumstances have occurred that may
warrant revision of the estimated useful life of fixed assets or whether the remaining
balance of fixed assets should be evaluated for possible impairment. The Company uses an
estimate of the related undiscounted cash flows over the remaining life of the fixed
assets in measuring their recoverability.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Advertising
and marketing costs  The Company recognizes advertising and marketing costs in
accordance with Statement of Position 93-7 Reporting on Advertising Costs.
Accordingly, the Company expenses the costs of producing advertisements at the time
production occurs, and expenses the costs of communication advertising in the period in
which the advertising space or airtime is used. Advertising costs are charged to expense
as incurred. Advertising expenses was $4,385 and $  for the year ended December 31,
2003 and for the period from December 20, 2002 (Date of Inception) through December 31,
2002, respectively.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Fair
value of financial instruments  The carrying amounts and estimated fair values
of the Companys financial instruments approximate their fair value due to the
short-term nature.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Earnings
(loss) per share  Basic earnings (loss) per share excludes any dilutive effects
of options, warrants and convertible securities. Basic earnings (loss) per share is
computed using the weighted-average number of outstanding common shares during the
applicable period. Diluted earnings per share is computed using the weighted average
number of common and common stock equivalent shares outstanding during the period. Common
stock equivalent shares are excluded from the computation if their effect is antidilutive.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Income
taxes  The Company accounts for its income taxes in accordance with Statement of
Financial Accounting Standards No. 109, which requires recognition of deferred tax assets
and liabilities for future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their
respective tax bases and tax credit carryforwards. Deferred tax assets and liabilities are
measured using 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
deferred tax assets and liabilities of a change in tax rates is recognized in income in
the period that includes the enactment date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
of December 31, 2003, the Company has available net operating loss carryforwards that will
expire in various periods through 2023. Such losses may not be fully deductible due to the
significant amounts of non-cash service costs and the change in ownership rules under
Section 382 of the Internal Revenue Code. The Company has established a valuation
allowance for the full tax benefit of the operating loss carryovers due to the uncertainty
regarding realization.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-7

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) NOTES TO FINANCIAL
STATEMENTS

1.    
          DESCRIPTION OF BUSINESS, HISTORY, AND SUMMARY OF SIGNIFICANT POLICIES(CONTINUED)

| | Comprehensive
loss  The Company has no components of other comprehensive loss. Accordingly,
net loss equals comprehensive loss for all periods.
| | ------------------------------------------------------------------------------------------------------------------------------------------------

| | Segment
information  The Company discloses segment information in accordance with SFAS
No. 131, Disclosures about Segments of an Enterprise and Related Information, which uses
the Management approach to determine reportable segments. The Company operates under one
segment.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Stock-based
compensation  The Company applies Accounting Principles Board (APB)
Opinion No. 25, Accounting for Stock Issued to Employees, and Related Interpretations, in
accounting for stock options issued to employees. Under APB No. 25, employee compensation
cost is recognized when estimated fair value of the underlying stock on date of the grant
exceeds exercise price of the stock option. For stock options and warrants issued to
non-employees, the Company applies SFAS No. 123, Accounting for Stock-Based Compensation,
which requires the recognition of compensation cost based upon the fair value of stock
options at the grant date using the Black-Scholes option pricing model.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
August 2003, the Company cancelled all previously granted options to employees and
currently has no outstanding warrants.
| | ----------------------------------------------------------------------------------------------------------------------------

| | In
December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based
Compensation-Transition and Disclosure. SFAS No. 148 amends the transition and disclosure
provisions of SFAS No. 123. The Company is currently evaluating SFAS No. 148 to determine
if it will adopt SFAS No. 123 to account for employee stock options using the fair value
method and, if so, when to begin transition to that method.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Net
loss per common share  The Company computes net loss per share in accordance
with SFAS No. 128, Earnings per Share and SEC Staff Accounting Bulletin No. 98. Under the
provisions of SFAS 128 and SAB 98, basic net loss per share is computed by dividing the
net loss available to common stockholders for the period by the weighted average number of
shares of common stock outstanding during the period. The calculation of diluted net loss
per share gives effect to common stock equivalents, however, potential common shares are
excluded if their effect is antidilutive. For the year ended December 31, 2003 and the
period from December 20, 2002 (Inception) through December 31, 2003, no shares were
excluded from the computation of diluted earnings per share because their effect would be
antidilutive.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | New
accounting pronouncements  In July 2001, the FASB issued SFAS No. 143,
Accounting for Obligations Associated with the Retirement of Long-Lived Assets. SFAS No.
143 establishes accounting standards for the recognition and measurement of an asset
retirement obligation and its associated asset retirement cost. It also provides
accounting guidance for legal obligations associated with the retirement of tangible
long-lived assets. SFAS No. 143 is effective in fiscal years beginning after June 15,
2002, with early adoption permitted. The adoption of SFAS No. 143 did not have a material
impact on the Companys financial statements.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets. SFAS 144 establishes a single accounting model for the impairment or
disposal of long-lived assets, including discontinued operations. SFAS 144 superseded
Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, and APB Opinion No. 30,
Reporting the Results of Operations  Reporting the Effects of Disposal of a Segment
of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions. The provisions of SFAS No. 144 are effective in fiscal years beginning after
December 15, 2001, with early adoption permitted, and in general are to be applied
prospectively. The adoption of SFAS No. 144 did not have a material impact on the
Companys financial statements for the years ended December 31, 2003 and 2002.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-8

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) NOTES TO FINANCIAL
STATEMENTS

1.    
          DESCRIPTION OF BUSINESS, HISTORY, AND SUMMARY OF SIGNIFICANT POLICIES(CONTINUED)

| | New
accounting pronouncements (continued)  In July 2002, the FASB issued Statement
No. 146, Accounting for Costs Associated with Exit or Disposal Activities. SFAS No. 146
addresses financial accounting and reporting for costs associated with exit or disposal
activities, such as restructurings, involuntarily terminating employees, and consolidating
facilities initiated after December 31, 2002. The implementation of SFAS No. 146 did not
have a material effect on the Companys financial statements for the years ended
December 31, 2003 and 2002.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
April 2003, the FASB issued SFAS No. 149, Amendment of SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities. SFAS No. 149 amends SFAS No. 133 for
decisions made (1) as part of the Derivatives Implementation Group process that
effectively required amendments to SFAS No. 133, (2) in connection with other Board
projects dealing with financial instruments, and (3) in connection with implementation
issues raised in relation to the application of the definition of a derivative. The
Statement clarifies under what circumstances a contract with an initial net investment
meets the characteristics of a derivative discussed in paragraph 6(b) of SFAS No. 133,
clarifies when a derivative contains a financing component, amends the definition of
underlying to conform it to language used in FASB Interpretation No. 45, Guarantors
Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others, and amends certain other existing pronouncements. Those changes
will result in more consistent reporting of contracts as either derivatives or hybrid
instruments. This statement is effective for contracts entered into or modified after June
30, 2003 and for hedging relationships designated after June 30, 2003. The implementation
of SFAS No. 149 did not have a material on the Companys financial statements.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with
Characteristics of Both Liabilities and Equity. SFAS No. 150 establishes standards for how
an issuer classifies and measures certain financial instruments with characteristics of
both liabilities and equity. In addition, the Statement requires an issuer to classify
certain instruments with specific characteristics described in it as liabilities. This
Statement is effective for financial instruments entered into or modified after May 31,
2003, and otherwise is effective at the beginning of the first interim period beginning
after June 15, 2003. The implementation of SFAS No. 150 is not expected to have a material
effect on the Companys financial statements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.     FIXED ASSETS

Fixed
assets consist of the following as of December 31, 2003:

|                                 | 
|-------------------------------- | 
|Computer, equipment and software | 
|Less: accumulated depreciation   | 
|                                 | 
|Fixed assets, net                | 
|                                 | 

3.    
          RELATED PARTY TRANSACTIONS

| | Due
to related parties  As of December 31, 2003, due to related parties is comprised
of balances totaling $345,414 and $207,500 from the founders of the Company and a
stockholder of the Company, respectively. The balances bear no interest, are unsecured and
due on demand.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

During
December 2003, the founders of the Company converted $75,664 due to related parties into additional paid-in capital.
The founders of the Company did not receive common stock for this conversion.

| | Rent
 The Company operates from a leased facility on a month-to-month basis, currently
$1,500 per month, which is leased from a stockholder of the Company. For the year ended
December 31, 2003 and the period from December 20, 2002 (Inception) through December 31,
2002, the rent expense totaled $18,000 and $  , respectively.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-9

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) NOTES TO FINANCIAL
STATEMENTS

3.    
          RELATED PARTY TRANSACTIONS (continued)

| | Stock
options  In April 2003, the Company granted options to purchase 52,000,000
shares of the Companys common stock to various officers and directors. The options
are fully vested upon grant with an exercise price of $0.011 per share. The Company did not
record compensation under the provisions of APB Opinion No. 25. In August 2003, the
Company cancelled all the above options.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
April 2003, the Company granted options to purchase 20,000,000 shares of the
Companys common stock to a stockholder of the Company. The options are fully vested
upon grant with an exercise price of $0.011. The grant was valued at $108,042 under the
provisions of SFAS No. 123 using the Black-Scholes option pricing model under the
following assumptions; no dividend yield, expected volatility of 91.67%, risk free
interest rates of 1.6%, and expected life of 2 years.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
April 2003, the Company granted options to purchase 10,000,000 shares of the
Companys common stock to a director. The options are fully vested upon grant with an
exercise price of $0.011. The grant was valued at $54,021 under the provisions of SFAS No.
123 using the Black-Scholes option pricing model under the following assumptions; no
dividend yield, expected volatility of 91.67%, risk free interest rates of 1.6%, and
expected lives of 2 years. In August 2003, the Company cancelled these options.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.    
          STOCKHOLDERS DEFICIT

| | In
December 2002, the Company issued 330,000,000 shares of common stock to the founders of
the Company for consulting services totaling $33,000.
| | ------------------------------------------------------------------------------------------------------------------------------------------------

In
April 2003, the Company issued 15,000,000 shares of common stock for cash totaling
$250,000.

| | The
Company determined 75,000,000 shares of ENINs common stock was issued in error
during the bankruptcy, as discussed in Note 1. These shares were issued and held by the
Companys transfer agent and were not distributed. In April 2003, the 75,000,000
shares of the Companys common stock were cancelled and recorded as a reduction to
common stock and an increase to additional paid-in capital.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
April 2003, the Company issued 40,000,000 shares of common stock to various individuals
for consulting services totaling $440,000.
| | -------------------------------------------------------------------------------------------------------------------------------------

In
July 2003, the Company issued 150,000 shares of common stock for cash totaling $15,000.

| | In
July 2003, the Company issued 350,000 shares of common stock to an individual for
consulting services totaling $47,250
| | -------------------------------------------------------------------------------------------------------------------------

| | In
October 2003, the Company issued 500,000 shares of common stock for professional services
totaling $35,000.
| | --------------------------------------------------------------------------------------------------------------

| | In
November 2003, the Company issued 500,000 shares of common stock for professional services
totaling $35,000.
| | ---------------------------------------------------------------------------------------------------------------

| | In
December 2003, the Company issued 13,000,000 shares of common stock for professional and
consulting services totaling $390,000.
| | ----------------------------------------------------------------------------------------------------------------------------------

| | In
July 2003, the Company issued 60,000 shares of common stock for payment of a due to
related party totaling $3,000.
| | ---------------------------------------------------------------------------------------------------------------------

F-10

SKYBRIDGE WIRELESS, INC.(A DEVELOPMENT STAGE
COMPANY) NOTES TO FINANCIAL
STATEMENTS

4.    
          STOCKHOLDERS DEFICIT(continued)

| | During
July 2003, the Company issued 600,000 shares of common stock to an individual for
consulting services totaling $81,000. The individual than terminated the agreement and has
agreed to return the shares to the Company upon payment of services totaling $1,440. The
Company recorded an other receivable for the 600,000 shares totaling $81,000. As of
December 31, 2003, management of the Company evaluated the receivable and determined that
a valuation allowance should be established for the entire balance. Accordingly the
Company recorded bad debt expense related to the receivable totaling $81,000 for the year
ended December 31, 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.    
          COMMITMENTS AND CONTINGENCIES

| | N-E-T
Service Corporation  In September 2003, the Company entered into an agreement to
acquire 100% of the outstanding capital stock of N-E-T Service Corporation (NET
Transaction), in exchange for 500,000 shares of the Companys common stock
totaling $47,000. Prior to the transaction, the only asset NET had was a distribution
license with an Oregon company for a voice over IP system used in connection with the
internet. The system would allow businesses to connect their phone systems through the
internet. As of the date of this report, the stock had not been issued.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.    OTHER

| | Network
installation  In May 2003 the Company entered into an Agreement with Independent
Contractor (the Contract) whereby the Company would install a high speed
wireless network on a reservation in Canada. In the three months ended September 30, 2003,
the Company completed the installation of the high speed wireless network in Canada
whereby the Company realized a one-time revenue approximating $33,000. The Company has no
future obligations under the Contract nor will receive future revenue from the
installation.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Engagement
for legal services  In October 2003, the Company engaged an attorney to assist
the Company with corporate minutes and a Form S-8 filing in exchange for 500,000 shares of
the Companys common stock. The attorney has provided additional services for which
the Company issued an additional 10,500,000 shares of the Companys common stock. The
Company recorded the issuances at $35,000 and $425,000 respectively.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Engagement
for consulting services  In December 2003, the Company entered into a Management
Consulting Agreement (the Agreement) with an individual to act as a management
consultant in exchange for 3,000,000 shares of the Companys Common stock. The
Company issued the stock in December 2003 valued at $90,000.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Dividend
 In October 2003, the Company announced a stock dividend of one share of NET common
stock for every share of the Companys common stock held by stockholders as of
October 10, 2003. As of the date of this report, the shares have not been issued.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.    
          SUBSEQUENT EVENTS

| | Stock
issuance for rent  In January 2004, the Company issued 75,000 shares to a
stockholder for accrued rent totaling $3,000.
| | ------------------------------------------------------------------------------------------------------------------------------

F-11