U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-KSB

          [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                  FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001,

 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

            For the transition period from ___________ to ___________

                        Commission file number 000-27073

                                   FINAO INC.
                 (Name of Small Business Issuer in its charter)

                 Nevada                                87-0381511
                ---------                            --------------
     (State or Other Jurisdiction of               (I.R.S. Employer
      Incorporation or Organization)              Identification No.)

         9444 Old Katy Road Suite 100 Houston, Texas           77055
         -------------------------------------------         ----------
          (Address of Principal Executive Offices)           (Zip Code)

         Issuer's Telephone Number, Including Area Code: (561) 750-6575
                                                         --------------
      Securities registered pursuant to Section 12(b) of the Exchange Act:
                                      None
      Securities registered pursuant to Section 12(g) of the Exchange Act:
                                  Common Stock

         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
   Yes  [  ]   No  [X ]

         Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained, to the best of registrant'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]

State issuer's revenues for its most recent fiscal year: $0.


<PAGE>

The aggregate market value of the issuer's Common Stock, $.001 par value, held
by non-affiliates on December 31,2003 was approximately $0.

As of March 31, 2004, there were 3,034,400 shares of the issuer's Common Stock,
$.001 par value, outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE

         None.

Transitional Small Business Disclosure Format (check one):  Yes ___ No _X_













<PAGE>

                                     PART I

ITEM 1.  DESCRIPTION OF BUSINESS

OVERVIEW

Finao Inc. ("Finao"), formerly known as Investco, Inc., and prior to that
known as Intraco Systems, Inc., was an information technology, data and voice
service provider. In January 2001, management eliminated its systems/networks
and service contract units to focus all of Finao's resources towards providing
speech recognition products and services. In July 2002, Finao discontinued its
speech recognition products and services business. Finao plans to pursue
business development and acquisitions in the telecommunications sector.

EMPLOYEES

As of December 31, 2001, Finao had a total staff of 6 employees. No employees
are represented by a labor union or subject to a collective bargaining
agreement.

ITEM 2. DESCRIPTION OF PROPERTY

Finao's corporate headquarters as of September 28, 2003, is located in
approximately 4,000 square feet of leased office space in Houston, Texas. The
lease expires in 2004. Finao believes that its current headquarters location
is suitable for the next year.

ITEM 3. LEGAL PROCEEDINGS

On October 29, 1999, Banker's Leasing Association ("Banker's") filed a suit
against Intraco and Jack Berger in the Circuit Court of the Fifteenth Judicial
Circuit in and for Palm Beach County, Florida for breach of a master lease
agreement and personal guaranty related to computer equipment, software and
services leased by Intraco for the amount of $71,608. Intraco filed a
counterclaim based on Banker's failure to provide services agreed to in the
lease and breach of fiduciary duty. Banker's has answered Intraco's counterclaim
and has filed suit against AIM Solutions, Inc. ("AIM"), as successor to
Enterprises Solutions Group, Inc., the third party responsible for setting up
the computer equipment and software and providing services. AIM has responded to
the claim against it. On June 28, 2001, Intraco settled the lawsuit, as a result
of which Intraco agreed to pay Banker's Leasing a total of $40,000 in settlement
of its claim against Intraco and Jack S. Berger.

On August 4, 2003, a Magistrate Judge for the U. S. District Court for the
Southern District of Florida at case number 02-80466-CIV-HURLEY/LYNCH entered a
report to the Court to recommend that the Company be assessed civil penalties
for the issuance of false press releases on its behalf by Joseph L. Lents, the
former Chief Executive Officer of the Company. Until August 25, 2003, the same
attorney who represented Mr. Lents in the case also represented the Company. On
October 1, 2003, the Company retained independent counsel to enter his
appearance in the case to defend the Company from the assessment of civil
penalties.

On August 20, 2003, The Securities and Exchange Commission (the "SEC") at
Administrative Proceedings File No. 3-11228 Instituted a Public Proceeding and
Notice of Hearing pursuant to Section 12(j) of the Securities and Exchange Act
of 1934 for the failure of the Company to file: A. Annual reports on Form 10-K
for the years ended December 31, 2001 and December 31, 2002; B. Quarterly
reports on Form 10-Q for the quarters ended March 31, 2002; June 30, 2002;
September 30, 2002; and March 31, 2003; and, C. On April 1, 2003 the Nevada
Secretary of State revoked the Company's business charter for failure to file a
list of officers. The SEC will afford the Company the opportunity to answer and
attend a hearing to determine if the registration of all securities of the
Company should be suspended or revoked. The Company has retained counsel to
represent it in the proceedings, has filed its answer to admit the above
deficiencies, and to explain that the Company intends to file its periodic
reports and otherwise bring the Company in full compliance with all SEC and
State of Nevada requirements.

                                       3

<PAGE>

There are certain legal proceedings and claims against the company in which
management is vigorously defending itself. Management has quantified and accrued
any potential liability.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

                                     PART II

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Our common stock began trading under the symbol "INSY" on the OTC Bulletin Board
operated by the NASDAQ Stock Market, Inc. on April 29, 1999. On January 29,
2002, the symbol was changed to "IVSO" due to a one for one hundred reverse
stock split of the common stock. All references to our common stock have been
affected for this reverse stock split. These quotations reflect inter-dealer
prices, without retail mark-up, mark-down or commissions, and may not represent
actual transactions. The quotations listed below are the high and low closing
prices and were obtained from the OTC Bulletin Board.

Quarter Ended                      High                         Low
-------------------      -------------------------    ------------------------
March 31,2000                     $8.850                       $1.500
June 30, 2000                     $5.687                       $1.562
September 30, 2000                $3.000                       $1.031
December 31, 2000                 $1.250                       $1.156
March 31, 2001                    $0.780                       $1.160
June 30, 2001                     $0.400                       $0.800
September 30, 2001                $0.090                       $0.020
December 31, 2001                 $0.120                       $0.030

HOLDERS

As of March 31, 2004, there were approximately 458 holders of record of
Investco's common stock.

DIVIDEND POLICY

Finao paid aggregate dividends $27,084 on its Series A Convertible Redeemable
Preferred Stock in 2000. Finao is obligated under an agreement with its
Series A Convertible Redeemable Preferred stockholders to pay dividends for the
first twelve months after issuance regardless of earnings.

Finao has not paid any cash dividends on its Common Stock since its inception.
Finao presently intends to retain future earnings, if any, to finance the
expansion of its business and does not anticipate that any cash dividends will
be paid in the foreseeable future. Future dividend policy will depend on Finao's
earnings, capital requirements, expansion plans, financial condition and other
relevant factors.

                                       4

<PAGE>

SALES OF UNREGISTERED SECURITIES

     In January 2001, Finao issued 50 shares of common stock to a preferred
shareholder who converted a like number of shares of preferred stock. The shares
were issued pursuant to an exemption from registration under Section 3(a)(9) of
the Securities Act.

     In March 2001, Finao issued 137 restricted shares of common stock to one
former employee upon the employee's exercise of stock options granted to the
employee under Finao's stock option plan in connection with the person's
employment with Intraco. Intraco did not receive any proceeds from the exercise
of options because the option holder used the cashless exercise method. The
shares issued were valued at $10,251. The shares were issued pursuant to
exemptions from registration under Section 3(a)(9) and 4(2) of the Securities
Act. The employee had access to the Company's reports filed pursuant to the
Exchange Act and a copy of the stock option plan and was familiar with
Finao's operations and financial condition. Finao did not pay any fees or
commissions in connection with this issuance.

      In March 2001, Finao issued 6,120 shares of common stock for $61,200 to
two investors who exercised their warrants. The shares were issued pursuant to
an exemption from registration under Section 4(2) of the Securities Act. To
Finao's knowledge, the investors were sophisticated in financial investments
and were familiar with Finao's business and operations. No offering document
was prepared, and no public solicitation or general advertising was done in
connection with these issuances. Finao did not pay any fees or commissions in
connection with these issuances.

      In April 2001, Finao issued 680 shares of common stock to three investors
who exercised warrants having an exercise price of $0.10 per share. The shares
were issued pursuant to an exemption from registration under Section 4(2) of the
Securities Act. To Finao's knowledge, the investors were sophisticated in
financial investments and were familiar with Finao's business and operations. No
offering document was prepared, and no public solicitation or general
advertising was done in connection with these issuances. Finao did not pay any
fees or commissions in connection with these issuances.

      In April 2001, Finao issued 15,000 shares of common stock to Titlest
Investments and 15,000 shares of common stock to SBZ Investments in connection
with consulting services provided to Finao. The shares were valued at $150,000
The shares were issued pursuant to an exemption from registration under Section
4(2) of the Securities Act. To Finao's knowledge, management of the firms were
sophisticated in financial investments and were familiar with Finao's business
and operations. No offering document was prepared, and no public solicitation or
general advertising was done in connection with these issuances. Finao did not
pay any fees or commissions in connection with these issuances.

      From April 2001 to July 2001, Finao issued 1,073,500 shares of common
stock for $247,000 to six investors of which 50,000 shares were purchased by
Robert Hildreth, Finao's Chairman of the Board. The shares were offered and
issued pursuant to an exemption from registration under Section 4(2) of the
Securities Act. To Finao's knowledge, the investors were sophisticated in
financial investments and received a variety of financial and other information
about Finao in connection with the investors' due diligence. No public
solicitation or general advertising was done in connection with this offering.
Finao did not pay any fees or commissions in connection with these issuances.

      In June 2001, Finao issued 7,949 shares of common stock to Broad and
Cassel, its legal counsel, in connection with legal services provided to
Finao. The shares were valued at $124,000. The shares were issued pursuant to
an exemption from registration under Section 4(2) of the Securities Act. To
Finao's knowledge, management of the firm was sophisticated in financial
investments and was familiar with Finao's business and operations. No offering
document was prepared, and no public solicitation or general advertising was
done in connection with this issuance. Finao did not pay any fees or commissions
in connection with this issuance.

                                       5

<PAGE>

      In July 2001, Finao issued 12,000 shares of common stock to Zurich
Mutual S.A., in connection with consulting services provided to Finao. The
shares were valued at $90,000. The shares were issued pursuant to an exemption
from registration under Section 4(2) of the Securities Act. To Finao's
knowledge, management of the firm was sophisticated in financial investments and
was familiar with Finao's business and operations. No offering document was
prepared, and no public solicitation or general advertising was done in
connection with this issuance. Finao did not pay any fees or commissions in
connection with this issuance.

      In July 2001, Finao issued 14,000 shares of common stock to Albedo
Investments Ltd. S.A., in connection with consulting services provided to
Finao. The shares were valued at $84,000. The shares were issued pursuant to
an exemption from registration under Section 4(2) of the Securities Act. To
Finao's knowledge, management of the firm was sophisticated in financial
investments and was familiar with Finao's business and operations. No offering
document was prepared, and no public solicitation or general advertising was
done in connection with this issuance. Finao did not pay any fees or commissions
in connection with this issuance.

      In July 2001, Finao issued 15,000 shares of common stock to Vestar Capital
Corp. in connection with consulting services provided to Finao. The shares were
valued at $97,500. The shares were issued pursuant to an exemption from
registration under Section 4(2) of the Securities Act. To Finao's knowledge,
management of the firm was sophisticated in financial investments and was
familiar with Finao's business and operations. No offering document was
prepared, and no public solicitation or general advertising was done in
connection with this issuance. Finao did not pay any fees or commissions in
connection with this issuance.

       In July 2001, Finao issued 5,000 shares of common stock to FHC Corp.
in connection with consulting services provided to Finao. The shares were valued
at $40,000. The shares were issued pursuant to an exemption from registration
under Section 4(2) of the Securities Act. To Finao's knowledge, management of
the firm was sophisticated in financial investments and was familiar with
Finao's business and operations. No offering document was prepared, and no
public solicitation or general advertising was done in connection with this
issuance. Finao did not pay any fees or commissions in connection with this
issuance.

      In October 2001, Finao began a Series E convertible preferred stock
offering, and as a result of the offering, Finao issued to one investor 50,000
shares at $2.00 per share for $100,000. Holders have the right to convert the
Series E preferred stock, in whole or in part, at any time, or from time to
time, into the common stock, par value $.001, of the Company. The initial
conversion rate shall be on a one-to-one basis, and shall be subject to
proportional stock splits, stock dividends, and reverse stock splits. The shares
of Series E preferred stock shall be subject to redemption, in whole or in part,
at any time and from time to time, at the option of the Company, at the stated
Preference Value per share. To Finao's knowledge, the investors were
sophisticated in financial investments and received a variety of financial and
other information about Finao in connection with the investors' due diligence.
No public solicitation or general advertising was done in connection with this
offering. Finao did not pay any fees or commissions in connection with this
sale.

     In November 2001, Finao de-registered 46,000, shares of common stock held
by Albedo Investments Limited S.A. (14,000 shares), Zurich Mutual S.A. (12,000
shares), Vestar Capital Corp. (15,000 shares), and FHIC Corp. (5,000 shares).
The 5,000 shares issued to FHIC were cancelled due to non performance of the
consulting agreement.

      In December 2001, Finao sold to one investor, 12,500 shares of Series E
convertible preferred shares at $2.00 per share for $25,000. To Finao's
knowledge, the investors were sophisticated in financial investments and
received a variety of financial and other information about Finao in connection
with the investors' due diligence. No public solicitation or general advertising
was done in connection with this offering. Finao did not pay any fees or
commissions in connection with this sale.

                                       6

<PAGE>

      In February 2000, Finao sold 1,600 restricted shares of common stock and
warrants to purchase 300 restricted shares of common stock for $200,000 to one
accredited investor. The sale was exempt from registration under the Securities
Act pursuant to Section 4(2) thereof. To Finao's knowledge, the investor was
sophisticated in financial investments and received a variety of financial and
other information about Finao in connection with the investor's due diligence.
No public solicitation or general advertising was done in connection with this
offering. Finao did not pay any fees or commissions in connection with this
sale.

      In March 2000, Finao sold 34,736 units for $4,805,799 net of fees and
expenses to a total of 11 accredited investors. Each unit consisted of one
restricted share of common stock and one warrant to purchase one restricted
share of common stock. The sale of the units was exempt from registration under
the Securities Act pursuant to Section 4(2) thereof and was made pursuant to a
term sheet and unit purchase agreement. In addition to Finao's representations
in the purchase agreement, the investors were provided with a variety of
financial and other information about Finao in connection with their due
diligence. No public solicitation or general advertising was done in connection
with this offering. Finao issued a warrant to purchase 2,100 restricted shares
of common stock, 1,966 restricted shares of common stock and a warrant to
purchase 1,966 restricted shares of common stock and paid a cash fee of $381,200
as a commission for this sale and paid legal, accounting and other miscellaneous
expenses of $67,323.

     In April 2000, Finao issued 62 restricted shares of common stock to one
former employee upon the employee's exercise of stock options granted to the
employee under Finao's stock option plan in connection with the person's
employment with Finao. Finao did not receive any proceeds from the exercise of
options because the option holder used the cashless exercise method. The shares
were valued at $22,068. The shares were issued pursuant to an exemption from
registration under Section 3(a)(9) and 4(2) of the Securities Act. The employee
had access to the Company's reports filed pursuant to the Exchange Act and a
copy of the stock option plan and was familiar with Finao's operations and
financial condition. Finao did not pay any fees or commissions in connection
with this issuance.

     From April 2000, to June 2000, Finao issued 20 shares of restricted
common stock to Mark Wachs Associates, a public relations firm, in connection
with services provided to Finao. The shares issued were valued at $8,188. The
shares were issued pursuant to an exemption from registration under Section 4(2)
of the Securities Act. To Finao's knowledge, management of the firm was
sophisticated in financial investments and was familiar with Finao's business
and operations. No offering document was prepared, and no public solicitation or
general advertising was done in connection with this issuance. Finao did not
pay any fees or commissions in connection with this issuance.

     In June 2000, Finao issued 525 shares of restricted common stock to four
former employees upon the employees' exercise of stock options granted to the
employees under Finao's stock option plan in connection with their employment
with Finao. Finao did not receive any proceeds from the exercise of the options
because the option holders used the cashless exercise method. The stock options
were valued at an aggregate of $150,625. The shares were issued pursuant to an
exemption from registration under Sections 3(a)(9) and 4(2) of the Securities
Act. The individuals had access to the Company's reports filed pursuant to the
Exchange Act and a copy of the stock option plan and were familiar with Finao's
operations and financial condition. Finao did not pay any fees or commissions in
connection with these issuances.

     In August 2000, Finao issued 365 shares of restricted common stock to
two former employees upon the employees' exercise of stock options granted to
the employees under Finao's stock option plan in connection with their
employment with Finao. Finao did not receive any proceeds from the exercise of
the options because the option holders used the cashless exercise method. The
stock options were valued at an aggregate of $125,625. The shares were issued
pursuant to an exemption from registration under Sections 3(a)(9) and 4(2) of
the Securities Act. The individuals had access to the Company's reports filed
pursuant to the Exchange Act and a copy of the stock option plan and were
familiar with Finao's operations and financial condition. Finao did not pay any
fees or commissions in connection with these issuances.

                                       7

<PAGE>

     In December 2000, Finao issued 100 shares of restricted common stock to
First American Ventures, a financial consultant, in connection with services
provided to Finao. The shares issued were valued at $2,500. The shares were
issued pursuant to an exemption from registration under Section 4(2) of the
Securities Act. To Finao's knowledge, management of the firm was sophisticated
in financial investments and was familiar with Finao's business and operations.
No offering document was prepared, and no public solicitation or general
advertising was done in connection with this issuance. Finao did not pay any
fees or commissions in connection with this issuance.

     From February 2000, to October 2000, Finao issued 4,883 shares of common
stock to preferred shareholders who converted a like number of shares of
preferred stock. The shares were issued pursuant to an exemption from
registration under Section 3(a)(9) of the Securities Act.

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

     You should read the following discussion and analysis in conjunction with
the consolidated financial statements and the notes included elsewhere in this
report.

OVERVIEW

         Finao was an information technology, data and voice service provider.
Its products and services included computer hardware, computer networks, speech
recognition products and services, and voice-activated products and services.
Finao discontinued its speech recognition products and services business and
plans to pursue business development and acquisitions in the telecommunications
sector.

         Finao will require additional funding to pay its current operating
expenses. The Company intends to offer and sell an additional 500,000 shares of
convertible preferred stock during the next three months by private placement to
pay for these expenses. There can be no assurances, however, that Finao will be
able to complete any offerings.

         Finao was incorporated in Florida in March 1990. In April 1999, it
completed a share exchange with Custom Touch Electronics, Inc., a Nevada
corporation with no material operations whose common stock traded on the OTC
Bulletin Board. Pursuant to the share exchange, all of the outstanding shares of
Finao capital stock were exchanged for 10,531,500 Custom Touch shares.
Thereafter, Custom Touch changed its name to Investco, Inc.

RESULTS OF CONTINUING OPERATIONS

TWELVE MONTHS ENDED DECEMBER 31, 2001, COMPARED TO TWELVE MONTHS ENDED DECEMBER
31, 2000.

        The discussion of results of continuing operations excludes the results
of the discontinued operations for all periods.

                                       8

<PAGE>

          SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses for the twelve months ended December 31, 2001, were
$3,523,272 compared to $5,440,387 for the twelve months ended December 31, 2000,
a decrease of $1,917,115, or 35%. Of the dollar decrease, $1,474,769 represented
decreased salaries and commission costs, $148,903 represented decreased travel
and entertainment expenses, $69,693 represented decreased telephone expenses,
$65,837 represented decreased office supplies and $63,784 represented decreased
insurance costs primarily due to the reduction of the number of employees;
$266,033 represented decreased marketing and investor relations expenses;
$74,700 represented a decrease in recruiting fees; $177,143 reflects increased
levels of depreciation and amortization due to capital investments; $98,400
represented a one time charge for settlement of an employment contract; $353,993
represented increased consulting expenses related to corporate development,
advice regarding possible reorganization and financial planning, introductions
to strategic partners, strategic investors, merger and joint venture
opportunities. The remaining decrease was attributable to other additional
selling, general and administrative expenses.

          INTEREST EXPENSE. Interest expense, net of interest income, decreased
by $84,187 to $4,266 for the twelve months ended December 31, 2001, as compared
to net interest income of $79,921 for the twelve months ended December 31, 2000.

          NET LOSS. As a result of the foregoing, Finao reported a net loss from
continuing operations of $3,506,704 for the twelve months ended December 31,
2001, compared to a net loss of $5,345,789 for the twelve months ended December
31, 2000, a decrease of $1,839,085. As described more fully below under the
caption "Liquidity and Capital Resources. Management is actively seeking
additional funding.

        ACCOUNTS RECEIVABLE. Accounts receivable decreased $515,259, or 99%, to
$795 for the twelve months ended December 31, 2001; from $516,054 for the twelve
months ended December 31, 2000. This decrease resulted from the reduction in
revenue due to the discontinuing of systems/networks and service contracts
products.

LIQUIDITY AND CAPITAL RESOURCES

        Finao has historically incurred significant losses and has substantial
negative cash flow from operations. Finao has included a footnote in its annual
financial statements for the twelve months ended December 31, 2001, which
expresses concern about Finao's ability to continue as a going concern unless it
can secure additional financing. Finao will require additional funding to cover
current operations. Finao is actively seeking additional equity financing. The
Company intends to offer and sell an additional 500,000 shares of convertible
preferred stock during the next three months by private placement to pay for
these expenses. There can be no assurances that any additional funding will be
available.

         At December 31, 2001, Finao's current assets totaled $5,334 and current
liabilities totaled $2,015,627 resulting in a negative working capital ratio.
Finao had long-term liabilities of $115,286 at December 31, 2001. Finao had $789
in cash on hand at December 31, 2001, compared to $619,340 at December 31, 2000.
Operating activities for continuing operations for the twelve months ended
December 31, 2001, used cash of $1,124,859 primarily due to the net loss of
$3,506,704. Net cash used in investing activities was $84,106, reflecting the
purchase of fixed assets. Financing activities provided cash in the amount of
$461,924 primarily due to issuance of capital stock of $440,000

         Finao will require additional funding. Management is actively seeking
to raise additional investment capital and intends to offer and sell an
additional 500,000 shares of convertible preferred stock during the next three
months by private placement. Finao has no material commitments for capital
expenditures at the present time. Management is in negotiations with potential
investors. No assurance can be made that such funding will be available and, if
available, that such funding will be available on terms acceptable to Finao.

                                       9

<PAGE>

FACTORS THAT MAY AFFECT FUTURE RESULTS

     Certain important factors may affect Finao's actual results and could cause
those results to differ materially from any forward-looking statements made in
this Annual Report on Form 10-KSB or that are otherwise made by Finao or on its
behalf. "Forward-looking statements" are not based on historical facts and are
typically phrased using words such as "may," "will," "expect," "believe,"
"anticipate," "intend," "could," "estimate" or "continue" and similar
expressions or variations.

      Differences in actual results may be caused by factors such as those
discussed below, as well as those discussed elsewhere in this report and in
Investco's filings with the SEC.

      Although Finao believes that the expectations reflected in the
forward-looking statements are reasonable, Finao cannot guarantee that they
will be achieved. Except as applicable law requires, Finao does not intend to
update any of the forward-looking statements to conform these statements to
actual results.

     Any or all forward-looking statements in this document and in any other
public statements made may turn out to be wrong. They can be affected by
inaccurate assumptions or by known or unknown risks and uncertainties. In
addition to general economic conditions, many factors mentioned in the
discussion below will be important in determining future results.

     Neither Finao nor its management undertake any obligation to publicly
update any forward-looking statements, whether as a result of new information,
future events or otherwise. The reader is advised, however, to consult any
further disclosures made on related subjects in Finao's future filings with
the SEC.

     For the twelve months ended December 31, 2001, Finao reported net losses
from continuing operations of $3,506,704. As of December 31, 2001, Investco had
an accumulated deficit of $10,696,360, and stockholders` deficit of $2,105,510.
There can be no assurance that Finao will operate profitably in the future and
that Finao will not continue to sustain losses.

     Finao will need additional capital in order to continue its operations.
Finao will require additional funding. Management is actively seeking to raise
additional investment capital and intends to offer and sell an additional
500,000 shares of convertible preferred stock during the next three months by
private placement. Finao cannot be certain that any additional financing will
be available to them when needed and if available, whether it will be on
favorable terms. In addition, if Finao raises additional funds through the
issuance of equity, the securities may have rights, preferences or privileges
senior to those of the rights of its current shareholders and its shareholders
may experience additional dilution.

                                      10

<PAGE>


ITEM 7.  FINANCIAL STATEMENTS

                          INDEX TO FINANCIAL STATEMENTS


FINAO INC. (formerly known as Investco, Inc.)



Independent Auditors' Report..........................................F-2

Balance Sheet.........................................................F-3

Statement of Operations...............................................F-4

Statement of Stockholders' Deficit....................................F-5

Statement of Cash Flows...............................................F-6

Notes to Financial Statements......................................F-7 - F-14



























                                       F-1

<PAGE>


                          INDEPENDENT AUDITORS' REPORT


Board of Directors
Finao Inc.


We have audited the accompanying balance sheet of Finao Inc. (formerly known as
Investco, Inc.) as of December 31, 2001, and the related statement of
operations, stockholders' deficit and cash flows for the year ended December 31,
2001. 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 Finao Inc. (formerly known as
Investco, Inc.)as of  December 31, 2001, and the results of its operations and
its cash flows for the year ended December 31, 2001, 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 2 to the
financial statements, the Company has an accumulated deficit of $10,696,360 as
of December 31, 2001 and had net losses available to common shareholders and
cash used in continuing operations of $4,206,346 and $1,124,859 respectively,
for the year ended December 31, 2001. This raises substantial doubt about its
ability to continue as a going concern. Management's plans in regards to these
matters are also described in Note 2. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.


                                                 /s/Sherb & Co., LLP
                                                    ----------------
                                                    Sherb & Co., LLP
                                                    Certified Public Accountants

New York, New York
October 29, 2003


                                       F-2

<PAGE>

                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                                  Balance Sheet
                                December 31, 2001

                                     ASSETS


Current assets:
   Cash                                                  $       789
   Accounts receivable, net                                      795
   Prepaid expenses                                            3,750
                                                         ------------
    Total current assets                                       5,334
                                                         ------------


Property and equipment, net                                   12,250

Other assets:
   Deposits                                                    7,819
                                                         ------------

    Total other assets                                         7,819
                                                         ------------


    Total assets                                         $    25,403
                                                         ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
   Bank overdraft                                        $    21,924
   Accounts payable                                          851,837
   Accrued expenses                                          725,771
   Capital lease payable                                      66,293
   Note payable                                               21,315
   Dividends payable                                          73,647
   Stock issuance cost payable                               254,840
                                                         ------------
    Total current liabilities                              2,015,627
                                                         ------------


Capital lease payable                                        115,286

Stockholders' Deficit:
   Series A convertible redeemable preferred stock,
    $0.001 par value, 2,500,000 shares authorized and
    391,500  shares issued and outstanding                       392
   Series B convertible redeemable preferred stock,
    $0.001 par value, 1,700,000 shares authorized and
    872,100 shares issued and outstanding                        872
   Series E convertible redeemable preferred stock,
    $0.001 par value, 500,000 shares authorized and
    62,500 shares issued and outstanding                          63
   Common stock, $.001 par value, 100,000,000 shares
    authorized, 1,334,400 shares issued and outstanding        1,334
   Additional paid-in capital                              8,588,189
   Accumulated deficit                                   (10,696,360)
                                                         ------------

    Total stockholders' deficit                           (2,105,510)
                                                         ------------

    Total liabilities and stockholders' deficit          $    25,403
                                                         ============

                 See accompanying notes to financial statements
                                       F-3

<PAGE>

                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                             Statement of Operations
                          Year Ended December 31, 2001





Revenues                                                 $      -

Cost of Revenues                                                -
                                                         ------------


Gross profit                                                    -

General and administrative                                 3,523,272
                                                         ------------

Loss from operations                                      (3,523,272)

Interest income                                                4,028

Interest expense                                              (8,294)

Other income                                                  20,834
                                                         ------------


Loss from continuing operations                           (3,506,704)

Discontinued operations:

Loss on disposal of assets                                  (754,485)

Income from discontinued operations                          128,490
                                                         ------------


Total loss from discontinued operations                     (625,995)
                                                         ------------


Net loss                                                  (4,132,699)
Less: Preferred stock dividend                               (73,647)
                                                         ------------

Loss available to common stockholders                    $(4,206,346)
                                                         ============
Basic and diluted income (loss) per common share:
Continuing operations                                    $     (4.52)
Discontinued operations                                        (0.79)
                                                         ------------

Net loss per common share                                $     (5.31)
                                                         ============


Weighted average number of shares
 outstanding.                                                792,719
                                                         ============



                 See accompanying notes to financial statements
                                       F-4

<PAGE>

                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                       Statement of Stockholders' Deficit
                          Year Ended December 31, 2001

<TABLE>
<CAPTION>

                             Preferred     Preferred       Preferred
                              Stock A       Stock B         Stock E     Common Stock    Additional
                          -------------- -------------- -------------- ----------------   Paid-in     Accumulated
                          Shares  Amount Shares  Amount Shares  Amount  Shares   Amount   Capital      Deficit        Total
                          ------- ------ ------- ------ ------- ------ --------- ------ ------------ ------------- ------------
Balance at December 31,
<S>                       <C>     <C>    <C>     <C>            <C>      <C>     <C>    <C>          <C>           <C>
 2000                     396,500 $ 397  872,100 $ 872    -     $-       174,965 $  175 $ 7,337,553  $ (6,563,661) $   775,336


Conversion of preferred
 stock to common stock     (5,000)   (5)    -     -       -      -            50   -              5          -            -

Exercise of options          -     -        -     -       -      -           136   -           -             -            -

Exercise of warrants         -     -        -     -       -      -         6,800      7      67,993          -          68,000

Issuance of common stock
 for services                -     -        -     -       -      -        71,000     71     421,429          -         421,500

Issuance of stock options    -     -        -     -       -      -          -      -        340,000          -         340,000

Issuance of common stock     -     -        -     -       -      -     1,073,500  1,073     245,927          -         247,000

Issuance of preferred
 stock                       -     -        -     -     62,500     63       -      -        124,937          -         125,000

Dividends accrued            -     -        -     -       -      -          -      -        (73,646)         -         (73,646)

Issuance of common stock
 for debt                    -     -        -     -       -      -         7,949      8     123,991          -         123,999

Net loss for the year        -     -        -     -       -      -          -      -                   (4,132,699)  (4,132,699)
                          ------- ------ ------- ------ ------- ------ --------- ------ ------------ ------------- ------------
Balance at December 31,
 2001                     391,500 $ 392  872,100 $  872  62,500 $  63  1,334,400 $1,334 $ 8,588,189 $(10,696,360) $(2,105,510)
                          ======= ====== ======= ====== ======= ====== ========= ====== =========== ============= ============


</TABLE>



                 See accompanying notes to financial statements
                                       F-5

<PAGE>

                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                             Statement of Cash Flow
                               December 31, 2001



Cash flows from operating activities:

Loss from continuing operations                                    $ (3,506,704)
 Adjustments to reconcile net loss from continuing
  operations to net cash used in operating activities:
   Depreciation and amortization                                        395,260
   Issuance of common stock for services                                545,500
   Issuance of stock options                                            340,000
   Changes in operating assets and liabilities:
(Increase) decrease in:
    Accounts receivable                                                 515,259
    Prepaid expenses                                                     76,062
    Security deposits                                                     8,823
 Increase (decrease) in:
    Accounts payable                                                    165,638
    Deferred revenue                                                   (107,406)
    Customer deposits                                                   (11,127)
    Accrued expenses                                                    453,836
                                                                   -------------

 Cash used in continuing operating activities                        (1,124,859)
                                                                   -------------

Adjustments to reconcile income from discontinued
 operations to net cash provided by (used in)
 discontinued activities:
Income from discontinued operations                                     128,490
                                                                   -------------

    Cash provided by discontinued operating activities                  128,490
                                                                   -------------

    Cash used in operating activities                                  (996,369)
                                                                   -------------

Cash flows from investing activities:
 Purchase of property and equipment                                     (84,106)
                                                                   -------------


    Cash used in investing activities                                   (84,106)
                                                                   -------------

Cash flows from financing activities:
 Bank overdraft                                                          21,924
 Proceeds from issuance of common and
  preferred stock, net                                                  440,000
                                                                   -------------

    Cash provided by financing activities                               461,924
                                                                   -------------

    Net decrease in cash                                               (618,551)

    Cash, beginning of year                                             619,340
                                                                   -------------

    Cash, end of year                                              $        789
                                                                   =============

Supplemental disclosure of cash flow information:
Cash paid for:
    Interest                                                       $       -
                                                                   =============

    Income Taxes                                                   $       -
                                                                   =============


NON-CASH INVESTING AND FINANCING ACTIVITIES:
    Unpaid costs associated with the issuance of common stock      $       -
                                                                   =============

    Accrual of dividends payable                                   $     73,646
                                                                   =============
    Accounts payable converted to note payable                     $    171,571
                                                                   =============


                 See accompanying notes to financial statements.
                                       F-6

<PAGE>

FINAO INC. (formerly known as Investco, Inc.)
NOTES TO FINANCIAL STATEMENTS


NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Investco, Inc, formerly known as Intraco Systems Inc. was incorporated in
Florida in March 1990. In April 1999, Custom Touch Electronics ("CTE"), a public
shell, acquired all of the outstanding common stock of the Company. For
accounting purposes, the acquisition has been treated as an acquisition of CTE
by the Company and as a re-capitalization of the Company. The exchange ratio of
common shares was one-for-one. The estimated fair market value of the net assets
acquired was $1,005. Costs associated with this re-capitalization totaled
$283,151. As a result of the re-capitalization, the Company is now authorized to
issue 100,000,000 shares of common stock. Following the share exchange, the
former stockholders of CTE owned 24,295 shares of common stock of the Company.
The Company is now a Nevada corporation

Investco was an information technology, data and voice service provider offering
comprehensive commercial services that enabled customers to eliminate or replace
all on-site telephone, data systems and server applications. In July 2002,
Investco discontinued providing its speech recognition products and services.
Gross revenue, cost of goods sold and gross profit from discontinued operations
for the year ended December 31, 2001 were $275,084, $146,594, and $128,490
respectively. Investco plans to pursue business development and acquisitions in
the telecommunications sector.

On January 7, 2002, Intraco Systems, Inc. legally changed its name to Investco
Inc.

On January 29, 2002, the Company declared a one for one hundred (1:100) reverse
stock split of its common stock. All amounts in the accompanying financial
statements have been retroactively adjusted to reflect the reverse stock split.

The Company's corporate charter was revoked in May 2004 for non payment of
annual fee. During the period of revocation, an unaffiliated third party was
assigned the Company's name. The Company's charter was reinstated retroactive to
its date of revocation when the Company's selected Finao Inc. ("Finao" or
the"Company") as it new corporate name, The Company has cleared all issues
associated with the revocation.

NOTE 2 - GOING CONCERN

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company has experienced
substantial losses from operations since its inception as well as negative cash
flows from operations. These matters raise substantial doubt about the Company's
ability to continue as a going concern. The Company's ability to continue as a
going concern is dependent upon its ability to generate sales and to obtain
equity and/or debt financing.

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH EQUIVALENTS

The Company considers all highly liquid debt instruments with original
maturities of three months or less to be cash equivalents.

PROPERTY AND EQUIPMENT

Property and equipment is recorded at cost and is depreciated using the
straight-line method over their estimated useful lives.

ADVERTISING COSTS

Advertising costs, which are principally included in general and administrative
expenses, are expensed as incurred. Advertising expense was $10,979 for the year
ended December 31, 2001.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.

                                      F-7

<PAGE>

AMORTIZATION OF GOODWILL

Goodwill represents the amount by which the purchase price of a business
acquired exceeds the fair market value of the net assets acquired under the
purchase method of accounting. Goodwill is being amortized on a straight-line
basis over 15 years. Accumulated amortization at December 31, 2000 was $ 8,391.
The Company assesses whether its goodwill and other intangible assets are
impaired as required by SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets to be Disposed of" based on an evaluation of undiscounted
projected cash flows through the remaining amortization period. If impairment
exists, the amount of such impairment is calculated based on the estimated fair
value of the asset. At December 31, 2001 goodwill of approximately $75,000 was
considered impaired and written down to zero and is included in general and
administrative expenses.

INCOME TAXES

Deferred income taxes are determined on the liability method in accordance with
the Statement of Financial Accounting Standards ("SFAS") No. 109, Accounting for
Income Taxes.

EARNINGS (LOSS) PER SHARE

The Company has adopted SFAS, No. 128, Earnings per Share. Basic earnings (loss)
per share is computed by dividing net income (loss) available to common
stockholders by the weighted average number of common shares outstanding during
the period. Diluted earnings per share reflects the per share amount that would
have resulted if dilutive common stock had been converted to common stock, as
prescribed by SFAS No. 128.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts reported in the balance sheet for cash, accounts
receivable, accounts payable, accrued expenses and note payable approximate fair
value based on the short-term maturity of these instruments.

STOCK BASED COMPENSATION

Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" ("SFAS 123"), encourages, but does not require, companies to
record compensation cost for stock-based employee compensation plans at fair
value. The Company has chosen to account for stock-based compensation using the
intrinsic value method prescribed in Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees", and related interpretations.
Accordingly, compensation cost for stock options is measured as the excess, if
any, of the estimated fair market value of the Company's stock at the date of
the grant over the amount an employee must pay to acquire the stock. The Company
has adopted the "disclosure only" alternative described in SFAS 123 and SFAS 148
(See New Accounting Pronouncements), which require pro forma disclosures of net
income and earnings per share as if the fair value method of accounting had been
applied.

RECENT ACCOUNTING PRONOUNCEMENTS

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities." This statement addresses financial accounting
and reporting for costs associated with exit or disposal activities and
nullifies Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." SFAS No. 146 is
effective for exit or disposal activities initiated after December 31, 2002. The
Company does not expect the application of the provisions of SFAS No. 146 to
have an impact on its financial position, results of operations or cash flows.

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation--Transition and Disclosure." This statement amends SFAS No. 123, to
provide alternative methods of transition for a voluntary change to the fair
value based method of accounting for stock-based employee compensation. In
addition, this statement amends the disclosure requirements of SFAS No. 123 to
require prominent disclosures in both annual and interim financial statements
about the method of accounting for stock-based employee compensation and the
effect of the method used on reported results. The Company does not expect the
application of the provisions of SFAS No. 146 to have an impact on its financial
position, results of operations or cash flows.

                                      F-8

<PAGE>

In November 2002, the FASB issued FASB Interpretation ("FIN") No. 45,
"Guarantor's Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others." FIN No. 45 requires the
recognition of a liability for certain guarantee obligations issued or modified
after December 31, 2002. FIN No. 45 also clarifies disclosure requirements to be
made by a guarantor of certain guarantees. The disclosure provisions of FIN No.
45 are effective for fiscal years ending after December 15, 2002. The Company
has adopted the disclosure provisions of FIN No. 45 as of February 28, 2003. The
Company does not expect the adoption of FIN No. 45 to have a material impact on
its financial position, results of operations or cash flows.

In January 2003, the FASB issued FIN No. 46, "Consolidation of Variable Interest
Entities, an Interpretation of ARB No. 51." FIN No. 46 requires certain variable
interest entities to be consolidated by the primary beneficiary of the entity if
the equity investors in the entity do not have the characteristics of a
controlling financial interest or do not have sufficient equity at risk for the
entity to finance its activities without additional subordinated financial
support from other parties. FIN No. 46 is effective for all new variable
interest entities created or acquired after January 31, 2003. For variable
interest entities created or acquired prior to February 1, 2003, the provisions
of FIN No. 46 must be applied for the first interim or annual period beginning
after June 15, 2003. The Company is currently analyzing the existing guidance
and reviewing any developments with regard to the proposed FASB Staff Positions
issued on the implementation of FIN No. 46 which are currently subject to public
comment. Therefore, the Company cannot determine whether there will be an impact
on its financial position, results of operations, or cash flows at this time.

In January 2003, the FASB issued EITF Issue No. 02-16, "Accounting by a Customer
(including a Reseller) for Certain Consideration Received from a Vendor." This
EITF addresses the accounting by a vendor for consideration (vendor allowances)
given to a customer, including a reseller of the vendor's products, and the
accounting by a reseller for cash consideration received from a vendor. It is
effective for certain arrangements entered into after November 21, 2002, and for
all new arrangements, including modifications to existing arrangements, entered
into after December 31, 2002. The Company adopted the provisions of the EITF in
the fourth quarter of fiscal 2003 and, as the Company's policies were already
consistent with those of EITF 02-16, the adoption of this standard did not have
a material impact on the Company's financial position, results of operations or
cash flows.

In April 2003, the FASB issued SFAS Statement No. 149, "Amendment of Statement
133 on Derivative Instruments and Hedging Activities," which amends and
clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts
(collectively referred to as derivatives) and for hedging activities under FASB
Statement No. 133, Accounting for Derivative instruments and Hedging Activities.
This Statement is effective for contracts entered into or modified after June
30, 2003, except for certain hedging relationships designated after June 30,
2003. Most provisions of this Statement should be applied prospectively. The
Company does not expect the adoption of SFAS No. 149 to have a material impact
on its financial statements.

In May 2003, the FASB issued SFAS Statement No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." This
Statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity. It requires that an issuer classify a financial instrument that is
within its scope as a liability (or an asset in some circumstances). 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, except for mandatory redeemable financial
instruments of nonpublic entities, if applicable. It is to be implemented by
reporting the cumulative effect of a change in an accounting principle for
financial instruments created before the issuance date of the Statement and
still existing at the beginning of the interim period of adoption. The Company
does not expect the adoption of SFAS No. 150 to have a material impact on its
financial statements.









                                       F-9

<PAGE>

In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No.'s 141, BUSINESS COMBINATIONS ("FAS 141") and
142, GOODWILL AND OTHER INTANGIBLE ASSETS ("FAS 142"). The provisions of FAS 141
eliminated the pooling-of-interests method of accounting for business
combinations consummated after June 30, 2001. The Company adopted FAS 141 on
July 1, 2001 and it did not have a significant impact on the Company's financial
position or results of operations. Under the provisions of FAS 142, goodwill and
indefinite lived intangible assets are no longer amortized, but are reviewed
annually for impairment. Separable intangible assets that are not deemed to have
an indefinite life will continue to be amortized over their useful lives. The
Company is required to adopt the new accounting rules beginning January 1, 2002.
Management is currently assessing the financial impact FAS 142 will have on the
consolidated financial statements, but it will not be material.

In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144, ACCOUNTING FOR THE IMPAIRMENT OR
DISPOSAL OF LONG-LIVED ASSETS ("FAS 144"), which addresses financial accounting
and reporting for the impairment or disposal of long-lived assets and supersedes
SFAS No. 121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR
LONG-LIVED ASSETS TO BE DISPOSED OF, and the accounting and reporting provisions
of 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 ("APB 30"). The Company is
required to adopt the new accounting rules beginning January 1, 2002. Management
is currently assessing the financial impact FAS 144 will have on the
consolidated financial statements, but does not believe it will be material.

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consist of equipment and furniture and fixtures.
Depreciation expense for the year ended December 31, 2001 was $307,241.
Subsequent to year-end all property and equipment was sold for $12,250.

NOTE 5 - OPERATING LEASES

The Company leases facilities and equipment under operating leases, with terms
from three to five years, payable in monthly installments. During the year ended
December 31, 2001 the facility lease was renegotiated to a month-to-month lease
and the equipment leases expired and were not renewed. Total lease expense for
the year ended December 31, 2001 was $161,031.

NOTE 6 - CAPITAL LEASES AND NOTE PAYABLE

At December 31, 2001, the future minimum lease payments under the capital lease
are as follows:
                                                        CAPITAL
               YEARS ENDED DECEMBER 31,                  LEASES
            ------------------------------         ----------------

                    2002                           $        77,297
                    2003                                    77,297
                    2004                                    45,090
                                                   ----------------
     Total minimum lease payments                          199,684

     Less:  amount representing interest                   (18,105)
                                                   ----------------
     Present value of net minimum lease payments           181,579

     Less:  current maturities                             (66,293)
                                                   ----------------
     Long-term obligation                          $       115,286
                                                   ================

The note payable represents a former capital lease for equipment that was
returned in 2002. The $21,315 represents amounts past due.

                                      F-10

<PAGE>

NOTE 7 - STOCKHOLDERS' DEFICIT

In January 2001, Finao issued 50 shares of common stock to a preferred
shareholder who converted a like number of shares of preferred stock.

In March 2001, the Company issued 137 restricted shares of common stock to one
former employee upon the employee's exercise of stock options granted to the
employee under the Company's stock option plan in connection with the person's
employment with Finao. The Company did not receive any proceeds from the
exercise of options because the option holder used the cashless exercise method.

From April 2001 to July 2001, Finao issued 1,073,500 shares of common stock
for $247,000 to six investors of which 50,000 shares were purchased by Robert
Hildreth, Finao's former Chairman of the Board.

In June 2001, the Company issued 7,949 shares of common stock to Broad and
Cassel, its legal counsel, in connection with legal services provided to
Finao. The shares were valued at $123,999.

During the year ended December 31, 2001, Finao issued 76,000 shares of common
stock in connection with consulting services provided to the Company. The shares
were valued at $421,500. In November 2001, the Company de-registered 46,000
shares and cancelled 5,000 shares of the 76,000 shares due to non-performance of
the consulting agreements.

During the year ended December 31, 2001, Finao began a Series E convertible
preferred stock offering, and as a result of the offering, Finao issued to two
investors 62,500 shares at $2.00 per share for $125,000. Holders have the right
to convert the Series E preferred stock, in whole or in part, at any time, or
from time to time, into the common stock, par value $.001, of the Company

During the year ended December 31, 2001, Finao issued 6,800 shares of common
stock to five investors who exercised their warrants for $68,000.

The shares of Series A convertible redeemable preferred stock shall be subject
to redemption at any time at the option of the Company, at the stated Preferred
Value of $1.00 per share. The shares also contain a 7% cumulative dividend.
Holders have the right to convert the Series A convertible redeemable preferred
stock, in whole or in part, at any time, or from time to time, into the common
stock, par value $.001, of the Company. The conversion rate is on a one-to-one
basis, and is subject to adjustment in certain circumstances including
proportional stock splits, stock dividends, and reverse stock splits.

The holders of Series B convertible redeemable preferred stock have the right to
convert the Series B convertible redeemable preferred stock, in whole or in
part, at any time, or from time to time, into the common stock, par value $.001,
of the Company. The conversion rate is on a one-to-one basis, and is subject to
adjustment in certain circumstances including proportional stock splits, stock
dividends, and reverse stock splits. The Shares of Series B convertible
redeemable preferred stock are subject to redemption, in whole or in part, at
any time, or from time to time, at the option of the Company, at the stated
preference value of $1.00 per share and $0.99 for subscriptions over $100,000.

NOTE 8- STOCK OPTION PLAN

Under the Company's stock option plan, 20,000,000 shares of common stock were
reserved for issuance upon exercise of options granted to directors, officers
and employees of the Company. Options issued through December 31, 2001 carry
exercise prices equal to that of the fair market value on the date of the grant.
The options vest immediately, or equally over a period of one to three years
following the date of grant and the unexercised portion of the options expires
and ceases to be exercisable on the earlier of the tenth year after the date of
the grant or specified date following termination of employment.

For purposes of the pro forma disclosures, the estimated fair value of the
options is amortized to expense over the options' vesting period. The effect of
Statement No. 123 resulted in a pro forma net loss of $4,335,699 for the year
ended December 31, 2001. In addition, the pro forma net loss per share was
$(5.47) per share for the year ended December 31, 2001.

                                      F-11

<PAGE>

The fair value of each option is estimated on the date of grant using the fair
market option-pricing model with the following assumptions:

                                                                      2001
                                                                     ------

     Risk-free interest rate                                           3.5%
     Expected life (years)                                             3
     Expected volatility                                               220%
     Expected dividends                                                None
     Weighted average remaining contractual life                      2 years

A summary of option transaction during the years ended December 31, 2001, is
shown below:
                                                                  Weighted
                                                                Average Exercise
                            Number of Options Price Per share  Price Per Option
Outstanding at December 31,
 2000                            94,864        $25 to $487          $108

Granted (1/1/01-3/31/01)         22,750        $19 to $ 21          $ 21

Granted (4/1/01-6/30/01)         12,340        $ 5 to $ 10          $  9

Granted (7/1/01-9/30/01)         30,000        $ 2                  $  2

Granted (10/1/01-12/31/01)       70,000        $ 2                  $  2

Exercised                          (136)       $75                  $ 75

Forfeited                       (27,069)       $19 to $487          $ 88
                              ------------
Outstanding at December 31,
 2001                           202,749        $ 2 to $487          $ 43
                              ============


All but 60,000 stock options have expired subsequent to December 31, 2001.

NOTE 9 - INCOME TAXES

The Company has an unused net operating loss carryforward of $10,853,694
available for use on its future corporate federal and state income tax returns.
The Company's valuation of the tax benefit of its net operating loss
carryforward is presented in the following table. The tax amounts have been
calculated using the 34% federal and 5.5% state income tax rates.

                                                                2001
                                                          ---------------

Deferred income tax benefit                               $    1,603,626
Change in beginning valuation allowance                       (1,603,626)
                                                          ---------------
Provision (benefit) for income taxes                      $          --
                                                          ===============

Reconciliation of the Federal statutory income tax rate to the Company's
effective income tax rate is as follows:
                                                                2001
                                                          ---------------

Computed at the statutory rates (34%)                     $   (1,403,000)
Increase (decrease) resulting from:
      Non-deductible expenses                                      5,374
State income taxes, net of federal income
  tax benefit                                                   (206,000)
Reinstatement/change in deferred tax asset
  valuation allowance                                          1,603,626
                                                          ---------------
Tax provision (benefit)                                   $         --
                                                          ===============

                                      F-12

<PAGE>

The components of the deferred tax asset were as follows at December 31, 2001:

Deferred tax assets:
      Net operating loss carryforward                     $    4,121,700
                                                          ---------------
Valuation allowance:
      Beginning of year                                      ( 2,518,074)
      Decrease (increase) during year                         (1,603,626)
                                                          ---------------
              Ending balance                                  (4,121,700)
                                                          ---------------
              Net deferred taxes                          $         --
                                                          ===============

The net operating loss carryforward is summarized below:

             YEAR LOSS ORIGINATED            YEAR EXPIRING          AMOUNT
       ---------------------------------  --------------------  -------------

                  December 31, 1997              2011           $     583,231
                  December 31, 1998              2012                  80,195
                  December 31, 1999              2013               1,254,241
                  December 31, 2000              2014               4,808,701
                  December 31, 2001              2015               4,127,326
                                                                  -----------
         Total available net operating loss                       $10,853,694
                                                                  ===========
The utilization of the above loss carryforwards, for federal income tax
purposes, may be subject to limitation resulting from changes in ownership.

NOTE 10 - LITIGATION

On October 29, 1999, Banker's Leasing Association ("Banker's") filed a suit
against Investco and Jack Berger in the Circuit Court of the Fifteenth Judicial
Circuit in and for Palm Beach County, Florida for breach of a master lease
agreement and personal guaranty related to computer equipment, software and
services leased by the Company for the amount of $71,608. The Company filed a
counterclaim based on Banker's failure to provide services agreed to in the
lease and breach of fiduciary duty. Banker's has answered The Company's
counterclaim and has filed suit against AIM Solutions, Inc. ("AIM"), as
successor to Enterprises Solutions Group, Inc., the third party responsible for
setting up the computer equipment and software and providing services. AIM has
responded to the claim against it. On June 28, 2001, the Company settled the
lawsuit, as a result of which the Company agreed to pay Banker's Leasing a total
of $40,000 in settlement of its claim against Intraco and Jack S. Berger.

On August 4, 2003, a Magistrate Judge for the U. S. District Court for the
Southern District of Florida at case number 02-80466-CIV-HURLEY/LYNCH entered a
report to the Court to recommend that the Company be assessed civil penalties
for the issuance of false press releases on its behalf by Joseph .Lents, the
former Chief Executive Officer of the Company. Until August 25, 2003, the same
attorney who represented Mr. Lents in the case also represented the Company. On
October 1, 2003, the Company retained independent counsel to enter his
appearance in the case to defend the Company from the assessment of civil
penalties.

On August 20, 2003, The Securities and Exchange Commission (the "SEC") at
Administrative Proceedings File No. 3-11228 Instituted a Public Proceeding and
Notice of Hearing pursuant to Section 12(j) of the Securities and Exchange Act
of 1934 for the failure of the Company to file: A. Annual reports on Form 10-K
for the years ended December 31, 2001 and December 31, 2002; B. Quarterly
reports on Form 10-Q for the quarters ended March 31, 2002; June 30, 2002;
September 30, 2002; and March 31, 2003; and, C. On April 1, 2003 the Nevada
Secretary of State revoked the Company's business charter for failure to file a
list of officers. The SEC will afford the Company the opportunity to answer and
attend a hearing to determine if the registration of all securities of the
Company should be suspended or revoked. The Company has retained counsel to
represent it in the proceedings, has filed its answer to admit the above
deficiencies, and to explain that the Company intends to file its periodic
reports and otherwise bring the Company in full compliance with all SEC and
State of Nevada requirements.

There are certain legal proceedings and claims against the company in which
management is vigorously defending itself. Management has quantified and accrued
any potential liability.

                                      F-13

<PAGE>

NOTE 11 - SUBSEQUENT EVENTS

In January 2002, Finao issued 500,000 shares of common stock to Joe Lents in
connection with consulting and administrative services and serving as interim
CEO to Finao. The shares were valued at $2,000,000. Mr. Lents resigned as CEO
on July 1, 2002.

In January 2002, the Company sold to two investors 100,000 shares of Series E
Convertible preferred shares for $50,000.

From February 2002 to October 2003, Finao began a Series D convertible preferred
stock offering, and as a result of the offering, Finao issued to thirteen
investor s 2,570,000 shares for $157,500. Holders have the right to convert the
Series D preferred stock into the common stock, par value $.001, of Finao at
such time as Finao amends its Certificate of Incorporation to increase its
authorized capitalization.

In February 2002 Finao issued 200,000 shares of common stock in connection with
consulting services provided to Finao. The shares were valued at $600,000.

On July 1 2002, the Company entered into an Asset Purchase Agreement with
Horizon Telephone Systems, Inc relating to the purchase of the assets with its
Houston, Texas sales branch office. In consideration for the purchase of the
assets, the Company issued 600,000 shares of Series D Convertible Preferred
Stock. In October 2003 the Asset Purchase Agreement was rescinded. Horizon
retained the 600,000 shares of Series D Convertible Preferred Stock.

On July 1, 2002, Arnold Salinas became President and CEO of Finao and was
elected to the Board of Directors. Mr. Salinas received in connection with his
employment a salary of $60,000 and 1,000,000 shares of restricted common stock.
The shares were valued at $96,000.

 From August 2002 to November 2002, Finao issued 630,000 shares of Series D
Convertible Preferred Stock in connection with consulting services provided to
the Company. The shares were valued at $346,500.



                                      F-14

<PAGE>


ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

In September  of 2003 the Board of  Directors of Finao Inc.  engaged the firm of
Sherb & Co., LLP ("Sherb") as its  independent  accountants  for the fiscal year
ending December 31, 2002 and 2001.

During the two most recent calendar years and through the date hereof, Finao did
not consult Sherb with respect to the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Company's financial statements, or any
matters or reportable events as set forth in Items 304(a) (2) (i) and (ii) of
Regulation S-K.




                                    PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
                COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The following personnel serve as the directors and executive officers of
Finao:


Name                  Age     Position                            Director Since

Joseph L. Lents        57     Chief Executive Officer

Robert Hildreth, Jr.   67     Chairman of the Board of Directors      1999

Benjamin W. Krieger    63     Director (Audit Committee Member)       2000

JOSEPH L. LENTS, Chief Executive Officer, has been President and Chief Executive
Officer of  Financial  Standards  Group,  Inc., a Credit  Union  Auditing  firm.
Previously,  from its inception in 1978 until 1989, Mr. Lents was partner in the
Accounting/Auditing firm of Nearman & Lents, P.A. Mr. Lents has over 25 years of
business development and management experience,  along with a strong presence in
the local community. Mr. Lents resigned as CEO in July 2002.

ROBERT HILDRETH, JR. is the Chairman of the Board of Directors and was the first
member of Finao's Board of Advisors formed in May 1998. Mr. Hildreth brings a
broad scope of experience  to Finao,  with more than 30 years in the domestic
and international  financial  community.  He is currently  president of Hildreth
Associates,  a consulting  firm,  and has served in that capacity since 1994. He
was formerly the International  Director of the law firm of LeBouef, Lamb, Leiby
& McRae, as a Senior Utility Advisor to Goldman Sachs & Co., a Managing Director
of  Investment  Banking  for  Merrill  Lynch,  and a Director  of Merrill  Lynch
International   Bank  in  London.   Mr.   Hildreth   is  also  a   director   of
MerchantOnline.com,  Inc., a provider of e-commerce  services to merchants.  Mr.
Hildreth resigned as Chairmen of the Board in June 2002.

BENJAMIN  W.  KRIEGER  was  elected a  director  in March  2001.  He has been on
Finao's  Board of Advisors  since its  inception in 1998.  Since 1990, he has
been a partner in Corporate  Development  International,  which  specializes  in
identifying  potential  merger and  acquisition  opportunities  for its business
clients.  He  specializes  in the pulp and paper,  packaging,  graphic  arts and
distribution industries. From 1983 to 1990, he was president and chief executive
officer of Ris Paper  Company,  a private  paper  distribution  company  with 26
distribution centers and annual sales of approximately $500 million. Mr. Krieger
resigned as director in June 2002.

      Finao's directors hold their positions until the next annual meeting of
shareholders and until their successors have been duly elected and qualified.
Our non-employee directors receive compensation in the form of stock options
upon appointment and reimbursement of expenses incurred while attending Board of
Directors' meetings.

      Our officers hold office until the first meeting of the Board of Directors
following the annual meeting of our shareholders and until their successors have
been chosen and qualified, subject to early removal by the Board of Directors.

                                       11

<PAGE>

Section 16(a) Beneficial Ownership Compliance

     To our knowledge, based solely on a review of the copies of the reports
furnished to us and written representations that no other reports were required
during the fiscal year ended December 31, 2001, the directors and executive
officers of the Company complied with all applicable filing requirements of
section 16(a) of the Securities Exchange Act of 1934.

ITEM 10. COMPENSATION OF EXECUTIVE OFFICERS

SUMMARY COMPENSATION TABLE

The following table summarizes all  compensation  awarded to, earned by, or paid
for  services  rendered  in each of the last  three  fiscal  years to the  chief
executive  officer,  president and chief financial  officer (who are referred to
collectively  as the "named  executive  officers").  Mr. Nawrocki and Mr. Marcus
each joined Finao during 1999.and resigned in July 2001. Mr. Kirschen was CEO
from August 2001 to November  2001.  Mr. Lents  became CEO in December  2001 and
resigned in June 2002. Mr. Berger resigned as President and Executive Officer in
March 2002, and was named Vice President of Business  Development.  No other
executive officer earned total salary and bonus in excess of $100,000 during the
last three fiscal years.

<TABLE>
<CAPTION>

                                           Annual Compensation                             Long-Term Compensation
                        -----------------------------------------------------------    --------------------------------
                                                                                       Securities
                                                                 Other                 Underlying        All Other
Name and                                                         Annual                Options           Compensation
Principal Position      Year       Salary ($)      Bonus ($)     Compensation ($)      (#)               ($)
--------------------    -------    -----------     ----------    ------------------    -------------     --------------

<S>                     <C>        <C>                  <C>      <C>                             <C>                 <C>
Walt Nawrocki           2001       $   33,192           0        $           1,512               0                   0
Chief  Executive        2000       $  175,000           0        $          11,340               0       $       3,960
Officer                 1999       $   36,058           0                        0       4,000,000                   0


Jack Berger,            2001       $   52,192           0                        0       5,000,000                   0
President               2000       $  160,000           0        $          10,073               0       $       1,173
                        1998       $  137,000           0                        0               0                   0

Robert Marcus,          2001       $   27,807           0                        0               0                   0
Chief Financial         2000       $  145,000           0                        0               0                   0
Officer                 1999       $   90,522           0                        0       2,000,000                   0

Tarek Kirschen          2001       $   25,430           0                        0               0                   0
Chief Executive
officer

Joseph L. Lents         2001       $        0           0                        0               0                   0
Chief Executive
Officer

</TABLE>


     The amounts shown in the table above for Mr. Nawrocki and Mr. Berger under
"Other Annual Compensation" reflect car allowances and under "All Other
Compensation" reflect premiums for term life insurance policies paid on their
behalf.

                                       12

<PAGE>

KEY PERSONNEL AND EMPLOYMENT AGREEMENTS

      Finao entered into a three-year employment agreement with Jack S. Berger,
effective as of January 1, 1998, and amended effective January 1, 2001, and
again amended effective September 12, 2001, pursuant to which he served as
Finao's Vice President of business Development. The agreement expired on
December 31, 2002. The agreement provides for an annual salary of $120,000, with
base salary adjustments at the discretion of the Board of Directors.

      The agreement also provides that Mr. Berger's employment may be terminated
at Finao's discretion at any time prior to December 31, 2002, provided that
Finao shall pay Mr. Berger an amount equal to payment at his base salary rate
from the date of termination through December 31, 2002, plus an amount equal to
50% of his base salary. In the event of such termination, Mr. Berger is not
entitled to any incentive salary payment or any other compensation then in
effect, prorated or otherwise. At its discretion, Finao may also terminate
Mr. Berger any time after the initial term, provided that in such case Mr.
Berger shall be paid 50% of his then-applicable base salary. In the event of
such termination, Mr. Berger shall not be entitled to receive any incentive
salary payment or any other compensation then in effect, prorated or otherwise.

      In the event that Mr. Berger is in breach of any material obligation owed
to Finao, habitually neglects the duties to be performed by him under the
agreement, engages in any conduct that is dishonest, damages the reputation or
standing of Finao, or is convicted of any criminal act or engages in any act
of moral turpitude, then Finao may terminate the agreement upon five days'
notice to Mr. Berger. In the event of such termination, Mr. Berger shall be paid
only at the then-applicable base salary rate up to and including the date of
termination, and shall not be paid any incentive salary payments or other
compensation, prorated or otherwise. Mr. Berger resigned in March 2002.

STOCK OPTION PLAN

      Finao has adopted a stock option plan to attract and induce officers,
directors and key employees of Finao to remain with Finao. The plan provides for
the grant of options that qualify as incentive stock options under Section
422(a) of the Internal Revenue Code of 1986, as amended, and nonstatutory
options. The stock option plan was approved in 1998 and amended in January 2001
to increase the number of shares available for grant to 20,000,000.

    As of October 31, 2003, options to purchase an aggregate of 60,000 shares of
common stock were outstanding under the plan with exercise prices of $0.25 to
$0.88. These options vest immediately or over a two to three year period and
expire on July 13, 2005. In 2002, no options were granted. In 2001, options to
purchase an aggregate of 135,090 shares were granted, including 50,000 to Mr.
Berger. No options were exercised by the named executive officers

      The Board may terminate the plan or may amend the plan as it may deem
advisable. The Board may unilaterally amend the plan and incentive awards as it
deems appropriate to ensure compliance with Rule 16b-3 and to cause incentive
awards to meet the requirements of the Internal Revenue Code and the regulations
thereunder.

      All present and future employees of Finao or of any parent or
subsidiary of Finao and any consultant retained to provide services to
Investco, and who is selected by the committee to be eligible to receive
incentive awards under the plan, are entitled to receive options under the plan.

                                       13

<PAGE>

      All present and future non-employee directors are eligible to receive
nonstatutory options under the plan. Non-employee directors shall not be
entitled to receive any other form of incentive award under the plan.

      The exercise price of shares of common stock covered by an incentive stock
option cannot be less than 100% of the fair market value of such shares on the
date of grant; provided that if an incentive stock option is granted to an
employee who, at the time of the grant, is a 10% shareholder, then the exercise
price of the shares covered by the incentive stock option will not be less than
110% of the fair market value of such shares on the date of grant. The exercise
price of nonstatutory stock options will not be less than 85% of fair market
value of such shares on the date of grant.

Stock options held by our named executive officers of as December 31, 2001.

     The following table indicates the total number and value of exercisable and
unexercisable stock options held by named executive officers as of December 31,
2001. During the year ended December 31, 2001, the named executive officers did
not exercise any stock options.

<TABLE>
<CAPTION>

                               Number of Unexercised Securities              Value of Unexercised In-the-Money Options
                               Underlying Options at Fiscal Year End         at Fiscal Year End
                               ------------------------------------------    ------------------------------------------
Name                           Exercisable           Unexercisable           Exercisable           Unexercisable
---------------------------    ------------------    --------------------    ------------------    --------------------
<S>                                     <C>                   <C>            <C>                   <C>
Joseph Lents                            0                     0              $           0         $           0
Jack S. Berger                     51,000                     0              $           0         $           0
Walt Nawrocki                      40,000                     0              $           0         $           0
Robert Marcus                      40,000                     0              $           0         $           0
Tarek Kirschen                          0                     0              $           0         $           0

</TABLE>

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

      The following tables sets forth, as of October 31,2003, certain
information with respect to common stock, Series A Convertible Redeemable
Preferred Stock, Series B Convertible Redeemable Preferred Stock, Series D
Convertible Redeemable Preferred Stock and Series E Convertible Redeemable
Preferred Stock owned of record or beneficially by (i) each shareholder who we
know is the beneficial owner of more than of 5% of the outstanding shares of our
common stock, Series A Convertible Redeemable Preferred Stock, or Series B
Convertible Redeemable Preferred Stock or Series D Convertible Redeemable
Preferred Stock or Series E Convertible Redeemable Preferred Stock; (ii) each
director and executive officer; and (iii) all directors and executive officers
as a group. Each shareholder listed below has sole voting and investment power.
Unless otherwise indicated, the address of each of the persons named below is
9444 Old Katy Road, Suite 100, Houston, Texas 77055. As of December 31, 2003, a
total of 3,034,400 shares of common stock, 391,500 shares of Series A
Convertible Redeemable Preferred Stock and 872,100 shares of Series B
Convertible Redeemable Preferred Stock, 3,800,000 shares of Series D Convertible
Preferred Stock and 162,500 shares of Series E Convertible Preferred Stock are
issued and outstanding. The shares of Series A Convertible Redeemable Preferred
Stock and Series B Convertible Redeemable Preferred Stock, and Series D
Convertible Redeemable Preferred Stock and Series E Convertible Preferred Stock
are convertible into a like number of shares of common stock.

         In accordance with the SEC rules, shares that are not outstanding but
that are issuable upon the exercise of immediately exercisable options,
warrants, rights or conversion privileges have been included for the purpose of
computing the percentage of outstanding shares owned by the individual owning
the convertible security or right, but not when computing the percentage for any
other person.

                                       14

<PAGE>

<TABLE>
<CAPTION>

Common Stock


                                   Amount and Nature of Beneficial  Percent of Common Stock
Name and Address                   Ownership of Common Stock          Beneficially Owned
--------------------------------- -------------------------------- ---------------------------
<S>                                            <C>                              <C>
Joseph L. Lents                                500,000                          16.5%
Arnold Salinas                               1,000,000                          33.0%
Martin Katz.                                 1,200,000                          39.5%

All  executive  officers  and
directors as a group (one person)            1,000,000                          33.0%



         Series A Convertible Redeemable Preferred Stock

                                                                                Percent of Series A
                                        Amount and Nature of Beneficial        Convertible Redeemable
                                       Ownership of Series A Convertible         Preferred Stock
           Name and Address              Redeemable Preferred Stock            Beneficially Owned
------------------------------------  -----------------------------------  -----------------------------
Peter Georg Studer, Sole Director
  Alpenstein Holding AG
  Berkenstrasse 49
  Rotkreuz, SZ                                      1,000                               25.5%
Mario Franchi
  Sitel Corporation
  No. 15 Andar No. 3, Floor 1050
  Lisbon, Portugal                                    500                               12.8
Rolf Frommel
  P.O. Box 53
  Taby, SW  18321                                     500                               12.8
Osakeyhtio & Jukka Hallman
  Haapaniemenkatu 28 KRS
  Kuspio, FI  70111                                   200                                5.1
All executive officers and directors
as a group (one person)                                 0                                0

</TABLE>

                                       15

<PAGE>



Series B Convertible Redeemable Preferred Stock

<TABLE>
<CAPTION>
                                                                                              Percent of Series B
                                                   Amount and Nature of Beneficial           Convertible Redeemable
                                                    Ownership of Series B Convertible           Preferred Stock
Name and Address                                    Redeemable Preferred Stock                 Beneficially Owned
---------------------------------------------    ------------------------------------    -----------------------------
<S>                                                             <C>                                 <C>
Peter Georg Studer, Sole Director
  Alpenstein Holding AG
  Berkenstrasse 49
  Rotkreuz, SZ                                                   4,012                             46.0%
Song Lin
  4251 Coral Hills Drive
  Coral Springs, FL  33065                                       1,003                             11.5
Richard A. Persson TTEE
  Richard A. Persson Declaration
  625 Prestwick Drive
  Frankfort, IL  60423                                           4,012                             46.0
All executive officers and directors as a
group (one person)                                                   0                              0



Series D Convertible Redeemable Preferred Stock

                                                                                               Percent of Series B
                                                   Amount and Nature of Beneficial           Convertible Redeemable
                                                  Ownership of Series B Convertible             Preferred Stock
Name and Address                                      Redeemable Preferred Stock              Beneficially Owned
---------------------------------------------    ------------------------------------    -----------------------------
Philip Guinn                                                    300,000                              7.8%
Ray Salinas                                                     600,000                             15.6%
Business Acquisition Strategies                               1,750,000                             45.6%
Crown City Holdings                                             250,000                              6.5%
John Daughtery                                                  350,000                              9.1%
All executive officers and directors as a
group (one person)                                                    0                              0

</TABLE>

                                       16

<PAGE>


Series E Convertible Redeemable Preferred Stock
<TABLE>
<CAPTION>

                                                                                            Percent of Series B
                                                    Amount and Nature of Beneficial       Convertible Redeemable
                                                    Ownership of Series B Convertible       Preferred Stock
Name and Address                                      Redeemable Preferred Stock           Beneficially Owned
---------------------------------------------    ------------------------------------    -------------------------
<S>                                                                 <C>                             <C>
Robert Reiner                                                       50,100                          49.8%
Mitch Silverman                                                     50,000                          49.7%

All executive officers and directors as a
group (one person)                                                       0                           0

</TABLE>

ITEM 12. CERTAIN TRANSACTIONS

     From time to time,  Finao has loaned funds and sold products to Investco
Systems Pty., Ltd., an Australian  corporation that is indirectly  controlled by
Jack S. Berger,  Investco's  president.  Mr. Berger is a majority stockholder in
Investco  International,  Inc., the corporation that owns a majority interest in
Investco  Systems Pty. In 1998,  Finao sold products to Investco Systems Pty.
valued at $235,255 and received cash payments of $199,126. The balance remaining
due to Finao for those products, together with the balance due from the prior
year's sales,  totaled  $169,539,  of which  $123,059 was converted  into a note
receivable  bearing  interest  at  6%  per  annum  and  payable  in  36  monthly
installments,  with the balance of $46,480 being paid in 2000. In 2000, the note
receivable  was paid down by $74,963 and the  remaining  balance of $48,096 was
determined to be uncollectible

     In May 1997,  Finao  entered  into a  consulting  agreement  with Vestar
Capital  Corporation  pursuant  to  which  Vestar  provides  organizational  and
strategic  planning   services.   Vestar  assisted  Finao  with  an  internal
reorganization  in  1998  and  assisted  in  the   identification  of  potential
acquisitions. The compensation under this agreement provided for monthly fees of
$3,000 through  February 1998, and $1,650 per week  thereafter.  Vestar received
891,000   restricted   shares  of  Finao  common  stock  from  the  principal
shareholder  of Finao on behalf of Finao,  which  represented  9.9% of the
then outstanding shares, and had the right to be issued warrants to maintain its
9.9% interest in Finao  despite any further  issuances of capital stock until
May 2001,  pursuant to an anti-dilution  provision in its consulting  agreement.
During November 1998,  Finao  issued to Vestar  warrants to purchase  150,000
shares of common  stock at $0.25 per share in exchange for the  cancellation  of
the anti-dilution clause of its consulting  agreement.  The consulting agreement
with Vestar was terminated February 1, 2001.

     In April 2000,  Finao completed a share  exchange with Custom Touch,  a
Nevada corporation with no material  operations whose common stock traded on the
OTC Bulletin Board. Under the share exchange  agreement,  all outstanding shares
of Finao  capital stock were  exchanged for  10,531,500  Custom Touch shares,
which  represented 81% of the total Custom Touch shares  outstanding at the time
of the exchange. Upon the completion of the exchange, the prior shareholders and
promoters of Custom Touch held  2,429,489  shares and the Finao  shareholders
held 10,531,500 shares.  Thereafter,  Custom Touch changed its name to Investco,
Inc. A total of 1,487,298  shares were issued to Jensen  Services and Associates
for services associated with the share exchange.

                                       17

<PAGE>

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits:

Exhibit
  No.    Description
-------  -----------------
2.1      Exchange Agreement dated April 9, 2000, between Investco, Inc., and
         Custom Touch Electronics, Inc (1)

3.1      Amended and Restated Certificate of Incorporation (1)

3.2      Bylaws (1)

3.3      Certificate of Correction (2)

3.4      Certificate of Designation of Preferences, Rights and Limitations of
         Series A Convertible Redeemable Preferred Stock (2)

3.5      Certificate of Designation of Preferences, Rights and Limitations of
         Series B Convertible Redeemable Preferred Stock (3)

4.1      Form of Non-Callable A Warrants (3)

4.2      Form of Callable B Warrants (3)

4.3      Form of Callable C Warrants (3)

9.1      Voting Trust Agreement dated February 1, 2001, between Jack S. Berger
         and Walt Nawrocki (4)

10.1     Stock Option Plan, as amended (5)

10.2     Employment Agreement dated January 1, 1998 between Investco and Jack S.
         Berger (1)

10.3     Amendment to Employment Agreement effective January 1, 2001, between
         Investco and Jack S. Berger (2)

10.4     Employment Agreement dated January 18, 2000 between Investco and Robert
         Marcus (1)

10.5     Amendment to Employment Agreement effective January 1, 2001, between
         Investco and Robert Marcus (4)

10.6     Employment Agreement dated September 24, 2000 between Investco and Walt
         Nawrocki (4)

10.7     Motorola Software License Agreement dated January 18, 2001, by and
         between Investco and Motorola (5)

10.8     Software License and Support Agreement between Nuance Communications
         and Investco (6)

10.9     Microsoft Certified Solution Provider Agreement by and between Investco
         and Microsoft Corporation (6)

10.10    Voice Enabled Customer Service Application Agreement (6)

23.1     Consent of Daskal, Bolton, Manela, Devlin & Co.

                                       18

<PAGE>

31.1     Certification of CEO pursuant to section 302 of the Sarbanes-Oxley
         Act of 2002. (*)

32.1     Certification of CEO pursuant to section 906 of the Sarbanes-Oxley
         Act of 2002. (*)


(1)      Incorporated by reference to the Registrant's Registration Statement on
         Form 10-SB filed on August 18, 2000.
(2)      Incorporated by reference from Registrant's Amendment No.2 to the
         Registration Statement on Form SB-2, File No. 333-44268.
(3)      Incorporated by reference from Registrant's Amendment No.3 to the
         Registration Statement on Form SB-2, File No. 333-44268.
(4)      Incorporated by reference from the Registrant's Annual Report on Form
         10-KSB for the twelve months ended December 31, 2000, as originally
         filed.
(5)      Incorporated by reference from the Registrant's Amendment No.1 to the
         Registration Statement on Form SB-2, File No. 333-44268.
(6)      Incorporated by reference from Registrant's Amendment No. 4 to the
         Registration Statement on Form SB-2, File No. 333-44268. (b)Investco
         did not file any Reports on Form 8-K during the fourth quarter of the
         year ended December 31, 2001.


* - Filed Herewith

Item 14.  CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Exchange Act, the Company carried out an
evaluation of the effectiveness of the design and operation of the Company's
disclosure controls and procedures. This evaluation was carried out under the
supervision and with the participation of the Company's management, including
the Company's Chairman, Chief Executive Officer and President and the Company's
Principal Accounting Officer. Based upon that evaluation, the Company's
Chairman, Chief Executive Officer and President and the Company's Principal
Accounting Officer concluded that the Company's disclosure controls and
procedures are effective. There have been no significant changes in the
Company's internal controls or in other factors, which could significantly
affect internal controls subsequent to the date the Company carried out its
evaluation.

Disclosure controls and procedures are designed to ensure that information
required to be disclosed in Company reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in
Company reports filed under the Exchange Act is accumulated and communicated to
management, including the Company's Chairman, Chief Executive Officer and
President and the Company's Principal Accounting Officer as appropriate, to
allow timely decisions regarding required disclosure.

                                       19

<PAGE>

SIGNATURES

      In accordance with Section 13 or 15(d) of the Securities Exchange Act of
1934, the Registrant has caused the Annual Report on Form 10-KSB to be signed on
its behalf by the undersigned, thereunto duly authorized.



                                             FINAO INC.

Date: July 26, 2004                 By:      /s/ Arnold Salinas
                                             -------------------------------
                                                 Arnold Salinas
                                                 Chief Executive Officer
                                                (Principal Executive Officer)