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, 2002,

 [ ] 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: (713) 722-9988
                                                         --------------
      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 October 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, 2002, Finao had one employee, its Chief executive Officer.

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

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.

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.

On November 24, 2003, Robert G. Mahony, Administrative Law Judge ordered that
the registration of all securities of Investco, Inc. is revoked. This Initial
Decision shall become effective in accordance with and subject to the provisions
of Rule 360 of the Commission's Rules of Practice, 17 C.F.R. ss. 201.360.
Pursuant to that rule, a petition for review of this Initial Decision may be
filed within twenty-one days after service of the Initial Decision. It shall
become the final decision of the Commission as to each party who has not filed a
petition for review pursuant to 17 C.F.R. ss. 201.360(d) (1) within twenty-one
days after service of the Initial Decision upon it, unless the Commission,
pursuant to Rule 360(b) (1) of the Commission's Rules of Practice, 17 C.F.R. ss.
201.360(b) (1), determines on its own initiative to review this Initial Decision
as to any party.

                                       3

<PAGE>

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, t6he 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, 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
March 31, 2002             $3.200                       $2.400
June 30, 2002              $0.170                       $0.160
September 30, 2002         $1.000                       $0.600
December 31, 2002          $0.400                       $0.300

HOLDERS

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

DIVIDEND POLICY

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 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, Finao sold to two investors 100,000 shares of Series E
Convertible preferred shares for $50,000. 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.

From February 2002 to December 2002, Finao began a Series D convertible
preferred stock offering, and as a result of the offering, Finao issued to
seven investor s 2,345,000 shares for $135,000. 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. 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 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.
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.

On July 1 2002, Finao 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,
Finao issued 600,000 shares of Series D Convertible Preferred Stock. In October
2003 the Asset Purchase Agreement was rescinded. Horizon is to retain the
600,000 shares of Series D Convertible Preferred Stock.

On July 1, 2002, Arnold Salinas became received in connection with his
employment 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
Finao. The shares were valued at $346,500. 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 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.

                                       5

<PAGE>

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 Intraco. 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, Intraco issued 1,073,500 shares of common stock
for $247,000 to six investors of which 50,000 shares were purchased by Robert
Hildreth, Investco'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.


                                       6

<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.

                                       7

<PAGE>

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 105,315 Custom Touch shares. Thereafter, Custom
Touch changed its name to Investco, Inc.

RESULTS OF CONTINUING OPERATIONS

TWELVE MONTHS ENDED DECEMBER 31, 2002, COMPARED TO TWELVE MONTHS ENDED DECEMBER
31, 2001.

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

          SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses for the twelve months ended December 31, 2002, were
$3,040,985 compared to $3,523,272 for the twelve months ended December 31, 2001,
a decrease of $482,287, or 14%. Of the dollar decrease, $409,065 represented
increase compensation costs, $113,326 represented decreased rent expenses,
185,924 represented decreased telephone expenses, $126,000 represented increased
merger and acquisition costs and $118,504 represented decreased insurance costs
primarily due to the reduction of the number of employees; $395,260 reflects
decreased levels of depreciation and amortization due to the sale or abandonment
of all fixed assets in 2001; $153,143 represented increased consulting services
related to corporate development, advice regarding possible reorganization and
financial planning, 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 $2,102 to $2,164 for the twelve months ended December 31, 2002, as compared
to interest expense net of interest income of $4,266 for the twelve months ended
December 31, 2001.

          NET LOSS. As a result of the foregoing, Finao reported a net loss from
continuing operations of $3,043,149 for the twelve months ended December 31,
2002, compared to a net loss of $3,506,704 for the twelve months ended December
31, 2001, a decrease of $463,555. As described more fully below under the
caption "Liquidity and Capital Resources. Management is actively seeking
additional funding.

                                       8

<PAGE>

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, 2002, 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 by private placement to pay for these expenses. There can be no
assurances that any additional funding will be available.

At December 31, 2002, Finao's current assets totaled $18,224 and current
liabilities totaled $2,292,185 resulting in a negative working capital ratio.
Finao had $0 in cash on hand at December 31, 2002, compared to $789 at December
31, 2001. Operating activities for continuing operations for the twelve months
ended December 31, 2002, used cash of $192,171 primarily due to the net loss of
$3,043,149. Net cash provided by investing activities was $12,250, reflecting
the sale of fixed assets. Financing activities provided cash in the amount of
$166,776 primarily due to issuance of capital stock of $185,000

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 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.

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 Finao'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.

                                       9

<PAGE>

For the twelve months ended December 31, 2002, Finao reported net losses from
continuing operations of $3,043,149. As of December 31, 2002, Finao had an
accumulated deficit of $13,727,153, and a stockholders' deficit of $2,273,961.
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 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

Statements of Operations...............................................F-4

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

Statements of Cash Flows...............................................F-6

Notes to Financial Statements.......................................F-7 - F-18



























                                       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,  2002,  and  the  related  statements  of
operations,  stockholders'  deficit and cash flows for the years ended  December
31, 2002 and 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 audits.

We conducted our audits 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 audits provide 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, 2002,  and the results of its operations and
its cash flows for the years ended  December  31, 2002 and 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 $13,727,153 as
of December 31, 2002 and had loss available to common stockholders and
cash used in continuing operations of $3,058,199 and $192,171 respectively, for
the year ended December 31, 2002. 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, 2002

                                     ASSETS


Current assets:
   Due from related parties                              $    18,224
                                                         ------------
    Total current assets                                      18,224
                                                         ------------

    Total assets                                         $    18,224
                                                         ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
   Bank overdraft                                        $    21,924
   Accounts payable                                        1,058,001
   Accrued expenses                                          856,368
   Dividends payable                                         101,052
   Stock issuance cost payable                               254,840
                                                         ------------
    Total current liabilities                              2,292,185
                                                         ------------
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 D convertible redeemable preferred stock,
    $0.001 par value, 4,000,000 shares authorized and
    3,575,000 shares issued and outstanding                    3,575
   Series E convertible redeemable preferred stock,
    $0.001 par value, 500,000 shares authorized and
    162,500 shares issued and outstanding                        163
   Common stock, $.001 par value, 100,000,000 shares
    authorized, 3,034,400 shares issued and outstanding        3,034
   Additional paid-in capital                             11,942,908
   Deferred compensation                                    (497,752)
   Accumulated deficit                                   (13,727,153)
                                                         ------------

    Total stockholders' deficit                           (2,273,961)
                                                         ------------

    Total liabilities and stockholders' deficit          $    18,224
                                                         ============

                 See accompanying notes to financial statements
                                       F-3

<PAGE>

                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                            Statements of Operations
                     Years Ended December 31, 2002 and 2001



                                                         2002           2001
                                                         ----           ----
Revenues                                            $      -        $      -

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


Gross profit                                               -               -

General and administrative                            3,040,985       3,523,272
                                                    ------------    ------------

Loss from operations                                 (3,040,985)     (3,523,272)

Interest income                                            -              4,028

Interest expense                                         (2,164)         (8,294)

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


Loss from continuing operations                      (3,043,149)     (3,506,704)

Discontinued operations:

Loss on disposal of assets                                 -           (754,485)

Income from discontinued operations                      12,356         128,490
                                                    ------------    ------------


Total income (loss) from discontinued operations         12,356        (625,995)
                                                    ------------    ------------


Net loss                                             (3,030,793)     (4,132,699)
Less: Preferred stock dividend                          (27,406)        (73,647)
                                                    ------------    ------------

Loss available to common stockholders               $(3,058,199)    $(4,206,346)
                                                    ============    ============
Basic and diluted income (loss) per common share:
Continuing operations                               $     (1.25)    $     (4.52)
Discontinued operations                                    0.01           (0.79)
                                                    ------------    ------------
Net loss per common share                           $     (1.24)    $     (5.31)
                                                    ============    ============
Weighted average number of shares
 outstanding                                          2,463,167         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, 2002

<TABLE>
<CAPTION>

                             Preferred     Preferred         Preferred   Preferred
                              Stock A       Stock B           Stock D     Stock E       Common Stock
                          -------------- -------------- ---------------- -------------- ----------------
                          Shares  Amount Shares  Amount   Shares  Amount Shares  Amount Shares   Amount
                          ------- ------ ------- ------ --------- ------ ------- ------ --------- ------
Balance at December 31,
<S>                       <C>     <C>    <C>     <C>              <C>            <C>      <C>     <C>
 2000                     396,500 $ 397  872,100 $ 872       -    $ -      -     $-       174,965 $  175


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

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

Exercise of warrants         -     -        -     -          -      -      -      -         6,800      7

Issuance of common stock
 for services                -     -        -     -          -      -      -      -        78,949     79

Issuance of stock options    -     -        -     -          -      -      -      -          -      -

Issuance of common stock     -     -        -     -          -      -      -      -     1,073,500  1,073

Issuance of preferred
 stock                       -     -        -     -          -      -    62,500     63       -      -

Dividends accrued            -     -        -     -          -      -      -      -          -      -

Net loss for the year        -     -        -     -          -      -      -      -          -      -
                          ------- ------ ------- ------ --------- ------ ------- ------ --------- ------
Balance at December 31,
 2001                     391,500   392  872,100    872      -      -     62,500    63  1,334,400  1,334

Issuance of common stock
 for services                -     -        -     -          -      -       -     -       200,000    200

Issuance of common stock
 for compensation            -     -        -     -          -      -       -     -     1,500,000  1,500

Issuance of preferred
 stock                       -     -        -     -     2,345,000  2,345 100,000   100       -      -

Issuance of preferred
 stock for services          -     -        -     -       630,000    630    -     -          -      -

Issuance of preferred
 stock for acquisition       -     -        -     -       600,000    600    -     -          -      -

Dividends accrued            -     -        -     -          -      -       -     -          -      -

Net loss for the year        -     -        -     -          -      -       -     -          -      -
                          ------- ------ ------- ------ --------- ------ ------- ------ --------- ------
Balance at December 31,
 2002                     391,500   392  872,100   872  3,575,000  3,575 162,500 $  163 3,034,400  3,034
                          ======= ====== ======= ====== ========= ====== ======= ====== ========= ======

</TABLE>



                 See accompanying notes to financial statements
                                       F-5

<PAGE>

                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                       Statement of Stockholders' Deficit
                          Year Ended December 31, 2002

                           Additional
                             Paid-in     Deferred    Accumulated
                             Capital   Compensation    Deficit        Total
                          ------------ ------------ ------------- ------------
Balance at December 31,
 2000                      $ 7,337,553  $      -     $ (6,563,661) $   775,336


Conversion of preferred
 stock to common stock               5         -             -            -

Exercise of options               -            -             -            -

Exercise of warrants            67,993         -             -          68,000

Issuance of common stock
 for services                  545,420         -             -         545,499

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

Issuance of common stock       245,927         -             -         247,000

Issuance of preferred
 stock                         124,937         -             -         125,000

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

Net loss for the year             -            -       (4,132,699)  (4,132,699)
                          ------------ ------------ ------------- ------------
Balance at December 31,
 2001                       8,588,189         -      (10,696,360)  (2,105,510)

Issuance of common stock
 for services                 599,800         -             -         600,000

Issuance of common stock
 for compensation           2,158,500     (497,752)         -       1,662,248

Issuance of preferred
 stock                        182,555         -             -         185,000

Issuance of preferred
 stock for services           345,870         -             -         346,500

Issuance of preferred
 stock for acquisition         95,400         -             -          96,000

Dividends accrued             (27,406)        -             -         (27,406)

Net loss for the year            -            -       (3,030,793)  (3,030,793)
                          ------------ ------------ ------------ -------------
Balance at December 31,
 2002                     $11,942,908  $  (497,752) $(13,727,153)$ (2,273,961)
                          ============ ============ ============ =============



                 See accompanying notes to financial statements
                                       F-5

<PAGE>


                                   Finao Inc.
                       (formerly known as Investco, Inc.)
                             Statement of Cash Flow
                           December 31, 2002 and 2001


                                                       Years Ended December 31,
                                                      --------------------------
                                                           2002         2001
                                                      --------------------------

Cash flows from operating activities:

Loss from continuing operations                       $(3,043,149) $ (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 and preferred stock for services    608,748       545,500
   Issuance of common stock for deferred compensation   2,000,000          -
   Issuance of stock options                                 -          340,000
   Issuance of preferred stock for acquisition
    written off                                            96,000          -
   Changes in operating assets and liabilities:
Decrease in:
    Accounts receivable                                       795       515,259
    Deposits                                                7,819         8,823
    Prepaid expenses                                        3,750        76,062
 Increase (decrease) in:
    Accounts payable                                        3,268       165,638
    Deferred revenue                                         -         (107,406)
    Customer deposits                                        -          (11,127)
    Accrued expenses                                      130,598       453,836
                                                      ------------ -------------
 Cash used in continuing operating activities            (192,171)   (1,124,859)
                                                      ------------ -------------

Adjustments to reconcile income from discontinued
 operations to net cash provided by discontinued
 activities:
Income from discontinued operations                        12,356       128,490
                                                      ------------ -------------

 Cash provided by discontinued operating activities        12,356       128,490
                                                      ------------ -------------
    Cash used in operating activities                    (179,815)     (996,369)
                                                      ------------ -------------

Cash flows from investing activities:
 Proceeds from sale of property and equipment              12,250          -
 Purchase of property and equipment                          -          (84,106)
                                                      ------------ -------------
    Cash provided by (used in) investing activities        12,250       (84,106)
                                                      ------------ -------------

Cash flows from financing activities:
 Bank overdraft                                              -           21,924
 Due from related parties                                 (18,224)         -
 Proceeds from issuance of common and
  preferred stock, net                                    185,000       440,000
                                                      ------------ -------------
    Cash provided by financing activities                 166,776       461,924
                                                      ------------ -------------

    Net decrease in cash                                     (789)     (618,551)

    Cash and cash equivalents at beginning of year            789       619,340
                                                      ------------ -------------
    Cash and cash equivalents at end of year          $      -     $       (789)
                                                      ============ =============

Supplemental disclosure of cash flow information:

NON-CASH INVESTING AND FINANCING ACTIVITIES:
    Accrual of dividends payable                      $    27,406  $     73,646
                                                      ============ =============
    Accounts payable converted to note payable               -     $    171,571
                                                      ============ =============
    Capital lease and notes payable converted
     to accounts payable                              $   202,894  $       -
                                                      ============ =============
    Preferred stock issued in acquisition             $    96,000  $       -
                                                      ============ =============

                 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. (the "Company") was
incorporated in Florida in March 1990. In April 1999, Custom Touch Electronics
("CTE"), a public shell incorporated in Nevada, 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. 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.

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, 2002 were $16,106, $3,750, and $12,356
respectively. 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 in
existence as a going concern is dependent upon its ability to generate sales and
to obtain equity and/or debt financing. Management plans to pursue business
development and acquisitions in the telecommunications sector. The Company
intends to offer and sell an additional 500,000 shares of convertible preferred
stock by private placement




                                       F-7

<PAGE>

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.

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.

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 was being amortized on a straight-line
basis over 15 years. 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, inventory, accounts payable, accrued expenses and note payable
approximate fair value based on the short-term maturity of these instruments.

                                       F-8

<PAGE>

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 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.
The Company does not expect the adoption of SFAS No. 141 and SFAS No. 142 to
have a material impact on its financial statements.

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. The
Company does not expect the adoption of SFAS No. 144 to have a material impact
on its financial statements.

                                       F-9

<PAGE>

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.

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-10

<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.

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consisted of equipment and furniture and fixtures. Prior
to year-end all property and equipment was sold for $12,250.




                                      F-11

<PAGE>

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 years ended December 31, 2002 and 2001 was $1,764 and $161,031,
respectively.

NOTE 6 - RECLASSIFICATIONS

Certain amounts previously reported for 2001 have been reclassified to conform
to the classifications used in 2002. Such reclassifications had no effect on the
reported net loss.

NOTE 7 - STOCKHOLDERS' DEFICIT

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, the fair market value at
the date of issuance. Mr. Lents resigned as CEO on July 1, 2002.

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

In February 2002, Finao began a Series D convertible preferred stock
offering, and as a result of the offering, Investco issued to an investor 20,000
shares for $20,000. 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,
the fair market value at the date of issuance.

From April 2002 to November 2002, Finao sold to six investors 2,325,000
shares of Series D convertible preferred stock for $115,000.

On July 1 2002, Finao 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,
Finao issued 600,000 shares of Series D Convertible Preferred Stock. The
shares were valued at $96,000 the fair market value at the date of issuance. In
October 2003 the Asset Purchase Agreement was rescinded. Horizon is to retain
the 600,000 shares of Series D Convertible Preferred Stock.

                                      F-12

<PAGE>

On July 1, 2002, Arnold Salinas became President and CEO and received in
connection with his employment 1,000,000 shares of restricted common stock. The
shares were valued at $160,000, the fair market value at the date of issuance.

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

In January 2001, an investor converted 5,000 shares of the Company's Series A
convertible preferred stock into 50 shares of the Company's common stock.

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 Finao. Finao 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.

From April 2001 to July 2001, Finao sold 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.

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.

During the year ended December 31, 2001 Finao issued 76,000 shares of common
stock in connection with consulting services provided to Finao. The shares
were valued at $421,500. In November 2001, Finao 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 investor's 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,
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





                                      F-13

<PAGE>

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, 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, 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, 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 the grant, and the unexercised portion of the options
expire and cease 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. No stock options were granted in 2002. In addition, the
pro forma net loss per share was $(5.47) per share for the year ended December
31, 2001.

The fair value of each option is estimated on the date of grant using the fair
market option-pricing model with the assumption:
                                                               2001
                                                              -------

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

                                      F-14

<PAGE>

 A summary of option transactions during the years ended December 31, 2002 and
2001, is shown below:

<TABLE>
<CAPTION>

                                      Number of Options                           Weighted Average Exercise
                                                             Price Per share           Price Per Option
<S>                     <C> <C>           <C>                  <C>    <C>                   <C>
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

Forfeited                               (142,748)              $2 to $300                    $13
                                      ----------------

Outstanding at December 31, 2002          60,001               $25 to $88                    $85
                                      ================

</TABLE>


NOTE 9 - INCOME TAXES

The Company has an unused net operating loss carryforward of $13,884,494
available for use on its future corporate federal and state income tax returns.
The Company's evaluation 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.

                                               2002                  2001
                                        --------------------   -----------------

Taxes currently payable                 $              -       $           -
Deferred income tax benefit                       1,181,000           1,603,626
Change in beginning valuation allowance          (1,181,000)         (1,603,626)
                                        --------------------   -----------------
Provision (benefit) for income taxes    $              -       $           -
                                        ====================   =================











                                      F-15

<PAGE>

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

                                                 2002                   2001
                                         --------------------   ----------------

Computed at the statutory rates (34%)    $        (1,030,000)   $    (1,403,000)
Increase (decrease) resulting from:
      Non-deductible expenses                           -                 5,374
State income taxes, net of federal income
  tax benefit                                       (151,000)          (206,000)
Change in deferred tax asset
  valuation allowance                              1,181,000          1,603,626
                                         --------------------   ----------------
Tax provision (benefit)                  $              -       $          -
                                         ====================   ================

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

                                                 2002                   2001
                                         --------------------   ----------------
Deferred tax assets:
      Net operating loss carryforward    $         5,302,700    $     4,121,700
                                         --------------------   ----------------
              Total deferred tax asset             5,302,700          4,121,700

Valuation allowance:
      Beginning of year                           (4,121,700)        (2,518,074)
      Decrease (increase) during year             (1,181,000)        (1,603,626)
                                         --------------------   ----------------
              Ending balance                      (5,302,700)        (4,121,700)
                                         --------------------   ----------------
              Net deferred taxes         $              -       $          -
                                         ====================   ================












                                      F-16

<PAGE>

The net operating loss carryforward is summarized below:

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

                  December 31, 1997           2017         $       583,231
                  December 31, 1998           2018                  80,195
                  December 31, 1999           2019               1,254,241
                  December 31, 2000           2020               4,808,701
                  December 31, 2001           2021               4,127,326
                  December 31, 2002           2022               3,030,800
                                                            ---------------
         Total available net operating loss                 $   13,884,494
                                                            ===============

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 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. Management intends to defend this action
vigorously.

                                      F-17

<PAGE>

On November 24, 2003, Robert G. Mahony, Administrative Law Judge ordered that
the registration of all securities of Investco, Inc, is revoked. This Initial
Decision shall become effective in accordance with and subject to the provisions
of Rule 360 of the Commission's Rules of Practice, 17 C.F.R. ss. 201.360.
Pursuant to that rule, a petition for review of this Initial Decision may be
filed within twenty-one days after service of the Initial Decision. It shall
become the final decision of the Commission as to each party who has not filed a
petition for review pursuant to 17 C.F.R. ss. 201.360(d) (1) within twenty-one
days after service of the Initial Decision upon it, unless the Commission,
pursuant to Rule 360(b) (1) of the Commission's Rules of Practice, 17 C.F.R. ss.
201.360(b) (1), determines on its own initiative to review this Initial Decision
as to any party.

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.

NOTE 11 - SUBSEQUENT EVENTS

From September 2003 to March 2004, Finao sold to eight investors 265,000
shares of Series D convertible preferred stock for $26,500.

























                                      F-18

<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, the
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
Investco:

                                                                 Director Since
Name                    Age          Position

Arnold Salinas          51           President, Chief Executive       2002
                                     Officer, and Director

Arnold  Salinas  joined  Finao  in July 2002 as  President,  Chief  Executive
Officer, and Director.  Mr. Salinas has been employed in the  telecommunications
industry since 1978. Prior to joining Finao, Mr. Salinas was Managing Director
for,  Interconnect  Solutions  Limited,  a UK based firm. From 1997 to 2000, Mr.
Salinas was appointed  President of American Gateway  Telecommunications,  Inc.,
Houston, Texas

Finao's directors hold their positions until the next annual meeting of
shareholders and until their successors have been duly elected and qualified

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.

Section 16(a) Beneficial Ownership Compliance

To the Company's knowledge, based solely on a review of the copies of the
reports furnished to the Company and written representations that no other
reports were required during the fiscal year ended December 31, 2002, 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
September 2001, 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.

                                       11

<PAGE>
<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           2002                0              0                     0                0                  0
Chief Executive         2001       $   33,192              0     $           1,512                0                  0
Officer                 2000       $  175,000              0     $          11,340                0      $       3,960



Jack Berger,            2002                0              0                       0              0                  0
President               2001       $   52,192              0                       0         50,000                  0
                        2000       $  160,000              0       $          10,073              0      $       1,173


Robert Marcus,          2002                0              0                       0              0                  0
Chief Financial         2001           27,807              0                       0              0                  0
Officer                 2000       $  145,000              0                       0              0                  0

Tarek Kirschen          2002                0              0                       0              0                  0
Chief Executive         2001       $   25,430              0                       0              0                  0
officer

Joseph L. Lents         2002                0              0                       0        500,000                  0
Chief Executive         2001                0              0                       0              0                  0
Officer

Arnold Salinas          2002                0              0                       0      1,000,000
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.

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 serves as
Finao's Vice President of business Development. The agreement now expires
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. Mr. Berger
resigned in March 2002.

Finao entered into a three-year employment agreement with Arnold Salinas,
effective as of July 1, 2002 pursuant to which he serves as Chief Executive
Officer and President. The agreement provides for an annual salary of $60,000,
and 1,000,000 shares of restricted common stock.

                                       12

<PAGE>

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 Finao, 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.

      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, 2002.

      None.


                                       13

<PAGE>

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 October 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.

         Common Stock
<TABLE>
<CAPTION>

                                                    Amount and Nature of Beneficial         Percent of Common Stock
                                                       Ownership of Common Stock               Beneficially Owned
              Name and Address
----------------------------------------------    ------------------------------------     ---------------------------
<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                  1,000,000                              33.0%
group (one person)

                                       14

<PAGE>

         Series A Convertible Redeemable Preferred Stock

                                                   Amount and Nature of Beneficial           Percent of Series A
                                                  Ownership of Series A Convertible         Convertible Redeemable
              Name and Address                       Redeemable Preferred Stock                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

         Series B Convertible Redeemable Preferred Stock

                                                   Amount and Nature of Beneficial           Percent of Series B
                                                  Ownership of Series B Convertible         Convertible Redeemable
              Name and Address                       Redeemable Preferred Stock                Preferred Stock
                                                                                              Beneficially Owned
---------------------------------------------    ------------------------------------    -----------------------------
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

                                       15

<PAGE>

         Series D Convertible Redeemable Preferred Stock

                                                   Amount and Nature of Beneficial           Percent of Series D
                                                  Ownership of Series B Convertible         Convertible Redeemable
              Name and Address                       Redeemable Preferred Stock                Preferred Stock
                                                                                              Beneficially Owned
---------------------------------------------    ------------------------------------    -----------------------------
  Philip Guinn                                                               300,000                             7.8%
   38 Biscay Bay
   The Woodlands, Tx  77381
  Horizon Telephone                                                          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

         Series E Convertible Redeemable Preferred Stock

                                                   Amount and Nature of Beneficial           Percent of Series E
                                                  Ownership of Series B Convertible         Convertible Redeemable
              Name and Address                       Redeemable Preferred Stock                Preferred Stock
                                                                                              Beneficially Owned
---------------------------------------------    ------------------------------------    -----------------------------
  Robert Reiner                                                               50,100                            49.8%
   5808 Grant Ave
   Columbus, OH 44105
  Mitch Silverman                                                             50,000                            49.7%
All executive officers and directors as a
group (one person)                                                                 0                                0

</TABLE>

ITEM 12. CERTAIN TRANSACTIONS

      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
8,910 restricted shares of Finao common stock from the principal shareholder
of Investco 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 1,500 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.

                                       16

<PAGE>

      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 Investco capital stock were exchanged for 105,315 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 24,295 shares and the Finao shareholders held
105,315 shares. Thereafter, Custom Touch changed its name to Investco, Inc. A
total of 14,873 shares were issued to Jensen Services and Associates for
services associated with the share exchange.

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)

                                       17

<PAGE>

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)

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

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on behalf by the
undersigned thereunto duly authorized.

                                                    FINAO INC.

Dated:   July 26, 2004                       By: /s/ARNOLD SALINAS
                                                    -----------------------
                                                    Chief Executive and
                                                    Principal Accounting Officer