----

----

| Nevada                          |   | N/A                                  |
|---------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer Identification No.) |
| incorporation or organization)  |   |                                 |

| 3915 61 Avenue South EastCalgary, Alberta, Canada  T2C 1V5 |
|---------------------------------------------------------------------------|
| (Address of principal executive offices)                                  |

| Large Accelerated Filer   o | Accelerated Filer   o      | Non-Accelerated Filer   o | Smaller Reporting Company   x |
|--------------------------------------------|--------------------------------------------------------------------|------------------------------------------|----------------------------------------------|

----

|                           |                                                                     |   Page    |
|--------------------------------|--------------------------------------------------------------------------|----------------|
|                           |                                                                     |           |
| PART I - FINANCIAL INFORMATION |   2                                                                 |
|                           |                                                                     |   2  |
| Item 1.                        | Consolidated Financial Statements                                        |   3       |
|                           | Consolidated Balance Sheets                                              |   4       |
|                           | Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income |   5       |
|                           | Consolidated Statements of Cash Flows                                    |   6       |
|                           | Notes to Consolidated Financial Statements                               |   7 to 13 |
| Item 2.                        | Management’s Discussion & Analysis or Plan of Operation        |   14      |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk               |   17      |
| Item 4.                        | Controls and Procedures                                                  |   17      |
|                           |                                                                     |           |
| PART II -- OTHER INFORMATION   |  19                                                                 |
|                           |                                                                     |           |
| Item 1.                        | Legal Proceedings                                                        |   19      |
| Item 1A.                       | Rick Factors                                                             |   19      |
| Item 2.                        | Unregistered Sales of Equity securities and Use of Proceeds              |   19      |
| Item 3.                        | Defaults Upon Senior Securities                                          |   19      |
| Item 4.                        | Removed and Reserved                                                     |   19      |
| Item 5                         | Other Information                                                        |   19      |
| Item 6.                        | Exhibits                                                                 |   20      |
|                           |                                                                     |           |
| Signatures                     |                                                                     |   21      |

----

----

|                                                                                                                                  | September 30, 2009(Unaudited) | March 31, 2009(Audited) |       |
|---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|-------------------------|------------|
| ASSETS                                                                                                                                |                          |                    |       |
| Current Assets                                                                                                                        |                          |                    |       |   |   |
| Cash                                                                                                                                  |                          | $                       | 129,013    |   | $ | 124,011 |   |
| Accounts receivable, net of allowance for doubtful accounts of $73,786 as of September 30, 2009 and $62,634 as of March 31, 2009      |                          |                    | 1,447,620  |   |   | 1,451,547 |   |
| Prepaid expenses                                                                                                                      |                          |                    | 205,497    |   |   | 155,744 |   |
| Equipment held for sale                                                                                                               |                          |                    | 671,173    |   |   | 569,728 |   |
| Total Current Assets                                                                                                                  |                          |                    | 2,453,303  |   |   | 2,301,030 |   |
| Long-Term Assets                                                                                                                      |                          |                    |       |   |   |   |   |
| Performance bonds                                                                                                                     |                          |                    | 28,020     |   |   | 23,785 |   |
| Property and equipment, net                                                                                                           |                          |                    | 5,122,813  |   |   | 4,665,478 |   |
| Goodwill                                                                                                                              |                          |                    | 2,983,152  |   |   | 2,532,262 |   |
| Customer lists                                                                                                                        |                          |                    | 43,045     |   |   | 73,073 |   |
| Total Long-Term Assets                                                                                                                |                          |                    | 8,177,030  |   |   | 7,294,598 |   |
| Total Assets                                                                                                                          |                          | $                       | 10,630,333 |   | $ | 9,595,628 |   |
|                                                                                                                                  |                          |                    |       |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                  |                          |                    |       |   |   |   |   |
| Current Liabilities                                                                                                                   |                          |                    |       |   |   |   |   |
| Revolving bank loan                                                                                                                   |                          | $                       | 17,312     |   | $ | 14,695 |   |
| Accounts payable                                                                                                                      |                          |                    | 430,738    |   |   | 267,303 |   |
| Accrued liabilities                                                                                                                   |                          |                    | 243,904    |   |   | 151,123 |   |
| Liabilities under compromise                                                                                                          |                          |                    | 3,852,081  |   |   | 2,706,247 |   |
| Notes payable                                                                                                                         |                          |                    | 15,062     |   |   | 12,786 |   |
| Advances from related parties                                                                                                         |                          |                    | 123,712    |   |   | 195,920 |   |
| Advances from shareholders                                                                                                            |                          |                    | 207,220    |   |   | 442,274 |   |
| Current portion of long-term debt                                                                                                     |                          |                    | 37,616     |   |   | 25,545 |   |
| Current portion of obligations under capital lease                                                                                    |                          |                    | 1,124,749  |   |   | 1,512,180 |   |
| Total Current Liabilities                                                                                                             |                          |                    | 6,052,394  |   |   | 5,328,073 |   |
| Long-Term Liabilities                                                                                                                 |                          |                    |       |   |   |   |   |
| Long-term debt                                                                                                                        |                          |                    | -          |   |   | 6,386 |   |
| Obligations under capital lease                                                                                                       |                          |                    | 1,447,845  |   |   | 1,089,406 |   |
| Total Long-Term Liabilities                                                                                                           |                          |                    | 1,447,845  |   |   | 1,095,792 |   |
| Total liabilities                                                                                                                     |                          |                    | 7,500,239  |   |   | 6,423,865 |   |
| Stockholders’ Equity                                                                                                            |                          |                    |       |   |   |   |   |
| Preferred stock, $0.001 par value, non-voting, 20,000,000 authorized, none issued and outstanding (March 31, 2009 – Nil)        |                          |                    | -          |   |   | - |   |
| Common stock, $0.001 par value, voting, 100,000,000 authorized, 55,320,270 issued and outstanding (March 31, 2009 – 55,320,270) |                          |                    | 55,320     |   |   | 55,320 |   |
| Additional paid-in capital                                                                                                            |                          |                    | 11,687,255 |   |   | 11,687,255 |   |
| Accumulated other comprehensive income (loss)                                                                                         |                          |                    | 499,077    |   |   | (36,299 | ) |
| Accumulated deficit                                                                                                                   |                          |                    | (9,111,558 | ) |   | (8,534,513 | ) |
| Total Stockholders’ Equity                                                                                                      |                          |                    | 3,130,094  |   |   | 3,171,763 |   |
| Going concern (Note 2)                                                                                                                |                          |                    |       |   |   |   |   |
| Commitments, contingencies and subsequent events (Note 8)                                                                             |                          |                    |       |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                      |                          | $                       | 10,630,333 |   | $ | 9,595,628 |   |

----

|                                                                              |   |   | 2009                  |   |   |   | 2008       |   |
|-----------------------------------------------------------------------------------|--------|--------|-----------------------|--------|--------|--------|------------|--------|
| Sales                                                                             |   | $      |   2,130,631 |   |   | $      | 3,363,948  |   |
| Cost of Sales                                                                     |   |   | 1,578,308             |   |   |   | 2,285,328  |   |
| Gross Profit                                                                      |   |   | 552,323               |   |   |   | 1,078,620  |   |
| Operating Expenses                                                                |   |   |                  |   |   |   |       |   |
| Advertising and promotion                                                         |   |   | 27,084                |   |   |   | 95,142     |   |
| Automotive                                                                        |   |   | 1,147                 |   |   |   | 3,946      |   |
| Bad debts (recovery)                                                              |   |   | (1,817                | )      |   |   | -          |   |
| Depreciation                                                                      |   |   | 210,395               |   |   |   | 313,075    |   |
| Insurance                                                                         |   |   | 1,616                 |   |   |   | 1,549      |   |
| Interest and bank charges                                                         |   |   | 12,513                |   |   |   | 22,513     |   |
| Interest on long-term debt                                                        |   |   | 40,552                |   |   |   | 96,628     |   |
| Office                                                                            |   |   | 43,650                |   |   |   | 39,765     |   |
| Professional fees                                                                 |   |   | 9,296                 |   |   |   | 12,700     |   |
| Rent                                                                              |   |   | 111,435               |   |   |   | 88,455     |   |
| Repairs and maintenance                                                           |   |   | 2,162                 |   |   |   | 16,000     |   |
| Salaries and benefits                                                             |   |   | 244,390               |   |   |   | 351,510    |   |
| Telephone                                                                         |   |   | 29,634                |   |   |   | 42,531     |   |
| Travel                                                                            |   |   | 6,745                 |   |   |   | 16,612     |   |
| Total Operating Expenses                                                          |   |   | 738,802               |   |   |   | 1,100,426  |   |
| Loss From Operations                                                              |   |   | (186,479              | )      |   |   | (21,806    | )      |
| Gain on sale of equipment                                                         |   |   | 25,725                |   |   |   | 36,348     |   |
| Reorganization costs                                                              |   |   | (117,050              | )      |   |   | -          |   |
| Net (Loss) Income                                                                 |   | $      | (277,804              | )      |   | $      | 14,542     |   |
| Foreign currency translation adjustment                                           |   |   | 261,905               |   |   |   | (197,574   | )      |
| Comprehensive Loss                                                                |   | $      | (15,899               | )      |   | $      | (183,032   | )      |
| (Loss) Income Per Weighted Number Of Shares Outstanding – Basic And Diluted |   | $      | (0.00                 | )      |   | $      | 0.00       |   |
| Weighted Average Number Of Shares Outstanding – Basic And Diluted           |   |   | 55,320,270            |   |   |   | 26,250,000 |   |

----

|                                                                              |   |   | 2009       |   |   |   | 2008       |   |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Sales                                                                             |   | $      | 4,227,520  |   |   | $      | 6,740,936  |   |
| Cost of Sales                                                                     |   |   | 3,087,255  |   |   |   | 4,735,357  |   |
| Gross Profit                                                                      |   |   | 1,140,265  |   |   |   | 2,005,579  |   |
| Operating Expenses                                                                |   |   |       |   |   |   |       |   |
| Advertising and promotion                                                         |   |   | 36,754     |   |   |   | 196,224    |   |
| Automotive                                                                        |   |   | 1,147      |   |   |   | 8,047      |   |
| Bad debts (recovery)                                                              |   |   | (1,817     | )      |   |   | -          |   |
| Depreciation                                                                      |   |   | 417,053    |   |   |   | 663,510    |   |
| Insurance                                                                         |   |   | 7,472      |   |   |   | 3,100      |   |
| Interest and bank charges                                                         |   |   | 36,574     |   |   |   | 39,944     |   |
| Interest on long-term debt                                                        |   |   | 75,121     |   |   |   | 215,005    |   |
| Office                                                                            |   |   | 74,674     |   |   |   | 88,464     |   |
| Professional fees                                                                 |   |   | 23,826     |   |   |   | 58,403     |   |
| Rent                                                                              |   |   | 221,159    |   |   |   | 192,359    |   |
| Repairs and maintenance                                                           |   |   | 3,126      |   |   |   | 32,001     |   |
| Salaries and benefits                                                             |   |   | 501,169    |   |   |   | 781,771    |   |
| Telephone                                                                         |   |   | 72,014     |   |   |   | 85,372     |   |
| Travel                                                                            |   |   | 17,710     |   |   |   | 24,332     |   |
| Total Operating Expenses                                                          |   |   | 1,485,982  |   |   |   | 2,388,532  |   |
| Loss Income From Operations                                                       |   |   | (345,717   | )      |   |   | (382,953   | )      |
| Gain on sale of equipment                                                         |   |   | 25,725     |   |   |   | 452,483    |   |
| Reorganization costs                                                              |   |   | (257,053   | )      |   |   | -          |   |
| Net (Loss) Income                                                                 |   | $      | (577,045   | )      |   | $      | 69,530     |   |
| Foreign currency translation adjustment                                           |   |   | 535,376    |   |   |   | (222,113   | )      |
| Comprehensive Loss                                                                |   | $      | (41,669    | )      |   | $      | (152,583   | )      |
| (Loss) Income Per Weighted Number Of Shares Outstanding – Basic And Diluted |   | $      | (0.00      | )      |   | $      | 0.00       |   |
| Weighted Average Number Of Shares Outstanding – Basic And Diluted           |   |   | 55,320,270 |   |   |   | 26,250,000 |   |

----

|                                                                                    |   | 2009   |     |   | 2008   |   |
|-----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Cash Flows From Operating Activities                                                    |   |   |     |   |   |   |
| Net (loss) income                                                                       |   | $      | (577,045 | )      |   | $      | 69,530 |   |
| Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities |   |   |     |   |   |   |   |   |
| Depreciation and amortization                                                           |   |   | 417,053  |   |   |   | 663,510 |   |
| Issuance of common stock for services                                                   |   |   | -        |   |   |   | 25,000 |   |
| Gain on sale of equipment                                                               |   |   | -        |   |   |   | (452,483 | ) |
| Changes in operating assets and liabilities                                             |   |   |     |   |   |   |   |   |
| Accounts receivable                                                                     |   |   | 248,088  |   |   |   | 170,693 |   |
| Prepaid expenses                                                                        |   |   | (20,823  | )      |   |   | (93,403 | ) |
| Corporate taxes payable                                                                 |   |   | -        |   |   |   | 451 |   |
| Accounts payable, accrued liabilities and accounts payable under compromise             |   |   | 412,912  |   |   |   | (463,925 | ) |
| Net Cash Provided By (Used In) Operating Activities                                     |   |   | 480,185  |   |   |   | (80,627 | ) |
| Cash Flows From Investing Activities                                                    |   |   |     |   |   |   |   |   |
| Proceeds from performance bonds                                                         |   |   | -        |   |   |   | 20,000 |   |
| Acquisition of property and equipment                                                   |   |   | (23,316  | )      |   |   | (368,788 | ) |
| Proceeds on disposal of property and equipment                                          |   |   | -        |   |   |   | 128,970 |   |
| Net Cash Used In Investing Activities                                                   |   |   | (23,316  | )      |   |   | (219,818 | ) |
| Cash Flows From Financing Activities                                                    |   |   |     |   |   |   |   |   |
| Proceeds from bank indebtedness and revolving bank loans                                |   |   | -        |   |   |   | 35,663 |   |
| Repayment of notes payable                                                              |   |   | -        |   |   |   | - |   |
| Repayment of long-term debt                                                             |   |   | -        |   |   |   | (21,545 | ) |
| Repayment of obligations under capital lease                                            |   |   | (78,711  | )      |   |   | (419,154 | ) |
| Repayment of related parties                                                            |   |   | (101,257 | )      |   |   | 589,119 |   |
| Repayment of shareholders                                                               |   |   | (292,663 | )      |   |   | 167,892 |   |
| Net Cash (Used In) Provided By Financing Activities                                     |   |   | (472,631 | )      |   |   | 336,213 |   |
| Effect of Exchange Rate Changes in Cash                                                 |   |   | (15,762  | )      |   |   | (51,530 | ) |
| Net Increase in Cash                                                                    |   |   | 5,002    |   |   |   | - |   |
| Cash, Beginning of Period                                                               |   |   | 124,011  |   |   |   | - |   |
| Cash, End of Period                                                                     |   | $      | 129,013  |   |   | $      | - |   |
|                                                                                    |   |   |     |   |   |   |   |   |
| Supplemental Cash Flow Information:                                                     |   |   |     |   |   |   |   |   |
| Cash Paid During the Year for                                                           |   |   |     |   |   |   |   |   |
| Interest                                                                                |   | $      | 111,695  |   |   | $      | 215,005 |   |
| Income Taxes                                                                            |   | $      | -        |   |   | $      | - |   |
| Supplemental Schedule of Noncash Investing and Financing Activities:                    |   |   |     |   |   |   |   |   |
| Issuance of common stock for services                                                   |   | $      | -        |   |   | $      | 25,000 |   |

----

----

----

| 3. | EQUIPMENT HELD FOR SALE |
|----|-------------------------|

|                   |   | Cost   |      |   | AccumulatedDepreciation |   |       | Net September 30, 2009 |   |    | Net March 31, 2009 |   |
|------------------------|--------|--------|-----------|--------|-------------------------|--------|------------|------------------------|--------|---------|--------------------|--------|
|                   |   |   |      |   |                    |   |       |                   |   |    |               |   |
| Equipment              |   | $      | 471,213   |   |                    | $      | (187,320   | )                      |   | $       | 283,893            |   |   | $ | 267,028 |   |
| Waste bins             |   |   | 1,402,573 |   |                    |   | (637,486   | )                      |   |    | 765,087            |   |   |   | 687,355 |   |
| Automotive             |   |   | 6,383,983 |   |                    |   | (3,115,176 | )                      |   |    | 3,268,807          |   |   |   | 2,974,592 |   |
| Port-A-Potties         |   |   | 408,387   |   |                    |   | (178,296   | )                      |   |    | 230,092            |   |   |   | 195,823 |   |
| Office equipment       |   |   | 64,976    |   |                    |   | (27,319    | )                      |   |    | 37,657             |   |   |   | 35,385 |   |
| Fencing                |   |   | 582,382   |   |                    |   | (222,312   | )                      |   |    | 360,069            |   |   |   | 337,447 |   |
| Computer equipment     |   |   | 69,934    |   |                    |   | (47,295    | )                      |   |    | 22,640             |   |   |   | 22,540 |   |
| Leasehold improvements |   |   | 301,309   |   |                    |   | (146,740   | )                      |   |    | 154,570            |   |   |   | 145,308 |   |
|                   |   | $      | 9,684,757 |   |                    | $      | (4,561,944 | )                      |   |  $ | 5,122,813          |   |   | $ | 4,665,478 |   |

----

|                         |   | Net September 30, 2009 |      |   | Net March 31, 2009 |   |
|------------------------------|--------|------------------------|-----------|--------|--------------------|--------|
| Goodwill                     |   |                   |      |   |               |   |   |   |
| Balance, beginning           |   | $                      | 2,532,262 |   |               | $      | 3,107,397 |   |
| Foreign currency translation |   |                   | 450,890   |   |               |   | (575,135 | ) |
| Balance, ending              |   | $                      | 2,983,152 |   |               | $      | 2,532,262 |   |
| Customer lists               |   |                   |      |   |               |   |   |   |
| Balance, beginning           |   | $                      | 239,725   |   |               | $      | 239,725 |   |
| Accumulated amortization     |   |                   | (215,206  | )      |               |   | (146,144 | ) |
| Foreign currency translation |   |                   | 18,526    |   |               |   | (20,508 | ) |
| Balance, ending              |   | $                      | 43,045    |   |               | $      | 73,073 |   |

|                                                                                                                                                                                                                             |   | September 30, 2009 |   |   | March 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|----------------|--------|
| Loan payable to BDC is secured by a general charge over the assets of the Company. It bears interest at 8.25% per annum, and is repayable in monthly principal payments of $2,685 CAD plus interest, maturing on July 23rd, 2010 |   |                    | 37,616 |   |           |   |  31,931 |   |
| Less current portion                                                                                                                                                                                                             |   |                    | 37,616 |   |           |   | 25,545 |   |
| Long-term portion                                                                                                                                                                                                                |   | $                       | -      |   |           | $      | 6,386 |   |

| 7. | OBLIGATIONS UNDER CAPITAL LEASES |
|----|----------------------------------|

|                                                            |   | September 30, 2009 |      |   | March 31, 2009 |   |
|-----------------------------------------------------------------|--------|-------------------------|-----------|--------|----------------|--------|
| Obligations under capital lease                                 |   | $                       | 2,572,594 |   |           | $      | 2,601,586 |   |
| Less current portion                                            |   |                    | 1,124,749 |   |           |   | 1,512,180 |   |
| Long-term portion                                               |   | $                       | 1,447,845 |   |           | $      | 1,089,406 |   |
| Minimum lease payments over the next five years are as follows: |   |                    |      |   |           |   |   |   |
| 2010 (Six months)                                               |   |                    |      |   |           | $      | 1,124,749 |   |
| 2011                                                            |   |                    |      |   |           |   | 600,716 |   |
| 2012                                                            |   |                    |      |   |           |   | 140,305 |   |
| 2013                                                            |   |                    |      |   |           |   | 706,824 |   |
| 2014                                                            |   |                    |      |   |           |   | - |   |
| Thereafter                                                      |   |                    |      |   |           |   | - |   |
| Total                                                           |   |                    |      |   |           | $      | 2,572,594 |   |

----

| 2010 (Six months) |   | $      | 47,276  |   |
|-------------------|--------|--------|---------|--------|
| 2011              |   |   | 64,327  |   |
| 2012              |   |   | 12,566  |   |
| 2013              |   |   | -       |   |
| 2014              |   |   | -       |   |
| Thereafter        |   |   | -       |   |
| Total             |   | $      | 124,169 |   |

----

| Included in accounts receivable at September 30, 2009 and March 31, 2009             |   | $      | -         |   |   | $      | -         |   |
|--------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|
| Included in accounts payable at September 30, 2009 and March 31, 2009                |   |   | 35,688    |   |   |   | 109,004   |   |
| Included in obligations under capital lease at September 30, 2009 and March 31, 2009 |   |   | 1,143,132 |   |   |   | 1,087,748 |   |
| Transactions during the six months ended September 30, 2009 and 2008:                |   |   |      |   |   |   |      |   |
| Rent                                                                                 |   |   | 68,673    |   |   |   | 11,669    |   |
| Repairs and supplies                                                                 |   |   | 110,581   |   |   |   | 89,578    |   |
| Loan interest                                                                        |   |   | 46,996    |   |   |   | 91,281    |   |

|            |   | Revenue |      |   | Cost of Sales |   |      | Gross Profit |   |   | Depreciation |   |   | Administration |    | Net Loss |   |
|-----------------|--------|---------|-----------|--------|---------------|--------|-----------|--------------|--------|--------|--------------|--------|--------|----------------|---------|----------|--------|
| Solid Waste     |   | $       | 3,049,011 |   |          | $      | 2,315,689 |         |   | $      | 733,322      |   |   | $              | 245,073 |     |   | $ | 862,885 |   |   | $ | (498,058 | ) |
| Liquid Services |   |    | 874,445   |   |          |   | 449,463   |         |   |   | 424,982      |   |   |           | 148,465 |     |   |   | 210,913 |   |   |   | (439,059 | ) |
| Water Hauling   |   |    | 223,706   |   |          |   | 232,187   |         |   |   | (8,481       | )      |   |           | 17,301  |     |   |   | (315,011 | ) |   |   | 289,229 |   |
| Septic          |   |    | 80,358    |   |          |   | 89,916    |         |   |   | (9,558       | )      |   |           | 6,215   |     |   |   | (86,016 | ) |   |   | 70,843 |   |
|            |   | $       | 4,227,520 |   |          | $      | 3,087,255 |         |   | $      | 1,140,265    |   |   | $              | 417,053 |     |   | $ | 1,300,257 |   |   | $ | (577,045 | ) |

----

|            |   | Revenue |      |   | Cost of Sales |   |      | Gross Profit |   |   | Depreciation |   |   | Administration |    | Net Income (Loss) |   |
|-----------------|--------|---------|-----------|--------|---------------|--------|-----------|--------------|--------|--------|--------------|--------|--------|----------------|---------|-------------------|--------|
| Solid Waste     |   | $       | 4,897,245 |   |          | $      | 3,755,824 |         |   | $      | 1,121,420    |   |   | $              | 482,035 |              |   | $ | 1,204,568 |   |   | $ | (565,179 | ) |
| Liquid Services |   |    | 471,427   |   |          |   | 270,621   |         |   |   | 200,806      |   |   |           | 46,403  |              |   |   | 115,957 |   |   |   | 38,446 |   |
| Water Hauling   |   |    | 706,885   |   |          |   | 354,875   |         |   |   | 352,011      |   |   |           | 69,579  |              |   |   | 173,873 |   |   |   | 108,559 |   |
| Septic          |   |    | 665,379   |   |          |   | 334,037   |         |   |   | 331,342      |   |   |           | 65,493  |              |   |   | 163,663 |   |   |   | 102,185 |   |
|            |   | $       | 6,740,936 |   |          | $      | 4,735,357 |         |   | $      | 2,005,579    |   |   | $              | 663,510 |              |   | $ | 1,658,061 |   |   | $ | (315,989 | ) |

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| Approximate Minimum lease payments over the next five years are as follows: |   |
|-----------------------------------------------------------------------------|--------|
| 2010 (Six months)                                                           |   | $ | 47,276 |   |
| 2011                                                                        |   |   | 64,327 |   |
| 2012                                                                        |   |   | 12,566 |   |
| 2013                                                                        |   |   | - |   |
| 2014                                                                        |   |   | - |   |
| Thereafter                                                                  |   |   | - |   |
| Total                                                                       |   | $ | 124,169 |   |

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| (1)   | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of its management and directors; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | INSUFFICIENT RESOURCES: We have an inadequate number of personnel with requisite expertise in the key functional areas of finance and accounting. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | INADEQUATE SEGREGATION OF DUTIES: We have an inadequate number of personnel to properly implement control procedures. |
|---------------|-----------------------------------------------------------------------------------------------------------------------|

| -   | LACK OF AUDIT COMMITTEE & OUTSIDE DIRECTORS: We do not have a functioning audit committee and we have only two outside directors serving on the Company's Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit Number |   | Description of Exhibit                                                                                                                                           |
|----------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                             |
| 31.1           |   | Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended       |
|           |   |                                                                                                                                                             |
| 31.2           |   | Certification of  Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended |
|           |   |                                                                                                                                                             |
| 32.1           |   |  Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002      |
|           |   |                                                                                                                                                             |
| 32.2           |   | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002            |
|           |   |                                                                                                                                                             |

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| BWI HOLDINGS, INC.      |
|-------------------------|
|                    |   |   |
|                    |   |   |
| Date: December 20, 2010 | By: | /s/ Jim Can |
|                    |   | Jim Can |
|                    |   | President, Chief Executive Officer and Director |
|                    |   |   |
| Date: December 20, 2010 | By: | /s/ Bruce Milroy |
|                    |   | Bruce Milroy |
|                    |   | Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer |

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