Springfield Company, Inc. Index to Financial Statements June 30, 2006, 2005 and 2004    Page No.Independent Auditors ReportF-2Balance Sheets at June 30, 2006 and 2005F-3Statements of Operations for the Years EndedJune 30, 2006, 2005 and 2004F-4Statements of Cash Flows for the Years EndedJune 30, 2006, 2005 and 2004F-5Statements of Stockholders' Equity (Deficit) for theYears Ended June 30, 2006, 2005 and 2004F-6Notes to Financial StatementsF-7               INDEPENDENT AUDITORS REPORT   To the Board of Directors and Stockholders of Springfield Company, Inc.  We have audited the accompanying balance sheets of Springfield Company, Inc. at June 30, 2006 and 2005 and the related statements of operations, stockholders equity (deficit), and cash flows for each of the three years in the period ended June 30, 2006. 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 audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.  In our opinion, the 2006 and 2005 financial statements referred to above present fairly, in all material respects, the financial position of Springfield Company, Inc. at June 30, 2006 and 2005 and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2006 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 8 to the financial statements, the Company has suffered recurring losses from operations and has a working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Managements plans regarding these matters are described in Note 8. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.  /s/ Stephenson & Trlicek, P.C. Certified Public Accountants  Wharton, Texas July 23, 2007         Springfield Company, Inc. Balance Sheets June 30, 2006 and 2005   20062005AssetsCurrent assets:Cash and cash equivalents$                24$              224Related party receivables12,07912,079Total current assets12,10312,303Property and equipment, net36,50036,500Subscriptions receivable420,000410,000Total assets$       468,603$      458,803Liabilities and Stockholders' Equity (Deficit)Current liabilitiesAccounts payable and accrued expenses$         30,161$        24,803Notes payable to related parties150,78076,951Total current liabilities181,941101,754Long-term debt, net of current maturities--Total liabilities181,941101,754Stockholders' equity (deficit)Common stock, $0.0001 par value, 50,000,000 shares authorized,22,048,323 and 21,548,323 shares issued and outstanding, respectively2,2042,154Additional paid-in capital495,871484,121Accumulated deficit(210,413)(129,226)Total stockholders' equity287,662357,049Total liabilities and stockholders' equity$        469,603$      458,803  The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Operations Years Ended June 30, 2006, 2005 and 2004   200620052004Revenues$               -$                -$              -Cost of sales---Gross profit---Operating expensesGeneral and administrative expenses20,49318,225-Consulting fees1,80076,375-Depreciation and amortization---Employment expenses58,89434,726-Total operating expenses81,187129,226-Operating loss(81,187)(129,226)-Other income (expense)---Income (loss) before income taxes(81,187)(129,226)-Provision for income taxes---Net income (loss)$      (81,187)$    (129,226)$               -Basic and diluted earnings (loss) per common share:Earnings (loss) per common share$        (0.004)$        (0.009)$               -Basic and diluted weighted average common shares outstanding22,003,11814,954,81416,848,000                   The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Cash Flows Years Ended June 30, 2006, 2005 and 2004   (in thousands)200620052004Cash flows from operating activitiesNet income (loss)$      (81,187)$     (129,326)$               -Adjustments:Compensation costs1,80076,375Changes in assets and liabilities:Receivables-(12,079)-Accounts payable and accrued expenses5,35824,803-Net cash provided (used) by operating activities(74,029)(40,227)-Cash flows from investing activities:Issuance of subscriptions receivable(10,000)(410,000)-Capital expenditures-(36,500)-Net cash provided (used) by investing activities(10,000)(446,500)-Cash flows from financing activitiesNew borrowings from related party notes73,82976,951-Proceeds from issuance of common stock10,000410,000-Net cash provided (used) by financing activities83,829486,951-Net increase (decrease) in cash and cash equivalents(200)224-Cash and cash equivalents, beginning of year224--Cash and cash equivalents, end of year$              24$             224$               -Supplemental disclosure of cash flow information:Cash paid for interest$              -$             -$               -Cash paid for taxes$              -$             -$               -  The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Cash Flows Years Ended June 30, 2006, 2005 and 2004   AdditionalRetainedCommon stockpaid-inearningsSharesAmountCapital(deficit)TotalBalance  June 30, 200316,848,000$ 1,685$               -$   (1,685)$           -Issuance of common stock-Compensation expense recognized inconnection with stock issued for services--Net income (loss) for 2004--Balance - June 30, 200416,848,0001,685-(1,685)-1 for 45 reverse stock split(16,349,677)(1,636)(49)1,685-Issuance of common stock4,100,000410409,590410,000Issuance of common stock pursuant toCommon stock purchase agreement1,000,000100100Issuance of common stockfor services rendered15,950,0001,59574,68076,275Net loss for 2005(129,326)(129,326)Balance  June 30, 200521,548,3232,154484,221(129,326)357,049Issuance of common stock100,000109,99010,000Compensation expense recognized inconnection with stock issued for services400,000401,7601,800Net loss for 2006(81,187)(81,187)Balance - June 30, 200622,048,323$2,204$495,871$210,413$287,662   The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Cash Flows Years Ended June 30, 2006, 2005 and 2004   1. Description of the Company and Summary of Significant Accounting Policies  Business Operations Springfield Company, Inc., formerly known as Nexle Corp., through its "Custom Homecraft Building Systems", proposes to develop low cost housing with quality architectural design and construction.  The system operates under the idea of completing most, if not all, of the house in a "factory assembly building", then transporting the house in sections for final assembly and near immediate occupancy.  Present activity involves construction within about thirty days, and set-up on the home site within three to seven days where foundation and utilities have been pre-prepared.  The Company is in the development stage and currently has no sales.  Basis of Accounting The Companys policy is to prepare its financial statements on the accrual basis of accounting in accordance with generally accepted accounting principles. Revenues from home sales are recognized when delivered.  Expenses are recognized in the period in which they are incurred.  Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.  Cash and cash equivalents are stated at cost which approximates fair market value.  Fair Value of Financial Instruments The Company has various financial instruments, including cash, trade receivables, accounts payable, accrued expenses, revolving credit facilities and notes payable.  The carrying values of cash, trade receivables, accounts payable, accrued expenses and notes payable approximate current fair value.  The revolving credit facility is at variable market rates.  Property and Equipment Property and equipment is stated at cost and is depreciated utilizing the straight-line method of computing depreciation over their estimated useful lives.  The cost of assets retired and the related accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations when incurred.  Repairs and maintenance are charged to expense as incurred.  Expenditures for major additions and replacements that extend the lives of assets are capitalized and depreciated over their remaining estimated useful lives.  The Company depreciates assets over the following estimated useful lives:  The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Cash Flows Years Ended June 30, 2006, 2005 and 2004    Buildings 15-41 years Leasehold improvements Life of lease, up to 31 years Equipment 5 -15 years Transportation equipment 5 -10 years Office equipment 3 - 7 years  Impairment of Long-Lived Assets The Company periodically assesses the realizability of its long-lived assets and evaluates such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Asset impairment is determined to exist if estimated future cash flows, undiscounted and without interest charges, are less than the carrying amount.  There were no assets considered impaired at June 30, 2006 and 2005.  Stock-Based Compensation Plans The Company currently does not have any stock-based compensation plans. Income Taxes The Company recognizes income tax expense based on the liability method of accounting for income taxes.  Deferred tax assets and liabilities are recognized for the income tax effect of temporary differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes.  Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities during the period.  The Company has recorded a valuation allowance, which reflects the estimated amount of deferred tax assets that more likely than not will be realized.  Earnings (Loss) Per Share The Company reports both basic earnings per share, which is based on the weighted average number of common shares outstanding, and diluted earnings per share, which is based on the weighted average number of common shares as well as all potentially dilutive common shares outstanding.  For the years ended June 30, 2006, 2005 and 2004, the Company did not have potentially dilutive shares issued or outstanding.  Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Management believes that the estimates are reasonable.  2. Reverse Merger, Common Stock Purchase Agreement and Reverse Stock Split  On February 12, 2005, Springfield Company, Inc. (Springfield), a Delaware corporation, and Belmont Partners LLC, a holder of 12,000,000 common shares of the Company, completed a Common Stock purchase agreement whereby Springfield purchased 12,000,000 common shares of the Companys stock from Belmont Partners LLC for $10,000, the agreement of Springfield to contemplate a reserve merger with the Company and the agreement to issue 1,000,000 post-split common shares to Belmont Partners.  On February 12, 2005 and in conjunction with the reverse stock split and Common Stock Purchase Agreement between Belmont Partners LLC and Springfield Company, Inc., the Company completed a reverse merger whereby Springfield Company, Inc., a shell company, was merged into the  The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Cash Flows Years Ended June 30, 2006, 2005 and 2004  Company.  Concurrently, the Company changed its name to Springfield Company, Inc. and the directors of Springfield Company, Inc. were appointed as directors of the Company.  On February17, 2005, the Company approved a 1 for 45 reverse stock split whereby the Company would issue 1 new share of the Companys Springfield common stock for every 45 shares of the Companys originally issued shares under the name Nexle.  The reverse stock split was completed on March 7, 2005.  3. Property and Equipment  At June 30, 2006 and 2005, the Companys only property consisted of a parcel of land purchased from a related party.  The property was purchased for $36,500, which approximated the fair market value of the property at the purchase date.     4. Related Party Notes Payable  Long-term debt is summarized as follows at June 30 (in thousands):  20062005Note payable to Foreign Futures, a related party, at 2.5%, payable as cashflow allows$       6,750$               -Note payable to Green Acres, a related party, at 2.5%, payable as cash flowallows41,15031,950Note payable to High Sierra, a related party, at 2.5%, payable as cash flowallows46,4508,501Note payable to Pecan Tree, a related party, at 2.5%, payable as cash flowallows9,950-Note payable to a related party, secured by land, payable as cash flowallows36,50036,500Note payable to J. King, a related party, at 2.5%, payable as cash flowallows9,980-Total long-term debt150,78076,951Less - current maturities150,78076,951Total long-term debt, net of current maturities$              -$               -  5. Common Stock  On March 7, 2005, the Company completed a 1 for 45 reverse stock split whereby the Company issues 1 new share of the Companys Springfield common stock for every 45 shares of the Companys originally issued shares under the name Nexle.  The reverse stock split resulted in the issuance of 498,322 new common shares (Note 2)  On March 28, 2005, the Company issued 5,950,000 common shares for consulting services rendered to the following individuals: 3,750,000 common shares to John M. King, 1,200,000 common shares  The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Cash Flows Years Ended June 30, 2006, 2005 and 2004  to Joseph Muese, and 1,000,000 common shares to Ronald Dominique.  The Company recorded $28,454 in consulting fees in conjunction with this transaction.  On March 23, 2005, the Company issued an aggregate 4,100,000 common shares to 2 accredited investors under a Securities Subscription Agreement for $0.10 per common share or $410,000.  In conjunction with the Securities Subscription Agreement, the Company issued Subscription promissory notes to the purchasers.  Terms of the promissory notes call for payment of the subscriptions at the time the Company is relisted on a national stock exchange.  On June 6, 2005, the Company issued 1,000,000 common shares to Belmont Partners LLC pursuant to the Common Stock Purchase Agreement (Note 2).  On June 10, 2005, the Company issued 10,000,000 common shares for consulting services rendered to the following individuals: 7,250,000 common shares to John M. King; 250,000 common shares to Elizabeth Velasquez; and 2,500,000 common shares to Ronald Dominique.  The Company recorded $47,821 in consulting fees in conjunction with this transaction.  On July 29, 2005, the Company issued an aggregate 400,000 common shares for consulting services rendered to an individual.  The Company recorded $1,800 in consulting fees in conjunction with this transaction.  On August 18, 2005, the Company issued 100,000 common shares to an accredited investor under a Securities Subscription Agreement for $0.10 per common share or $10,000.  In conjunction with the Securities Subscription Agreement, the Company issued a Subscription promissory note to the purchaser.  Terms of the promissory note calls for payment of the subscriptions at the time the Company is relisted on a national stock exchange.  6. Related Party Transactions  The Company has notes payable to 4 entities whose majority shareholder is the brother of the President of the Company.  The Company also has 2 notes payable to family relatives of the President of the Company.  7. Contingent Liabilities  Legal contingent liabilities The Company is subject to litigation, primarily as a result of customer claims, in the ordinary conduct of its operations.  As of June 30, 2006, the Company had no knowledge of any legal proceedings, which, by themselves, or in the aggregate, would not be covered by insurance or could be expected to have a material adverse effect on the Company.  8. Results of Operations, Liquidity and Managements Plans  The Company has no revenues since fiscal 2002.  The Companys target market is the construction and sales of low cost housing.  The Companys intent is to raise working capital through common stock offerings in an effort to continue its "Custom Homecraft Building Systems". The system operates under the idea of completing most, if not all, of the house in a "factory assembly building", then transporting the house in sections for final assembly and near immediate occupancy.  Present plans involve construction within about thirty days, and set-  The accompanying notes are an integral part of these financial statements.   Springfield Company, Inc. Statements of Operations Years Ended June 30, 2006, 2005 and 2004  up on the home site within three to seven days where foundation and utilities have been pre-prepared.  The Company is in the development stage and currently has no sales.  There can be no assurance that any of managements plans as described above will be successfully implemented or that the Company will continue as a going concern.  9. Quarterly Financial Data (Unaudited)  Unaudited quarterly financial data is summarized below  June 30, 2006Q1Q2Q3Q4Revenue$             -$             -$             -$              -Operating income (loss)(30,377)(20,901)(12,077)(17,832)Net income (loss)(30,377)(20,901)(12,077)(17,832)Basic and diluted loss per common share:Income (loss) per common share:$      (0.001)$     (0.001)$     (0.001)$     (0.001)June 30, 2005Q1Q2Q3Q4Revenue$             -$             -$              -$             -Operating income (loss)--(49,352)(79,874)Net income (loss)--(49,352)(79,874)Basic and diluted loss per common share:Income (loss) per common share:$             -$             -$     (0.047)$     (0.006)   The accompanying notes are an integral part of these financial statements.