UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

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

For the fiscal year ended: December 31, 2007     Commission File Number: 0-32323


                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                 (Name of Small Business Issuer in Its charter)

            Nevada                                                20-1217659
(State or Other Jurisdiction of                               (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)

1151 Harbor Bay Parkway, Suite 202, Alameda, CA                    94502
  (Address of Principal Executive Offices)                       (Zip Code)

                                 (510) 814-3778
                (Issuer's Telephone Number, including Area Code)

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

         Securities registered under Section 12(g) of the Exchange Act:

                         Common Stock, $0.001 Par Value

     Check  whether  the issuer is not  required  to file  reports  pursuant  to
Section 13 or 15(d) of the Exchange Act. [ ]

     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 [X] No [ ]

     Check if there is no disclosure  of  delinquent  filers in response to Item
405 of  Regulation  S-B  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. [ ]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

     The Issuer is in the  developmental  stage and had no revenues for the most
recent fiscal year ended December 31, 2007.

     The aggregate market value of the voting and non-voting  common equity held
by non-affiliates on March 26, 2008, based upon the average bid and ask price of
the common  stock on the Over the  Counter  Bulletin  Board for such  date,  was
approximately $350,589.

     The number of shares of the issuer's common stock issued and outstanding on
March 26, 2008, was 113,093,182.

DOCUMENTS INCORPORATED BY REFERENCE: NONE

Transitional Small Business Disclosure Format. Yes [ ] No [X]
<PAGE>
                                TABLE OF CONTENTS

 ITEMS                                                                      PAGE
 -----                                                                      ----
         PART I
Item 1.  Description of Business                                               4
Item 2.  Description of Property                                               9
Item 3.  Legal Proceedings                                                     9
Item 4.  Submission of Matters to a Vote of Security Holders                  10

PART II

Item 5.  Market For Common Equity and Related Stockholder Matters and         10
          Small Business Issuer Purchases of Equity Securities
Item 6.  Management's Discussion and Analysis or Plan of Operation            12
Item 7.  Financial Statements                                                 18
Item 8.  Changes in and Disagreements with Accountants on                     18
          Accounting and Financial Disclosure
Item 8A. Controls and Procedures                                              18
Item 8B. Other Information                                                    20

PART III

Item 9.  Directors, Executive Officers, Promoters, Control Persons
          and Corporate Governance; Compliance with Section 16(a) of
          the Exchange Act                                                   20
Item 10. Executive Compensation                                              23
Item 11. Security Ownership of Certain Beneficial Owners and                 26
         Management and Related Stockholder Matters
         Certain Relationships and Related Transactions, and Director
Item 12. Independence                                                        27
Item 13. Exhibits                                                            28
Item 14. Principal Accountant Fees and Services                              30

                                       2
<PAGE>
                              CAUTIONARY STATEMENT

     This Form 10-KSB contains  "forward-looking  statements" within the meaning
of the Private Securities  Litigation Reform Act of 1995. Some of the statements
contained in this Form 10-KSB for  International  Building  Technologies  Group,
Inc. ("Company") discuss future expectations,  contain projections of results of
operation or financial condition or state other  "forward-looking"  information.
These  statements  are subject to known and unknown  risks,  uncertainties,  and
other  factors  that could cause the actual  results to differ  materially  from
those contemplated by the statements.  The forward-looking  information is based
on various factors and is derived using numerous assumptions.

     Management  expresses its  expectations,  beliefs and  projections  in good
faith  and  believes  the  expectations   reflected  in  these   forward-looking
statements  are based on  reasonable  assumptions;  however,  Management  cannot
assure current stockholders or prospective stockholders that these expectations,
beliefs  and  projections  will  prove  to  be  correct.   Such  forward-looking
statements  reflect the current views of Management  with respect to the Company
and anticipated future events.

     Management cautions current stockholders and prospective  stockholders that
such forward-looking statements,  including,  without limitation, those relating
to the Company's future business prospects,  demand for its products,  revenues,
capital needs, expenses, development and operation costs, wherever they occur in
this Form 10-KSB, as well as in the documents  incorporated by reference herein,
are not guarantees of future  performance or results,  but are simply  estimates
reflecting  the best  judgment of  Management  and involve a number of risks and
uncertainties  that could cause actual results to differ  materially  from those
suggested by such forward-looking statements.

     Important  factors that may cause actual results to differ from projections
include, for example:

     *    the  success or failure of  management's  efforts to  implement  their
          business strategy;

     *    the  ability  of the  Company  to  raise  sufficient  capital  to meet
          operating requirements;

     *    the  uncertainty  of consumer  demand for our  products,  services and
          technologies;

     *    the  ability  of the  Company  to protect  its  intellectual  property
          rights;

     *    the  ability  of  the  Company  to  compete  with  major   established
          companies;

     *    the effect of changing economic conditions;

     *    the ability of the Company to attract  and retain  quality  employees;
          and

     *    other risks which may be described in future filings with the SEC.

     Words such as "anticipates,"  "expects,"  "intends,"  "plans,"  "believes,"
"seeks,"  "estimates," and variations of such words and similar  expressions are
intended to identify such forward-looking  statements.  These statements are not
guarantees of future performance and are subject to certain risks, uncertainties
and  assumptions  that are difficult to predict.  Therefore,  actual results and
outcomes may differ  materially from what is expressed or forecasted in any such
forward-looking  statements.  Unless required by law, the Company  undertakes no
obligation  to update  publicly  any  forward-looking  statements,  whether as a
result of new information, future events or otherwise.

                                       3
<PAGE>
                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS.

BUSINESS DEVELOPMENT

     International   Building   Technologies   Group,   Inc.   ("Company")   was
incorporated as Ten Stix Inc. on January 10, 1996 under the laws of the State of
Colorado to engage in the design, development and marketing of unique card games
and other gaming products for the gaming  industry.  Ten Stix, Inc.  changed its
domicile from Colorado to Nevada in 2004.

     During 2004, the Company  amended its Articles of  Incorporation  to change
its name to Motorsports Emporium, Inc. in order to bring the name of the Company
in line with its then new business focus,  targeting  motor sports  enthusiasts.
During 2004,  the Company  divested  itself of all interest in Ten Stix Inc. and
the gaming business.

     As a result in the change in control and new business  focus of the Company
occasioned by the events  discussed  below,  the Company amended its Articles of
Incorporation to change its name to International  Building  Technologies Group,
Inc. in 2007.

CHANGE OF CONTROL

     On March 14, 2007, Mr.  Kenneth  Yeung,  Mr. David Keaveney and the Company
entered  into a Stock Sale and Purchase  Agreement,  pursuant to which Mr. Yeung
acquired  controlling  interest  in the  Company as a result of his  purchase of
200,000  shares of our  Series C  Preferred  Stock from Mr.  Keaveney,  the then
President  of the Company.  The Series C Preferred  Stock  carries  super voting
rights of 3,000  votes per share.  As a result of this  change of  control,  Mr.
Yeung was elected to the office of  President  of the Company on March 14, 2007.
Mr. Yeung was elected to the Board of Directors on April 13, 2007.  On April 16,
2007, (i) Mr. Keaveney  resigned from his positions of Chief Executive  Officer,
Chief  Financial  Officer and Director of the Company;  (ii) Ms. Rhonda Keaveney
resigned from her positions of Chief Operating  Officer,  Secretary and Director
of the Company Mr. Yeung then became the sole  Director of the  Company.  On May
21, 2007, Mr. Peter Chin was elected to the positions of Corporate Secretary and
Director of the Company.

     As a condition of Mr.  Keaveney's  sale of his Series C Preferred  Stock to
Mr. Yeung,  Mr. Yeung agreed to immediately  pay off an aggregate of $200,627 of
the  Company's  liabilities,  which debt  reductions  were  intended to reduce a
substantial amount of the Company's outstanding  liabilities,  including $48,788
owed by the Company to Mr.  Keaveney for accrued  salary and $38,115 owed by the
Company to Rhonda Keaveney for accrued salary.

     Although they were not parties to the Stock Sale and Purchase Agreement Mr.
Robert  Brehm and his  company,  Intercontinental  Assets  Corporation  ("IAC"),
approved the transaction.  In order to accommodate the parties to the Stock Sale
and  Purchase  Agreement,  Mr.  Brehm and IAC entered  into an  amendment to the
Twelve Month  Convertible Note ("Note") that had been previously  issued to them
by the Company.  The amendment  provided for the deferral of payments  under the
Note until June 2007,  and  extended  the  maturity  of the note from August 10,
2007, to May 30, 2008.

BUSINESS TRANSFORMATION

     The Company  then  divested its motor  sports  related  assets and began to
focus on its current business related to building  technologies,  when on May 2,
2007,  the Company  entered into a Stock Sale and Purchase  Agreement  with Axia
Group,  Inc.  ("Axia") and International  Building  Technologies,  Inc. ("IBT"),
pursuant to which the Company acquired 50,000,000 shares of IBT common stock (or
approximately  80% of IBT's issued and  outstanding  common stock) from Axia for
consideration   consisting  of  a  (i)  $1,000,000  convertible  note  and  (ii)
20,000,000  shares of the  Company's  common stock.  On September 25, 2007,  the
Company and Axia  renegotiated the purchase price of the 80% equity stake in IBT
and made a downward adjustment of $1,000,000 to the purchase price and cancelled
the convertible note.

                                       4
<PAGE>
     As part of the original transaction with Axia, the Company and Axia entered
into an Exclusive License Agreement pursuant to which the Company granted Axia a
transferable,  revocable  right  to use,  market,  sell and  distribute  certain
technology  in the  territory  that  includes  the  countries of Sri Lanka on an
exclusive  basis  and in  Pakistan  and  India  on a  non-exclusive  basis.  The
Exclusive License Agreement had an original term of two years and may be renewed
for an additional two year term if certain performance conditions are met.

     As a result of the  transaction  with Axia and IBT,  the Company  dedicated
itself  to  providing  innovative  solutions  for  the  construction  of  homes,
buildings  and  communities  around  the world,  offering  a  complete  turn-key
approach to most projects from design and engineering to materials, training and
construction  assistance.  Acting through,  IBT, a Nevada  corporation,  and its
wholly owned subsidiary International Building Technologies Co., Ltd. ("IBT Hong
Kong"),  a Hong  Kong  corporation,  we are  transforming  our  business  into a
worldwide  manufacturer  and  developer of light panel  technology to be used in
residential  and commercial  business,  primarily in regions that are at risk of
earthquakes and hurricane-like winds.

IBT TECHNOLOGY

     The Company is a developer and provider of a superior  panel based building
technology  which  allows  for  the  rapid,   cost  effective   construction  of
residential,  commercial,  and high-rise  buildings utilizing materials that are
superior in strength and appearance,  economical and  eco-friendly.  The Company
provides  customers  with  architectural  design,  panel  supply,   installation
supervision, engineering, training, and technical support.

     The components of our panels are simple, but effective:

     *    A light weight, high tensile treated galvanized steel wire cage;
     *    A core of expanded polystyrene;
     *    Connected and held in place by a logical series of treated  galvanized
          trusses;
     *    A coat of Portland  cement,  either gun or manually  applied to bother
          sides; and
     *    IBT  panel  technology   complies  with  European  and  U.S.  Standard
          ICBO-ER-3509

     Based on standard building codes prescribed by authorities  worldwide,  our
IBT technology will meet and exceed the minimum requirements. This includes load
tests of transverse,  vertical compression and racking shear load and fire tests
including corner room burn and fire exposure under load.

SUPERIOR STRENGTH AND VALUE

     *    Earthquakes
          *    The IBT technology  system is 30% more resistant when it comes to
               seismic movement when compared to the traditional block system.

     *    Hurricanes
          *    The  IBT  technology  has  a  structural  capacity  to  withstand
               hurricane-like winds up to 180 km per hour.

     *    Fires
          *    The IBT  technology can undertake fire exposure for more than one
               and a half hours.

     *    Insulation
          *    The expanded polystyrene used in the IBT technology system has an
               acoustic  insulation  capacity  that is 4 times  higher  than the
               traditional  block  system and has  thermal  insulation  that can
               isolate heat 8 times more than construction using the traditional
               block system.

     *    Environmental Safety
          *    Raw materials used in the  manufacturing of expanded  polystyrene
               do not expel toxic fumes into the atmosphere.

                                       5
<PAGE>
ADVANTAGES

     *    Versatile Design and Use
          *    Complete  architectural  freedom and flexibility,  sound barrier,
               security and property  walls  exterior and interior wall systems,
               roof systems,  flat and pitched.  This technology can be used for
               multi-story buildings, walls and floors.

     *    Spectacular Visual Appeal
          *    No evidence of  prefabrication  after  application  of  concrete,
               which can have a variety of finishes, smooth to heavily textured.

     *    Environment Friendly and Energy Saving
          *    No wood or timber products used,  Thermal insulation allows for a
               cooler  internal   environment.   Air   conditioning   bills  are
               considerably lower.

     *    Cost Savings
          *    Significant  decreases in on-site construction time and effective
               use of labor due to simplicity of erection.

APPLICATIONS

     *    Residential Homes
     *    Schools
     *    High Rise Buildings
     *    Churches
     *    Condominiums
     *    Mining Shafts
     *    Hospitals
     *    Fences and Walls
     *    Vacation Lodges
     *    Medical Care Centers
     *    Community Buildings

     We believe our panel based  technology is one of the finest,  strongest and
most cost effective building technologies available.  Our panel based technology
is superior to other traditional building methods in terms of strength,  time to
completion and resistance to the elements.  Our IBT technology is also versatile
in its use and can be used to create unique  architectural  and design elements.
The  results  are  buildings  that  look  great and meet  superior  construction
standards.

     Historically,  IBT has  completed  projects in the United  States,  Central
America, the Caribbean, Asia, Europe and Africa.

OTHER PRODUCTS AND SERVICES OFFERED BY THE COMPANY

     Currently,  IBT  provides  Site  Planning,  Architectural  and  Engineering
Services,  Contractor Services,  Materials,  Equipment, training and Supervision
and is engaged in projects in China utilizing our IBT technology.

ROSE BEST PROJECT

     On July 8, 2007,  IBT Hong Kong  entered  into an Asset  Sale and  Purchase
Agreement  with Suining  Yinfa  Construction  & Engineering  Co.,  Ltd., a China
corporation  ("Suining  Yinfa"),  pursuant to which IBT Hong Kong acquired a 51%
interest in the Rose Top Grade Project ("Rose Best  Project") for U.S.  $350,000
represented  by a Convertible  Promissory  Note in the principal  amount of U.S.
$350,000 issued by the Company in favor of Suining Yinfa.

                                       6
<PAGE>
     The U.S. $350,000 Convertible Promissory Note bears interest at the rate of
8% per annum and the principal  amount plus accrued interest is due on or before
July 31, 2009. On December 12, 2007, this Note was converted into 350,000 shares
of the Company's Series E Preferred Stock.

     The Rose Best Project (already underway) is located in the Sichuan Province
of China and consists of the construction of four upscale residential  apartment
buildings  with a total  building  area of  approximately  537,000  square  feet
(49,500 square meters). As of January 31, 2008, the project booked approximately
US $1.8 million in progress payments. The project is expected to book a total of
approximately US $6.7 million in revenues once it is completed.  The Company has
a 51% interest in the income and loss of the joint  venture.  The Company is not
assured of any receipt of cash payments in the investment.

HOW TO CONTACT US

     The Company's  principal  executive  offices are located at 1151 Harbor Bay
Parkway,  Suite 202,  Alameda,  California  94502. Our telephone number is (510)
814-3778 and its  facsimile  number is (510)  814-0366.  We also have offices at
Suite  1001-1002,  Far East  Building,  1101 S. Pudong Blvd.,  Pudong  District,
Shanghai,  PRC 200120.  Our Shanghai  telephone number is (21) 5836-2932 and our
Shanghai facsimile number is (21) 5836-2933.

COMPETITIVE BUSINESS CONDITIONS

     The Company  competes with many companies in the global markets and many of
our competitors are large, well funded companies who have  substantially  larger
staffs and resources than we have at the present time. Unlike the many companies
that  compete in the global  market  manufacturing  building  materials,  we are
unique. Few companies  manufacture our product or anything similar in nature. We
intend to compete  based on our unique  technology  and business and  government
contacts within China.

FOREIGN CURRENCY RISK

     The Company has subsidiaries  operating in the foreign arena and is exposed
to foreign  currency  fluctuations.  Currently  the Company's  subsidiaries  are
operating in China and Hong Kong.  The  Company's  exposure to foreign  currency
fluctuations  in Hong Kong is limited as the Hong Kong Dollar is pegged  against
the  U.S.  dollar.   However,   the  Company's   exposure  to  foreign  currency
fluctuations in China is greater as the Chinese RMB has a floating exchange rate
based on market supply and demand with reference to a basket of currencies.

RAW MATERIALS AND SUPPLIES

     China is the main supplier of the raw materials needed for our panels.  The
Company has contact with and access to numerous  suppliers of the raw  materials
needed to  manufacture  its  building  panels  and is not  dependent  on any one
supplier or limited group of suppliers.

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

     The Company  believes  that the  diversity  of the products and services it
offers helps  alleviate  the  dependence on any one customer or limited group of
customers.  The Company's  offerings of services and products appeal to both the
retail and industrial customer base. Through the widespread use of the Company's
products and services, the Company will continue to increase its customer base.

EFFECT OF EXISTING OR PROBABLE GOVERNMENTAL REGULATIONS

     The Company's  common stock is registered  pursuant to Section 12(g) of the
Securities  Exchange Act of 1934 ("1934 Act"). As a result of such registration,
the Company is subject to  Regulation  14A of the "1934  Act,"  which  regulates
proxy  solicitations.  Section  14(a)  requires all  companies  with  securities
registered  pursuant  to  Section  12(g)  thereof  to comply  with the rules and
regulations  of the Commission  regarding  proxy  solicitations,  as outlined in
Regulation 14A. Matters submitted to stockholders of the Company at a special or
annual meeting thereof or pursuant to a written consent will require the Company

                                       7
<PAGE>
to provide its  stockholders  with the information  outlined in Schedules 14A or
14C of Regulation 14;  preliminary  copies of this information must be submitted
to the Commission at least 10 days prior to the date that  definitive  copies of
this information are forwarded to stockholders.

     The  Company is also  required  to file  annual  reports on Form 10-KSB and
quarterly  reports on Form 10-QSB with the  Commission on a regular  basis,  and
will be required to disclose certain events in a timely manner, (e.g. changes in
corporate  control;  acquisitions  or  dispositions  of a significant  amount of
assets  other than in the  ordinary  course of business;  and  bankruptcy)  in a
Current Report on Form 8-K.

     WE WILL BE SUBJECT TO THE REQUIREMENTS OF SECTION 404 OF THE SARBANES-OXLEY
ACT. IF WE ARE UNABLE TO TIMELY  COMPLY WITH SECTION 404 OR IF THE COSTS RELATED
TO COMPLIANCE ARE  SIGNIFICANT,  OUR  PROFITABILITY,  STOCK PRICE AND RESULTS OF
OPERATIONS AND FINANCIAL CONDITION COULD BE MATERIALLY ADVERSELY AFFECTED.

     The Company is required to comply with the provisions of Section 404 of the
Sarbanes-Oxley  Act of  2002,  which  requires  that we  document  and  test our
internal  controls  and  certify  that we are  responsible  for  maintaining  an
adequate  system of internal  control  procedures for the 2007 fiscal year. This
section also requires that our  independent  registered  public  accounting firm
opine on those internal controls and management's  assessment of those controls.
We are currently  evaluating our existing controls against the standards adopted
by the Committee of Sponsoring  Organizations of the Treadway Commission (COSO).
During the course of our ongoing  evaluation  and  integration  of the  internal
controls of our business,  we may identify areas requiring  improvement,  and we
may have to design enhanced  processes and controls to address issues identified
through this review (see Section 8A).

     Our subsidiaries  currently operating in China also have to comply with the
provisions of Section 404 of the  Sarbanes-Oxley  Act of 2002.  However,  due to
time  differences,  cultural  differences,  and  differences in common  business
practices, documentation and testing of our internal controls overseas will be a
longer and more difficult process.

     We believe that the  out-of-pocket  costs,  the  diversion of  management's
attention from running the day-to-day  operations and operational changes caused
by the need to comply with the requirement of Section 404 of the  Sarbanes-Oxley
Act could be significant.  If the time and costs associated with such compliance
exceed  our  current  expectations,  our  results of  operations  and the future
fillings of our Company could be materially adversely affected.

     Our subsidiaries currently operating in China are subject to inherent risks
associated with operations in a foreign arena. IBT and IBT Hong Kong are exposed
to risks of changes in  governmental  policies and building  codes.  There is no
guarantee  of  current  Management's  ability  to  be  notified  of  changes  in
governmental  policies  and  building  codes in a  timely  manner,  which  could
materially affect the Company.

     Aside from required  compliance with foreign  governmental  regulations and
rules,  federal and state securities  laws,  regulations and rules, and federal,
state and local tax laws, regulations and rules, the Company is not aware of any
other governmental  regulations now in existence or that may arise in the future
that would have an effect on the business of the Company.

DEPENDENCE ON KEY EMPLOYEES AND NEED FOR ADDITIONAL MANAGEMENT AND PERSONNEL

      The Company is heavily dependent on the ability of our President,  Kenneth
Yeung, who has contributed  essential technical and management experience to our
business.  The  Company  will be  dependent  upon  Mr.  Yeung  to  recruit  good
management for the Company.

      In the event of future growth in administration,  marketing, manufacturing
and customer support  functions,  the Company may have to increase the depth and
experience of its management team by adding new members.  The Company's  success
will depend to a large degree upon the active  participation of its key officers
and employees,  as well as the continued service of its key management personnel
and its ability to identify,  hire, and retain additional  qualified  personnel.
There  can be no  assurance  that  the  Company  will be able  to  recruit  such
qualified personnel to enable it to conduct its proposed business successfully.

                                       8
<PAGE>
INTELLECTUAL PROPERTY RIGHTS

     The Company  presently holds no intellectual  property rights.  The Company
intends  to seek  copyright  and  trademark  protection  of its trade  names and
products. The Company's success and ability to compete are dependent to a degree
on the Company's  name and product  recognition.  Accordingly,  the Company will
primarily  rely on  copyright,  trade  secret and  trademark  law to protect its
product and brand names of  products  or under  which the Company  conducts  its
business.  Effective trademark protection may not be available for the Company's
trademarks.

      The  Company's  competitors  or others may adopt  product or service names
similar to the Company's,  thereby impeding the Company's ability to build brand
identity and possibly leading to customer confusion.  The Company's inability to
adequately  protect its product,  brand, trade names and trademarks would have a
material  adverse  effect on the  Company's  business,  financial  condition and
operating results.  Despite any precautions the Company takes, a third party may
be able to copy or otherwise  obtain and use the  Company's  technology or other
proprietary  information without  authorization or to develop similar technology
independently.

      Policing  unauthorized  use of the Company's  products are made especially
difficult by the global nature of the Internet and the difficulty in controlling
the  ultimate  destination  or security  of products or other data.  The laws of
other countries may afford the Company little or no effective protection for the
Company's intellectual property.

EMPLOYEES

     As of March 26, 2008,  the Company had one employee.  No union or any other
form of collective bargaining unit represents any employee.

ITEM 2. DESCRIPTION OF PROPERTY.

     The Company does not own any real estate.  The Company's  subsidiary,  IBT,
executed a sublease for the premises  located at 1151 Harbor Bay Parkway,  Suite
202, Alameda,  California  (approximately 1,400 square feet of space), dated May
1, 2007, and an amendment to the sublease dated October 29, 2007, for a 17 month
term expiring  September  30, 2008.  The rent paid under the sublease was $2,000
for May 2007, $2,500 for the months of June through October 2007, and $3,000 per
month  for  November  2007  and for  each  month  of the  remaining  term of the
sublease.

     The Company's subsidiary,  IBT Hong Kong. executed a lease on approximately
974 square  feet of space for its  offices at 1101 S.  Pudong  Boulevard,  Suite
1001-1002,  Pudong District,  Shanghai, PRC. Initially,  the lease was for a one
year term from  February  15,  2007 to  February  14,  2008.  The lease has been
extended  until  February  14,  2009.  The  monthly  rental  on this  lease  was
approximately  U.S. $1,500 (RMB11,000) during its first year. The monthly rental
under the extended lease is approximately U.S. $1,818 (RMB13,000) per month.

ITEM 3. LEGAL PROCEEDINGS.

     The Company is not currently  involved in any legal  matters.  However,  in
2006,  X-Clearing  Corporation  obtained  a  judgment  against  the  Company  as
described below. The Company is not aware of any pending or threatened claims or
assessments, which may have a material adverse impact on the Company's financial
position or results of operations.

CASE NUMBER 05CV5129 X-CLEARING CORPORATION V. MOTORSPORTS EMPORIUM, INC.

        During the third  quarter of 2005,  the Company was made a defendant  in
the matter of  X-Clearing  Corporation,  FKA Global  Stock  Transfer  and Global
Securities Transfer v. Ten Stix, Inc., NKA MotorSports Emporium,  Inc., filed on
July 1, 2005, in the District Court for the City and County of Denver  Colorado,
case number 05CV5129.  The plaintiff  alleged breach of contract,  collection of
debts owed and bad faith pertaining to activities of prior management and sought
damages in excess of $35,000.  In July 2006,  a judgment was entered in favor of
X-Clearing  Corporation against MotorSports Emporium for the principal amount of
$16,856.28  plus  prejudgment  interest of  $3,639.78,  in addition to costs and
reasonable attorney fees. On November 27, 2006, the judgment was domesticated in

                                       9
<PAGE>
Arizona (CV2006-018060 and CV2006-018061) for the amount of $20,496.06, costs of
$912 and attorney fees of $19,231. The judgment will accrue interest at the rate
of 8% per annum until paid.

     On  April  16,  2007,  the  Company  paid  X-Clearing  $32,000  in cash and
approximately  $958  also in cash to Ikon  for  costs  of  copying  or  printing
transfer agent records. Such amounts were accrued during the previous year. This
legal matter has been paid in full and this case is closed.

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

     No matter was  submitted  to a vote of our  shareholders  during the fourth
quarter of the year ended December 31, 2007.

                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS
        ISSUER PURCHASES OF EQUITY SECURITIES.

     As of the date of this Annual Report,  the Company's Common Stock is quoted
on the  Over-the-Counter  Bulletin Board under the symbol  "INBG.OB." The market
for the Company's  Common Stock is limited,  volatile and sporadic and the price
of the Company's Common Stock could be subject to wide  fluctuations in response
to  quarterly  variations  in operating  results,  news  announcements,  trading
volume, sales of Common Stock by officers,  directors and principal shareholders
of the Company,  general market trends, changes in the supply and demand for the
Company's shares, and other factors. The following table sets forth the high and
low sales prices for each quarter relating to the Company's Common Stock for the
last two fiscal years, and has been retroactively  adjusted to account for the 1
for 225 reverse stock split that occurred on October 31, 2006.  These quotations
reflect  inter-dealer prices without retail mark-up,  markdown,  or commissions,
and may not reflect actual transactions.

              FISCAL 2007                   High         Low
              -----------                   ----         ---
              First Quarter (2)           $ 0.11       $0.026
              Second Quarter (1)          $ 0.098      $0.0382
              Third Quarter (1)           $ 0.07       $0.011
              Fourth Quarter (1)          $ 0.013      $0.002

              FISCAL 2006                   High         Low
              -----------                   ----         ---
              First Quarter (1)           $1.58        $0.90
              Second Quarter (1)          $0.90        $0.45
              Third Quarter (1)           $0.45        $0.23
              Fourth Quarter (1)          $0.20        $0.05

----------
(1)  This  represents  the  closing  bid  information  for the  stock on the OTC
     Bulletin Board. The bid and ask quotations represent prices between dealers
     and do not  include  retail  markup,  markdown or  commission.  They do not
     represent  actual  transactions  and  have  not  been  adjusted  for  stock
     dividends or splits.
(2)  This represents the closing price for the stock on the OTC Bulletin Board.

     All of the  above  information  was  listed  as  reported  by the  National
Association of Securities Dealers Composite feed or other qualified inter-dealer
quotation medium.

     Our common stock is  considered  a "penny  stock." The  application  of the
"penny stock" rules to our common stock could limit the trading and liquidity of
the common  stock,  adversely  affect the market  price of our common  stock and
increase your transaction costs to sell those shares. The Commission has adopted
regulations  which  generally  define a "penny stock" to be any equity  security
that has a market price (as defined) of less than $5.00 per share or an exercise
price of less than $5.00 per share, subject to certain exceptions.

     Shareholders  should be aware that,  according to SEC Release No.  34-29093
dated April 17,  1991,  the market for penny stocks has suffered in recent years
from  patterns  of fraud and abuse.  Such  patterns  include  (1) control of the
market for the security by one or a few broker-dealers that are often related to

                                       10
<PAGE>
the promoter or issuer; (2) manipulation of prices through prearranged  matching
of purchases and sales and false and misleading press releases;  (3) boiler room
practices   involving   high-pressure   sales  tactics  and  unrealistic   price
projections  by  inexperienced  sales  persons;  (4) excessive  and  undisclosed
bid-ask  differential  and  markups  by  selling  broker  dealers;  and  (5) the
wholesale dumping of the same securities by promoters and  broker-dealers  after
prices  have been  manipulated  to a desired  level,  along  with the  resulting
inevitable  collapse of those prices and with consequent  investor  losses.  The
occurrence of these  patterns or practices  could increase the volatility of our
share price.

     Our  management is aware of the abuses that have occurred  historically  in
the penny stock market.

HOLDERS

     As of March 26, 2008, there were  approximately  295 shareholders of record
of the Company's Common Stock, 96 shareholders of record of the Company's Series
A Preferred Stock, one shareholder of record of the Company's Series C Preferred
Stock,  one shareholder of record of the Company's  Series D Preferred Stock and
four shareholder of record of the Company's Series E Preferred Stock.

DIVIDENDS

     The Company has not declared any cash  dividends with respect to its common
stock or preferred stock during the last two fiscal years and does not intend to
declare dividends in the foreseeable future. There are no material  restrictions
limiting or that are likely to limit the  Company's  ability to pay dividends on
its outstanding securities.

     For information regarding the Company's Equity Compensation Plans, see Part
III, Item 11.

RECENT ISSUANCE OF UNREGISTERED SECURITIES

     Since  December 31, 2006,  the Company has issued the following  securities
without registration under the Securities Act of 1933:

<TABLE>
<CAPTION>
                   Number of         Aggregate
Date of Issue    Shares Issued      Sales Price             Nature of Transaction
-------------    -------------      -----------             ---------------------
<S>              <C>               <C>                 <C>
  2/9/2007          166,667          $    5,000        In exchange for debt cancellation
  3/1/2007          384,615          $   10,000        In exchange for debt cancellation
  3/9/2007          403,225          $   10,000        In exchange for debt cancellation
  4/16/2007         551,334          $   17,521        In exchange for debt cancellation
  5/4/2007          270,000          $   10,854        In exchange for debt cancellation
  5/10/2007         271,867          $   11,114        In exchange for debt cancellation
  5/17/2007      20,000,000          $1,300,000        Asset Purchase--IBT
  6/4/2007          220,000          $   11,000        In exchange for debt cancellation
  6/15/2007       1,219,904          $   41,042        In exchange for debt cancellation
  8/13/2007         142,858          $    2,085        Private Offering
  9/4/2007          257,142          $    3,754        Private offering
  9/12/2007         450,824          $    8,791        In exchange for debt cancellation
  10/5/2007       1,105,796          $    8,791        In exchange for debt cancellation
  11/5/2007       2,577,180          $    8,599        In exchange for debt cancellation
 11/28/2007       4,000,000          $    5,768        In exchange for debt cancellation
  12/3/2007       2,350,000          $    3,386        In exchange for debt cancellation
 12/17/2007       4,725,216          $    7,070        In exchange for debt cancellation
 12/12/2007         350,000 (1)      $  350,000        Conversion of Note issued in connection
                                                        with the Suining Project
  12/12/2007         50,000 (2)      $   50,000        Director's Compensation
</TABLE>

----------
(1)  The Company issued 350,000 shares of Series E Preferred Stock.
(2)  The Company issued 50,000 shares of Series D Preferred Stock.

     The above shares of common stock were issued pursuant to the exemption from
registration under Section 4(2) of the Securities Act of 1933, as amended.

                                       11
<PAGE>
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

CAUTIONARY FORWARD - LOOKING STATEMENT

     The following  discussion  should be read in conjunction with our financial
statements and related notes.

     Certain matters  discussed  herein may contain  forward-looking  statements
that are  subject  to risks and  uncertainties.  Such  risks  and  uncertainties
include, but are not limited to, the following:

     *    the volatile and competitive nature of our industry,
     *    the uncertainties surrounding the rapidly evolving markets in which we
          compete,
     *    the uncertainties surrounding technological change of the industry,
     *    our dependence on its intellectual property rights,
     *    the success of marketing efforts by third parties,
     *    the changing demands of customers and
     *    the arrangements with present and future customers and third parties.

     Should one or more of these risks or  uncertainties  materialize  or should
any of the underlying assumptions prove incorrect, actual results of current and
future  operations  may vary  materially  from those  anticipated.  See also the
disclosures under "Cautionary Statement" following the Table of Contents in this
Annual Report.

GENERAL

     Prior to  December  1, 2004 the  Company  was known as Ten Stix,  Inc.  and
changed  its name to  MotorSports  Emporium,  Inc. on December 1, 2004 under the
laws of the State of Nevada to  engage in the motor  sports  industry  targeting
enthusiasts  participating  in  die  cast  collecting,  automobile  restoration,
purchase of  high-performance  accessories,  motor sports related  collectibles,
driver's  apparel,  race venues and product  licensing.  On July 12,  2007,  the
Company  reported  in a  Definitive  Schedule  14C that the Company was going to
change its name to International  Building  Technologies  Group,  Inc. to better
reflect  its change of  business  from motor  sports  related  to  building  and
construction  of lightweight  panels.  On July 17, 2007 the Company  amended its
articles  of  incorporation  to  change  its  name  to  International   Building
Technologies Group, Inc. effective on August 6, 2007.  According to Statement of
Financial  Accounting  Standards No. 7, "Accounting and Reporting by Development
Stage Enterprises," the Company has reentered the development stage. The Company
devotes most of its efforts to  establishing  a new business,  raising  capital,
establishing sources of supply, acquiring property,  plant, equipment, and other
operating assets. The Company's shares of common stock trade on the OTC Bulletin
Board under the symbol "INBG.OB".

     Our  principal  executive  offices are located at 1151 Harbor Bay  Parkway,
Suite  202,  Alameda,  CA 94502.  Our  telephone  number is (510)  814-3778  and
facsimile number is (510) 814-0366.  More information regarding our products and
the Company is available on our website at www.ibtgi.com.

EXECUTIVE OVERVIEW

     In 2004, we entered the motor sports industry  selling die cast model cars.
In 2005 we created  several  divisions to sell race worn  memorabilia  (helmets,
gloves and racing  suits),  automotive  related art and high  performance  brake
fluid.  Additionally,  in 2006 we  created  a car  wash  product  named  after a
well-known  racing  legend.  Up until  the end of our first  quarter  in 2007 we
continued to focus our efforts on our high performance brake fluid and specialty
car care product lines,  however due to a change in control and certain  events,
we changed our business operations to better reflect management's experience and
our expertise in the light weight panel industry where we can better concentrate
on global construction and engineering projects. At the end of the first quarter
of 2007 we divested  ourselves from the motor sports  business and  transitioned
into the business of lightweight panel  construction  through our subsidiary IBT
and its wholly owned subsidiary IBT Hong Kong.

                                       12
<PAGE>
     The Company is a developer and provider of a superior  panel based building
technology  which  allows  for  the  rapid,   cost  effective   construction  of
residential,  commercial,  and high-rise  buildings utilizing materials that are
superior in strength and appearance,  economical and  eco-friendly.  The Company
provides  customers  with  architectural  design,  panel supply,  supervision of
installation, engineering, training, and technical support.

     We currently have signed  Memorandums of Understanding  and are negotiating
contracts for various projects throughout China. Our endeavors include an entire
new town,  luxury  condominiums,  resorts,  social interest homes,  and standard
industrial buildings.  We strive to establish fully operational panel facilities
throughout  China,  where they are  building  more square  feet of new  housing,
commercial, and industrial buildings than any other country.

     In July 2007, IBT Hong Kong,  entered into an asset and purchase  agreement
with China based  Suining  Yinfa  Construction  &  Engineering  Co, Ltd. for 51%
interest in a Chinese building project named Rose Top Grade (Rose Best) Project.
The Rose Top Grade  (Rose Best)  Project,  already  underway,  is located in the
Sichuan  Province of China and  consists of four upscale  residential  apartment
buildings  with a total  building  area of  approximately  49,500  square meters
(537,000 square feet). As of January 31, 2008, the project booked  approximately
US $1.8 million in progress payments. The project is expected to book a total of
approximately US $6.7 million in revenues once it is completed.  The Company has
a 51% interest in the income and loss of the joint  venture.  The Company is not
assured of any receipt of cash payments in the  investment.  We purchased 51% of
the Rose Top Grade (Rose Best)  Project  from  Suining  Yinfa for a  convertible
promissory  note of $350,000 USD,  which was converted to 350,000  shares of the
Company's Series D preferred stock on December 12, 2007.

     In December  2007,  the Company  signed a Memorandum  of  Understanding  to
acquire a machinery  manufacturing  company in Wuhan,  Hubei  Province of China.
Hubei InteWufeng  Machinery Co., Ltd. states their company  currently has assets
worth RMB 28.5 million (approximately US $4.0 million) and generated revenues of
RMB 30 million  (approximately  US $4.2 million) in the year of 2007.  The Hubei
InteWufeng Machinery Co., Ltd. currently offers several lines of equipment,  but
its machining  capabilities  can be retooled to manufacture the panel production
manufacturing  systems that the Company will utilize in several planned projects
in China and other countries.

     We  have  been  incurring  selling,  general  and  administrative  expenses
primarily to develop our existing businesses, improve our current infrastructure
to address anticipated growth and identify and evaluate  complementary  business
development opportunities and marketing. The development of these businesses has
led to recent  operating  losses and cash  outflows.  However,  we  believe  the
Company is strategically positioning itself with contracts and business ventures
that can  significantly  contribute to the  continuous  development of its panel
business and the Company's bottom line.

MATERIAL RECENT DEVELOPMENTS

RE-ENTERING DEVELOPMENT STAGE

     On April 1, 2007, the Company re-entered the development stage. The Company
has  changed  from the motor  sports  business to the  business of building  and
construction of lightweight  panels. The Company has devoted most of its efforts
to establishing a new business, raising capital, establishing sources of supply,
acquiring property, plant, equipment, and other operating assets.

CHANGE OF CORPORATE NAME

     On  May  21,  2007,  the  Board  of  Directors  and  the  majority  of  the
shareholders of the Company passed a resolution to amend the Company's  articles
of  incorporation  to change  its name to  International  Building  Technologies
Group, Inc. Such amendment became effective on August 6, 2007.

                                       13
<PAGE>
CHANGE IN CONTROL

     On September 13, 2006, we issued 200,000 shares of Series C Preferred Stock
to  David  W.  Keaveney,  our  then  President  and  CEO,  in  exchange  for the
cancellation  of  $10,000  in  accrued,  but  unpaid,  compensation  due  to Mr.
Keaveney.  On March 14, 2007, Mr.  Keaveney sold his Series C Preferred Stock to
Mr.  Kenneth  Yeung.  Since the Series C Preferred  Stock  carries  super-voting
rights of 3,000 votes per share,  Mr. Yeung is entitled to 600 million  votes on
matters  submitted  to our  shareholders  for vote.  As a result of Mr.  Yeung's
voting power,  he effectively  controls the Company and is considered a "control
person" under applicable SEC regulations.

     On April 13, 2007,  the Company  elected Mr.  Kenneth Yeung to the Board of
Directors who is also the President and major shareholder of the Company.

     Effective on April 16, 2007, David W. Keaveney  resigned from his positions
as Chief Executive Officer, Chief Financial Officer and Director of the Company.

     Effective on April 16, 2007, Rhonda Keaveney resigned from her positions as
Chief Operating Officer, Secretary and Director of the Company.

     On April 16, 2007 Mr.  Kenneth  Yeung was elected as the interim  Principal
Executive and Financial Officer of the company.

     On May 30,  2007,  the  Company  elected  Mr.  Peter  Chin to the  Board of
Directors and to the office of Corporate Secretary.

REVERSE STOCK SPLIT

     Effective  October 31, 2006,  the Company  effected a reverse  split of our
common stock on a ratio of 1 share for every 225 shares of common stock, without
decreasing the number of authorized  shares of common stock and without changing
the par value of the common stock.

RETIREMENT OF SERIES B PREFERRED STOCK IN EXCHANGE FOR NOTE PAYABLE

     On August 21, 2006, the outstanding Series B Preferred Stock, consisting of
shares held by Mr. David  Keaveney,  a former  director and a  shareholder  were
retired in exchange for cash compensation of $1 each to Mr. David Keaveney and a
former  director  and a  convertible  note  payable in the  principal  amount of
$250,000 to a  shareholder.  The Company has  determined  that this  transaction
meets the definition of an extinguishment based on the guidance contained in the
Emerging Issues Task Force No. 96-19: "Debtor's Accounting for a Modification or
Exchange of Debt Instruments" ("EITF 96-19"),  and,  therefore,  the Company has
recognized  a loss  on  extinguishment  of  debt  of  $116,405  related  to this
transaction.

DISCONTINUED OPERATIONS

     At the end of the  first  quarter  of 2007  the  Company  discontinued  all
operations related to the motor sports business due to increased  manufacturer's
prices,  slowing retail sales,  increased  competition from online auction sites
and the consolidation of the die cast industry.  This includes operations by its
wholly  owned  subsidiaries   Scottsdale  Diecast,  Inc.  ("SDI")  and  Quadriga
Motorsports,  Inc.  ("Quadriga").   The  Company  has  since  shifted  focus  to
developing  and  manufacturing  lightweight  panel  technology.  The Company has
subsequently  disposed of all assets related to the motor sports business in the
first quarter of 2007.  No income tax expense has been  recorded  related to the
discontinued  operations  given the Company's net operating  loss carry forwards
and related valuation  allowances.  All activity during the current year related
to the motor sports business has been  reclassified to present the operations as
discontinued operations. Prior year financial statements for 2006 have also been
reclassified  to  present  the  operations  of  the  motor  sports  business  as
discontinued operations.

                                       14
<PAGE>
RESULTS OF  OPERATIONS  - YEAR ENDED  DECEMBER  31, 2007  COMPARED TO YEAR ENDED
DECEMBER 31, 2006

     The  results  of  operations  in the prior year are not  indicative  of the
performance in neither the current period nor future periods. This is due to the
change  in  business  from an  exclusive  die  cast  merchandising  business  to
developing and  manufacturing  lightweight  panel  technology.  The discontinued
operations of all activities  related to the motor sports  business in the first
quarter of 2007 and all of 2006 is reflected as  Discontinued  Operations on the
Statement of Operations.

     Since  discontinuing  the prior business and  re-entering  the  development
stage as of April 1, 2007 the Company's results of operations has changed. There
are no revenues during the current development stage as we are in the process of
starting our manufacturing process. In 2006 the revenues were $57,853.

     For the year ended  December  31,  2007,  Operating  Expenses  for  current
operations totaled $670,111 and operating  expenses for Discontinued  Operations
totaled $181,780.  Combined,  Operating  Expenses of $851,891 for the year ended
December 31, 2007 is less than year ended December 31, 2006's Operating Expenses
of  $1,129,544.  The decrease of $277,653 in Operating  Expenses  between  years
ended 2007 and 2006 is mostly  attributed to the shift in business focus and the
discontinuation of the prior business.

     The most  significant  change in our  results  of  operations  is  Interest
Expense.  As of December  31,  2007,  Interest  Expense  for current  operations
totaled  $309,585  and  Interest  Expense for  Discontinued  Operations  totaled
$12,642. Combined,  Interest Expense of $322,227 for the year ended December 31,
2007 is greater than the year ended  December  31,  2006's  Interest  Expense of
$28,489.  The  increase  of  $293,738  in  Interest  Expense is  largely  due to
issuances  of new debt with  non-cash  interest  expenses  such as  accretion of
warrants and  accretion  on debt  discounts  (See Note 6 - Notes  Payable & Debt
Discounts).  These  non-cash  expenses  make up the  majority of the  difference
between current year and prior year interest expense.

     In 2007, the company had a loss of $70,843  associated  with the settlement
and amendment of various debts. This includes a gain of $10,354  associated with
the settlement of debt related to the new business operations.  This $10,354 was
the  accrued  interest  portion  of a  $350,000  note that was paid in full with
preferred  E shares  and the  interest  portion  waived  by the  lender.  A loss
totaling  $81,197 is recognized due to the  substantial  difference  between the
amended notes and the original  notes per Emerging  Issues Task Force No. 96-19,
"Debtor's  Accounting for a Modification or Exchange of Debt Instruments" ("EITF
96-19").  EITF 96-19 requires the Company to recognize a gain or loss associated
with a change that is  considered  substantially  different  between the present
values of the original  note and the amended note (See Note 6 - Notes  Payable &
Debt Discounts). This $70,843 loss on extinguishment of debt is presented on the
Consolidated Statement of Operations under Other Income (Expense).

     In 2007,  the  company  had a total gain and loss of  $70,728  on  disposal
related to discontinued operations.  The gain includes the settlement of various
debts and  accrued  expenses,  which  reduced the total  $180,222  amount due to
$109,491. The difference of $70,731 in gains includes $7,538 associated with the
settlement of outstanding litigation; $958 for copy services related to transfer
agent records;  $12,598  related to settlement of legal fees associated with the
outstanding  litigation;  $37,500 of accrued salary related to the  discontinued
operations  which was waived by Mr. Keaveney at the end of 2007 and reflected as
a gain as discussed in Note 7 - Related Party Transactions;  and $13,095 related
to the settlement of various  consultant fees and accrued expenses.  The $3 loss
was  eliminated  from the  accounts  and the  resulting  loss and was charged to
disposal of assets under Discontinued  Operations of the accompanying  Condensed
Consolidated Statement of Operations.

LIQUIDITY AND CAPITAL RESOURCES

     Our future success and viability is primarily dependent upon our ability to
increase  operating  cash  flows and  develop  new  business  opportunities.  As
discussed in Note 7 - Related Party  Transactions to the Consolidated  Financial
Statements, Mr. Keaveney sold his Series C Preferred Stock to Mr. Kenneth Yeung.
As a result of Mr. Yeung's voting power, he effectively controls the Company and
is considered a "control  person" under  applicable SEC  regulations.  Mr. Yeung
agreed  to  immediately  pay  off an  aggregate  of  $202,470  of the  Company's
liabilities,   which  debt  reductions  were  intended  to  reduce   outstanding
liabilities,  including  $48,788  owed by the  Company to  Keaveney  for accrued
salary and $38,115 owed by the Company to Rhonda Keaveney,  the Company's former
Chief  Operating  Officer.  The cash to pay the  liabilities was received by the
Company in March 2007. All related  liabilities  were paid in the second quarter

                                       15
<PAGE>
of 2007 with the  exception of the balance of $37,500 in accrued  salary that is
due and owed to David  Keaveney.  This  balance of  $37,500  of  accrued  salary
related to the Discontinued Operations was waived by Mr. Keaveney as of December
31, 2007 and reflected as a gain in Discontinued  Operations on the Consolidated
Statement of Operations. See Note 9 - Discontinued Operations.

     During the next 12 months, our foreseeable cash requirements will relate to
continuing  to develop  the  operations  of our wholly  owned  subsidiaries  and
business  divisions,  maintaining  our good  standing  and making the  requisite
filings with the Securities and Exchange Commission, and the payment of expenses
associated  with  reviewing or  investigating  any potential  business  venture.
Because we have not  identified  any such venture as of the date of this Report,
it is impossible to predict the costs.  Additionally,  we may  experience a cash
shortfall and be required to raise  additional  capital.  Up until  December 31,
2006, we have relied upon internally generated funds. In the year ended December
31,  2007 we relied on funds from the sale of shares of stock and loans from our
shareholders  and  private  investors  to finance  our  operations  and  growth.
Management  may raise  additional  capital  through  future  public  or  private
offerings of our stock or through loans from private  investors,  although there
can be no assurance that we will be able to obtain such  financing.  Our failure
to do so could have a material and adverse affect upon us and our shareholders.

     The Chart  below  summarizes  our debt  (see Note 6 - Notes  Payable & Debt
Discounts  of  the  Consolidated   Financial  Statements  -  Notes  Payable  and
Beneficial Conversions):

Terms                                                                    Amount
-----                                                                    ------
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
-    10% Interest;  principal of $156,926;  monthly payments
     of $4,396;  convertible to common stock based on 75% of
     average  price;  due on 5/30/2008,  net of  unamortized
     discounted  related to the debt  discount  of $54,041              $102,885
-    5% Interest;  principal of $70,839; monthly payments of
     $4,387;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount related to the debt discount of $43,438                     27,401
-    5% Interest;  principal of $12,003; monthly payments of
     $1,283;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount related to the debt discount of $7,036                       4,967
                                                                        --------
TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                          $135,253
                                                                        --------
LONG TERM NOTES PAYABLE TO SHAREHOLDERS:
-    5% Interest;  principal of $25,943; monthly payments of
     $4,387;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount  related to the debt  discount  of $15,908 -              $ 10,035
-    5% Interest;  principal of $7,586;  monthly payments of
     $1,283;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount related to the debt discount of $4,447                       3,139
-    10%  Interest;  principal  of $30,629;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $20,900                                              9,729
-    10%  Interest;  principal  of $50,240;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $50,040                                                200
                                                                        --------
TOTAL LONG TERM NOTES PAYABLE TO SHAREHOLDERS                           $ 23,103
                                                                        --------
LONG TERM NOTES PAYABLE:
-    10%  Interest;  principal  of $50,000;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $14,046                                             35,954
-    10%  Interest;  principal of $130,735;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $95,712                                             35,023
-    10%  Interest;  principal  of $32,017;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $23,440                                              8,577
-    10%  Interest;  principal of $104,054;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $80,824                                             23,230
-    10%  Interest;  principal  of $10,642;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $10,642                                                  0
-    10%  Interest;  principal  of $37,133;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $25,080                                             12,053

                             16
<PAGE>
-    10%  Interest;  principal  of $61,870;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $60,919                                                951
-    10%  Interest;  principal  of $50,603;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $50,557                                                 46
                                                                        --------
TOTAL LONG TERM NOTES PAYABLE                                           $115,834
                                                                        ========

YEAR ENDED DECEMBER 31, 2007

     As of December 31, 2007, the Company's current assets were $384,735 and its
current  liabilities  were $253,504,  resulting in a working  capital surplus of
$131,231.  As of December 31, 2007, current assets were comprised of (i) $32,970
in cash; (ii) $350,000  deposit on the Suining Rose Top Project and (iii) $1,765
in other current assets.

     As of December 31, 2007, current liabilities were comprised of (i) $102,885
in notes payable to  stockholders;  (ii) $40,825 in accounts payable and accrued
expenses and $77,426 of other amounts due to shareholders.

     As of December 31, 2007, the Company's total assets were $1,696,158 and its
total liabilities were $392,441, with a net stockholder's equity of $1,303,717.

     For the year ended  December  31,  2007,  net cash flows used in  operating
activities  were  ($330,609)  compared  to net  cash  flows  used  in  operating
activities of ($435,211)  for the year ended  December 31, 2006. The decrease of
$104,602  during the  twelve-month  period ended December 31, 2007 was primarily
due an increasing usage of non-cash stock based  compensation for consulting and
related  services  as well as the  liquidation  of the  Company's  inventory  of
die-cast collectibles and high performance brake fluid.

     For the year ended  December 31, 2007, net cash flows provided by investing
activities  was $15,000  compared to net cash used by  investing  activities  of
$1,171  during the year ended  December  31,  2006.  Cash  outflows in 2007 were
related to the sale of the website of the  discontinued  operations in the motor
sports business.

     For the  twelve-month  period  ended  December  31,  2007,  net cash  flows
provided  by  financing  activities  was  $552,420  compared  to net cash  flows
provided by financing  activities of $417,280 for the twelve-month  period ended
December 31, 2006.  Cash flows in 2007 consisted  primarily of proceeds from the
issuance of common stock and the exercise of stock options  partially  offset by
principal  repayments  on notes  payable.  During 2006,  the Company  utilized a
portion of its financing cash inflows  (consisting of proceeds from the issuance
of common  stock and the  exercise  of stock  options)  to repay  certain  notes
payable, with the remainder used for operating and investing activities.

     Our financial  statements have been prepared assuming that we will continue
as a going concern and, accordingly,  do not include adjustments relating to the
recoverability and realization of assets and classifications of liabilities that
might be necessary should we be unable to continue our operations.

     As of the date of this Annual Report, the Company has generated no revenues
from  operations  since it  entered  the  development  stage  on April 1,  2007.
Therefore,  the Company's  auditors have expressed  substantial  doubt about the
Company's  ability to continue as a going concern.  Management  believes that it
can maintain its status as a going  concern  based on its ability to raise funds
pursuant  to future  public and private  offerings  and to obtain  advances  and
minimize operating expenses by not duplicating or incurring needless expenses.

OFF-BALANCE SHEET ARRANGEMENTS

     As of the  date of this  Annual  Report,  the  Company  does  not  have any
off-balance  sheet  arrangements  that have or are  reasonably  likely to have a
current  or future  effect on the  Company's  financial  condition,  changes  in
financial  condition,  revenues or expenses,  results of operations,  liquidity,
capital  expenditures or capital  resources that are material to investors.  The
term "off-balance sheet arrangement" generally means any transaction,  agreement
or other  contractual  arrangement  to which an entity  unconsolidated  with the
Company is a party, under which the Company has (i) any obligation arising under
a guarantee,  contract,  derivative  instrument or variable interest;  or (ii) a

                                       17
<PAGE>
retained or contingent  interest in assets transferred to such entity or similar
arrangement  that serves as credit,  liquidity  or market risk  support for such
assets.

ITEM 7. FINANCIAL STATEMENTS.

     The Financial Statements of International Building Technologies Group, Inc.
are listed on the Index to Financial Statements as set forth on page F-2.

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

     None.

ITEM 8A. CONTROLS AND PROCEDURES.

(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     We conducted an evaluation under the supervision and with the participation
of our management,  including  Kenneth Yeung,  our Chief  Executive  Officer and
Chief Financial Officer, of the effectiveness of the design and operation of our
disclosure   controls  and  procedures.   The  term  "disclosure   controls  and
procedures,"  as defined in Rules  13a-15(e) and 15d-15(e)  under the Securities
and Exchange Act of 1934, as amended  ("Exchange Act"), means controls and other
procedures of a company that are designed to ensure that information required to
be  disclosed  by the  company  in the  reports  it files or  submits  under the
Exchange Act is recorded,  processed,  summarized and reported,  within the time
periods specified in the Securities and Exchange  Commission's  rules and forms.
Disclosure controls and procedures also include,  without  limitation,  controls
and procedures designed to ensure that information required to be disclosed by a
company  in the  reports  that it files or  submits  under the  Exchange  Act is
accumulated  and  communicated  to  the  company's  management,   including  its
principal  executive and principal  financial  officers,  or persons  performing
similar functions, as appropriate,  to allow timely decisions regarding required
disclosure.  Based on this  evaluation,  our Chief  Executive  Officer and Chief
Financial Officer concluded as of December 31, 2007 that our disclosure controls
and procedures  were not effective at the reasonable  assurance level due to the
material  weaknesses in our internal controls over financial reporting discussed
immediately below.

(b) MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

     Our management is responsible for  establishing  and  maintaining  adequate
internal  control over  financial  reporting as defined in Rules  13a-15(f)  and
15d-15(f) under the Exchange Act. Our internal control over financial  reporting
is  designed  to provide  reasonable  assurance  regarding  the  reliability  of
financial  reporting and the  preparation  of financial  statements for external
purposes in  accordance  with  generally  accepted  accounting  principles.  Our
internal control over financial reporting includes those policies and procedures
that:

     1.   pertain  to the  maintenance  of  records  that in  reasonable  detail
          accurately and fairly reflect the transactions and dispositions of our
          assets;
     2.   provide  reasonable   assurance  that  transactions  are  recorded  as
          necessary to permit preparation of financial  statements in accordance
          with U.S. GAAP, and that our receipts and  expenditures are being made
          only in  accordance  with  the  authorization  of our  management  and
          directors; and
     3.   provide reasonable  assurance regarding prevention or timely detection
          of  unauthorized  acquisition,  use or  disposition of our assets that
          could have a material effect on the financial statements.

     Because  of its  inherent  limitations,  internal  control  over  financial
reporting  may not prevent or detect  misstatements.  Also,  projections  of any
evaluation  of  effectiveness  to future  periods  are  subject to the risk that
controls may become  inadequate  because of changes in  conditions,  or that the
degree of compliance with the policies or procedures may deteriorate.

                                       18
<PAGE>
     Management   assessed  the  effectiveness  of  our  internal  control  over
financial  reporting  as of  December  31,  2007.  In  making  this  assessment,
management  used  the  framework  set  forth  in the  report  entitled  Internal
Control--Integrated   Framework   issued   by  the   Committee   of   Sponsoring
Organizations of the Treadway Commission, or COSO. The COSO framework summarizes
each of the components of a company's internal control system, including (i) the
control  environment,  (ii) risk  assessment,  (iii)  control  activities,  (iv)
information and communication,  and (v) monitoring.  This annual report does not
include an attestation report of our registered public accounting firm regarding
internal control over financial  reporting.  Management's report was not subject
to attestation by our registered  public  accounting  firm pursuant to temporary
rules of the Securities and Exchange  Commission that permits us to provide only
management's report in this annual report.

IDENTIFIED MATERIAL WEAKNESSES AND SIGNIFICANT DEFICIENCIES

     A material  weakness is a control  deficiency,  or  combination  of control
deficiencies,  that  results  in more than a remote  likelihood  that a material
misstatement  of the  financial  statements  will not be  prevented or detected.
Management  identified the following internal control deficiencies which we have
assessed as material  weaknesses  during its assessment of our internal  control
over financial reporting as of December 31, 2007:

     1.   We  did  not  have  formal  policies   governing  certain   accounting
          transactions  and  financial   reporting  processes  finalized  as  of
          December 31, 2007;
     2.   We did not have  adequate  segregation  of duties that were  mitigated
          over certain areas of our financial  reporting process due to the size
          of company that we were at December 31, 2007.

     Although we are not required to  disclosure  significant  deficiencies,  we
have chosen to disclose those significant  deficiencies,  which if not corrected
in the next year may become material weaknesses.

     We did not have  effective  comprehensive  entity-level  internal  controls
specific to the structure of our board of directors and organization of critical
committees.  Due to our  expected  expansion,  as disclosed in this Form 10-KSB,
without  correcting this  significant  deficiency and ensuring that our board of
directors has the proper oversight and committees are properly established,  the
control environment in subsequent years may not be effective.

     A  regionally-recognized  independent  consulting firm assisted  management
with its assessment of the  effectiveness of our internal control over financial
reporting,  including scope determination,  planning,  staffing,  documentation,
testing,  remediation  and  retesting  and  overall  program  management  of the
assessment  project.  In  conclusion,  our  Chief  Executive  Officer  and Chief
Financial Officer surmised that the Company did not maintain  effective internal
control over financial reporting as of December 31, 2007.

MANAGEMENT'S REMEDIATION INITIATIVES

     We  are  in  the  process  of  evaluating  our  material  and   significant
deficiencies.  We have  already  begun to  remediate  many of the  deficiencies.
However, others will require additional people, including adding to our board of
directors, which will take longer to remediate.

     In an effort to remediate  the  identified  material  weaknesses  and other
deficiencies and enhance our internal  controls,  we have initiated,  or plan to
initiate, the following series of measures:

     1.   Identify  and  retain  a new  director  for  our  board  of  directors
          including a member who is  appropriately  credentialed  as a financial
          expert with a goal of having sufficient independent board of directors
          oversight;
     2.   Ensure  all entity  level  controls  are  applied at all levels of the
          organization and are scalable for acquisition targets;
     3.   Establish   comprehensive   formal  general  accounting  policies  and
          procedures  and  require  employees  to sign  off  such  policies  and
          procedures as documentation  of their  understanding of and compliance
          with company policies;

                                       19
<PAGE>
     4.   Make all  employees  subject  to our Code of Ethics  (including  those
          employees  in  acquisition  targets)  and  require all  employees  and
          directors to sign our Code of Ethics on an annual basis and retain the
          related documentation; and,
     5.   Implement better segregation of duties given the size of our company.

     We anticipate that the above five  initiatives  will be at least partially,
if not fully,  implemented by June 30, 2008.  Additionally,  we plan to test our
updated controls and remediate our deficiencies by December 31, 2008.

CONCLUSION

     The above identified material weaknesses and significant deficiency did not
result in material audit adjustments to our 2007 financial statements.  However,
it is reasonably possible that, if not remediated, one or more of the identified
material  weaknesses noted above could result in a material  misstatement in our
reported financial statements that might result in a material  misstatement in a
future annual or interim period.

     In light of the identified material weaknesses,  management,  performed (1)
significant  additional  substantive  review of those areas described above, and
(2)  performed  additional  analyses,  including  but not  limited to a detailed
balance  sheet and  statement  of  operations  analytical  review that  compared
changes  from  the  prior  period's   financial   statements  and  analyzed  all
significant  differences.  These  procedures were completed so management  could
gain assurance that the financial statements and schedules included in this Form
10-KSB fairly present in all material respects the Company's financial position,
results of operations and cash flows for the periods presented.

(c) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

     The changes  noted  above,  are the only changes  during our most  recently
completed fiscal quarter that have materially  affected or are reasonably likely
to materially affect, our internal control over financial reporting,  as defined
in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

ITEM 8B. OTHER INFORMATION.

     None.

                                    PART III

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

IDENTITY OF DIRECTORS AND EXECUTIVE OFFICERS AS OF MARCH 26, 2008

<TABLE>
<CAPTION>
    Name             Director Since     Age                     Position
    ----             --------------     ---                     --------
<S>                  <C>                <C>    <C>
Kenneth Yeung*       April 13, 2007      52     President, Chief Executive Officer, Chief
                                                Financial Officer, Treasurer and Director
Peter Chin**         May 21, 2007        60     Secretary and Director
</TABLE>

----------
*    On March 14, 2007,  Mr. Yeung was elected to the office of President of the
     Company. On April 16, 2007, Mr. Yeung was elected to the additional offices
     of Chief Financial Officer and Treasurer.
**   On May 21, 2007, Mr. Chin was elected to the office of Corporate Secretary.
***  All Company  officers serve at the pleasure of the Board of Directors.  All
     current members of the Board of Directors will serve as such until the next
     annual meeting of stockholders or until their successors are duly elected.

                                       20
<PAGE>
     KENNETH YEUNG.  Mr. Yeung is currently the Chief Executive  Officer of ia&d
Consultants,  Inc.,  a Los Angeles  based  consulting  firm engaged in planning,
architectural  design,  engineering and business consulting.  As the CEO of ia&d
consultants,  Inc.,  Mr.  Yeung leads that  company by  developing  business and
providing services such as planning, architectural design and engineering to its
clients worldwide and particularly in China. His company has completed  numerous
projects including commercial and residential developments,  hotels and resorts,
schools and recreational  facility development.  Currently,  Mr. Yeung's company
has offices in three major  cities in China.  Mr.  Yeung  received a Bachelor of
Arts and Sciences from the University of Hawaii.  From the mid-1990s,  Mr. Yeung
has held senior executive positions with companies engaged in civil engineering,
building material manufacturing, planning, architecture and design.

     PETER CHIN.  Mr. Chin was born in Shanghai,  China and raised in Hong Kong.
Mr. Chin studied  abroad in both Sydney,  Australia and the United  States.  Mr.
Chin has over 20 years of  experience  in the  financial  markets,  focusing  on
corporate finance,  while advising companies in China and the United States. Mr.
Chin served on the board of directors of Golden Arrow Group of Companies, USA, a
hotel and land  management  company in China.  Additionally,  Mr. Chin served as
Chief Executive Officer and Chairman of PTS, Inc. and as Chief Executive Officer
of Disability Access Corporation. Mr. Chin consults with various publicly traded
and private held companies on executive and financial decisions.

DIRECTORSHIPS

     No  Director  of the  Company  or  person  nominated  or chosen to become a
Director holds any other  directorship in any company with a class of securities
registered pursuant to Section 12 of the 1934 Act or subject to the requirements
of Section  15(d) of such Act or any other  company  registered as an investment
company under the Investment Company Act of 1940.

SIGNIFICANT EMPLOYEES

     No other significant employees exist.

FAMILY RELATIONSHIPS

     There are no family relationships  between any officer,  director or person
who will be nominated to serve on our Board of Directors.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

     During the past five  years,  no  present  director,  executive  officer or
person nominated to become a director or an executive officer of the Company:

     1.   had a  petition  under  the  federal  bankruptcy  laws  or  any  state
          insolvency  law filed by or against,  or a receiver,  fiscal  agent or
          similar  officer  appointed by a court for the business or property of
          such person,  or any  partnership in which he was a general partner at
          or within two years before the time of such filing, or any corporation
          or business  association  of which he was an  executive  officer at or
          within two years before the time of such filing;
     2.   was  convicted  in a  criminal  proceeding  or  subject  to a  pending
          criminal  proceeding  (excluding  traffic  violations  and other minor
          offenses);
     3.   was  subject  to any  order,  judgment  or  decree,  not  subsequently
          reversed,   suspended   or   vacated,   of  any  court  of   competent
          jurisdiction,   permanently  or  temporarily  enjoining  him  from  or
          otherwise limiting his involvement in any of the following activities:
          (i)  Acting  as a futures  commission  merchant,  introducing  broker,
               commodity trading advisor, commodity pool operator, floor broker,
               leverage transaction merchant,  any other person regulated by the
               Commodity Futures Trading Commission,  or an associated person of
               any of the foregoing,  or as an investment adviser,  underwriter,

                                       21
<PAGE>
               broker or  dealer  in  securities,  or as an  affiliated  person,
               director or employee of any investment company, bank, savings and
               loan  association  or  insurance  company,   or  engaging  in  or
               continuing  any  conduct  or  practice  in  connection  with such
               activity;
          (ii) Engaging in any type of business practice; or
          (iii)Engaging in any activity in connection  with the purchase or sale
               of any security or commodity or in connection  with any violation
               of federal or state securities laws or federal  commodities laws;
               or
     4.   was the  subject of any order,  judgment or decree,  not  subsequently
          reversed,  suspended  or  vacated,  of an federal  or state  authority
          barring,  suspending  or otherwise  limiting for more than 60 days the
          right of such person to engage in any activity  described in paragraph
          (3) (i),  above,  or to be associated with persons engaged in any such
          activity; or
     5.   was found by a court of competent  jurisdiction  (in a civil  action),
          the  Securities  and  Exchange  Commission  or the  Commodity  Futures
          Trading  Commission to have violated a federal or state  securities or
          commodities  law, and for which the  judgment  has not been  reversed,
          suspended or vacated.

AUDIT COMMITTEE FINANCIAL EXPERT AND IDENTIFICATION OF AUDIT COMMITTEE

     The Company has no separately  designated standing audit committee or other
committee performing similar functions. The Board of Directors acts as the audit
committee.  None of the  directors  qualifies  as an Audit  Committee  Financial
Expert.

SECTION 16(a) BENEFICIAL OWNERSHIP COMPLIANCE

     Section 16(a) of the Securities Exchange Act of 1934 requires the Company's
executive  officers,  directors and persons who own more than ten percent of the
Company's Common Stock, to file initial reports of beneficial  ownership on Form
3,  changes  in  beneficial  ownership  on  Form 4 and an  annual  statement  of
beneficial ownership on Form 5, with the SEC. Such executive officers, directors
and greater than ten percent  shareholders  are required by SEC rules to furnish
the Company with copies of all such forms that they have filed.

     Based  on its  review  of the  copies  of such  forms  filed  with  the SEC
electronically,  received  by  the  Company  and  representations  from  certain
reporting  persons,  the  Company  believes  that  during the fiscal  year ended
December 31, 2007,  all the  officers,  directors  and more than 10%  beneficial
owners have complied with the above described  filing  requirements,  except for
Mr. Peter Chin, who inadvertently did not file a Form 3 in June 2007,  following
his election as a Director and Corporate Secretary . However, Mr. Chin filed his
Form 3 on February 15, 2008. Mr. Chin also filed his Form 5 on February 15, 2008
(one day late).  Management believes that Mr. Chin's late filings of his Forms 3
and 5 were inadvertent.

CODE OF ETHICS

     The Company has adopted a Code of Ethics  applicable  to its  employees and
officers,   including  its  principal  executive  officer,  principal  financial
officer,  principal  accounting  officer  or  controller  and any other  persons
performing similar functions. The Code of Ethics will be provided free of charge
by the Company to interested  parties upon request.  Requests  should be made in
writing and directed to the Company at the  following  address:  1151 Harbor Bay
Parkway,  Suite 202, Alameda,  California 94502. A copy of the Code of Ethics is
also attached as Exhibit 14 to this filing.

                                       22
<PAGE>
ITEM 10. EXECUTIVE COMPENSATION.

     The  following  table sets  forth the  aggregate  compensation  paid by the
Company to the above  named  executive  officers  of the  Company  for  services
rendered during the periods indicated:

                           SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>

                                                                         Non-Equity      Nonqualified
 Name and                                                                Incentive         Deferred
 Principal                                        Stock       Option        Plan         Compensation     All Other
 Position       Year   Salary($)     Bonus($)    Awards($)   Awards($)  Compensation($)   Earnings($)   Compensation($)  Totals($)
 --------       ----   ---------     --------    ---------   ---------  ---------------   -----------   ---------------  ---------
<S>            <C>     <C>           <C>          <C>           <C>          <C>              <C>         <C>             <C>
Kenneth        2007    $100,000      $     0      $     0       $ 0          $ 0              $ 0         $ 3,096(1)      $103,096
Yeung,         2006    $      0      $     0      $     0       $ 0          $ 0              $ 0         $     0         $      0
President      2005    $      0      $     0      $     0       $ 0          $ 0              $ 0         $     0         $      0
and CEO

Peter Chin,    2007    $      0      $     0      $50,000(2)    $ 0          $ 0              $ 0         $     0         $ 50,000
Director       2006    $      0      $     0      $     0       $ 0          $ 0              $ 0         $     0         $      0
               2005    $      0      $     0      $     0       $ 0          $ 0              $ 0         $     0         $      0

David          2007    $ 46,500      $     0      $     0       $ 0          $ 0              $ 0         $     0         $ 46,500
Keaveney,      2006    $186,000(4)   $     0      $     0       $ 0          $ 0              $ 0         $55,565(2)      $241,565
Former CEO(3)  2005    $114,000      $11,000(6)   $     0       $ 0          $ 0              $ 0         $52,801(7)      $177,801

Rhonda         2007    $ 15,000(8)   $     0      $     0       $ 0          $ 0              $ 0         $     0         $ 15,000
Keaveney,      2006    $ 60,000(5)   $     0      $     0       $ 0          $ 0              $ 0         $     0         $ 60,000
Former COO(3)  2005    $ 40,000      $11,000(6)   $     0       $ 0          $ 0              $ 0         $     0         $ 51,000
</TABLE>

----------
(1)  During the fiscal year ended  December 31, 2007, Mr. Kenneth Yeung received
     cash salary of $100,000  and a car  allowance  of $3,096  (pursuant  to his
     employment agreement with the Company).
(2)  On  December  12,  2007,  the  Company  issued  50,000  shares  of Series D
     Preferred Stock to Mr. Peter Chin as compensation  for serving as Corporate
     Secretary and Director of the Company during 2007.
(3)  Mr. David  Keaveney & Mrs.  Ronda  Keaveney  served as the Company's  Chief
     Executive Officer and Chief Operating Officer,  respectively,  from January
     1, 2007 until their resignations on April 16, 2007.
(4)  On  September  25,  2004 Mr.  David  Keaveney  was  elected to the Board of
     Directors  and to the offices of  President,  Chief  Executive  Officer and
     Chief  Financial  Officer of the  Company.  During  the  fiscal  year ended
     December 31, 2006 Mr. David Keaveney  received a cash salary of $116,230.82
     and received  200,000 shares of the Company's  Series C Preferred  Stock in
     lieu of $10,000 in accrued,  but unpaid  salary.  Included in this total is
     $59,769.18 of accrued,  but unpaid  salary due to Mr. David  Keaveney as of
     December 31, 2006.
(5)  During the fiscal year ended December 31, 2006, Mr. David Keaveney received
     (pursuant  to his  employment  agreement  with the  Company) an  automobile
     allowance of $21,225.78,  $24,000 for renting a home office to the Company,
     $9,913.85 in medical  reimbursements  and a $425.28 life insurance premium.
     Mrs. Rhonda  Keaveney,  as the wife of Mr. David  Keaveney,  was an obvious
     beneficiary  of the  automobile  allowance,  home  office  rent and medical
     expenses  attributed  to Mr.  David  Keaveney  and  as  described  in  this
     footnote.

                                       23
<PAGE>
(6)  On September 7, 2005,  the Company  issued  1,000,000  shares of restricted
     common  stock to each of the  three  members  of the  Board  of  Directors,
     including Mr. David Keaveney and Mrs.  Rhonda  Keaveney.  These shares were
     valued at $.011 per share.
(7)  During the fiscal year ended December 31, 2005, Mr. David Keaveney received
     (pursuant  to his  employment  agreement  with the  Company) an  automobile
     allowance  of $17,310,  $24,000  for renting a home office to the  Company,
     $11,431  in medical  expense  reimbursements  and $60 for a life  insurance
     premium.
(8)  On October 13, 2004, Mrs. Rhonda Keaveney,  wife of Mr. David Keaveney, was
     elected to the Board of  Directors  and to the office of  Secretary  of the
     Company.  In March 2005,  Mrs. Rhonda Keaveney was elected to the office of
     Chief  Operating  Officer of the  Company.  During  the  fiscal  year ended
     December 31, 2006, Mrs. Rhonda Keaveney  received a cash salary of $36,923.
     Additionally, in 2006, Mrs. Rhonda Keaveney received $15,000 of the $35,000
     of accrued salary from 2005.  Included in this total is $44,227 of accrued,
     but unpaid as of December 31, 2006.

EMPLOYMENT CONTRACTS

     On May 21, 2007, the Company entered into a three year Employment Agreement
with Kenneth Yeung,  its President and Chief Executive  Officer.  The Employment
Agreement was effective as of May 1, 2007, and expires on April 30, 2010, unless
earlier  terminated  as provided in the  Employment  Agreement.  The  Employment
Agreement provides for the following base compensation of Mr. Yeung:

           May-December 2007            $12,500 per month
           January-December 2008        $15,000 per month
           January-December 2009        $17,500 per month
           January-April 2010           $20,000 per month

     In addition to the above base  compensation,  Mr.  Yeung is entitled to the
following compensation benefits:

     *    Participation in the Company's Stock Option Plan;
     *    An undesignated monthly automobile allowance ; and,
     *    Participation in group life,  hospitalization or disability  insurance
          programs, health programs,  pension plan similar benefit plan or other
          "fringe benefits" of the Company.

     The Company  also granted Mr. Yeung the  following  additional  rights with
respect to his 200,000 shares of Series C Preferred Stock:

     1.   Eligibility  for conversion to Company common stock on April 30, 2009,
          unless  Mandatory  Conversion  is required for any reason as set forth
          herein below.
     2.   Upon  written  request  from  the  Company,  each  share  of  Series C
          Preferred  Stock will  convert to $5.00  worth of the  Company  common
          stock on a mandatory  basis,  which will be  determined  by taking the
          average  closing bid price  ("ACBP")  for the common  stock for the 20
          days prior to conversion. For example, if the ACBP is $0.10, Mr. Yeung
          will  receive  50 shares of  common  stock for each  share of Series C
          Preferred  Stock.  If the ACBP is $1.00,  Mr.  Yeung will receive five
          share of common stock for each share of Series C Preferred Stock.

OTHER CONTRACTS

     None.

                                       24
<PAGE>
STOCK OPTIONS AND WARRANTS

     In March 2007, the Company's 2007 Employee and Consultant  Stock  Incentive
Plan was adopted and  approved by the Board of  Directors.  The Plan  authorized
1,000,000  shares of common  stock of the  Company to be  granted to  employees,
officers, consultants and directors of the Company. The Company filed a Form S-8
on March 20, 2007,  related to this Plan.  All 1,000,000  shares  covered by the
Plan have been issued and there are no options outstanding under the Plan.

     In June  2007,  the  Company's  2007  Consultants  Retainer  Stock Plan was
adopted and approved by the Board of Directors.  The Plan  authorized  2,900,000
shares of common  stock of the  Company to be granted  to  employees,  officers,
consultants  and directors of the Company.  The Company filed a Form S-8 on June
1, 2007,  related to this Plan.  All 2,900,000  shares  covered by the Plan have
been issued and there are no options outstanding under the Plan.

     In September 2007, the Company's 2007 Consultants Retainer Stock Plan No. 2
was  adopted  and  approved  by the  Board of  Directors.  The  Plan  authorized
9,000,000  shares of common  stock of the  Company to be  granted to  employees,
officers, consultants and directors of the Company. The Company filed a Form S-8
on September 27, 2007, related to this Plan. All 9,000,000 shares covered by the
Plan have been issued and there are no options outstanding under the Plan.

     In December 2007, the Company's 2007 Consultants  Retainer Stock Plan No. 3
was  adopted  and  approved  by the  Board of  Directors.  The  Plan  authorized
15,000,000  shares of common  stock of the  Company to be granted to  employees,
officers, consultants and directors of the Company. The Company filed a Form S-8
on December 13, 2007, related to this Plan. There are currently 2,274,693 shares
covered  by the  Plan  that  have not  been  issued  and  there  are no  options
outstanding under the Plan.

OPTION/SAR GRANTS TABLE

     There were no stock  options/SARS  granted under the Company's stock option
plans to executive officers and directors during fiscal 2007 or 2006.

AGGREGATE OPTION/SAR EXERCISES AND FISCAL YEAR-END OPTION/SAR VALUE TABLE

     There were no exercises of stock  options/SAR by executive  officers during
fiscal 2007 or 2006.

LONG-TERM INCENTIVE PLAN AWARDS

     There were no long-term  incentive  plan awards made in the last two fiscal
years.

COMPENSATION OF DIRECTORS

       During  2007,  the  Company  had  no  formal  or  standard   compensation
arrangement with members of its Board of Directors. However, Director Peter Chin
received 50,000 shares of Series D Preferred  Stock as compensation  for serving
as Corporate Secretary and Director.

REPRICING OPTIONS

     During the fiscal year ended December 31, 2007, the Company did not reprice
any stock options.

                                       25
<PAGE>
ITEM 11.  SECURITY  OWNERSHIP OF CERTAIN  BENEFICIAL  OWNERS AND  MANAGEMENT AND
          RELATED STOCKHOLDER MATTERS.

(a) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

     The Company has three (3) classes of voting securities  outstanding (Common
Stock,  Series A Preferred  Stock and Series C Preferred  Stock).  The following
table sets forth security  ownership  information as of the close of business on
March 26, 2008,  for any person or group,  known by the Company to own more than
five percent (5%) of the Company's common stock and Series C Preferred Stock. No
table is included  for the  Company's  Series A Preferred  Stock due to the fact
that only 96 shares  of same are  outstanding  and such  shares  represent  a DE
minimus number of votes that could be cast on any matter presented for a vote of
stockholders.

<TABLE>
<CAPTION>
                                                                       Amount and
                                                                       Nature of
     Name and Address                             Title Of             Beneficial    Percent of
   of Beneficial Owner                              Class                Owner          Class
   -------------------                              -----                -----          -----
<S>                                      <C>                          <C>            <C>
Kenneth Yeung                            Series C Preferred             200,000        100%(1)
1151 Harbor Bay Parkway, Ste 202
Alameda, CA 94502
</TABLE>

----------
1.   The Series C Preferred Stock has voting rights of 3,000 votes per share, so
     that Mr. Yeung has the right to vote  600,000,000 of the 713,030,374  votes
     available to Mr. Yeung and the holders of our common stock,  thereby giving
     Mr. Yeung controlling voting rights in the Company.

(b) SECURITY OWNERSHIP OF MANAGEMENT

     The following  table sets forth  security  ownership  information as of the
close of business on March 26, 2008, of all directors and all executive officers
listed in the "Summary  Compensation  Table" set forth herein, and all directors
and executive officers as a group.

<TABLE>
<CAPTION>
                                                                       Amount and
                                                                       Nature of
     Name and Address                             Title Of             Beneficial    Percent of
   of Beneficial Owner                              Class                Owner          Class
   -------------------                              -----                -----          -----
<S>                                      <C>                          <C>            <C>
Kenneth Yeung
1151 Harbor Bay Parkway, Suite 202       Series C Preferred Stock       200,000        100.00%
Alameda, CA 94502                        Common Stock                         0             0%

Peter Chin
1151 Harbor Bay Parkway, Suite 202       Series C Preferred Stock       50,000         100.00%
Alameda, CA 94502                        Common Stock                        0              0%

Officers and Directors as a Group (1     Preferred Stock C             200,000         100.00%
Officers and Directors as a Group (1     Preferred Stock D              50,000         100.00%
person)                                  Common Stock                        0              0%
</TABLE>

(c) CHANGES IN CONTROL

     Since December 31, 2006, the Company has  experienced one change in control
of its voting securities:

     1.   As discussed under "Material Recent  Development," above, on March 14,
          2007,  Mr.  Keaveney sold his 200,000  shares of Series C Preferred to
          Kenneth  Yeung  for a  purchase  price of  $10,000  (the  exact  price
          previously  exchanged by Mr.  Keaveney when he acquired such shares by
          canceling  $10,000 of  accrued,  but unpaid,  compensation  due to Mr.
          Keaveney from the Company).  As a result of Mr. Yeung's acquisition of

                                       26
<PAGE>
          the  Series  C  Preferred  Stock  from  Mr.  Keaveney,  Mr.  Yeung  is
          considered  a "control  person" of the Company  under  applicable  SEC
          regulations.  Moreover,  Mr.  Yeung  was  elected  to  the  office  of
          President  of the Company on March 14,  2007.  In  addition,  David W.
          Keaveney resigned from his current offices as Chief Executive Officer,
          Chief Financial  Officer and Director of the Company.  Rhonda Keaveney
          also resigned from her offices as Chief Operating  Officer,  Secretary
          and Director of the Company.

(d) SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

<TABLE>
<CAPTION>
                                                                                         Number of securities
                                       Number of securities                            remaining available for
                                         to be issued upon       Weighted-average       future issuance under
                                            exercise of         exercise price of     equity compensation plans
                                       outstanding options,    outstanding options,     (excluding securities
                                       warrants, and rights    warrants and rights     reflected in column (a))
                                       --------------------    -------------------     ------------------------
<S>                                   <C>                      <C>                     <C>
Equity compensation plans
approved by security holders                     0                     n/a                            0

Equity compensation plans not
approved by security holders                     0                     n/a                    2,274,693

Total                                            0                     n/a                    2,274,693
</TABLE>

ITEM 12.  CERTAIN   RELATIONSHIPS   AND  RELATED   TRANSACTIONS,   AND  DIRECTOR
          INDEPENDENCE.

     During 2007, the Company had no formal or standard compensation arrangement
with members of its Board of Directors.

     During 2007 and as of the date of this annual  report,  the  Company's  two
directors, Kenneth Yeung and Peter Chin, were and are not independent directors.

                                       27
<PAGE>
ITEM 13. EXHIBITS.

     List of Exhibits attached or incorporated by reference pursuant to Item 601
of Regulation S-B

Exhibit                                Description
-------                                -----------

2(i)*       Agreement and Plan of Merger (Appendix D of the Company's Definitive
            Proxy  Statement on Form DEF 14A filed with the  Commission  on June
            25, 2004).

3(i)(1)*    Restated Articles of Incorporation filed with the Secretary of State
            of  Colorado  on  August  10,  2004  (Appendix  A of  the  Company's
            Definitive Proxy Statement on Form DEF 14A filed with the Commission
            on June 25, 2004).

3(i)(2)*    Articles of Incorporation of Ten Stix, Inc. filed with the Secretary
            of State of  Nevada on May 28,  2004  (Appendix  F of the  Company's
            Definitive Proxy Statement on Form DEF 14A filed with the Commission
            on June 25, 2004).

3(i)(3)*    Certificate of Amendment to Articles of  Incorporation  of Ten Stix,
            Inc. filed with the Secretary of State of Nevada on December 1, 2004
            (Exhibit 3.1 to the Company's  Current Report on Form 8-K filed with
            the Commission on December 6, 2004).

3(i)(4)*    Certificate  of Amendment to the  Articles of  Incorporation  of the
            Company  filed with the  Secretary of State of Nevada on October 12,
            2006 (Exhibit 3 (1) to the Company's Quarterly report on Form 10-QSB
            filed with the Commission on November 14, 2006).

3(i)(5)**   Certificate  of Amendment to the  Articles of  Incorporation  of the
            Company  filed  with the  Secretary  of State of  Nevada on July 17,
            2007.

3(ii)*      By-laws of the Company (Exhibit 3. II to the Company's  Registration
            Statement  on Form 10SB filed with the  Commission  on  February  8,
            2001).

4(i)*       Certificate of Designation of Series A Preferred  Stock of Ten Stix,
            Inc. (Appendix G of the Company's Definitive Proxy Statement on Form
            DEF 14A filed with the Commission on June 25, 2004).

4(ii)*      Certificate  of  Designation  of  Series  C  Preferred  Stock of the
            Company  (Exhibit 99.1 to the Company's  Current  report on Form 8-K
            filed with the Commission on September 14, 2006).

4(iii)**    Certificate  of Amendment to  Certificate of Designation of Series B
            Preferred  Stock of the Company filed with the Secretary of State of
            Nevada on May 30, 2007.

4(iv)**     Certificate  of Amendment to  Certificate of Designation of Series C
            Preferred  Stock of  Company  filed with the  Secretary  of State of
            Nevada on May 30, 2007.

4(v)**      Certificate  of Amendment to  Certificate of Designation of Series D
            Preferred  Stock of the Company filed with the Secretary of State of
            Nevada on December 10, 2007.

4(vi)**     Certificate  of  Designation  of  Series  E  Preferred  Stock of the
            Company  filed with the Secretary of State of Nevada on December 10,
            2007.

                                       28
<PAGE>
10.1*       Stock Sale and Purchase  Agreement dated March 14, 2007, by, between
            David Keaveney,  Kenneth Yeung and the Company  (Exhibit 10.1 to the
            Company's  Current  Report on Form 8-K filed with the  Commission on
            March 27, 2007).

10.2*       Stock Sale and Purchase Agreement dated May 2, 2007, by, between and
            among Axia Group, Inc, International Building Technologies, Inc. and
            the Company  (Exhibit 10.1 to the Company's  Current  Report on Form
            8-K filed with the Commission on May 9, 2007).

10.3*       Convertible  Note dated May 2, 2007,  issued by the  Company to Axia
            Group,  Inc.  (Exhibit 10.2 to the Company's  Current report on form
            8-K filed with the Commission on May 9, 2007).

10.4*       Exclusive  License  Agreement dated May 2, 2007, by and between Axia
            Group,  Inc. and the Company (Exhibit 10.3 to the Company's  Current
            Report on Form 8-K filed with the Commission on May 9, 2007).

10.5*       Asset Sale and Purchase Agreement dated July 8, 2007, by and between
            International  Building  Technologies  Co.,  Ltd. and Suining  Yinfa
            Construction & Engineering Co., Ltd.  (Exhibit 10.1 to the Company's
            Current  Report on Form 8-K filed  with the  Commission  on July 23,
            2007).

10.6*       Amendment  dated  September 25, 2007, to the Stock Sale and Purchase
            Agreement by and between Axia Group,  Inc. and the Company  (Exhibit
            10.1 to the  Company's  Current  Report on Form 8-K  filed  with the
            Commission on September 28, 2007).

10.7*       Twelve  Month  Convertible  Note  Amendment  dated  March  14,  2007
            (Exhibit 10.2 to the Company's Current Report on Form 8-K filed with
            the Commission on March 27, 2007).

10.8**      Employment Agreement between the Company and Kenneth Yeung dated May
            21, 2007, effective May 1, 2007.

10.9*       The Company's  2007 Employee and  Consultant  Stock  Incentive  Plan
            (Exhibit  4.1 to  Registration  Statement on Form S-8 filed with the
            Commission on March 20, 2007).

10.10*      The Company's 2007  Consultants  Retainer Stock Plan (Exhibit 4.1 to
            Registration Statement on Form S-8 filed with the Commission on June
            1, 2007).

10.11*      The Company's  2007  Consultants  Retainer Stock Plan No. 2 (Exhibit
            4.1 to Registration  Statement on Form S-8 filed with the Commission
            on September 27, 2007).

10.12*      The Company's  2007  Consultants  Retainer Stock Plan No. 3 (Exhibit
            4.1 to Registration  Statement on Form S-8 filed with the Commission
            on December 13, 2007).

14**        Code of Ethics

21**        Subsidiaries of the Company

31.1**      Certification of Principal  Executive  Officer Pursuant to 18 U.S.C.
            Section 1350

31.2**      Certification of Principal  Financial  Officer Pursuant to 18 U.S.C.
            Section 1350

32.1**      906 Certification of Principal Executive Officer

32.2**      906 Certification of Principal Financial Officer

----------
*  Exhibits incorporated herein by reference. File No. 0-32323.
** Filed herewith

                                       29
<PAGE>
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

INDEPENDENT PUBLIC ACCOUNTANTS

     The  Company's  independent  accountants  during  the fiscal  years  ending
December 31, 2007 and 2006 were HJ & Associates, LLC

     1.   Audit Fees.  During the fiscal years ended December 31, 2007 and 2006,
          the  aggregate  fees billed by the  Company's  auditors,  for services
          rendered  for the audit of our  annual  financial  statements  and the
          review of the financial  statements  included in our quarterly reports
          on Form  10-QSB  and for  services  provided  in  connection  with the
          statutory  and  regulatory  filings or  engagements  for those  fiscal
          years, were $70,434 and $24,000, respectively.

     2.   Audit-Related  Fees.  During fiscal years ended  December 31, 2007 and
          2006 our  auditors  did not  receive  any  fees for any  audit-related
          services other than as set forth in paragraph (1) above.

     3.   Tax Fees.  During the fiscal  years ended  December 31, 2007 and 2006,
          the aggregate  fees billed by the  Company's  auditors for tax related
          services amounted to $817 and $2,120 respectively.

     4.   All Other Fees. None.

     5.   Audit Committee's  Pre-Approval  Policies and Procedures.  The Company
          had no audit committee during the fiscal years ended December 31, 2007
          and 2006; hence, there were no pre-approval  policies or procedures in
          effect during such fiscal years.

                                       30
<PAGE>
                                   SIGNATURES

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

                                 International Building Technologies Group, Inc.


Dated: March 31, 2008                 /s/ Kenneth Yeung
                                      ------------------------------------------
                                 By:  Kenneth Yeung
                                 Its: President and Chief Executive Officer

     In accordance  with the  Securities  Exchange Act of 1934,  this report has
been signed below by the following  persons on behalf of the  Registrant  and in
the capacities and on the dates indicated.


Dated: March 31, 2008                 /s/  Kenneth Yeung
                                      ------------------------------------------
                                 By:  Kenneth Yeung,
                                 Its: President, Chief Executive Officer, Chief
                                      Financial Officer, Treasurer and Director
                                      (Principal Executive Officer, Principal
                                      Financial Officer and Principal Accounting
                                      Officer)


Dated: March 31, 2008                 /s/ Peter Chin
                                      ------------------------------------------
                                 By:  Peter Chin
                                 Its: Secretary and Director

                                       31
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                           DECEMBER 31, 2007 AND 2006

                                    CONTENTS

Report of Independent Registered Public Accounting Firm....................  F-2

Consolidated Balance Sheets................................................  F-3

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

Consolidated Statements of Stockholders' Equity (Deficit)..................  F-5

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

Notes to the Consolidated Financial Statements.............................  F-8

                                      F-1
<PAGE>
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors of
International Building Technologies Group, Inc.
and Subsidiaries
(A Development Stage Company)
Alameda, California

We have audited the  accompanying  consolidated  balance sheets of International
Building   Technologies  Group,  Inc.  and  Subsidiaries  (A  Development  Stage
Company),  as of  December  31,  2007 and  2006,  and the  related  consolidated
statements of operations,  stockholders' equity (deficit) and cash flows for the
years ended  December 31, 2007 and 2006 and since  re-entering  the  development
stage on April 1, 2007 through December 31, 2007. These  consolidated  financial
statements   are  the   responsibility   of  the   Company's   management.   Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  the  audit  to  obtain  reasonable  assurance  about  whether  the
consolidated  financial statements are free of material  misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the  consolidated  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 consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  consolidated  financial  position  of
International  Building Technologies Group, Inc. and Subsidiaries (A Development
Stage  Company)  as of  December  31,  2007 and 2006,  and the  results of their
operations  and their cash flows for the years then ended and since  re-entering
the development  stage on April 1, 2007 through December 31, 2007, in conformity
with U.S. generally accepted accounting principles.

We were not engaged to examine management's assertion about the effectiveness of
International Building Technologies Group, Inc. and Subsidiaries' (A Development
Stage Company) internal control over financial reporting as of December 31, 2007
and accordingly, we do not express an opinion thereon.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 3 to the
consolidated financial statements, the Company has suffered recurring losses and
has experienced  negative cash flows from operations,  which raises  substantial
doubt about the Company's  ability to continue as a going concern.  Management's
plans  in  regard  to  those  matters  are  also  described  in  Note  3 to  the
consolidated financial statements.  The consolidated financial statements do not
include any adjustments that might result from the outcome of this uncertainty.


/s/ HJ Associates & Consultants, LLP
------------------------------------------
HJ Associates & Consultants, LLP
Salt Lake City, Utah
March 29, 2008

                                      F-2
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                      (FORMERLY MOTORSPORTS EMPORIUM, INC.)
                          (A DEVELOPMENT STAGE COMPANY)
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                             December 31,          December 31,
                                                                                2007                  2006
                                                                             -----------           -----------
<S>                                                                          <C>                   <C>
                                     ASSETS
Cash                                                                         $    32,970           $     7,200
Deposit on Suining Rosetop Project                                               350,000                    --
Other current assets                                                               1,765                    --
                                                                             -----------           -----------
      Total current assets                                                       384,735                 7,200
                                                                             -----------           -----------
Fixed assets, net of depreciation                                                  2,766                    --
Other assets                                                                       5,380                    --
Assets held for sale                                                                  --                42,106
Goodwill                                                                       1,303,277                    --
                                                                             -----------           -----------
      Total assets                                                           $ 1,696,158           $    49,306
                                                                             ===========           ===========

                  LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
LIABILITIES
  Accounts payable and accrued expenses                                      $    40,825           $        --
  Accrued expenses - related parties                                              77,426               114,000
  Notes payable to shareholders, net                                             135,253               245,000
                                                                             -----------           -----------
      Total current liabilities                                                  253,504               359,000
                                                                             -----------           -----------

Liabilities held for sale                                                             --               273,454
Long term notes payable, net                                                     115,834                    --
Long term notes payable to shareholders, net                                      23,103               121,920
                                                                             -----------           -----------
      Total long term liabilities                                                138,937               395,374
                                                                             -----------           -----------
      Total liabilities                                                          392,441               754,374
                                                                             -----------           -----------

COMMITMENT & CONTINGENCY                                                              --                    --

MINORITY INTEREST                                                                     --                    --

STOCKHOLDERS' EQUITY (DEFICIT)
  Preferred A stock, $250 par value, 10,000 shares authorized;
   96 shares issued and outstanding                                               24,000                24,000
  Preferred C stock, no par value, 1,000,000 shares authorized;
   200,000 shares issued and outstanding                                          10,000                10,000
  Preferred D stock,  $.01 par value, 10,000,000 shares authorized;
   50,000 shares issued and outstanding                                              500                    --
  Preferred E stock, $.01 par value, 10,000,000 shares authorized;
   350,000 shares issued and outstanding                                           3,500                    --
  Common stock; $.001 par value, 500,000,000 shares authorized;
   68,198,914 and 2,979,355 issued and outstanding                                68,199                 2,979
  Additional paid-in capital                                                   7,773,064             4,623,949
  Stock subscription receivable                                                       --                (1,305)
  Accumulated deficit - Prior to reentering development stage                 (5,534,336)          (5,364,691)
  Accumulated deficit - From inception of reentering development
   stage on 4/1/2007                                                          (1,041,137)                   --
  Other comprehensive income                                                         (73)                   --
                                                                             -----------           -----------
      Total stockholders' equity (deficit)                                     1,303,717              (705,068)
                                                                             -----------           -----------
      Total liabilities and stockholders' equity (deficit)                   $ 1,696,158           $    49,306
                                                                             ===========           ===========
</TABLE>
          See accompanying notes to consolidated financial statements.

                                      F-3
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                      (FORMERLY MOTORSPORTS EMPORIUM, INC.)
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                                        Cumulative Since
                                                                    Year Ended December 31,                Reentering
                                                             -----------------------------------        Deveplopment Stage
                                                                 2007                   2006          4/1/2007 - 12/31/2007
                                                             ------------           ------------      ---------------------
<S>                                                          <C>                    <C>                    <C>
Retail sales                                                 $         --           $         --           $         --
Cost of sales                                                          --                     --                     --
                                                             ------------           ------------           ------------
Gross profit                                                           --                     --                     --
                                                             ------------           ------------           ------------
Operating expenses:
  Selling, general and administrative                             666,607                     --                666,607
  Depreciation and amortization                                     3,504                     --                  3,504
                                                             ------------           ------------           ------------
      Total operating expenses                                    670,111                     --                670,111
                                                             ------------           ------------           ------------
Operating loss                                                   (670,111)                    --               (670,111)
                                                             ------------           ------------           ------------
Other income (expense):
  Interest income                                                     357                     --                    357
  Interest expense                                               (309,585)                    --               (390,783)
  Rapid Funding settlement expense                                     --                     --                     --
  Gain on reversal of contingency accrual                              --                     --                     --
  Loss on extinguishment of debt                                  (70,843)                    --                 10,354
  Loss on Disposal of Assets                                           --                     --                     --
  Minority interest in net loss of subsidiary                      15,000                     --                 15,000
  Other income (expense)                                            3,050                     --                  3,051
                                                             ------------           ------------           ------------
      Total other income (expense)                               (362,021)                    --               (362,021)
                                                             ------------           ------------           ------------
Loss from continuing operations                                (1,032,132)                    --             (1,032,132)
                                                             ------------           ------------           ------------

Discontinued operations:
  Income (loss) from operations of discontinued business         (199,378)            (1,223,863)               (20,063)
  Income (loss) on disposal of assets                              70,728                 34,152                 61,058
                                                             ------------           ------------           ------------
Income (loss) on discontinued operations                         (128,650)            (1,189,711)                40,995
                                                             ------------           ------------           ------------
Net loss                                                       (1,160,782)            (1,189,711)              (991,137)

Preferred dividend                                                (50,000)                    --                (50,000)
                                                             ------------           ------------           ------------
Net loss attributable to common share                          (1,210,782)            (1,189,711)            (1,041,137)
                                                             ------------           ------------           ------------
Other comprehensive income
  Foreign Currency Translation                                        (73)                    --                    (73)
                                                             ------------           ------------           ------------
Comprehensive loss                                           $ (1,210,855)          $ (1,189,711)          $ (1,041,210)
                                                             ============           ============           ============
Net loss per common share - basic and diluted
  Continuing operations                                      $      (0.04)          $       0.00
                                                             ============           ============
  Discontinued operations                                    $      (0.01)          $      (0.65)
                                                             ============           ============
  Net loss per common share                                  $      (0.05)          $      (0.65)
                                                             ============           ============
Weighted average common shares outstanding:
  Basic and Diluted                                            23,586,631              1,816,896
                                                             ============           ============
</TABLE>

      See accompanying notes to consolidated financial statements.

                                      F-4
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                      (FORMERLY MOTORSPORTS EMPORIUM, INC.)
                          (A DEVELOPMENT STAGE COMPANY)
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                  Preferred Stock A    Preferred Stock C    Preferred Stock D    Preferred Stock E
                                                  -----------------    -----------------    -----------------   -------------------
                                                  Shares     Amount    Shares     Amount    Shares     Amount     Shares     Amount
                                                  ------     ------    ------     ------    ------     ------     ------     ------
<S>                                              <C>        <C>       <C>        <C>       <C>         <C>      <C>         <C>
BALANCE, DECEMBER 31, 2005                           96     $ 24,000         -   $     --        --     $  --          --   $    --
                                                  =====     ========   =======   ========  ========     =====   =========   =======
2006
  Common stock issued for services
  Preferred stock C issued for services                                200,000     10,000
  Common stock issued for repayment of debt
  Common stock issued for stock option grants
  Sale of stock for cash
  Stock issued to executives, officers and
   directors
  Net loss
                                                  -----     --------   -------   --------  --------     -----   ---------   -------
Balance, December 31, 2006                           96       24,000   200,000     10,000         -         -           -         -
                                                  =====     ========   =======   ========  ========     =====   =========   =======

2007
  Proceeds from stock subscriptions receivable
  Preferred stock D issued for services                                                      50,000       500
  Preferred stock E issued for repayment of debt                                                                  350,000     3,500
  Common stock issued for services
  Common stock issued for repayment of debt
  Common stock issued for stock option grants
  Common stock issued for asset purchase
  Sale of stock for cash
  Warrant options
  Beneficial conversion feature
  Preferred dividend
  Other comprhensive loss
  Net loss
                                                  -----     --------   -------   --------  --------     -----   ---------   -------
Balance, December 31, 2007                           96     $ 24,000   200,000   $ 10,000    50,000     $ 500     350,000   $ 3,500
                                                  =====     ========   =======   ========  ========     =====   =========   =======

                                                                                                            Accumulated
                                                                                                              Deficit
                                                                                                             Prior to
                                                       Common Stock                            Stock        Reentering
                                                     -------------------       Paid-In     Subscriptions    Development
                                                     Shares       Amount       Capital       Receivable        Stage
                                                     ------       ------       -------       ----------        -----
BALANCE, DECEMBER 31, 2005                         1,105,343    $  1,105    $ 3,833,665     $  (26,775)     $ (4,174,980)
                                                  ==========    ========    ===========     ==========      ============
2006
  Common stock issued for services                   802,080         802        301,578
  Preferred stock C issued for services
  Common stock issued for repayment of debt           95,000          95          6,555
  Common stock issued for stock option grants        740,754         741        444,198         25,470
  Sale of stock for cash                             213,678         214         33,924
  Stock issued to executives, officers and
   directors                                          22,500          23          4,029
  Net loss                                                                                                    (1,189,711)
                                                  ----------    --------    -----------     ----------      ------------
Balance, December 31, 2006                         2,979,355       2,979      4,623,949         (1,305)       (5,364,691)
                                                  ==========    ========    ===========     ==========      ============

2007
  Proceeds from stock subscriptions receivable                                    3,070          1,305
  Preferred stock D issued for services                                          49,500
  Preferred stock E issued for repayment of debt                                346,500
  Common stock issued for services                25,644,210      25,644        303,658
  Common stock issued for repayment of debt       17,908,788      17,909        136,560
  Common stock issued for stock option grants        478,721         479         30,219
  Common stock issued for asset purchase          20,000,000      20,000      1,280,000
  Sale of stock for cash                           1,187,840       1,188         24,651
  Warrant options                                                               128,931
  Beneficial conversion feature                                                 846,026
  Preferred dividend
  Other comprhensive loss
  Net loss                                                                                                      (169,645)
                                                  ----------    --------    -----------     ----------      ------------
Balance, December 31, 2007                        68,198,914    $ 68,199    $ 7,773,064     $       --      $ (5,534,336)
                                                  ==========    ========    ===========     ==========      ============

                                                  Accumulated
                                                    Deficit
                                                     After
                                                   Reentering
                                                  Development
                                                     Stage
                                                   on 4/1/2007         Total
                                                   -----------         -----
BALANCE, DECEMBER 31, 2005                         $         --     $  (342,985)
                                                   ============     ===========
2006
  Common stock issued for services                                      302,380
  Preferred stock C issued for services                                  10,000
  Common stock issued for repayment of debt                               6,650
  Common stock issued for stock option grants                           470,409
  Sale of stock for cash                                                 34,138
  Stock issued to executives, officers and
   directors                                                              4,052
  Net loss                                                           (1,189,711)
                                                   ------------     -----------
Balance, December 31, 2006                                    -        (705,068)
                                                   ============     ===========

2007
  Proceeds from stock subscriptions receivable                            4,375
  Preferred stock D issued for services                                  50,000
  Preferred stock E issued for repayment of debt                        350,000
  Common stock issued for services                                      329,302
  Common stock issued for repayment of debt                             154,469
  Common stock issued for stock option grants                            30,698
  Common stock issued for asset purchase                              1,300,000
  Sale of stock for cash                                                 25,839
  Warrant options                                                       128,931
  Beneficial conversion feature                                         846,026
  Preferred dividend                                    (50,000)        (50,000)
  Other comprhensive loss                                   (73)            (73)
  Net loss                                             (991,137)     (1,160,782)
                                                   ------------     -----------
Balance, December 31, 2007                         $ (1,041,210)    $ 1,303,717
                                                   ============     ===========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                      F-5
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                      (FORMERLY MOTORSPORTS EMPORIUM, INC.)
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                                             Cumulative Since
                                                                             Year Ended December 31,            Reentering
                                                                       ---------------------------------    Deveplopment Stage
                                                                           2007                 2006       4/1/2007 - 12/31/2007
                                                                       ------------         ------------   ---------------------
<S>                                                                   <C>                    <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss from continuing operations                                  $(1,032,132)                 --         $(1,032,132)
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                                            3,505                  --               3,505
     Amortization of debt discounts                                         84,007                  --              84,007
     Loss on extinguishment of debt                                        (70,843)                 --             (70,843)
     Interest expense associated with beneficial conversion feature        283,921                  --             283,921
     Director stock based compensation                                      50,000                  --              50,000
     Common stock issued to third parties for services                     318,169                  --             318,169
     Common stock issued for interest payment on debt                       17,436                  --              17,436
     Minority interest in net loss of subsidiary                           (15,000)                 --             (15,000)
  Changes in assets and liabilities:
     Prepaid expenses                                                       (3,605)                 --              (3,605)
     Accounts payable and accrued expenses                                  39,933                  --              39,933
     Accrued expenses - related parties                                     (6,000)                 --              (6,000)
                                                                       -----------         -----------         -----------
          Net cash used in continuing operations                          (330,609)                 --            (330,609)
          Net loss from discontinued operations                           (128,650)         (1,189,711)             40,995
          Net cash provided by (used in) discontinued operations           (82,318)            754,500             (83,796)
                                                                       -----------         -----------         -----------
          Net cash used in operating activities                           (541,577)           (435,211)           (373,410)
                                                                       -----------         -----------         -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of fixed assets                                                     --              (2,029)                 --
                                                                       -----------         -----------         -----------
          Net cash used in continuing operations                                --              (2,029)                 --
          Net cash provided by discontinued operations                      15,000               3,200                  --
                                                                       -----------         -----------         -----------
          Net cash provided by investing activities                         15,000               1,171                  --
                                                                       -----------         -----------         -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from related party accounts payable                              80,000                  --              80,000
  Proceeds from notes payable                                              456,000                  --             253,530
  Repayments of notes payable                                              (20,000)            (20,000)                 --
  Proceeds from issuance of common stock                                    25,839              34,138               1,464
  Proceeds from issuance of common stock for asset purchase                  6,206                  --               6,206
  Proceeds from exercise of stock options                                    4,375             403,142               4,375
                                                                       -----------         -----------         -----------
          Net cash provided by financing activities                        552,420             417,280             345,575
                                                                       -----------         -----------         -----------

Effect of exchange rate changes on cash                                        (73)                 --                 (73)

Cash and cash equivalents:
  Increase (decreae) in cash                                                25,770             (16,760)            (27,908)
  CASH, beginning of period                                                  7,200              23,960              60,878
                                                                       -----------         -----------         -----------
  CASH, end of period                                                  $    32,970         $     7,200         $    32,970
                                                                       ===========         ===========         ===========
</TABLE>
          See accompanying notes to consolidated financial statements.

                                      F-6
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                      (FORMERLY MOTORSPORTS EMPORIUM, INC.)
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                             Cumulative Since
                                                                             Year Ended December 31,            Reentering
                                                                       ---------------------------------    Deveplopment Stage
                                                                           2007                 2006       4/1/2007 - 12/31/2007
                                                                       ------------         ------------   ---------------------
<S>                                                                   <C>                    <C>           <C>
Non-cash discontinued operation activities
  Employee stock based compensation                                    $   30,698            $      --           $    30,698
  Common stock issued to third parties for services                    $   11,133            $      --           $    11,133
  Issuance of common stock for debt & accrued expenses                 $   41,534            $      --           $    36,534

Non-cash financing and investing activities
  Issuance of Note for accrued expenses                                $   43,798            $      --           $    43,798
  Issuance of common stock for prepaid expense                         $       --            $ 303,280           $        --
  Issuance of common stock for payment of debt                         $   95,499            $   6,650           $    95,499
  Issuance of Preferred E Stock for deposit on the Rosetop Project     $  350,000            $      --           $   350,000
  Issuance of common stock for Purchase of Company                     $1,300,000            $      --           $ 1,300,000
  - Prepaids aquired                                                   $    3,540            $      --           $     3,540
  - Fixed assets aquired                                               $    6,271            $      --           $     6,271
  - Accrued expenses aquired                                           $   (4,294)           $      --           $    (4,294)
  - Minority interest aquired                                          $  (15,000)           $      --           $   (15,000)
</TABLE>

During 2007,  the Company issued common stock valued at $1,300,000 in connection
with the acquisition of International  Building  Technologies,  Inc. The Company
received assets valued at $16,017,  assumed  liabilities of $4,294, and minority
interest of $15,000, resulting in Goodwill of $1,303,277.

          See accompanying notes to consolidated financial statements.

                                      F-7
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


NOTE 1: ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

International Building Technologies Group, Inc. (OTCBB: INBG) (the "Company")
has four total subsidiaries, two active subsidiaries and two dormant
subsidiaries.

Active Subsidiaries:

     *    International Building Technologies, Inc. ("IBT") - a Nevada
          Corporation
     *    International Building Technologies Co., Ltd. ("IBT Hong Kong") - a
          Hong Kong Corporation

Dormant Subsidiaries:

     *    Scottsdale Diecast, Inc. - a Nevada Corporation
     *    Quadriga Motorsports, Inc. - a Nevada Corporation

Currently  the  Company is focusing  its  attention  on the rapidly  growing and
developing  China market  through its  subsidiaries,  IBT and IBT Hong Kong. IBT
owns the rights to  manufacture  and sell light weight  building  panels used in
construction all over the world. The building panels can be used in a variety of
ways to erect buildings up to six stories tall without the need of a traditional
wood or steel frame  structure.  It is also versatile in its use and can be used
to create unique  architectural  design elements.  Management  believes that the
Company's panel based building  technology  allows for the rapid, cost effective
construction  of  residential,  commercial,  and high-rise  buildings  utilizing
materials  that  are  greater  in  strength  and   appearance,   economical  and
eco-friendly.  Based  on  standard  building  codes  prescribed  by  authorities
worldwide,   the  Company's   technology   will  meet  and  exceed  the  minimum
requirements.  The Company also provides  customers with  architectural  design,
panel supply,  installation  supervision,  engineering,  training, and technical
support.  IBT Hong Kong has contractual rights and business  relationships to do
business in China.

The Company has offices in Alameda, CA, and Shanghai, China.

PRINCIPLES OF CONSOLIDATION

The accompanying  consolidated  financial statements include the accounts of the
Company and its  subsidiaries.  All intercompany  accounts and transactions have
been eliminated.

USE OF ESTIMATES

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

RECLASSIFICATION

Certain reclassifications,  which have no effect on net income (loss), have been
made  in the  prior  period  financial  statements  to  conform  to the  current
presentation.

                                      F-8
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


CASH EQUIVALENTS AND MARKETABLE SECURITIES

The Company considers all highly-liquid investment instruments purchased with an
original  maturity of three months or less to be cash  equivalents.  The Company
had no cash equivalents at December 31, 2007.

FIXED ASSETS

Property  and   equipment  are  stated  at  cost  and   depreciated   using  the
straight-line  method over their estimated  useful lives of three to five years.
Leasehold  improvements  are  being  depreciated  over  the  term of the  lease,
excluding option periods.  When assets are disposed of, the cost and accumulated
depreciation  (net book value of the assets) are  eliminated  and any  resultant
gain or loss reflected  accordingly.  Upgrades and  improvements are capitalized
over their estimated  useful lives whereas repairs and maintenance  expenditures
on the assets are  charged  to  expense as  incurred.  Please see Note 4 - Fixed
Assets for further detail.  Total depreciation expense was $3,504 and $0 for the
years ended December 31, 2007 and 2006, respectively.  The costs and accumulated
depreciation of assets retired,  sold, or otherwise  disposed of were eliminated
from the  accounts  and any  resulting  gain or loss was  credited or charged to
income, or applied to equity, as appropriate.

INTANGIBLE ASSETS

Intangible  assets of $10,750 as of December 31, 2006 consisted of a capitalized
license  agreement which has been reclassified to Asset Held for Sale due to the
discontinued line of business. The license agreement was abandoned in accordance
with Statement of Financial  Accounting  Standard No. 144,  "Accounting  for the
Impairment  or Disposal of Long Lived  Assets" and  consequently  the  remaining
value of the asset was fully amortized as of December 31, 2007.

ASSETS & LIABILITIES HELD FOR SALE

Assets held for sale include assets related to the Company's  discontinued  line
of business in the motor sports  business.  All assets held for sale are carried
at  the  lower  of  carrying  value  (cost  less  accumulated   depreciation  or
amortization) or market.

IMPAIRMENT OF LONG-LIVED ASSETS

The Company  evaluates its  long-lived  assets in accordance  with  Statement of
Financial  Accounting  Standard  No.  144,  "Accounting  for the  Impairment  or
Disposal  of Long Lived  Assets" by  measuring  the  carrying  amounts of assets
against the estimated  undiscounted  future cash flows  associated with them. At
the time  the  carrying  value of such  assets  exceeds  the fair  value of such
assets,  impairment is recognized. To date, no adjustments to the carrying value
of the assets have been made.

GOODWILL

Goodwill  represents  the  excess of  purchase  price  over  tangible  and other
intangible  assets  acquired  less  liabilities  assumed  arising from  business
combinations.  As of December 31, 2007, the Company's annual goodwill impairment
test did not identify an impairment in  accordance  with  Statement of Financial
Accounting Standard No. 142, "Goodwill and Other Intangible Assets."

                                      F-9
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


INCOMES TAXES

The Company  accounts for income taxes under the liability  method of accounting
for income taxes in  accordance  with the  provisions of Statements of Financial
Accounting  Standards No. 109,  "Accounting  for Income  Taxes," ("FAS 109") and
related  interpretations  and guidance  including  FASB  Interpretation  No. 48,
"Accounting for Uncertainty in Income Taxes-an  interpretation of FASB Statement
No. 109" ("FIN 48").  Deferred  income  taxes are provided  using the  liability
method  whereby  deferred tax assets are  recognized  for  deductible  temporary
differences  and operating  loss and tax credit  carryforwards  and deferred tax
liabilities  are  recognized  for  taxable  temporary   differences.   Temporary
differences  are the  differences  between  the  reported  amounts of assets and
liabilities and their tax bases.  Deferred tax assets are reduced by a valuation
allowance  when, in the opinion of  management,  it is more likely than not that
some portion or all of the  deferred  tax assets will not be realized.  Deferred
tax assets and  liabilities  are  adjusted for the effects of the changes in tax
laws and rates of the date of enactment.

When tax returns are filed, it is highly certain that some positions taken would
be  sustained  upon  examination  by the taxing  authorities,  while  others are
subject to  uncertainty  about the merits of the position taken or the amount of
the position that would be ultimately  sustained.  The benefit of a tax position
is recognized in the financial  statements in the period during which,  based on
all available evidence,  management believes it is more likely than not that the
position will be sustained upon examination, including the resolution of appeals
or  litigation  processes,  if  any.  Tax  positions  taken  are not  offset  or
aggregated    with   other    positions.    Tax   positions    that   meet   the
more-likely-than-not recognition threshold are measured as the largest amount of
tax  benefit  that is  more  than 50  percent  likely  of  being  realized  upon
settlement  with the applicable  taxing  authority.  The portion of the benefits
associated  with tax  positions  taken  that  exceeds  the  amount  measured  as
described above is reflected as a liability for unrecognized tax benefits in the
accompanying balance sheet along with any associated interest and penalties that
would be payable to the taxing authorities upon examination.

Interest and penalties  associated with unrecognized tax benefits are classified
as additional income taxes in the statement of income.

TRANSLATION OF NON-U.S. CURRENCY AMOUNTS

Assets and liabilities of non-U.S. subsidiaries that operate in a local currency
environment are translated to U.S.  dollars at year-end  exchange rates.  Income
and  expense  items  are  translated  at  weighted-average   rates  of  exchange
prevailing  during  the year.  Translation  adjustments  are  recorded  in Other
Comprehensive  Income  not  affecting  retained  earnings  within  Stockholders'
equity.

Inventories,   plant,  rental  machines  and  other   property-net,   and  other
non-monetary  assets and liabilities of non-U.S.  subsidiaries and branches that
operate in U.S. dollars, or whose economic  environment is highly  inflationary,
are  translated  at  approximate  exchange  rates  prevailing  when the  company
acquired  the  assets or  liabilities.  All other  assets  and  liabilities  are
translated  at  year-end  exchange  rates.  Cost of sales and  depreciation  are
translated at historical  exchange rates. All other income and expense items are
translated at the weighted-average rates of exchange prevailing during the year.

Current and historical exchange rates are not indicative of what future exchange
rates will be and should not be construed as such.

                                      F-10
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


Relevant  exchange rates used in the preparation of the financial  statements of
the  subsidiary  are as follows  for the nine  months  ended  December  31, 2007
(denoted in Hong Kong dollars per one U.S. dollar):

Current exchange rate at December 31, 2007                       $7.7984 HKD

Weighed average  exchange rate for the period
since the acquisition of the subsidiary May 2,
2007 to December 31, 2008                                        $7.7976 HKD

FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts of cash, accounts payable, and accrued expenses approximate
fair value because of the short maturity of these items.

EARNINGS PER COMMON SHARE

Basic  net loss per  share is  computed  by  dividing  net loss by the  weighted
average number of shares of common stock outstanding during the period.  Diluted
net loss per share is  computed  by dividing  net loss by the  weighted  average
number of shares of common stock and common stock equivalents outstanding during
the period.  As the Company incurred net losses for the years ended December 31,
2007 and 2006,  common stock equivalents were excluded from diluted net loss per
share as their  effect  would be  anti-dilutive.  As a result,  for all  periods
presented, the Company's basic and diluted net loss per share is the same.

STOCK-BASED COMPENSATION

In December 2004, the FASB issued Statements of Financial  Accounting  Standards
No. 123-R,  "Share-Based Payment" ("FAS 123(R)"). FAS 123(R) replaces Statements
of  Financial   Accounting   Standards  No.  123,  "Accounting  for  Stock-Based
Compensation",  and supersedes the Accounting  Principles  Board Opinion No. 25,
"Accounting  for Stock Issued to  Employees"  ("APB 25").  FAS 123(R)  requires,
among other things, that all share-based payments to employees, including grants
of stock  options,  be  measured  based  on  their  grant-date  fair  value  and
recognized as expense.  The Company's stock options awarded to employees contain
a  variable  exercise  price  that is  dependent  upon the  market  price of the
Company's common stock at the date of exercise and, therefore, are accounted for
as variable  awards.  During the years ended  December 31, 2007 and December 31,
2006, the Company recognized $30,698 and $383,698, respectively, of compensation
expense associated with stock-based compensation.  Under FAS 123(R), the expense
recognition  for variable  awards is the same under the intrinsic  value and the
fair value methods.  Accordingly,  the pro forma disclosures  required under FAS
123 are not applicable.

ACCOUNTING  FOR  CERTAIN  FINANCIAL  INSTRUMENTS  WITH  CHARACTERISTICS  OF BOTH
LIABILITIES AND EQUITY - CHANGE IN ACCOUNTING PRINCIPLE.

As of September  30, 2007 we have  adopted  Statements  of Financial  Accounting
Statement  No.  150,   "Accounting  for  Certain   Financial   Instruments  with
Characteristics of Both Liabilities and Equity" ("FAS 150"). Previously,  we had
accounted for our variable weighted average priced  convertible debt instruments
in accordance with Emerging Issues Task Force 00-19,  "Accounting for Derivative
Financial  Instruments  Indexed to, and Potentially  Settled In, a Company's Own
Stock" ("EITF 00-19") solely based on the variability in the shares to be issued
in our convertible debt  instruments.  Upon further review of FAS 150 we changed
our accounting  policy to account for the conversion  feature as a debt discount
without  bifurcating  any  additional  component  from the debt  instrument as a
derivative.  We believe that the treatment under FAS 150, among the diversity in
accounting treatments that exist, is more appropriate.

                                      F-11
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


The only issuances  relating to EITF 00-19 we had were in the quarter ended June
30,  2007.  Due to our  change in  accounting  principle  we have  retroactively
updated our  financial  statements  as of the quarter  ended June 30, 2007 going
forward.

NOTE 2: MATERIAL EVENTS

RE-ENTERING DEVELOPMENT STAGE

On April 1, 2007, the company  re-entered  the  development  stage.  The company
changed  from  the  motor  sports  business  to the  business  of  building  and
construction of lightweight  panels. The Company has devoted most of its efforts
to establishing a new business, raising capital, establishing sources of supply,
acquiring property, plant, equipment, and other operating assets.

CHANGE OF CORPORATE NAME

On May 21, 2007, the Board of Directors and the majority of the  shareholders of
the Company passed a resolution to amend the Company's articles of incorporation
to change its name to  International  Building  Technologies  Group,  Inc.  Such
amendment became effective on August 6, 2007.

REVERSE STOCK SPLIT

Effective  October  31,  2006,  the  Company  initiated  a reverse  split of the
Company's  common  stock on a ratio of one share for every 225  shares of common
stock,  without  decreasing the number of authorized  shares of common stock and
without changing the par value of the common stock. All share have been restated
for this stock split.

NOTE 3: GOING CONCERN

The Company's  financial  statements  are prepared using  accounting  principles
generally  accepted  in the  United  States  of  America  applicable  to a going
concern,  which  contemplates  the  realization  of assets and  satisfaction  of
liabilities in the normal course of business.  The Company's  continuation  as a
going  concern is dependent  upon its ability to generate  sufficient  cash flow
from  operations  to meet  its  obligations  on a  timely  basis  and/or  obtain
financing as may be required.  As of December 31, 2007, the Company has incurred
net losses from operations  prior to reentering the development  stage and has a
stockholders'  deficit of  $5,584,336.  Since the  inception of  reentering  the
development  stage on April 1, 2007, the Company has a stockholders'  deficit of
$991,137 as of December 31, 2007. The Company has a working  capital  surplus of
$131,231 as of December 31, 2007.

During the next 12 months,  the Company's  foreseeable  cash  requirements  will
relate to continual  development of the operations of its business,  maintaining
its good  standing  and making the  requisite  filings with the  Securities  and
Exchange  Commission,  and the payment of expenses  associated with reviewing or
investigating any potential business ventures. The Company may experience a cash
shortfall  and be required to raise  additional  capital.  Historically,  it has
relied  upon  internally  generated  funds and funds  from the sale of shares of
stock and loans from its  shareholders  and  private  investors  to finance  its
operations and growth.  Management may raise  additional  capital through future
public or private offerings of the Company's stock or through loans from private
investors,  although  there can be no  assurance  that it will be able to obtain
such financing. The Company's failure to do so could have a material and adverse
affect  upon it and its  shareholders.  However,  the  Company is  strategically
positioning  itself with contracts and business  ventures that can significantly
contribute  to its  bottom  line and the  continuous  development  of its  panel
business  as  evidenced  by the signed  memorandums  of  understanding  with the
Suijiang Government and the Jilin University Project,  signed agreement with the
Rose Top project,  and the potential  acquisition of Hubei InteWufeng  Machinery
Co., Ltd.

                                      F-12
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


NOTE 4: FIXED ASSETS

Fixed assets consist of the following:

                                                 12/31/2007          12/31/2006
                                                 ----------          ----------
Furniture, fixtures and equipment (at cost)       $  6,270            $     --
Less accumulated depreciation                      ((3,504)                 --
                                                  --------            --------
Fixed assets, net                                 $  2,766            $     --
                                                  ========            ========

Depreciation expense for continuing  operations for the years ended December 31,
2007 and 2006 was $3,504  and $0,  respectively.  Prior  year  fixed  assets and
related  deprecation for 2006 have been reclassed to Assets Held for Sale due to
the Company's discontinued line of business in the motor sports industry.  Total
depreciation expense, including depreciation expense on discontinued operations,
was  $4,495  and  $44,898  for the  years  ended  December  31,  2007 and  2006,
respectively.

NOTE 5: INTANGIBLE ASSETS

During  January 2007, the Company sold it's website along with other assets held
for sale for $15,000 cash. The website had a carrying value of $8,478.  The gain
on  sale of the  website  and  other  assets  is  included  in the  Consolidated
Statement of Operations under the caption "Income on disposal of assets."

During 2005, the Company  acquired a license for the exclusive rights to produce
and distribute a high performance  brake fluid.  This license was capitalized at
the cost of  $15,000  and was being  amortized  over its  contractual  life of 5
years.  At the year ended  December  31,  2006 the value of the  license  net of
accumulated  amortization  was $10,750.  Due to the change in business  from the
motor sports industry to the  manufacturing  of light weight building panels the
asset was  abandoned  in  accordance  with  Statement  of  Financial  Accounting
Standard  No.  144,  "Accounting  for the  Impairment  or Disposal of Long Lived
Assets." This change  resulted in the $10,750  carrying value of the asset to be
fully amortized.  Since the asset was related to Discontinued  Operations in the
motor sports business the asset was reclassified to Assets Held for Sale and the
current year amortization is reflected in the "Discontinued Operations."

                                      F-13
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


NOTE 6:  NOTES PAYABLE & DEBT DISCOUNTS

The Chart below  summarizes the Notes Payable & Debt Discounts of the Company as
of December  31,  2007.  This chart is to be reviewed  in  conjunction  with the
details following the chart.

Terms                                                                    Amount
-----                                                                    ------
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
-    10% Interest;  principal of $156,926;  monthly payments
     of $4,396;  convertible to common stock based on 75% of
     average  price;  due on 5/30/2008,  net of  unamortized
     discounted  related to the debt  discount  of $54,041              $102,885
-    5% Interest;  principal of $70,839; monthly payments of
     $4,387;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount related to the debt discount of $43,438                     27,401
-    5% Interest;  principal of $12,003; monthly payments of
     $1,283;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount related to the debt discount of $7,036                       4,967
                                                                        --------
TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                          $135,253
                                                                        --------
LONG TERM NOTES PAYABLE TO SHAREHOLDERS:
-    5% Interest;  principal of $25,943; monthly payments of
     $4,387;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount  related to the debt  discount  of $15,908 -              $ 10,035
-    5% Interest;  principal of $7,586;  monthly payments of
     $1,283;  convertible  to common  stock  based on 70% of
     average  price;  due on  7/1/2009,  net of  unamortized
     discount related to the debt discount of $4,447                       3,139
-    10%  Interest;  principal  of $30,629;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $20,900                                              9,729
-    10%  Interest;  principal  of $50,240;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $50,040                                                200
                                                                        --------
TOTAL LONG TERM NOTES PAYABLE TO SHAREHOLDERS                           $ 23,103
                                                                        --------
LONG TERM NOTES PAYABLE:
-    10%  Interest;  principal  of $50,000;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $14,046                                             35,954
-    10%  Interest;  principal of $130,735;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $95,712                                             35,023
-    10%  Interest;  principal  of $32,017;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $23,440                                              8,577
-    10%  Interest;  principal of $104,054;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $80,824                                             23,230
-    10%  Interest;  principal  of $10,642;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $10,642                                                  0
-    10%  Interest;  principal  of $37,133;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $25,080                                             12,053
-    10%  Interest;  principal  of $61,870;  convertible  to
     common  stock  based on 50% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $60,919                                                951
-    10%  Interest;  principal  of $50,603;  convertible  to
     common  stock  based on 60% of  average  price;  due on
     12/31/2009,  net of unamortized discount related to the
     debt discount of $50,557                                                 46
                                                                        --------
TOTAL LONG TERM NOTES PAYABLE                                           $115,834
                                                                        ========

                                      F-14
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


SHORT TERM NOTE PAYABLE - SHAREHOLDERS

On August 21, 2006, the Company issued a $250,000  convertible note payable to a
shareholder  and an  entity  owned  by  such  shareholder  in  exchange  for the
retirement of the shareholder's Series B preferred stock and all related accrued
interest.  On March 14, 2007, the Note was amended with the monthly  payments of
$4,395 or more deferred until June 1, 2007 and the due date extended from August
30, 2007 to May 30, 2008.  At any time after giving  notice,  the Holder has the
option to convert all or part of the  remaining  balance of the note into common
stock of the Company  based on 75% of the average of the lowest five closing bid
prices in the past 20 trading days immediately preceding such conversion so long
as such  conversion  shall not exceed  4.99% of the then  outstanding  shares of
common  stock of the  Company.  Furthermore,  on March  26,  2007,  the Note was
bifurcated into two separate notes with all prior unpaid  principal and interest
rolled up into these two notes.  A debt  discount of $239,556 was  calculated in
accordance with Emerging Issues Task Force No. 00-27,  "Application of Issue No.
98-5 to Certain Convertible  Instruments" ("EITF 00-27"), and is being amortized
over the life of the debenture.  The  amortization is being recorded as interest
expense and totaled  $185,516  for the year ended  December 31, 2007 and for the
period from  inception to December 31,  2007.  During the fiscal year,  the note
holders  converted  the note into common  stock in the amount of $96,190 and the
Company  was also paid cash in the amount of $431 for the  payment of  principal
and interest.  During the second quarter of 2007, one of the two notes was fully
paid off and as of December 31, 2007 the principal balance on the remaining note
was $156,926. The Company is current with the payments on the remaining note.

LONG TERM NOTES PAYABLE/LONG TERM NOTES PAYABLE SHAREHOLDERS

On May 8, 2007 the  Company  amended an  earlier  Promissory  Note for  $129,240
($121,920 in principal and $7,320 accrued interest). Furthermore, on May 8, 2007
the Company bifurcated the Note and entered into two separate Notes: (i) one for
$100,000 with 5% interest  pursuant to which the Company is obligated to make 24
monthly  principal and interest  payments of $4,387 commencing July 1, 2007 with
final  payment  July 1, 2009 and (ii) a second Note for $29,240 with 5% interest
pursuant  to which the Company is  obligated  to make 24 monthly  principal  and
interest  payments of $1,283  commencing July 1, 2007 with final payment July 1,
2009 (this  second Note is payable to a  shareholder).  At any time after giving
notice, the Holder has the option to convert all or part of the accrued interest
and remaining principal of either note based on 70% of the average of the lowest
5 closing  bid prices in the past 20 trading  days  immediately  preceding  such
conversion  so long as the total number of shares  issued to Holder will be such
that the number of shares  beneficially  owned by Holder will be less than 4.99%
of the outstanding common shares of the Company. The Company has determined that
these  modified  terms are  substantially  different  than the original terms as
defined in the Emerging Issues Task Force No. 96-19,  "Debtor's Accounting for a
Modification or Exchange of Debt Instruments"  ("EITF 96-19"),  and,  therefore,
this  renegotiation  result in the recognition of a $129,240 loss as of the date
of the  amendment of the note. A debt  discount of $129,240  was  calculated  in
accordance  with  EITF  00-27,  and is  being  amortized  over  the  life of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$58,411 for the year ended  December 31, 2007 and for the period from  inception
to December 31, 2007. During the fiscal year, the note Holders converted a total
of $16,746 of principal  and  interest  payments.  As of December 31, 2007,  the
balances of the notes were  $116,371.  The balances of the notes were  separated
into short and long term  portions on the  Consolidated  Balance  Sheets.  As of
December 31, 2007 $82,842 of principal and $50,474 of related  discounts are due
short  term and the  balance  of $33,529  of  principal  and  $20,355 of related
discounts are due long term

On May 21, 2007 the Company entered into a $122,500  Secured  Promissory Note at
the rate of 11% per annum due March 20, 2008. On December 31, 2007,  the Company
and the Payee  amended  the note to change  the  interest  rate to 10%,  exclude
incentive  payments,  extend the due date to December 31, 2009,  and to insert a
conversion clause which allows the Payee to convert all or part of the remaining
principal  balance and accrued interest into the Company's Common Stock based on
50% of the  average  of the  lowest  three  closing  bid prices in the past five
trading days  immediately  preceding such conversion so long as such conversions
shall not exceed  4.99% of the then  outstanding  Common  Stock of the  Company.
Accrued interest was also rolled up into the amended note for a new note balance

                                      F-15
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


of  $130,735.  The  Company has  determined  that these  modified  terms are not
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore,  this  renegotiation  did not result in the  recognition of a gain or
loss.  In relation to the  convertible  feature of this note, a debt discount of
$82,976 was calculated in accordance with EITF 00-27 and is being amortized over
the life of the debenture.  There is no  amortization  as of year-end due to the
amendment date of the note. Initially,  the Company's President,  Kenneth Yeung,
personally borrowed the money and invested the amount into the Company. Due to a
change in the business,  the Company  decided on May 21, 2007 to assume the note
and entered into a promissory note with the lender. The Note is secured with the
Preferred Series C shares owned by the President.

In connection with this transaction,  490,000 warrants to purchase shares of the
common stock of the Company at $0.25 were issued with an expiration  date of May
20,  2012.  Utilizing  the  Black-Scholes  valuation  model  and  the  following
assumptions:  estimated volatility of 211.36%, a contractual life of five years,
a zero  dividend  rate,  4.71% risk free  interest  rate,  and the fair value of
common  stock of $0.10 per share at date of grant,  the Company  determined  the
allocated fair value of the warrant to be $47,759. The Company has recorded this
amount as a debt discount and is  amortizing  the debt discount over the term of
this Note. The  amortization  is being recorded as interest  expense and totaled
$35,023 for the year ended  December 31, 2007 and for the period from  inception
to December 31, 2007. No payments were due or made during the year.

On May 21, 2007,  the Company  entered into a Promissory  Note for $30,000 to be
paid no later than March 20, 2008 with an interest  rate of 11%. On December 31,
2007,  the Company and the Payee amended the note to change the interest rate to
10%, exclude incentive  payments,  extend the due date to December 31, 2009, and
to insert a  conversion  clause which allows the Payee to convert all or part of
the remaining  principal  balance and accrued interest into the Company's Common
Stock based on 50% of the average of the lowest three  closing bid prices in the
past five trading days  immediately  preceding  such  conversion so long as such
conversions  shall not exceed 4.99% of the then outstanding  Common Stock of the
Company.  Accrued  interest  was also rolled up into the amended  note for a new
note balance of $32,017.  The Company has  determined  that these modified terms
are not  substantially  different  than the  original  terms as  defined in EITF
96-19, and, therefore, this renegotiation did not result in the recognition of a
gain or loss.  In  relation  to the  convertible  feature of this  note,  a debt
discount of $20,321 was  calculated in  accordance  with EITF 00-27 and is being
amortized  over  the  life of the  debenture.  There  is no  amortization  as of
year-end  due to the  amendment  date  of the  note.  Initially,  the  Company's
President,  Kenneth Yeung, personally borrowed the money and invested the amount
into the Company.  Due to a change in the business,  the Company  decided on May
21, 2007 to assume the note and entered into a promissory  note with the lender.
The Note is secured with the Preferred Series C shares owned by the President.

In connection  with this  transaction,  120,000  warrants to purchase the common
stock of the  Company at $.25 were  issued  with an  expiration  date of May 20,
2012. Utilizing the Black-Scholes valuation model and the following assumptions:
estimated  volatility  of 211.36%,  a  contractual  life of five  years,  a zero
dividend rate, 4.71% risk free interest rate, and the fair value of common stock
of $0.10 per share at date of grant,  the Company  determined the allocated fair
value of the warrant to be $11,696.  The Company has  recorded  this amount as a
debt  discount and is  amortizing  the debt discount over the term of this Note.
The  amortization  is being recorded as interest  expense and totaled $8,577 for
the year ended  December 31, 2007 and for the period from  inception to December
31, 2007. No payments were due or made during the year.

On May 21, 2007,  the Company  entered into a Promissory  Note for $97,500 to be
paid no later than May 20,  2008 with an interest  rate of 11%. On December  31,
2007,  the Company and the Payee amended the note to change the interest rate to
10%, exclude incentive  payments,  extend the due date to December 31, 2009, and
to insert a  conversion  clause which allows the Payee to convert all or part of
the remaining  principal  balance and accrued interest into the Company's Common
Stock based on 50% of the average of the lowest three  closing bid prices in the
past five trading days  immediately  preceding  such  conversion so long as such
conversions  shall not exceed 4.99% of the then outstanding  Common Stock of the
Company.  Accrued  interest  was also rolled up into the amended  note for a new
note balance of $104,054.  The Company has determined  that these modified terms

                                      F-16
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


are not  substantially  different  than the  original  terms as  defined in EITF
96-19, and, therefore, this renegotiation did not result in the recognition of a
gain or loss.  In  relation  to the  convertible  feature of this  note,  a debt
discount of $66,042 was  calculated in  accordance  with EITF 00-27 and is being
amortized over the life of the debenture.  The amortization is being recorded as
interest  expense.  There is no amortization as of year-end due to the amendment
date of the note.

In connection  with this  transaction,  390,000  warrants to purchase the common
stock of the  Company at $.25 were  issued  with an  expiration  date of May 21,
2012. Utilizing the Black-Scholes valuation model and the following assumptions:
estimated  volatility  of 211.36%,  a  contractual  life of five  years,  a zero
dividend rate, 4.71% risk free interest rate, and the fair value of common stock
of $0.10 per share at date of grant,  the Company  determined the allocated fair
value of the warrant to be $38,012.  The Company has  recorded  this amount as a
debt  discount and is  amortizing  the debt discount over the term of this Note.
The  amortization is being recorded as interest  expense and totaled $23,230 for
the year ended  December 31, 2007 and for the period from  inception to December
31, 2007. No payments were due or made during the year.

On May 22, 2007 the  Company  entered  into a  Convertible  Promissory  Note for
$50,000  to be paid no later  than  March 21,  2008 with 11%  interest  rate per
annum.  On December  31,  2007,  the  Company and the Payee  amended the note to
change  the  interest  rate to  10%,  exclude  incentive  payments,  change  the
conversion rate to 60% instead of 50%, and extended the due date to December 31,
2009.  The Company has determined  that these  modified terms are  substantially
different than the original terms as defined in EITF 96-19, and, therefore, this
renegotiation  did result in the recognition of a $37,649 gain as of the date of
the amendment of the note. In connection with this transaction, 200,000 warrants
to  purchase  the  common  stock of the  Company  at $.25  were  issued  with an
expiration date of May 21, 2012. Utilizing the Black-Scholes valuation model and
the following  assumptions:  estimated volatility of 211.36%, a contractual life
of five years, a zero dividend rate, 4.76% risk free interest rate, and the fair
value  of  common  stock of  $0.10  per  share  at date of  grant,  the  Company
determined  the allocated  fair value of the warrant to be $19,494.  The Company
has recorded  this amount as a debt  discount and is amortizing it over the term
of this Note. The amortization is being recorded as interest expense and totaled
$14,231 for the year ended  December 31, 2007 and for the period from  inception
to December 31, 2007.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $30,506  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$21,724 for the year ended  December 31, 2007 and for the period from  inception
to December 31, 2007.  During the fiscal year,  the Company paid the note holder
the accrued interest on the note of $3,346. As of December 31, 2007, the balance
of the note was $50,000.

On June 1, 2007,  the Company  entered into a Promissory  Note for $10,000 to be
paid no later than June 1, 2008 with an interest  rate of 11%.  On December  31,
2007,  the Company and the Payee amended the note to change the interest rate to
10%, exclude incentive  payments,  extend the due date to December 31, 2009, and
to insert a  conversion  clause which allows the Payee to convert all or part of
the remaining  principal  balance and accrued interest into the Company's Common
Stock based on 50% of the average of the lowest three  closing bid prices in the
past five trading days  immediately  preceding  such  conversion so long as such
conversions  shall not exceed 4.99% of the then outstanding  Common Stock of the
Company.  Accrued  interest  was also rolled up into the amended  note for a new
note balance of $10,642.  The Company has  determined  that these modified terms
are  substantially  different  than the original terms as defined in EITF 96-19,
and, therefore, this renegotiation result in the recognition of a $4,511 loss as
of the date of the amendment of the note. In relation to the convertible feature
of this note, a debt discount of $10,642 was calculated in accordance  with EITF
00-27  and is  being  amortized  over  the  life of the  debenture.  There is no
amortization  as of year-end due to the amendment  date of the note. No payments
were due or made during the year.

                                      F-17
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


On September 17, 2007, the Company  entered into a Convertible  Promissory  Note
for  $36,000 to be paid no later  than  August 28,  2008 with 11%  interest  per
annum.  On December  31,  2007,  the  Company and the Payee  amended the note to
change  the  interest  rate to  10%,  exclude  incentive  payments,  change  the
conversion rate to 60% instead of 50%, and extended the due date to December 31,
2009.  Accrued  interest was also rolled up into the amended note for a new note
balance of $37,133.  The Company has  determined  that these  modified terms are
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore, this renegotiation did result in the recognition of a $11,913 gain as
of the date of the amendment of the note. In connection  with this  transaction,
144,000 warrants to purchase the common stock of the Company at $.25 were issued
with an  expiration  date of September  17, 2012.  Utilizing  the  Black-Scholes
valuation model and the following assumptions:  estimated volatility of 299.55%,
a contractual life of five years, a zero dividend rate, 4.21% risk free interest
rate,  and the fair  value of common  stock of $0.02 per share at date of grant,
the Company determined the allocated fair value of the warrant to be $3,161. The
Company has recorded this amount as a debt  discount and is amortizing  the debt
discount  over the term of this Note.  The  amortization  is being  recorded  as
interest  expense and totaled $955 for the period from inception to December 31,
2007.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $32,839  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$9,966 for the year ended December 31, 2007 and for the period from inception to
December 31, 2007. No payments were due or made during the year.

On September 17, 2007, the Company  entered into a Convertible  Promissory  Note
for  $30,000 to be paid no later  than  August 28,  2008 with 11%  interest  per
annum.  On December  31,  2007,  the  Company and the Payee  amended the note to
change  the  interest  rate to  10%,  exclude  incentive  payments,  change  the
conversion rate to 60% instead of 50%, and extended the due date to December 31,
2009.  Accrued  interest was also rolled up into the amended note for a new note
balance of $30,629.  The Company has  determined  that these  modified terms are
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore, this renegotiation did result in the recognition of a $10,433 gain as
of the date of the amendment of the note. In connection  with this  transaction,
120,000 warrants to purchase the common stock of the Company at $.25 were issued
with an  expiration  date of September  17, 2012.  Utilizing  the  Black-Scholes
valuation model and the following assumptions:  estimated volatility of 299.55%,
a contractual life of five years, a zero dividend rate, 4.21% risk free interest
rate,  and the fair  value of common  stock of $0.02 per share at date of grant,
the Company determined the allocated fair value of the warrant to be $2,634. The
Company has recorded this amount as a debt  discount and is amortizing  the debt
discount  over the term of this Note.  The  amortization  is being  recorded  as
interest  expense and totaled $796 for the period from inception to December 31,
2007.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $27,366  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$8,305 for the year ended December 31, 2007 and for the period from inception to
December 31, 2007. No payments were made or due during the year.

On October 5, 2007, the Company entered into a Promissory Note for $60,000 to be
paid no later than  August 5, 2008 with an interest  rate of 13.2%.  On December
31, 2007, the Company and the Payee amended the note to change the interest rate
to 10%, exclude  incentive  payments,  extend the due date to December 31, 2009,
and to insert a conversion  clause which allows the Payee to convert all or part

                                      F-18
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


of the  remaining  principal  balance and accrued  interest  into the  Company's
Common Stock based on 50% of the average of the lowest three  closing bid prices
in the past five trading days  immediately  preceding such conversion so long as
such conversions shall not exceed 4.99% of the then outstanding  Common Stock of
the Company. Accrued interest was also rolled up into the amended note for a new
note balance of $61,870.  The Company has  determined  that these modified terms
are  substantially  different  than the original terms as defined in EITF 96-19,
and, therefore,  this renegotiation  result in the recognition of a $25,524 loss
as of the date of the  amendment  of the note.  In relation  to the  convertible
feature of this note, a debt  discount of $58,512 was  calculated  in accordance
with EITF 00-27 and is being amortized over the life of the debenture.  There is
no amortization as of year-end due to the amendment date of the note.

In connection  with this  transaction,  240,000  warrants to purchase the common
stock of the Company at $.25 were issued  with an  expiration  date of August 5,
2012. Utilizing the Black-Scholes valuation model and the following assumptions:
estimated  volatility  of 332.74%,  a  contractual  life of five  years,  a zero
dividend rate, 4.33% risk free interest rate, and the fair value of common stock
of $0.014 per share at date of grant, the Company  determined the allocated fair
value of the warrant to be $3,358.  The Company  has  recorded  this amount as a
debt  discount and is  amortizing  the debt discount over the term of this Note.
The  amortization is being recorded as interest expense and totaled $951 for the
year ended  December 31, 2007 and for the period from  inception to December 31,
2007. No payments were due or made during the year.

On November 21, 2007, the Company entered into a Convertible Promissory Note for
$50,000 to be paid no later than  November 21, 2008 with 11% interest per annum.
On December 31, 2007,  the Company and the Payee  amended the note to change the
interest rate to 10%, exclude incentive payments,  change the conversion rate to
60% instead of 50%, and  extended  the due date to December  31,  2009.  Accrued
interest  was also  rolled up into the  amended  note for a new note  balance of
$50,603.  The Company has determined that these modified terms are substantially
different than the original terms as defined in EITF 96-19, and, therefore, this
renegotiation  did result in the recognition of a $18,083 gain as of the date of
the amendment of the note. In connection with this transaction, 200,000 warrants
to  purchase  the  common  stock of the  Company  at $.25  were  issued  with an
expiration  date of November 21, 2012.  Utilizing  the  Black-Scholes  valuation
model  and  the  following  assumptions:  estimated  volatility  of  332.74%,  a
contractual  life of five years, a zero dividend  rate,  3.4% risk free interest
rate,  and the fair value of common stock of $0.0021 per share at date of grant,
the Company  determined  the allocated fair value of the warrant to be $419. The
Company has recorded this amount as a debt  discount and is amortizing  the debt
discount  over the term of this Note.  The  amortization  is being  recorded  as
interest  expense and totaled $45 for the year ended  December  31, 2007 and for
the period from inception to December 31, 2007.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $50,183  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  There is no amortization as of year-end due to the amendment date of
the note. No payments were made or due during the year.

On November 30, 2007, the Company entered into a Convertible Promissory Note for
$50,000 to be paid no later than  November 30, 2008 with 11% interest per annum.
On December 31, 2007,  the Company and the Payee  amended the note to change the
interest rate to 10%, exclude incentive payments,  change the conversion rate to
60% instead of 50%, and  extended  the due date to December  31,  2009.  Accrued
interest  was also  rolled up into the  amended  note for a new note  balance of
$50,240.   The  Company  has  determined  that  these  modified  terms  are  not
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore,  this  renegotiation  did not result in the  recognition of a gain or
loss.  In connection  with this  transaction,  200,000  warrants to purchase the
common  stock of the  Company at $.25 were  issued  with an  expiration  date of
November 30, 2012. Utilizing the Black-Scholes valuation model and the following
assumptions:  estimated volatility of 332.74%, a contractual life of five years,
a zero  dividend  rate,  3.41% risk free  interest  rate,  and the fair value of
common stock of $0.012 per share at date of grant,  the Company  determined  the
allocated fair value of the warrant to be $2,398.  The Company has recorded this

                                      F-19
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


amount as a debt discount and is  amortizing  the debt discount over the term of
this Note. The  amortization  is being recorded as interest  expense and totaled
$200 for the year ended  December 31, 2007 and for the period from  inception to
December 31, 2007.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $47,842  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  There is no amortization as of year-end due to the amendment date of
the note. No payments were made or due during the year.

OTHER NOTES PAYABLE

On July 31, 2007,  the Company  entered into a Convertible  Promissory  Note for
$350,000  for the  acquisition  of a 51%  interest  in the Rose Top (Rose  Best)
project (see Note 11 - Acquisitions and Investments).  The note is to be paid no
later than July 31,  2009 with 8%  interest  per annum.  At any time and with 30
days written notice,  the Company may convert the Promissory Note into preferred
stock of the Company at mutually  agreed upon terms.  On December 12, 2007,  the
Company  converted  this note into  350,000  shares  of the  Company's  Series D
Preferred Stock. The accrued interest from inception to December 12, 2007 on the
note in the amount of $10,354 in accrued  interest  was waived by the lender and
disclosed as a gain under Other income (expense).

On May 2, 2007, Motorsports Emporium, Inc.  ("Motorsports") entered into a Stock
Sale and Purchase  Agreement with Axia Group,  Inc.  ("Axia") and  International
Building  Technologies,  Inc. ("IBT"),  pursuant to which  Motorsports  acquired
50,000,000  shares of IBT common stock (or approximately 80% of IBT's issued and
outstanding  common  stock)  from  Axia for  consideration  consisting  of (i) a
$1,000,000  Convertible Note and (ii) 20,000,000  shares of Motorsports'  common
stock. On September 27, 2007, the Company and Axia Group, Inc.  renegotiated and
agreed  to amend  the  terms  and  conditions  of the  Stock  Sale and  Purchase
Agreement to rescind the $1,000,000  Convertible Note. See Note 11 - Acquisition
and Investments.

NOTE 7:  RELATED PARTY TRANSACTIONS

During 2007, the Company engaged in the following related party transactions:

CHANGE IN CONTROL AND PAYMENT OF ACCRUED WAGES AND OFFICERS' SALARY

As discussed in Note 2 - Material Events, on March 14, 2007, the Company entered
into a Stock  Sale and  Purchase  Agreement  with Mr.  David  W.  Keaveney,  the
Company's Chief Executive  Officer during that time ("Keaveney") and Mr. Kenneth
Yeung ("Yeung"), pursuant to which:

     a.   Keaveney  sold  his  ownership  interest  in  200,000  shares  of  the
          Company's  Series C  Preferred  Stock  ("Preferred  C") to Yeung for a
          purchase price of $10,000 (the shares were sold for $10,000, the exact
          value amount Keaveney exchanged for accrued wages when he received the
          Preferred C shares);
     b.   Yeung  agreed to  immediately  pay off an aggregate of $202,470 of the
          Company's  liabilities,  which debt reductions were intended to reduce
          outstanding  liabilities,  including  $48,788  owed by the  Company to
          David  Keaveney for accrued  salary and $38,115 owed by the Company to
          Rhonda Keaveney,  the Company's Chief Operating  Officer,  for accrued
          salary.  A balance of  $37,500  in  accrued  salary is due and owed to
          David Keaveney in which the Company has agreed to pay to Keaveney over
          6 months  with six  payments  of $7,250 per month  beginning  July 31,
          2007. As of December 31, 2007 $0 has been paid.

Additionally,  wages were paid to David Keaveney  totaling $14,308 and to Rhonda
Keaveney  totaling  $4,615  during the three months ended March 31, 2007.  Total
officers'  salary  expense  for the  three  months  ended  March  31,  2007  was

                                      F-20
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


approximately  $61,499.  The balance of the $43,500 accrued salary owed to David
Keaveney was $37,500 prior to Keaveney  forgiving the accrued salary on December
3, 2007.  The  company  recognized  the  $37,500  as a gain  under  Discontinued
Operations on disposal of asset. See Note 9 - Discontinued Operations.

SALE OF WEBSITE DEVELOPMENT COSTS

On January 25, 2007, the Company sold the Scalecars.com website to a third party
for  the  agreed  price  of  $15,000.  The  website  development  costs  (net of
accumulated  amortization)  of $8,478 were presented  under the caption  "Assets
Held for Sale" on the December 31, 2006 balance  sheet.  The initial  payment of
$10,000  was paid  directly  to  David  Keaveney  for  accrued  salary,  and the
remaining $5,000 cash was received by the Company during March 2007. The gain on
sale of the website is  included in the  Consolidated  Statement  of  Operations
under the caption "Income on disposal of assets."

ACCRUED EXPENSES - SHAREHOLDERS

During  the  year  Kenneth  Yeung,  the  Company  Chief  Executive  Officer  was
reimbursed and or advanced cash for various  company  related  expenditures  for
traveling  overseas.  As of December 31, 2007 the balance of ($1,574) represents
the total cash that was advanced to the Mr. Yeung in excess of accrued expenses.

During  the  year  the  Company  issued  6,508,142  shares  and  $646  cash to a
stockholder is for payment of $35,000 in accrued  expenses owed. The fair market
value of the shares issued was $72,347.  Net accrued  expenses at the year ended
December 31, 2007 totaled $79,000

PAYMENT OF DEBT

During the year the Company issued 7,376,787 common shares valued at $96,190 and
$431 cash to a  stockholder  for payment of principal and interest on a $250,000
convertible note that was originally  issued on August 21, 2006 and subsequently
amended on March 14, 2007. See Note 6 - Notes Payable & Debt Discounts.

During the year the Company issued  9,812,000 common shares valued at $16,746 to
a  stockholder  for payment of  principal  and  interest  on a $129,240  amended
convertible note dated May 8, 2007. See Note 6 - Notes Payable & Debt Discounts.

PROCEEDS FROM RELATED PARTIES

On September 17, 2007, the Company  entered into a Convertible  Promissory  Note
for $30,000 of proceeds received from a stockholder.  See Note 6 - Notes Payable
& Debt Discounts.

On November 30, 2007, the Company entered into a Convertible Promissory Note for
$50,000 of proceeds  received from a  stockholder.  See Note 6 - Notes Payable &
Debt Discounts.

NOTE 8:  STOCKHOLDERS' EQUITY

PREFERRED STOCK

SERIES B PREFERRED STOCK
On December 10, 2007, the Company amended the Series B Preferred Stock to reduce
the total authorized  shares from 3,000,000 shares to 490,000 shares.  All other
attributes of Series B Preferred Stock remains unchanged.

                                      F-21
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


SERIES C PREFERRED STOCK

On July 20, 2006, the Company  established and authorized up to 3,000,000 shares
of no par value  Series C  Preferred  Stock.  On  December  10, 2007 the Company
redefined the rights of the Series C Preferred to reduce the  authorized  shares
to 1,000,000 shares and to provide for mandatory redemption upon written request
by the Company.  According to the Statements of Financial  Accounting  Standards
No. 150,  "Accounting for Certain Financial  Instruments with Characteristics of
both  Liabilities  and  Equity,"  a  financial  instrument  that is  defined  as
"mandatorily  redeemable"  is  classified  as a  liability.  If  the  instrument
embodies a conditional obligation,  it is classified as "mandatorily redeemable"
if the event occurs or becomes certain to occur. As of year-end, the conditional
obligations  of Series C Preferred  Stock had not occurred nor were they certain
to occur, resulting in equity treatment.

The Series C shares have the following voting powers, designations, preferences,
limitations, restrictions and relative rights:

     a.   Designation: Series C Preferred Stock
     b.   Authorized Shares: 1,000,000
     c.   Liquidation Rights: None
     d.   Mandatory  Redemption  Rights:  Upon written request from the Company,
          Holder agrees to convert each Preferred  Series C Stock to $5.00 worth
          of INBG stock on a mandatory basis.

SERIES D PREFERRED STOCK
During  2007,  the Company  designated  a new series of  preferred  stock called
Series D Preferred Stock. On December 10, 2007, the Company amended the Series D
Preferred Stock to have the following attributes:

     a.   Authorized  Shares:  10,000,000
     b.   Dividends:  Yes, at management's discretion
     c.   Liquidation Rights: Yes
     d.   Voting Rights: None
     e.   Conversion  Rights:   Each  share  of  Series  D  Preferred  Stock  is
          convertible to $1.00 worth of common stock based on 70% of the average
          of the  lowest 3 closing  bid prices  within the last 20 trading  days
          preceding conversion.

On December 12, 2007,  the Company  issued  50,000  shares of Series D Preferred
Stock to a Board of Director  member as  compensation  for serving as  Corporate
Secretary and Director of the Company during 2007.  Since the Series D Preferred
Stock has a convertible  feature, a Preferred Dividend of $50,000 was calculated
in accordance with EITF 00-27.

SERIES E PREFERRED STOCK
On December 10,  2007,  the Company  designated a new series of preferred  stock
called the Series E Preferred stock with the following attributes:

     a.   Authorized Shares: 10,000,000
     b.   Dividends: Yes, at management's discretion
     c.   Liquidation Rights: Yes
     d.   Voting Rights: None
     e.   Conversion  Rights:  One year  after  issuance  each share of Series E
          Preferred Stock is convertible to $1.00 worth of common stock based on
          80% of the  average  closing  sales  prices  for the 10  trading  days
          preceding conversion.

The  Company  originally  issued a  $350,000  Convertible  Promissory  Note as a
deposit to purchase 51% of the Rose Top Project from Suining Yinfa  Construction
and  Engineering  Co.,  Ltd. On December 12,  2007,  the Company  converted  the

                                      F-22
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


Promissory Note into 350,000 shares of the Company's  Series E Preferred  Stock.
Even though the Series E Preferred Stock has a convertible feature the preferred
shares are not convertible until December 2008.

COMMON STOCK

CONSULTING SERVICES

During the year ended December 31, 2007, the Company issued 25,644,210 shares of
common stock valued $329,302 to consultants for contracted services rendered. Of
this amount  25,425,307  shares of the Company's common stock valued at $318,169
were issued various  consultants  related to current  operations of the company.
The balance of 218,903  shares of the  Company's  common stock valued at $11,133
was issued to various consultants related to discontinued operations.

COMMON STOCK ISSUED FOR REPAYMENT OF DEBT

During  the  year  ended  December  31,  2007,  the  Company  issued  a total of
17,908,788  shares of common stock valued $154,496 for payment and settlement of
debt. Of this amount,  720,001 shares of the common stock valued at $26,000 were
issued without registration under the Securities Act of 1933. The details are as
follows:

     -    During the first quarter 2007,  166,667 shares of the Company's common
          stock were issued to an officer for repayment of debt in lieu of cash.
          The shares were valued at $5,000 and were issued at market price.
     -    During the second  quarter of 2007,  the Company issued 333,334 shares
          of common stock valued at $23,333 to a third party to cancel a debt in
          the amount of $10,000.
     -    During the second  quarter of 2007,  the Company issued 220,000 shares
          of common stock valued at $13,200 to a third party to cancel a debt in
          the amount of $11,000.
     -    On August 21, 2006,  the Company  issued a $250,000  convertible  note
          payable to a shareholder  and an entity owned by such  shareholder  in
          exchange for the  retirement of the  shareholder's  Series B Preferred
          stock and all related  accrued  interest.  See Note 6 - Note Payable &
          Debt  Discounts.  On March 14,  2007,  the Note was  amended  with the
          monthly  payments  of $4,395  deferred  until June 1, 2007 and the due
          date  extended from August 30, 2007 to May 30, 2008. At any time after
          giving notice, the Holder has the option to convert all or part of the
          remaining  balance of the note into common stock of the Company  based
          on 75% of the  average of the lowest  five  closing  bid prices in the
          past 20 trading days immediately  preceding such conversion so long as
          such conversion shall not exceed 4.99% of the then outstanding  shares
          of common stock of the Company. During the second quarter of 2007, the
          note Holder was issued  1,979,771common  shares  valued at $70,531 for
          the  payment  of  principal  and  interest  on debt.  During the third
          quarter of 2007,  the note  Holder was issued  450,824  common  shares
          valued at $8,791 for the payment of  principal  and  interest on debt.
          During the fourth quarter of 2007 the note Holder was issued 4,946,192
          common  shares  valued at $16,868  for the  payment of  principal  and
          interest on debt.
     -    On May 8, 2007,  the Company  amended an earlier  Promissory  Note for
          $129,240.  At any time after giving notice,  the Holder has the option
          to  convert  all or part of the  remaining  balance  of the note  into
          common stock of the Company  based on 70% of the average of the lowest
          five  closing  bid  prices  in the past 20  trading  days  immediately
          preceding such conversion so long as such conversion  shall not exceed
          4.99% of the then  outstanding  shares of common stock of the Company.
          The note was bifurcated and assigned to two separate Note Holders, see
          Note 6 - Note Payable & Debt Discounts. During the fourth quarter both
          note holders were issued 9,812,000 common shares valued at $16,746 for
          the payment of principal and interest on debt.

                                      F-23
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


COMMON STOCK ISSUED FOR ASSET PURCHASE

On May 2, 2007,  the Company  entered into a Stock Sale and  Purchase  Agreement
with Axia Group, Inc. ("Axia"),  IBT and its Hong Kong subsidiary IBT Hong Kong,
pursuant to which the Company acquired  50,000,000  shares of IBT's common stock
from Axia for 20,000,000 common shares of the Company valued at $1,300,000.  The
value of the 20,000,000 common shares issued was determined based on the average
market price of the Company's common shares over the 2-day period before and the
terms  of  the  acquisition  were  agreed  to  and  announced  (see  Note  11  -
Acquisitions  and  Investments).  These shares were issued without  registration
under the Securities Act of 1933.

COMMON STOCK ISSUED FOR CASH

During the year, the Company sold 1,187,840  shares of common stock to investors
for $25,839 in cash.  These shares were issued  without  registration  under the
Securities Act of 1933.

NOTE 9: DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

At the end of the first quarter of 2007 the Company  discontinued all operations
related to the motor sports  business due to  increased  manufacturer's  prices,
slowing retail sales,  increased  competition  from online auction sites and the
consolidation of the die cast industry.  This includes  operations by its wholly
owned subsidiaries  Scottsdale Diecast,  Inc. ("SDI") and Quadriga  Motorsports,
Inc.  ("Quadriga").  The  Company  has since  shifted  focus to  developing  and
manufacturing  lightweight  panel  technology.  No income tax  expense  has been
recorded  related  to  the  discontinued  operations  given  the  Company's  net
operating loss carry  forwards and related  valuation  allowances.  All activity
during  the  current  year  related  to  the  motor  sports  business  has  been
reclassified  to present the operations as discontinued  operations.  Prior year
financial  statements  for 2006 have  also  been  reclassified  to  present  the
operations of the motor sports business as discontinued operations.

The following assets and liabilities have been segregated and included in Assets
held for sale and Liabilities held for sale, as appropriate, in the consolidated
balance  sheets as of  December  31,  2007 and 2006,  that  relates to our motor
sports business:

                                                           December 31,
                                                   --------------------------
                                                     2007              2006
                                                   --------          --------
ASSETS
  Accounts receivable                              $     --          $    267
  Inventory                                              --             3,422
  Other current assets                                   --            11,675
  Fixed assets, net of depreciation                      --             7,515
  Intangible assets, net of amortization                 --            19,227
                                                   --------          --------
  Assets held for sale                             $     --          $ 42,106
                                                   ========          ========

Liabilities
  Accounts payable and accrued expenses            $     --          $273,454
                                                   --------          --------
  Liabilities held for sale                        $     --          $273,454
                                                   ========          ========

                                      F-24
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


The  following  amounts,  related  to  our  motor  sports  business,  have  been
segregated from continuing operations and included in Discontinued operations in
the consolidated statements of operations:

<TABLE>
<CAPTION>
                                                                             December 31,
                                                                  ---------------------------------
                                                                     2007                  2006
                                                                  -----------           -----------
<S>                                                               <C>                   <C>
Retail sales                                                      $        --           $    57,853
Cost of sales                                                              --                83,998
                                                                  -----------           -----------
Gross profit                                                               --               (26,145)
                                                                  -----------           -----------
Operating expenses:
  Selling, general and administrative                                 170,040             1,121,756
  Depreciation and amortization                                        11,740                 7,788
                                                                  -----------           -----------
      Total operating expenses                                        181,780             1,129,544
                                                                  -----------           -----------
Operating loss                                                       (181,780)           (1,155,689)
                                                                  -----------           -----------
Other income (expense):
  Interest income                                                          --                    48
  Interest expense                                                    (12,642)              (28,489)
  Legal settlement expense                                                 --               (40,496)
  Gain on reversal of contingency accrual                                  --               150,057
  Loss on extinguishment of debt                                       70,728              (116,405)
  Other income (expense)                                               (4,956)                1,263
                                                                  -----------           -----------
      Total other income (expense)                                     53,130               (34,022)
                                                                  -----------           -----------
Loss from discontinued operations                                 $  (128,650)          $(1,189,711)
                                                                  ===========           ===========
</TABLE>

NOTE 10: INCOME TAXES

The Company  and its  subsidiaries  file income tax returns in the U.S.  Federal
Jurisdiction,  and various  states and foreign  jurisdictions.  No provision for
Hong Kong Profits Tax has been made for the periods presented as the Company and
its  subsidiaries  operating in Hong Kong have no assessable  profits during the
years being reported.

The Company believes sufficient  uncertainty exists regarding the realization of
net operating loss  carryforwards  and other timing  differences for the periods
presented.  Accordingly,  a valuation allowance has been provided for the entire
amount  related  thereto.  The valuation  allowance  increased by  approximately
$198,025  and  $210,539  during  the years  ended  December  31,  2007 and 2006,
respectively.

                                      F-25
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


The income tax  provision  differs from the amount of income tax  determined  by
applying the U.S. Federal and State income tax rates of 39% to pretax income for
the years ended December 31, 2007 and 2006 due to the following:

                                               Year Ended December 31,
                                           -----------------------------
                                             2007                2006
                                           ---------           ---------
     Book income                           $(472,205)          $(463,986)
     Stock for services/option expense       163,800             149,642
     Accrued wages                           (21,188)             40,103
     Settlement                                   --              48,338
     Beneficial conversion                    91,229                  --
     Warrant amortization                     32,763                  --
     Minority interest                         5,850                  --
     Other                                     1,726              15,364
     Valuation Allowance                     198,025             210,539
                                           ---------           ---------
     Total Income tax provision            $      --           $      --
                                           =========           =========

As  of  December  31,  2007  the  Company  has  available  net  operating   loss
carryforwards  for  federal  and state  income  tax  purposes  of  approximately
$2,547,255  and  $744,783  which  expire  principally  through  2027  and  2024,
respectively.  State net operating loss  carryforwards  are based on federal net
operating losses, which are limited to certain percentages and carryover periods
based on the year  incurred.  Pursuant  to the Tax  Reform  Act of 1986,  annual
utilization  of the Company's net operating loss  carryforwards  will be limited
due to a  cumulative  change in ownership of more than 50% that occur during the
year.

Net deferred tax assets  consist of the following  components as of December 31,
2007 and 2006:

                                              Year Ended December 31,
                                           -----------------------------
                                             2007                2006
                                           ---------           ---------
     Deferred tax assets:
       NOL carryover                       $ 993,429           $ 795,404
       Accrued Wages                              --              91,880
       Depreciation                            6,011                  --
     Deferred tax liabilities:
        Depreciation                                              (1,300)
     Valuation Allowance                    (999,440)           (885,984)
                                           ---------           ---------
     Total Income tax provision            $      --           $      --
                                           =========           =========

The Company files income tax returns in the United States  federal  jurisdiction
and certain states in the United States and certain foreign jurisdictions.  With
a few  exceptions,  the company is no longer subject to U. S. Federal,  state or
non-U.S.  Income tax  examination by tax authorities on tax returns filed before
January 31, 2004. The Company  recently filed an extension for the U. S. Federal
return for the year ended December 31, 2007. The company has filed its 2006 U.S.
Federal return.  These U. S. federal returns are considered open tax years as of
the  date  of  these  consolidated  financial  statements.  No tax  returns  are
currently under examination by any tax authorities.

                                      F-26
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


NOTE 11: ACQUISITIONS AND INVESTMENTS

INTERNATIONAL BUILDING TECHNOLOGIES, INC.

On May 2, 2007,  the Company  entered into a Stock Sale and  Purchase  Agreement
with Axia Group, Inc. ("Axia"),  IBT and its Hong Kong subsidiary IBT Hong Kong,
pursuant to which the Company acquired  50,000,000  shares of IBT's common stock
(or  approximately  80% of IBT's issued and outstanding  common stock) from Axia
for consideration of $2,300,000 consisting of a (i) $1,000,000  Convertible Note
and  (ii)  20,000,000  common  shares  of  the  Company  valued  at  $1,300,000.
Subsequently, on September 27, 2007, the Company and Axia Group renegotiated the
terms and agreed to rescind the $1,000,000 Convertible Promissory Note, changing
the purchase  price to  $1,300,000.  The value of the  20,000,000  common shares
issued was determined  based on the average market price of the Company's common
shares over the 2-day period before the terms of the acquisition  were agreed to
and announced.

IBT owns the rights to manufacture and sell light weight building panels used in
construction all over the world. The building panels can be used in a variety of
ways to erect buildings up to six stories tall without the need of a traditional
wood or steel frame  structure.  It is also versatile in its use and can be used
to create unique  architectural  design elements.  Management  believes that the
Company's panel based building  technology  allows for the rapid, cost effective
construction  of  residential,  commercial,  and high-rise  buildings  utilizing
materials  that  are  greater  in  strength  and   appearance,   economical  and
eco-friendly.  Based  on  standard  building  codes  prescribed  by  authorities
worldwide,   the  Company's   technology   will  meet  and  exceed  the  minimum
requirements.  The Company also provides  customers with  architectural  design,
panel supply,  installation  supervision,  engineering,  training, and technical
support.  IBT Hong Kong has contractual rights and business  relationships to do
business in China.

The  acquisition  has  been  accounted  for as a  purchase  in  accordance  with
Statement of Financial  Accounting  Standard No. 141, " Business  Combinations".
The total purchase price was allocated as follows:

     Cash                         $     6,207
     Fixed assets                       6,271
     Other assets                       3,539
     Current liabilities               (4,294)
     Minority Interest                (15,000)
     Goodwill                       1,303,277
                                  -----------
     Purchase price               $ 1,300,000
                                  ===========

Goodwill is subject to an annual  impairment  test. The Company has conducted an
annual  impairment  test on the  goodwill  and  concluded  that the  there is no
impairment on the asset as of December 31, 2007.

The  following is the  supplemental  pro forma  information  that  discloses the
results of operations as though the business  combination  had been completed as
of the  beginning  of the  period  being  reported  on. A gain in the  amount of
$77,000 was recognized  prior to the acquisition by the Company.  This relief of
debt by the debt holder was part of the Stock Sale and Purchase Agreement.  This
item is a nonrecurring item and only applies to pro forma results of operations.
During the corresponding  periods in the preceding year, IBT had no activity and
the subsidiary IBT Hong Kong was not in existence.

                                      F-27
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


               INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
               PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                        Year Ended December 31,
                                                                  -----------------------------------
                                                                      2007                   2006
                                                                  ------------           ------------
<S>                                                               <C>                    <C>
Operating loss                                                    $   (746,620)          $         --
Other income (expense):
  Interest income                                                          385                     --
  Interest expense                                                    (309,585)                    --
  Gain on extinguishment of debt                                         6,157                     --
  Minority interest in net loss of subsidiary                           15,000                     --
  Other income (expense)                                                 3,051                     --
                                                                  ------------           ------------
      Total other income (expense)                                    (284,992)                    --
                                                                  ------------           ------------
Loss from continuing operations                                     (1,031,612)                    --
                                                                  ------------           ------------
Discontinued operations:
  Income (loss) from operations of discontinued business              (199,378)            (1,223,863)
  Income (loss) on disposal of assets                                   70,728                 34,152
                                                                  ------------           ------------
Income (loss) on discontinued operations                              (128,650)            (1,189,711)
                                                                  ------------           ------------
Net loss                                                            (1,160,263)            (1,189,711)

Preferred dividend                                                     (50,000)                    --
                                                                  ------------           ------------
Net loss attributable to common share                               (1,210,263)            (1,189,711)
                                                                  ============           ============
Other comprehensive income:
  Foreign Currency Translation                                             (73)                    --
                                                                  ------------           ------------
Comprehensive income (loss)                                       $ (1,210,336)          $ (1,189,711)
                                                                  ============           ============
Net loss per common share - basic and diluted
  Continuing operations                                           $      (0.04)          $         --
                                                                  ============           ============
  Discontinued operations                                         $      (0.01)          $      (0.65)
                                                                  ============           ============
  Net loss per common share                                       $      (0.05)          $      (0.65)
                                                                  ============           ============
Weighted average common shares outstanding:
  Basic                                                             23,586,631              1,816,896
                                                                  ============           ============
</TABLE>

SUINING  YINFA  CONSTRUCTION  AND  ENGINEERING  CO.  - ROSE  TOP  GRADE  PROJECT
(INVESTMENT)

In July 2007, IBT Hong Kong , entered into an asset and purchase  agreement with
China based Suining Yinfa  Construction & Engineering  Co, Ltd. for 51% interest
in a Chinese building project named Rose Top Grade (Rose Best) Project. The Rose
Best Project,  is located in the Sichuan  Province of China and consists of four
upscale  residential  apartment  buildings with a total building area of 537,000
square  feet.  The  50,000,000  RMB  (approximately  $6,700,000  USD) project is
anticipated to generate  revenues over the next 12 months,  51% of which will be
allocated to our  subsidiary  IBT Hong Kong.  We purchased  51% of the Rose Best
Project  from  Suining  Yinfa for a $350,000 USD  Convertible  Promissory  Note,
payable July 2009. On December 12, 2007,  the Company  converted  this note into

                                      F-28
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


350,000  shares of the Company's  Series E preferred  stock.  As of December 31,
2007 the $350,000 deposit is held as a deposit on the Consolidated Balance Sheet
and will not be  considered  an  investment  in the joint venture of the project
until  Suining  Yinfa  Construction  &  Engineering  Co, Ltd. has  completed the
foundation ("Ground Zero") for the project pursuant to the agreement.

NOTE 12:  COMMITMENTS AND CONTINGENCIES

ROYALTIES

Under  the  terms of the  license  agreement  described  in Note 5 -  Intangible
Assets,  the Company is obligated to pay Michael  Wachholz a royalty equal to 7%
of all  revenues  generated  through the sale of GS610 brake  fluid.  Due to the
change in business from the motor sports  business to the  manufacture  of light
weight building  panels,  the license was abandoned in accordance with Statement
of Financial  Accounting  Standard No. 144,  "Accounting  for the  Impairment or
Disposal of Long Lived  Assets." As a result no royalties were generated in 2007
or 2006.

LITIGATION

As of December 31, 2007 there is no threatened or pending litigation against the
Company. The following lawsuit below was settled on April 16, 2007:

CASE NUMBER 05CV5129 X-CLEARING CORPORATION V. MOTORSPORTS EMPORIUM, INC.

During the third quarter of 2005, the Company was made a defendant in the matter
of  X-Clearing  Corporation,  FKA Global Stock  Transfer  and Global  Securities
Transfer v. Ten Stix,  Inc., NKA MotorSports  Emporium,  Inc.,  filed on July 1,
2005,  in the District  Court for the City and County of Denver  Colorado,  case
number 05CV5129.  The plaintiff alleged breach of contract,  collection of debts
owed and bad faith  pertaining  to  activities  of prior  management  and sought
damages in excess of $35,000.  In July 2006,  a judgment was entered in favor of
X-Clearing  Corporation against MotorSports Emporium for the principal amount of
$16,856 plus prejudgment interest of $3,640, in addition to costs and reasonable
attorney  fees. On November 27, 2006, the judgment was  domesticated  in Arizona
(CV2006-018060 and  CV2006-018061) for the amount of $20,496,  costs of $912 and
attorney fees of $19,231.  The judgment  will accrue  interest at the rate of 8%
per annum until paid.

On April 16, 2007, the Company paid X-Clearing $32,000 in cash and approximately
$958  also in cash to Ikon for  costs of  copying  or  printing  transfer  agent
records. Such amounts were accrued during the previous year.

NOTE 13: STOCK OPTIONS AND WARRANTS

EMPLOYEE STOCK OPTIONS

The Company's  stock options  awarded to employees  contain a variable  exercise
price that is dependent  upon the market price of the Company's  common stock at
the date of exercise  and,  therefore,  are  accounted  for as variable  awards.
During the years  ended  December  31,  2007 and 2006,  the  Company  recognized
$30,698 and $383,698,  respectively,  of  compensation  expense  associated with
stock options of which has been reclassified to discontinued Operation.

All shares  were  granted in 2006 and the first  quarter of 2007 and were valued
based on quoted  market  prices on the date of grant.  All  granted  shares were
fully exercised by the first quarter of 2007 and were expensed at that time.

As of December 31, 2007 the Company had no stock options outstanding.

                                      F-29
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


The following chart  summarizes the Stock Options  activity of the Company as of
period ended December 31, 2007.

                                                      Weighted Average
             Date                        Shares        Exercise Price
             ----                        ------        --------------
     Outstanding 12/31/2006                   --           $  --
     Granted                             478,721            0.05
     Exercised                          (478,421)           0.05
     Expired                                  --              --
                                        --------           -----
     Outstanding at 12/31/2007                --           $  --
                                        ========           =====

WARRANTS

The Company  issued  warrants in  connection  with the  promissory  notes signed
during the year ended December 31, 2007. Each warrant gives the holder the right
to subscribe to and purchase from the Company one share of the Company's  common
stock,  par value of $0.001,  exercisable at $0.25 per share any time after date
of issuance and is set to expire five years after date of issuance.  The Company
issued a total of 2,104,000 warrants for the year ended December 31, 2007.

The fair value of each warrant award is estimated on the date of grant using the
Black-Scholes  option  valuation  model that uses the  assumptions  noted in the
following  table.  Expected  volatilities  are  based on  volatilities  from the
Company's  traded  common stock.  The expected  term of the warrants  granted is
estimated at the contractual term as noted in the individual  option  agreements
and represents  the period of time that the warrants  granted are expected to be
outstanding.  The risk-free rate for the periods within the contractual  life of
the  option  is based on the U.S.  Treasury  bond  rate in effect at the time of
grant for bonds with maturity dates at the estimated term of the options.

                                           Year Ended December 31,
                                                   2007
                                             -----------------
     Expected volatility                     211.36% - 332.74%
     Weighted-average volatility                        30.16%
     Expected dividends                     $              --
     Expected term (in years)                               5
     Risk-free rate                             3.4% -   4.76%

The following  table  summarizes  the warrants the Company issued as of the year
ended December 31, 2007.

<TABLE>
<CAPTION>
                                                                              Weighted-
                                                                Weighted-      Average
                                                                 Average      Remaining       Aggregate
                                                Warrant          Exercise    Contractual      Intrinsic
               Warrants                          Shares           Price         Term            Value
               --------                          ------           -----         ----            -----
<S>                                           <C>               <C>           <C>              <C>
     Outstanding at December 31, 2006                 --          $  --
     Granted                                   2,104,000          $0.25
     Exercised                                        --          $  --
     Forfeited or expired                             --          $  --
                                               ---------          -----       ---------       ---------
     Outstanding at December 31, 2007          2,104,000          $0.25               5       $ 128,931
                                               =========          =====       =========       =========
     Exercisable at December 31, 2007          2,104,000          $0.25               5       $ 128,931
                                               =========          =====       =========       =========
</TABLE>

                                      F-30
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                       FORMERLY MOTORSPORTS EMPORIUM, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 Notes to the Consolidated Financial Statements
                           December 31, 2007 and 2006


NOTE 14:  SUBSEQUENT EVENTS

     -    On January 14, 2008, the Company signed a settlement agreement whereby
          the Company agreed to pay a previous  shareholder  $10,000 in cash and
          3,000,000 shares of the Company's  common stock (without  registration
          under  the   Securities   Act  of  1933)  as   additional   and  final
          consideration  for the Series B  Preferred  shares he sold back to the
          Company.
     -    On January 16, 2008,  the Company  issued two  Convertible  Promissory
          Notes  totaling  $30,000 with 10% interest  rate, due date of December
          31, 2008, and a conversion clause which allows the Payee to convert up
          to 4.99% of the Company's  outstanding  stock at 60% of the average of
          the 3 lowest  closing bid prices within the past 20 trading days prior
          to conversion.
     -    On  January  18,  2008,   the  Company  signed  a  MOU  with  Hangzhou
          Construction  Engineering  Group  Co.,  Ltd to build  two  structures,
          totaling  approximate  59,000 square feet,  with the  Company's  panel
          technology  and products in the city of Changchun,  Jilin  Province of
          China.
     -    In January 2008,  the Company  issued  1,904,762  shares of its common
          stock  valued at  $5,000  for past  unpaid  Consulting  services.  The
          Company  also issued  8,748,574  shares of its common  stock valued at
          $22,387  for  repayment  of debt.  Additionally,  the  Company  issued
          3,000,000  shares  of  its  common  stock   (unregistered   under  the
          Securities  Act of 1933) valued at $7,500 for the  settlement  of debt
          mentioned above.
     -    In January  2008,  the Rose Top  project,  in which the  company has a
          $350,000  deposit,  reached Ground Zero.  Pursuant to the contract the
          joint  venture  has become  effective.  As of January  31,  2008,  the
          project booked approximately US $1.8 million in progress payments. The
          project is expected to book a total of  approximately  US $6.7 million
          in revenues  once it is  completed.  The Company has a 51% interest in
          the income and loss of the joint  venture.  The Company is not assured
          of any receipt of cash payments in the investment.
     -    On February 12 and again on February 27, 2008,  the Company issued two
          Convertible  Promissory Notes totaling $35,000 with 10% interest rate,
          due date of December  31, 2009,  and a conversion  clause which allows
          the Payee to convert up to 4.99% of the Company's outstanding stock at
          60% of the average of the 3 lowest  closing bid prices within the past
          20 trading days prior to conversion.
     -    In February 2008, the Company issued 2,992,064 shares of the Company's
          common  stock valued at $11,250 for past unpaid  Consulting  services.
          The Company also issued 1,703,698 shares of its stock valued at $4,396
          for repayment of debt.
     -    On March 1, 2008, the Company signed a finance  agreement for $10,800,
          with  monthly  payments  of $1,254,  to finance  the  purchase  of the
          Company's Directors and Officers Insurance.
     -    On March 13 and  again on March  18,  2008,  the  Company  issued  two
          Convertible  Promissory Notes totaling $30,000 with 10% interest rate,
          due date of December  31, 2009,  and a conversion  clause which allows
          the Payee to convert up to 4.99% of the Company's outstanding stock at
          60% of the average of the 3 lowest  closing bid prices within the past
          20 trading days prior to conversion.
     -    On  March  17,  2008,  the  Company  authorized  the  adoption  of the
          Company's Code of Ethics (attached as an exhibit).
     -    In March  2008,  the  Company  issued  14,595,874  shares of its stock
          valued at $23,251  for  repayment  of debt.  The  Company  also issued
          9,282,629  shares of the Company's  common stock valued at $15,848 for
          consulting services. Additionally, the Company issued 2,666,667 shares
          of its stock valued at $5,000 for past consulting services.

                                      F-31