OMB APPROVALOMB Number:3235-0420SECURITIES AND EXCHANGE COMMISSIONExpires:  March 31, 2007Washington, D.C. 20549Estimated average burdenForm 10-KSBHours per response1646
  (Mark One)  SANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2006  £TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to________________ Commission file number ___________________________________  FREEDOM RESOURCES ENTERPRISES, INC. (Name of small business issuer in its charter)  Nevada87-0567033(State or other jurisdiction of incorporation or organization)(I.R.S. Employer
Identification No.)  901 East 7800 South, Midvale, UT84047(Address of principal executive offices(Zip Code)  Issuers telephone number: (801) 566-5931  Securities registered under Section 12(b) of the Exchange Act:  None  Title of each className of each exchange on which registered  Securities registered under Section 12(g) of the Exchange Act:  None  Common Stock, par value $0.001 (Title of class)  Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act  £  Note Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.  SEC 2337 (12-05) Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.  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  S    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. S  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                  Yes  S     No £  State issuers revenues for its most recent fiscal year.  $ 0.00  State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.)  The aggregate market value of the issuers common stock held by non-affiliates at March 1, 2007 is deemed to be $69,000.  Note: If determining whether a person is an affiliate will involve an unreasonable effort and expense, the issuer may calculate the aggregate market value of the common equity held by non-affiliates on the basis of reasonable assumptions, if the assumptions are stated.  (ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)  Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes £   No £  (APPLICABLE ONLY TO CORPORATE REGISTRANTS)  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date. At December 31, 2006: 5,200,000 shares of common stock, $.001 par value.  DOCUMENTS INCORPORATED BY REFERENCE  If the following documents are incorporated by reference, briefly describe them and identify the part of the Form 10-KSB (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) any annual report to security holders; (2) any proxy or information statement; and (3) any prospectus filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933 (Securities Act). The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1990).  Transitional Small Business Disclosure Format (Check one): Yes  £ ; No S  2   FREEDOM RESOURCES ENTERPRISES, INC.  INDEX PagePART IItem 1.  Description of Business

Item 2.  Description of Property

Item 3.  Legal Proceedings

Item 4.  Submission of Matters to a Vote of Security Holders4

6

6

6PART IIItem 5.  Market for Common Equity and Related Stockholder Matters

Item 6.  Managements Discussion and Analysis or Plan of Operation

Item 7.  Financial Statements

Item 8.  Changes In and Disagreements with Accountants on Accounting and
Financial Disclosure7

7

9


9PART IIIItem 9.  Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act

Item 10.  Executive Compensation

Item 11.  Security Ownership of Certain Beneficial Owners and Management

Item 12.  Certain Relationships and Related Transactions

Item 13.  Exhibits and Reports on Form 8-K

Item 14.  Principal Accountant Fees and Services9

10

10

10

11

11Signatures12  (Inapplicable items have been omitted)  3   FORWARD-LOOKING STATEMENT NOTICE  When used in this report, the words may, will, expect, anticipate, continue, estimate, project, intend, and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding events, conditions, and financial trends that may affect the Companys future plans of operations, business strategy, operating results, and financial position.  Persons reviewing this report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors.  Such factors are discussed under the headings Item 1.  Description of Business, and Item 6.  Managements Discussion and Analysis of Financial Condition and Results of Operations, and also include general economic factors and conditions that may directly or indirectly impact the Companys financial condition or results of operations.  PART I  Item 1.  Description of Business.  Freedom Resources Enterprises, Inc., was incorporated in the state of Nevada on November 6, 1996 to research and publish a self-improvement book based on the insights and understandings of major world cultures.  The working title for the proposed book was Personal Freedom and Prosperity.  We did not publish the book, but instead used materials gathered during our research to develop a series of eight self-help workshops.  Each self-taught workshop consisted of an audiotape and a workbook. The workshops were sold online under a marketing agreement with Life Discovery Institute, a related party that maintains a website dedicated to self-improvement products and education.  As of December 31, 2006, we have total revenue of $3,560 since inception on November 6, 1996.  Because we have not generated the expected revenue, on October 1, 2005 we decided to pursue other business opportunities.  Freedom Resources Enterprises, Inc. intends to seek, investigate, and if warranted, acquire an interest in a business opportunity.  We are not restricting our search to any particular industry or geographical area.  We may therefore engage in essentially any business in any industry.  Our management has unrestricted discretion in seeking and participating in a business opportunity, subject to the availability of such opportunities, economic conditions and other factors.  The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of its business judgment.  There is no assurance that we will be able to identify and acquire any business opportunity which will ultimately prove to be beneficial to our company and shareholders.  Because we have no specific business plan or expertise, our activities are subject to several significant risks.  In particular, any business acquisition or participation we pursue will likely be based on the decision of management without the consent, vote, or approval of our shareholders.  Sources of Opportunities  We anticipate that business opportunities may arise from various sources, including officers and directors, professional advisers, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.  We will seek potential business opportunities from all known sources, but will rely principally on the personal contacts of our officers and directors as well as indirect associations between them and other business and professional people. Although we do not anticipate engaging professional firms specializing in business acquisitions or reorganizations, we may retain such firms if management deems it in our best interests.  In some instances, we may publish notices or advertisements seeking a potential business opportunity in financial or trade publications.   4   Criteria  We will not restrict our search to any particular business, industry or geographical location.  We may acquire a business opportunity in any stage of development.  This includes opportunities involving start up or new companies. In seeking a business venture, management will base their decisions on the business objective of seeking long-term capital appreciation in the real value of our company.  We will not be controlled by an attempt to take advantage of an anticipated or perceived appeal of a specific industry, management group, or product.  In analyzing prospective business opportunities, management will consider the following factors:  · available technical, financial and managerial resources;  · working capital and other financial requirements;  · the history of operations, if any;  · prospects for the future;  · the nature of present and expected competition;  · the quality and experience of management services which may be available and the depth of the management;  · the potential for further research, development or exploration;  · the potential for growth and expansion;  · the potential for profit;  · the perceived public recognition or acceptance of products, services, trade or service marks, name identification; and other relevant factors.  Generally, our management will analyze all available factors and make a determination based upon a composite of available facts, without relying on any single factor.  Methods of Participation of Acquisition  Management will review specific businesses and then select the most suitable opportunities based on legal structure or method of participation.  Such structures and methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures, other contractual arrangements, and may involve a reorganization, merger or consolidation transaction.  Management may act directly or indirectly through an interest in a partnership, corporation, or other form of organization.  Procedures  As part of our investigation of business opportunities, officers and directors may meet personally with management and key personnel of the firm sponsoring the business opportunity.  We may visit and inspect material facilities, obtain independent analysis or verification of certain information provided, check references of management and key personnel, and conduct other reasonable measures.   5   We will generally ask to be provided with written materials regarding the business opportunity.  These materials may include the following:  · descriptions of product, service and company history; management resumes;  · financial information;  · available projections with related assumptions upon which they are based;  · an explanation of proprietary products and services;  · evidence of existing patents, trademarks or service marks or rights thereto;  · present and proposed forms of compensation to management;  · a description of transactions between the prospective entity and its affiliates;  · relevant analysis of risks and competitive conditions;  · a financial plan of operation and estimated capital requirements;  · and other information deemed relevant.  Competition  We expect to encounter substantial competition in our efforts to acquire a business opportunity.  The primary competition is from other companies organized and funded for similar purposes, small venture capital partnerships and corporations, small business investment companies and wealthy individuals.  Employees  We do not currently have any employees but rely upon the efforts of our officers and directors to conduct our business. We do not have any employment or compensation agreements in place with our officers and directors although they are reimbursed for expenditures advanced on our behalf.  Item 2.  Description of Property  We do not currently own or lease any property.  Mr. Christiansen allows us to use his office at 901 East 7800 South in Midvale, Utah on a rent-free basis.  Our current operations do not require independent facilities and we expect this arrangement to continue until our activities expand to a point necessitating relocation.  Item 3.  Legal Proceedings  Management is not aware of any current or pending legal proceedings involving Freedom Resources, our officers or directors.  Item 4.  Submission of Matters to a Vote of Securities Holders  On October 10, 2006 the shareholders approved, through written consent representing 81.2% of the total issued and outstanding common shares, a 1 for 2.5 Reverse Stock Split wherein all shareholders decreased their respective number of shares to 40% of their total.  As a result of this reverse stock split, the number of issued and outstanding shares of the corporation decreased from Thirteen Million shares (13,000,000) to Five Million Two Hundred Thousand shares (5,200,000).  6   PART II  Item 5.  Market for Common Equity and Related Stockholder Matters  At December 31, 2006, the number of record holders of our Common Stock was 40. Total shares issued and outstanding were 5,200,000. The shares outstanding reflect a 10 for 1 forward stock split effected in February 2005 and a 1 for 2.5 reverse stock split effected in October 2006.  Such number of record holders was determined from our shareholders list, and does not include beneficial owners whose shares are held in nominee accounts with brokers, dealers, banks and clearing agents. Our common stock is listed on the Over the Counter Bulletin Board ("OTCBB"), under the symbol "FDRE".  As of March 1, 2007, we had 40 shareholders holding 5,200,000shares of common stock.  CLOSING BIDCLOSING ASK2006HighLowHighLowJune 9 (first available)
Thru June 30NONENONENONENONEJuly 3 Thru Sept. 29.10.06NONENONEOct. 2 Thru Nov. 14.10.10NONENONENov. 15 Thru Dec. 29NONENONENONENONE  The above quotations, as provided by Pink Sheets, LLC, represent prices between dealers and do not include retail markup, markdown or commission.  In addition, these quotations do not represent actual transactions.  We have not paid any dividends upon our Common Stock and do not contemplate paying any dividends in the foreseeable future.  Our ability to pay dividends is subject to limitations imposed by Nevada law. Under Nevada law, dividends may be paid to the extent that a corporations assets exceed its liabilities and it is able to pay its debts as they become due in the usual course of business.  Item 6.  Managements Discussion and Analysis or Plan of Operation  Results of Operations For the Periods Ending December 31, 2006 and December 31, 2005  We have generated a total of $3,560 in revenues since inception on November 6, 1996.  Net loss was $18,353 for the year ended December 31, 2006 and $19,843 for the year ended December 31, 2005.  Cumulative net loss since inception on November 6, 1996 through December 31, 2006 was $140,713.  Expenses during the year ended December 31, 2006 were $14,205.  Expenses consisted of $0 in depreciation and amortization costs and $14,205 in general and administrative costs.  Expenses for the year ended December 31, 2005 were $25,088 consisting of $25,088 in general and administrative costs and $0 in depreciation and amortization.  General and administrative costs during both 2006 and 2005 were almost exclusively due to professional, legal and accounting fees associated with our public filings.   7   We earned $0 in interest income and incurred interest expense of $4,148 for the year ended December 31, 2006. Our interest income and interest expense for the year ended December 31, 2005 was $0 and $352 respectively.  For the year ended December 31, 2005 we had a $4,097 gain on settlement of debt.  As of December 31, 2006, we had total assets of $3,805 consisting of cash.  At December 31, 2005 total assets were $1,761 consisting of cash.  At December 31, 2006 total liabilities were $75,643, which consisted of convertible notes payable for $5,000 and current liabilities of $70,643, which consisted of $5,000 in accounts payable, $60,000 in an advances from a shareholder, $543 in accrued interest owed to a related party, $5,000 convertible notes payable, and $100 in accrued taxes.  Total current liabilities at December 31, 2005 were $64,203 consisting of $53,571 in accounts payable, $352 in accrued interest to a related party on $10,000 of promissory notes payable, $180 in a related party accounts payable, and $100 in accrued taxes.  In March, April and August 2006 we borrowed a total of $60,000 from the President of the Company-- a shareholder, and the Director.  The advances bear no interest and are due on demand; however, the Company is imputing interest at 8% per annum.  The total accrued interest on the shareholder advances was $3,409 and was contributed to Capital in Excess of Par.  In addition, during August 2006 we borrowed an additional $5,000 from the President of the Company and issued a convertible promissory note which accrues interest at 8% per annum, and is due in August 2008.  The note is convertible into 400,000 shares of common stock.  Accrued interest at December 31, 2006 totaled $543.  In June 2006 the Company converted a $5,000 convertible note payable made in February 2005, along with accrued interest of $548, into 400,000 shares of common stock.  In October 2006, the Company effected a 1 for 2.5 reverse stock split.  The reverse stock split is reflected in all financial statements and managements discussion and analysis or plan of operation presented.  In February and December 2005 we borrowed $5,000 and $5,000, respectively, from a shareholder and issued two convertible promissory notes which accrue interest at 8% per annum, and are due in February 2007 and December 2007.  Both notes are convertible into 400,000 shares and 400,000 shares, respectively.  Accrued interest at December 31, 2005 totaled $352.  The February 2005 note was converted in June 2006, as stated above.  In September 2005 we issued 2,900,000 shares of common stock to our President and Director for $7,250 in cash.  Liquidity and Capital Resources  At December 31, 2006 we had $3,805 in cash and have generated since inception a total of only $3,560 in revenue.    Since October 2005 we have suspended all operations and have declared the Company a public shell.  We currently intend to seek, investigate, and if warranted, acquire an interest in a business opportunity.  In June 2006, the Company issued 400,000 shares of common stock on conversion of a note payable of $5,000 with accrued interest of $548.  During the year ended December 31, 2006, a shareholder made advances to the Company of $60,000.   These advances are non-interest bearing and due on demand.  The Company is imputing interest at 8%, which is accounted for as a capital contribution.  Total imputed interest for 2006 is $3,409.  We anticipate that our expenses will remain the same  over the next twelve months due to ongoing accounting and legal fees relating to our status as a reporting company.  We estimate that resulting general and administrative expenses for the next twelve months will be approximately $15,000.  We also have current liabilities of $70,643.  As a result, we will need to raise approximately $85,000 to pay our debts and meet our ongoing financial needs for the forthcoming year.  We have primarily financed our operations through the sale of common stock, trade payables, shareholder advances, and notes payable.  In order to maintain our status as a public shell we may sell additional stock, arrange debt financing or seek advances from our officers or shareholders.  We do not have any commitments for financing.   8   Plan of Operation  We expect to encounter significant difficulties in effectuating our business plan.  As of December 31, 2006, we have generated a total of $3,560 in revenue.  Because of our history of losses, lack of profitable operations and working capital deficit our auditors have expressed substantial doubt about our ability to continue as a going concern.  During the next twelve months we anticipate that our president, Neil Christiansen, will be actively pursuing other business opportunities.  Item 7.  Financial Statements  The response to this item is incorporated by reference to the financial statements beginning at page 13.  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.  The Company's management, with the participation of the chief executive officer and the chief financial officer, carried out an evaluation of the effectiveness of the Company's "disclosure, controls and procedures" (as defined in the Securities Exchange Act of 1934 (the "Exchange Act") Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this annual report (the "Evaluation Date").  Based upon that evaluation, the chief executive officer and the chief financial officer concluded that, as of the Evaluation Date, the Company's disclosure, controls and procedures are effective, providing them with material information relating to the Company as required to be disclosed in the reports the Company files or submits under the Exchange Act on a timely basis.  (b) Changes in Internal Control over Financial Reporting.  There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer, that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.  Item 8B.  Other Information  There are no further disclosures. All information that was required to be disclosed in a Form 8-K during the fourth quarter, 2006 has been disclosed.  PART III  Item 9.  Directors, Executive Officers, Promoters and Control Persons; Compliance With Section 16(a) of the Exchange Act  The following table sets forth the name, age, position and office term of each executive officer and director of the Company.  NameAgePositionSinceNeil Christiansen71President and DirectorNovember, 1996  All officers hold their positions at the will of the Board of Directors.  All directors hold their positions for one year or until their successors are elected and qualified.  Set forth below is certain biographical information regarding each of our executive officers and directors:   9   Neil Christiansen, President and Director.  Following his college graduation, Mr. Christiansen worked in secondary education as a teacher and administrator until entering the business world in 1965, when he founded Heartland Realty in Salt Lake City, Utah.  From 1976 to 1982, he served as the Republican State Chairman for Utah.  In 1983, he became the founding director of Search for Common Ground, a Washington DC based organization established to engage leaders in the Soviet and U.S. governments and business in meaningful dialogue.  From 1984 to 1986, he coordinated the international acquisition, shipment, and distribution of multiple speed cassette copiers into various parts of the Soviet Union for The Door of Hope.  In 1986, Mr. Christiansen founded Free Indeed, a foundation dedicated to developing personal growth programs.  Since 1998, he has been self-employed, devoting his time to research, publishing curricula, leading seminars and directing self-improvement workshops and conferences.  Other Reporting Company Activities  None.  Item 10.  Executive Compensation  We have no arrangements for the remuneration of officers and directors, except that they will be entitled to receive reimbursement for actual, demonstrable out-of-pocket expenses, including travel expenses, if any, made on our behalf in the investigation of business opportunities.  No remuneration has been paid to our officers or directors.  There are no agreements or understandings with respect to the amount or remuneration those officers and directors are expected to receive in the future.  Management takes no salaries from us and we do not anticipate paying any salaries in the foreseeable future.  At the date of this report, no stock options have been issued to our directors.  Item 11.  Security Ownership of Certain Beneficial Owners and Management  The following table sets forth as of December 31, 2006, the name and the number of shares of our Common Stock, par value $.001 per share, held of record or beneficially by each person who held of record, or was known by us to own beneficially, more than 5% of the 5,200,000 issued and outstanding shares of the our Common Stock, and the name and shareholdings of each director and of all officers and directors as a group.  The shares outstanding reflect a 10 for 1 forward stock split effected in February 2005, and a 1 for 2.5 reverse stock split effected in October 2006.  Name and AddressNumber of Shares
Beneficially Owned% of SharesNeil Christiansen (1)
901 East 7800 South
Midvale, UT  840473,820,00073.46%Officers and Directors as a Group:
1 person3,820,00073.46%  (1) Officer and/or director.  There are no contracts or other arrangements that could result in a change of control of Freedom Resources.  Item 12.  Certain Relationships and Related Transactions  We utilize office space provided at no charge by our president, Neil Christiansen.  Management believes the use of Mr. Christiansens office is of negligible value as our current operations do not require any staff or independent facilities.   10   In March, April and August 2006 Mr Christiansen advanced the Company a total of $60,000.  These advances bear no interest and are due on demand; however, the Company is imputing interest at 8% per annum.  In addition, during August 2006, Mr Christiansen loaned the Company an additional $5,000 and was issued a convertible promissory note which accrues interest at 8% per annum, and is due in August 2008.  The note is convertible into 400,000 shares of common stock.  Accrued interest on these advances at December 31, 2006 totaled $3,409 and were contributed to Capital in Excess of Par.  During 2005 Mr. Christiansen advanced $2,250 in cash to the Company.  At December 31, 2005 the advance had been repaid.  Item 13.  Exhibits and Reports on Form 8-K  Exhibit NoSEC Ref. NoTitle of DocumentLocation199.1Code of Ethics*231.1Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a)of the Securities Exchange Act of 1934, as amendedAttached332.1Certification of the Principal Executive Officer pursuant toU.S.C. Section 1350 as adopted pursuant to Section 906of the Sarbanes-Oxley Act of 2002**Attached  * Filed as an Exhibit on Form 10-KSB which was filed March 31, 2003, is incorporated herein by reference.  **The Exhibit attached to this Form 10-KSB shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.  Reports on Form 8-K: No reports on Form 8-K were filed by Freedom Resources during the last quarter of the period covered by this report.  Item 14. Principal Accountant Fees and Services  The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Companys annual financial statement and review of financial statements included in the Companys 10-QSB reports and services normally provided by the accountant in connection with statutory and regulatory filings or engagements were $6,829 for fiscal year ended 2006 and $15,845 for fiscal year ended 2005. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the Companys financial statements that are not reported above were $0 and $0 for fiscal years ended 2006 and 2005, respectively.  The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $0 for fiscal year ended 2006 and consisted of tax compliance services and $0 for fiscal year ended 2005 and consisted of tax compliance services.  There were no other aggregate fees billed in either of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above.  We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee.  Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.  We do not rely on pre-approval policies and procedures.   11    SIGNATURES  In accordance with the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  FREEDOM RESOURCES ENTERPRISES, INC.   Date: March 2, 2007 /s/ Neil Christiansen CEO and Chief Financial Officer     In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.      Date: March 2, 2007 /s/ Neil Christiansen Director   12      FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  FINANCIAL STATEMENTS  DECEMBER 31, 2006        13   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]     CONTENTS  PAGE   Report of Independent Registered Public Accounting Firm 15    Balance Sheet, December 31, 2006 16   — Statements of Operations, for the years ended December 31, 2006 and 2005 and from inception on November 6, 1996 through December 31, 2006 17   — Statement of Stockholders Equity (Deficit), from inception on November 6, 1996 through December 31, 2006 18-19   — Statements of Cash Flows, for the years ended December 31, 2006 and 2005 and from inception on November 6, 1996 through December 31, 2006 20-21    Notes to Financial Statements 22 - 28      14         REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    Board of Directors FREEDOM RESOURCES ENTERPRISES, INC. Salt Lake City, Utah  We have audited the accompanying balance sheet of Freedom Resources Enterprises, Inc. [a development stage company] as of December 31, 2006, and the related statements of operations, stockholders' equity (deficit) and cash flows for the years ended December 31, 2006 and 2005 and for the period from inception on November 6, 1996 through December 31, 2006.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.  In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Freedom Resources Enterprises, Inc. as of December 31, 2006, and the results of its operations and its cash flows for the years ended December 31, 2006 and 2005 and for the period from inception on November 6, 1996 through December 31, 2006, in conformity with accounting principles generally accepted in the United States of America.  The accompanying financial statements have been prepared assuming that Freedom Resources Enterprises, Inc. will continue as a going concern.  As discussed in Note 7 to the financial statements, Freedom Resources Enterprises, Inc. has incurred losses since its inception and has not yet established profitable operations.  Further, the Company has current liabilities in excess of current assets.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  Managements plans in regards to these matters are also described in Note 7.  The financial statements do not include any adjustments that might result from the outcome of these uncertainties.   /s/ Pritchett, Siler & Hardy, P.C. PRITCHETT, SILER & HARDY, P.C. February 20, 2007 Salt Lake City, Utah    15    FREEDOM RESOURCES ENTERPRISES, INC.
[A Development Stage Company]

BALANCE SHEET

ASSETSDecember 31,2006CURRENT ASSETS:Cash$3,805Total Current Assets3,805PROPERTY AND EQUIPMENT,net--OTHER ASSETS:Manuscripts and transcripts, net-$3,805LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)CURRENT LIABILITIES:Accounts payable$5,000Accrued taxes100Accrued interest  related party543Advances from a shareholder60,000Convertible note payable5,000Total Current Liabilities70,643CONVERTIBLE NOTE PAYABLE  RELATED PARTY5,000Total Liabilities75,643STOCKHOLDERS' EQUITY (DEFICIT):Preferred stock, $.001 par value,5,000,000 shares authorized,no shares issued and outstanding--Common stock, $.001 par value,50,000,000 shares authorized,5,200,000 shares issued andoutstanding5,200Capital in excess of par value63,675Deficit accumulated during thedevelopment stage(140,713)Total Stockholders' Equity (Deficit)(71,838)$3,805  The accompanying notes are an integral part of this financial statement.  16    FREEDOM RESOURCES ENTERPRISES, INC.[A Development Stage Company]STATEMENTS OF OPERATIONSFrom InceptionFor the Yearson November 6,Ended December 31,1996 ThroughDecember 31,200620052006REVENUE$-$1,500$3,560EXPENSES:Depreciation and amortization--4,174General and administrative14,20525,088103,564Research and development--15,674Impairment of long-lived assets--21,285Total Expenses14,20525,088144,697LOSS BEFORE OTHER INCOME(EXPENSE)(14,205)(23,588)(141,137)OTHER INCOME (EXPENSE):Interest Income--1,216Interest Expense  related party(4,148)(352)(4,668)Gain on settlement of debt-4,0974,097Total Other Income (Expense)(4,148)3,745645LOSS BEFORE INCOME TAXES(18,353)(19,843)(140,492)CURRENT TAX EXPENSE----DEFERRED TAX EXPENSE---LOSS FROM CONTINUINGOPERATIONS(18,353)(19,843)(140,492)CUMULATIVE EFFECT OF CHANGEIN ACCOUNTING PRINCIPLE--(221)NET LOSS$(18,353)$(19,843)$(140,713)LOSS PER COMMON SHARE:Continuing operations$(.00)$(.00)Change in accounting principle--Loss per common share$(.00)$(.00)  The accompanying notes are an integral part of these financial statements.  17    FREEDOM RESOURCES ENTERPRISES, INC.
[A Development Stage Company]
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FROM INCEPTION ON NOVEMBER 6, 1996
THROUGH DECEMBER 31, 2006DeficitAccumulatedPreferred StockCommon StockCapital inDuring theExcess ofDevelopmentSharesAmountSharesAmountPar ValueStageBALANCE, November 6, 1996-$--$-$-$-Issued 1,000,000 shares of common stockfor cash of $2,500, or $.0025 per share,November 1996--1,000,0001,0001,500-Net loss for the period endedDecember 31, 1996-----(50)BALANCE,December 31, 1996--1,000,0001,0001,500(50)Issued 95,000 shares of common stockfor cash of $9,500, or $.10 per share,August 1997--95,000959,405-Net loss for the year ended December 31, 1997-----(1,661)BALANCE,December 31, 1997--1,095,0001,09510,905(1,711)Issued 405,000 shares of common stockfor cash of $40,500, or $.10 per share,net of stock offering costs of $5,000,May and August 1998--405,00040535,095-Net loss for the year endedDecember 31, 1998-----(4,942)BALANCE,December 31, 1998--1,500,0001,50046,000(6,653)Net loss for the year endedDecember 31, 1999-----(2,243)BALANCE, December 31, 1999--1,500,0001,50046,000(8,896)Net loss for the year endedDecember 31, 2000-----(40,956)BALANCE, December 31, 2000--1,500,0001,50046,000(49,852)Net loss for the year endedDecember 31, 2001-----(15,669)BALANCE, December 31, 2001--1,500,0001,50046,000(65,521)Net loss for the year endedDecember 31, 2002-----(13,921)BALANCE, December 31, 2002--1,500,0001,50046,000(79,442)   [Continued]    18    FREEDOM RESOURCES ENTERPRISES, INC.
[A Development Stage Company]
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FROM INCEPTION ON NOVEMBER 6, 1996
THROUGH DECEMBER 31, 2006
[Continued]DeficitAccumulatedPreferred StockCommon StockCapital inDuring theExcess ofDevelopmentSharesAmountSharesAmountPar ValueStageBALANCE, December 31, 2002--1,500,0001,50046,000(79,442)Net loss for the year endedDecember 31, 2003-----(20,946)BALANCE, December 31, 2003--1,500,0001,50046,000(100,388)Issued 400,000 shares of common stockon conversion of note payable, September 2004--400,0004004,768-Net loss for the year endedDecember 31, 2004-----(2,129)BALANCE, December 31, 2004--1,900,0001,90050,768(102,517)Issued 2,900,000 shares of common stockfor cash of $7,250 September 2005--2,900,0002,9004,350-Net loss for the year endedDecember 31, 2005-----(19,843)BALANCE, December 31, 2005-$-4,800,000$4,800$55,118$(122,360)Issued 400,000 shares of common stockon conversion of note payable, June 2006--400,0004005,148-Imputed interest on shareholder advances----3,409-Net loss for the year endedDecember 31, 2006-----(18,353)BALANCE, December 31, 2006-$-5,200,000$5,200$63,675$(140,713)  The accompanying notes are an integral part of this financial statement. .  19    FREEDOM RESOURCES ENTERPRISES, INC.
[A Development Stage Company]
STATEMENTS OF CASH FLOWSFrom InceptionFor the Years Endedon November 6,December 31,1996 ThroughDecember 31,200620052006Cash Flows from Operating Activities:Net loss$(18,353)$(19,843)$(140,713)Adjustments to reconcile net loss to net cashused by operating activities:Amortization expense--2,432Depreciation expense--1,742Loss on impairment of long-lived assets--21,285Effect of change in accounting principal--221Gain on settlement of debt-(4,097)(4,097)Non-cash expenses3,957-3,957Changes in assets and liabilities:Increase (decrease) in accounts payable(48,571)8,9809,097Increase(decrease) in accountspayable  related party(180)(240)-Increase(decrease) in accrued taxes(768)100-Increase in accrued interest  related party191352711Net Cash (Used) by Operating Activities(62,956)(15,616)(105,265)Cash Flows from Investing Activities:Purchase of property and equipment--(1,742)Organization costs--(288)Cost of manuscripts--(23,650)Net Cash (Used) by Investing Activities--(25,680)Cash Flows from Financing Activities:Net proceeds from sale of common stock-7,25059,750Stock Offering Costs--(5,000)Proceeds from issuance of note payable5,00010,00020,000Advance from a shareholder60,000(120)60,000Net Cash Provided by Financing Activities65,00017,130134,750Net Increase (Decrease) in Cash2,0441,5143,805Cash at Beginning of Period1,761247-Cash at End of Period$3,805$1,761$3,805Supplemental Disclosures of Cash Flow Information:Cash paid during the period for:Interest$-$-$-Income taxes-$-$-$-  [Continued]   20   The accompanying notes are an integral part of these financial statements.  FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  STATEMENTS OF CASH FLOWS  [CONTINUED]  Supplemental Disclosures of Non-Cash Investing and Financing Activities:  For the Year Ended December 31, 2006: In June 2006, the Company issued 400,000 shares of common stock on conversion of a note payable of $5,000 with accrued interest of $548.  During the year ended December 31, 2006, a shareholder made advances to the Company of $60,000.   These advances are non-interest bearing and due on demand.  The Company is imputing interest at 8%, which is accounted for as a capital contribution.  Total imputed interest for 2006 is $3,409.  For the Year Ended December 31, 2005: In February 2005, the Company settled accounts payable of $9,097 for $5,000 cash and recognized a $4,097 gain on settlement of debt.                                        The accompanying notes are an integral part of these financial statements.  21   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Organization - Freedom Resources Enterprises, Inc. (the Company) was organized under the laws of the State of Nevada on November 6, 1996.  The Company has not generated significant revenues from its planned principal operations and is considered a development stage company as defined in Statement of Financial Accounting Standards No. 7.  The Company originally planned to research and publish a self-improvement book based on the insights and understanding of major world cultures.  However, the Company never published the book but instead used the materials gathered from its research to develop a series of eight self-help workshops.  Because the Company has not generated expected revenue, on October 1, 2005 the Company decided to pursue other business opportunities.  The Company, at the present time, is defined by the SEC as a shell company.  A shell company, (other than an asset-backed issuer), is a company with no or nominal operations and either no or nominal assets, or assets consisting solely of cash and cash equivalents, or assets consisting of any amount of cash and cash equivalents and nominal other assets.    The Company has, at the present time, not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors.  Cash and Cash Equivalents - The Company considers all highly liquid debt investments purchased with a maturity of three months or less to be cash equivalents.  Property and Equipment -Property and equipment are stated at cost.  Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized upon being placed in service.  Expenditures for maintenance and repairs are charged to expense as incurred.  Depreciation is computed for financial statement purposes on a straight-line method over the estimated useful life of five years.  Long-Lived Assets - The Company has adopted Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.  The Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  During the year ended December 31, 2000, the Company recorded an impairment write-down of $21,285 of manuscript costs.  Income Taxes -The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes  [See Note 9].  Revenue Recognition - The Companys revenue has come from the sale of items where the Company acted only as an agent.  The Company recognizes revenue when the product is delivered.  The Company records revenues generated by the sale of items that the Company produces or purchases as inventory on the gross basis.  On a gross basis, the entire sale amount is recorded as revenue.  The Company records revenue generated by the sale of items where the Company only acts as an agent or when the Company has no risk of loss on the net basis.  The Company records revenue generated by Internet sales utilizing third party websites on the net basis.  On a net basis, only the share of revenue belonging to the Company is recorded as revenue.  Stock-Based Compensation - The Company has one stock-based employee compensation plan [See Note 5].  The Company accounts for its plan under the recognition and measurement principles of SFAS No. 123 (revised 2004), Share-Based Payment.  The Company has not issued any stock options or warrants under the plan.  22   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Loss Per Share - The computation of loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with Statement of Financial Accounting Standards No. 128, Earnings Per Share [See Note 10].  Accounting Estimates - The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period.  Actual results could differ from those estimated.  Recently Enacted Accounting Standards -Statement of Financial Accounting Standards (SFAS) No. 151, Inventory Costs - an amendment of ARB No. 43, Chapter 4, SFAS No. 152, Accounting for Real Estate Time-Sharing Transactions - an amendment of FASB Statements No. 66 and 67, SFAS No. 153, Exchanges of Nonmonetary Assets - an amendment of APB Opinion No. 29, SFAS No. 123 (revised 2004), Share-Based Payment, SFAS No. 154, Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3, SFAS No. 155, Accounting for Certain Hybrid Financial Instruments  an amendment of FASB Statements No. 133 and 140, SFAS No. 156, Accounting for the Servicing of Financial Assets, SFAS No. 157, Fair Value Measurements, and SFAS No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106, and 132(R), were recently issued.  SFAS No. 151, 152, 153, 123 (revised 2004), 154, 155, 156, 157 and 158 have no current applicability to the Company or their effect on the financial statements would not have been significant.  Reclassification -The financial statements for years prior to December 31, 2006 have been reclassified to conform to the headings and classifications used in the December 31, 2006 financial statements.  Restatement In October 2006, the Company approved a 1 for 2.5 reverse stock split.  The financial statements have been restated to reflect the reverse stock split.  NOTE 2 - PROPERTY AND EQUIPMENT   Property and equipment consisted of the following at:December 31,2006Office equipment$1,742Less: Accumulated depreciation(1,742)$0  Depreciation expense for the years ended December 31, 2006 and 2005 was $0 and $0, respectively.  23   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS  NOTE 3 - MANUSCRIPTS, TRANSCRIPTS, ETC.  In 1999 and 2000, the Company paid consultants to prepare manuscripts which the Company had planned to publish as a book. In December 2000, in accordance with Statement of Financial Accounting Standards No. 121, the Company recorded an impairment write-down of $21,285 due to the Company not generating any revenues from the manuscripts.  A summary of manuscripts, transcripts, etc. consists of the following at:   December 31,2006Manuscripts, transcripts, etc.$23,650Less: Accumulated amortization(2,365)Less: Loss on impairment(21,285)$-  Amortization expense for the years ended December 31, 2006 and 2005 was $0 and $0, respectively.   NOTE 4 - CONVERTIBLE NOTE PAYABLE  RELATED PARTY  In August 2006, the Company issued a $5,000 note payable to a shareholder of the Company.  The note accrues interest at 8% per annum, is due in August 2008, and is convertible with accrued interest into 400,000 shares of common stock.  At December 31, 2006, accrued interest amounted to $139.  In June 2006, the Company converted a $5,000 note payable made in February 2005, along with accrued interest of $548, into 400,000 shares of common stock.  In December 2005, the Company issued a $5,000 note payable to a shareholder of the Company.  The note accrues interest at 8% per annum, is due in December 2007, and is convertible with accrued interest into 400,000 shares of common stock.  At December 31, 2006, accrued interest amounted to $404.   NOTE 5 - CAPITAL STOCK  Preferred Stock - The Company has authorized 5,000,000 shares of preferred stock, $.001 par value with such rights, preferences and designations and to be issued in such series as determined by the Board of Directors.  No shares are issued and outstanding at December 31, 2006.  Common Stock - During November 1996, in connection with its organization, the Company issued 1,000,000 shares of its previously authorized but unissued common stock.  Total proceeds from the sale of stock amounted to $2,500 (or $.0025 per share).  24   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS  NOTE 5 - CAPITAL STOCK [CONTINUED]  During August 1997, the Company issued 95,000 shares of its previously authorized but unissued common stock.  Total proceeds from the sale of stock amounted to $9,500 (or $.10 per share).  During May and August 1998, the Company issued 405,000 shares of its previously authorized but unissued common stock.  Total proceeds from the sale of stock amounted to $40,500 (or $.10 per share).  Stock offering costs of $5,000 were offset against the proceeds.  In September 2004, the Company issued 400,000 shares of its previously authorized but unissued common stock on conversion of a note payable of $5,000 with accrued interest of $168.  In February 2005, the Company approved a 10  for  1 forward stock split.  The financial statements have been restated, for all periods presented, to reflect this stock split.  In September 2005, the Company issued 2,900,000 shares of its previously authorized but unissued common stock.  Total proceeds from the sale of stock amounted to $7,250 (or $.0025 per share).   The shares were issued to the President and Director of the Company for cash  [See Note 6].  In June 2006, the Company converted a $5,000 note payable made in February 2005, along with accrued interest of $548, into 400,000 shares of common stock.  In October 2006, the Company approved a 1 for 2.5 reverse stock split.  The financial statements have been restated to reflect the reverse stock split.  Stock Option Plan -During 1997, the Board of Directors adopted the 1997 Stock Option Plan (the Plan).  Under the terms and conditions of the Plan, the Board is empowered to grant stock options to employees, officers, directors and consultants of the Company.  Additionally, the Board will determine, at the time of the grant, vesting provisions of the grant and whether the options will qualify as incentive stock options under section 422 of the Internal Revenue code.  The Plan was approved by the shareholders of the Company at the 1997 shareholder meeting.  The total number of shares of common stock available under the Plan may not exceed 750,000 shares.  As of December 31, 2006, no options have been issued under the Plan.  NOTE 6 - RELATED PARTY TRANSACTIONS  Accounts Payable -In 2005, the Company sold products owned by LDI [See Note 8].  At December 31, 2006, the Company owed $0 to LDI for the cost of the products.  Advance from a Shareholder   In March, April, and August 2006, an officer/shareholder of the Company advanced $60,000 to the Company.  At December 31, 2006 and December 31, 2005, the Company owed $60,000 and $0, respectively, to the officer/shareholder. The advances bear no interest and are due on demand; however, the Company is imputing interest at 8% per annum.  For the years ended December 31, 2006 and 2005, respectively, the Company imputed interest expense of $3,409 and $0.  The imputed interest has been contributed to Capital in Excess of Par.  Stock Issuance -In September 2005, the Company issued 2,900,000 shares of its previously authorized but unissued common stock.  Total proceeds from the sale of stock amounted to $7,250 (or $.0025 per share).   The shares were issued to the President and Director of the Company for cash.   25   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS  NOTE 6 - RELATED PARTY TRANSACTIONS [CONTINUED]  Convertible Note Payable The Company has issued convertible notes payable to a shareholder of the Company [See Note 4].  Management Compensation - The Company has not paid any compensation to its officers and directors.  Office Space - The Company has not had a need to rent office space.  An officer/shareholder of the Company is allowing the Company to use his office as a mailing address, as needed, at no expense to the Company.  Marketing Agreement - The Company has a marketing agreement with Life Discovery Institute, an organization that is owned and operated by the Companys president [See Note 8].   NOTE 7 - GOING CONCERN  The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern.  However, the Company has incurred losses since its inception and has current liabilities in excess of current assets.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans or through additional sales of its common stock.  There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations.  The financial statements do not include any adjustments that might result from the outcome of these uncertainties.  NOTE 8 - MARKETING AGREEMENT  In 1999 and 2000, the Company invested in developing a website to market its products via the internet.  Ultimately, the Company did not launch its website.  Instead, the Company assigned its interest in the website to Life Discovery Institute (LDI), an education and publishing organization owned and operated by the Companys president.  On May 31, 2001, the Company entered into a five-year marketing agreement with LDI.  Under the agreement, the Company assigned all its interest and investment in developing the website to LDI which completed development and launched the website.  In exchange for the Companys prior investment in the website, LDI allows the Company to market its products at no charge through the LDI website.  The agreement ended on May 31, 2006.  The Company currently has no other sources of distribution for its workshops.  26   FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS  NOTE 9 - INCOME TAXES  The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes.  SFAS No. 109 requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards.  The Company has available at December 31, 2006, unused operating loss carryforwards of approximately $116,000 which may be applied against future taxable income and which expire in various years through 2026.  The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined.  Because of the uncertainty surrounding the realization of the loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the loss carryforwards and, therefore, no deferred tax asset has been recognized for the loss carryforwards.  The net deferred tax assets are approximately $39,800 and $ 33,500 as of December 31, 2006 and 2005, respectively, with an offsetting valuation allowance of the same amount, resulting in a change in the valuation allowance of approximately $6,300 during the year ended December 31, 2006.    NOTE 10 - LOSS PER SHARE  The following data show the amounts used in computing loss per share for the periods presented:   For the Year EndedDecember 31,20062005Loss from continuing operations availableto common shareholders (numerator)$(18,353)$(19,843)Cumulative effect of change in accountingprinciple (numerator)$-$-Weighted average number of commonshares outstanding used in loss per sharefor the period (denominator)5,003,8362,702,466   At December 31, 2006, the Company had notes payable convertible to 800,000 shares of common stock which were not used in the computation of loss per share because their effect would be anti-dilutive.  Dilutive loss per share was not presented, as the Company had no common stock equivalent shares for all periods presented that would affect the computation of diluted loss per share.      27        FREEDOM RESOURCES ENTERPRISES, INC. [A Development Stage Company]  NOTES TO FINANCIAL STATEMENTS   NOTE 11 - CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE  In 1996, the Company paid $288 in organization costs which reflect amounts expended to organize the Company.  The Company was previously amortizing the costs, but during 1998, in accordance with Statement of Position 98-5, the Company expensed the remaining $221 in organization costs which has been accounted for as a change in accounting principle.     28