----

----

| California                      | 33-0230641                           |
|---------------------------------|--------------------------------------|
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) |
| incorporation or organization)  |                                 |

| 2345 W Foothill, Suite 7, Upland, CA     | 91786      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

| Large accelerated filer  o                                                             | Accelerated filer  o                    |
|---------------------------------------------------------------------------------------------|----------------------------------------------|
|                                                                                        |                                         |
| Non-accelerated filer   o (Do not check if a smaller reporting company) | Smaller reporting company   x |

----

|                              |                                                                                        | Page     |
|-----------------------------------|---------------------------------------------------------------------------------------------|----------|
|                              |                                                                                        |     |   |
| PART I - FINANCIAL INFORMATION    |                                                                                        |
|                              |                                                                                        |     |   |
| Item 1.                           | Financial Statements                                                                        | F-1      |   |
|                              |                                                                                        |     |   |
|                              | Consolidated Balance Sheets –June 30, 2009 and March 31, 2009                         | F-1      |   |
|                              |                                                                                        |     |   |
|                              | Consolidated Statements of Operations For the Three Months ended June 30, 2009 and 2008     | F-2      |   |
|                              |                                                                                        |     |   |
|                              | Consolidated Statements of Cash Flows For the Three Months ended June 30, 2009 and 2008     | F-3      |   |
|                              |                                                                                        |     |   |
|                              | Notes to Financial Statements                                                               | F-4      |   |
|                              |                                                                                        |     |   |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   2 |   |
|                              |                                                                                        |     |   |
| Item 3.                           | Quantitative and Qualitative Disclosures About Market Risk                                  |   5 |   |
|                              |                                                                                        |     |   |
| Item 4T.                          | Controls and Procedures                                                                     | 5        |   |
|                              |                                                                                        |
| PART II – OTHER INFORMATION |                                                                                        |
|                              |                                                                                        |     |   |
| Item 1.                           | Legal Proceedings                                                                           | 6        |   |
|                              |                                                                                        |     |   |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 6        |   |
|                              |                                                                                        |     |   |
| Item 3.                           | Defaults Upon Senior Securities                                                             | 6        |   |
|                              |                                                                                        |     |   |
| Item 4.                           | Submission of Matters to a Vote of Security Holders                                         | 7        |   |
|                              |                                                                                        |     |   |
| Item 5.                           | Other Information                                                                           | 7        |   |
|                              |                                                                                        |     |   |
| Item 6.                           | Exhibits                                                                                    | 7        |   |
|                              |                                                                                        |     |   |
| SIGNATURES                        |                                                                                        |     |

----

|                                                                                                                                                                                             |   | As of June 30, 2009 |        |    | As of March 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-------------|---------|----------------------|--------|
|                                                                                                                                                                                             |   |                |        |    |                 |   |
| Assets                                                                                                                                                                                           |   |                |        |    |                 |   |
| Current assets:                                                                                                                                                                                  |   |                |        |    |                 |   |
| Cash and cash equivalents                                                                                                                                                                        |   | $                   | 7,005       |    |                 | $      | 3,007 |   |
| Accounts receivable                                                                                                                                                                              |   |                | 671         |    |                 |   | 673 |   |
| Prepaids and other current assets                                                                                                                                                                |   |                | 8,750       |    |                 |   | - |   |
| Current assets of discontinued operations                                                                                                                                                        |   |                | 552         |    |                 |   | 2,565 |   |
| Total current assets                                                                                                                                                                             |   |                | 16,978      |    |                 |   | 6,245 |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Property and equipment, net                                                                                                                                                                      |   |                | 35,710      |    |                 |   | 30,515 |   |
| Assets held for sale                                                                                                                                                                             |   |                | 424,351     |    |                 |   | 424,351 |   |
| Intangible assets, net                                                                                                                                                                           |   |                | 561,642     |    |                 |   | 576,042 |   |
| Other assets                                                                                                                                                                                     |   |                | 203,308     |    |                 |   | 198,678 |   |
| Assets of discontinued operations                                                                                                                                                                |   |                | 3,094       |    |                 |   | 3,094 |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Total Assets                                                                                                                                                                                     |   | $                   | 1,245,083   |    |                 | $      | 1,238,925 |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Liabilities and Stockholders' Deficit                                                                                                                                                            |   |                |        |    |                 |   |   |   |
| Current liabilities:                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Accounts payable                                                                                                                                                                                 |   | $                   | 1,017,204   |    |                 | $      | 1,038,100 |   |
| Accrued salaries and wages and consulting fees                                                                                                                                                   |   |                | 1,114,491   |    |                 |   | 1,082,488 |   |
| Accrued liabilities                                                                                                                                                                              |   |                | 901,792     |    |                 |   | 694,360 |   |
| State income taxes payable                                                                                                                                                                       |   |                | 95,732      |    |                 |   | 95,732 |   |
| Convertible notes payable                                                                                                                                                                        |   |                | 500,000     |    |                 |   | 500,000 |   |
| Notes payable - related party                                                                                                                                                                    |   |                | 51,233      |    |                 |   | 5,233 |   |
| Notes payable                                                                                                                                                                                    |   |                | 455,500     |    |                 |   | 455,500 |   |
| Current liabilities of discontinued operations                                                                                                                                                   |   |                | 180,399     |    |                 |   | 210,088 |   |
| Total current liabilities                                                                                                                                                                        |   |                | 4,316,351   |    |                 |   | 4,081,501 |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Long-term liability -                                                                                                                                                                            |   |                |        |    |                 |   |   |   |
| Warrant liability                                                                                                                                                                                |   |                | 375,645     |    |                 |   | - |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Total liabilities                                                                                                                                                                                |   |                | 4,691,996   |    |                 |   | 4,081,501 |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Commitments and Contingencies                                                                                                                                                                    |   |                |        |    |                 |   |   |   |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Stockholders' Deficit:                                                                                                                                                                           |   |                |        |    |                 |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding; 5,000,000 shares of Series A preferred stock have been designated with none issued and outstanding |   |                | -           |    |                 |   | - |   |
| Common stock, $0.001 par value, 100,000,000 shares authorized, 77,865,011 and 76,368,211 issued; 77,865,011 and 76,368,211 outstanding, respectively                                   |   |                | 77,865      |    |                 |   | 76,369 |   |
| Additional paid-in capital                                                                                                                                                                       |   |                | 34,586,265  |    |                 |   | 37,593,763 |   |
| Accumulated deficit                                                                                                                                                                              |   |                | (38,111,043 | )       |                 |   | (40,512,708 | ) |
| Total stockholders' deficit                                                                                                                                                                      |   |                | (3,446,913  | )  |                 |   | (2,842,576 | )  |
|                                                                                                                                                                                             |   |                |        |    |                 |   |   |   |
| Total Liabilities and Stockholders' Deficit                                                                                                                                                      |   | $                   | 1,245,083   |    |                 | $      | 1,238,925 |   |

----

RG GLOBAL LIFESTYLES, INC. 

|                                                                                                                  |   | For the Three Months Ended |       |
|-----------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                                                  |   | June 30                    |       |
|                                                                                                                  |   | 2009                       |       |   | 2008 |   |
| Revenue:                                                                                                              |   |                       |       |   |   |   |
| Water treatment related                                                                                               |   | $                          | 57,739     |   |   | $ | 90,419 |   |
| Total revenues                                                                                                        |   |                       | 57,739     |   |   |   | 90,419 |   |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Cost of revenues:                                                                                                     |   |                       |       |   |   |   |   |   |
| Water treatment related                                                                                               |   |                       | 67,073     |   |   |   | 218,052 |   |
| Total cost of revenue                                                                                                 |   |                       | 67,073     |   |   |   | 218,052 |   |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Gross loss                                                                                                            |   |                       | (9,334     | ) |   |   | (127,633 | ) |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| General and administrative, including stock-based compensation of $40,802 and $560,888 in 2009 and 2008, respectively |   |                       | 247,763    |   |   |   | 1,092,963 |   |
| Selling and marketing                                                                                                 |   |                       | 1,735      |   |   |   | 187 |   |
| Project costs                                                                                                         |   |                       | 70,364     |   |   |   | 178,169 |   |
| Total expenses                                                                                                        |   |                       | 319,862    |   |   |   | 1,271,319 |   |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Operating loss                                                                                                        |   |                       | (329,196   | ) |   |   | (1,398,952 | ) |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Other income (expense):                                                                                               |   |                       |       |   |   |   |   |   |
| Interest income                                                                                                       |   |                       | 25         |   |   |   | - |   |
| Interest expense                                                                                                      |   |                       | (30,098    | ) |   |   | (48,931 | ) |
| Change in fair value of derivative liability                                                                          |   |                       | 99,065     |   |   |   | - |   |
| Other income (expense)                                                                                                |   |                       | (1,619     | ) |   |   | 1,077 |   |
| Total other income (expense)                                                                                          |   |                       | 67,373     |   |   |   | (47,854 | ) |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Net loss from continuing operations                                                                                   |   |                       | (261,823   | ) |   |   | (1,446,806 | ) |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Net income (loss) from discontinued operations, net of tax benefit of $0                                              |   |                       | 20,580     |   |   |   | (150,406 | ) |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Net loss                                                                                                              |   | $                          | (241,243   | ) |   | $ | (1,597,212 | ) |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Weighted average number of common shares:                                                                             |   |                       |       |   |   |   |   |   |
| Basic and diluted                                                                                                     |   |                       | 77,341,591 |   |   |   | 43,142,043 |   |
|                                                                                                                  |   |                       |       |   |   |   |   |   |
| Net loss per share:                                                                                                   |   |                       |       |   |   |   |   |   |
| Basic and diluted – continuing operations                                                                       |   | $                          | (0.01      | ) |   | $ | (0.03 | ) |
| Basic and diluted – discontinued operations                                                                     |   | $                          | 0.00       |   |   | $ | (0.00) |   |

----

|                                                                                  |   | For the Three Months Ended |     |
|---------------------------------------------------------------------------------------|--------|----------------------------|----------|
|                                                                                  |   | June 30,              |     |
|                                                                                  |   | 2009                       |     |   | 2008 |   |
| Cash flows from operating activities:                                                 |   |                       |     |   |   |   |
| Net loss                                                                              |   | $                          | (241,243 | ) |   | $ | (1,597,212 | ) |
|                                                                                  |   |                       |     |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities:           |   |                       |     |   |   |   |   |   |
| Amortization of debt discounts related to beneficial conversion features and warrants |   |                       | -        |   |   |   | 11,111 |   |
| Stock issued for services                                                             |   |                       | -        |   |   |   | 127,179 |   |
| Change in fair value of derivative liabilities                                        |   |                       | (99,065  | ) |   |   |   - |   |
| Fair value of common stock in excess of notes payable forgiven                        |   |                       | -        |   |   |   | 14,913 |   |
| Depreciation and amortization                                                         |   |                       | 17,160   |   |   |   | 238,028 |   |
| Stock-based compensation                                                              |   |                       | 40,802   |   |   |   | 433,708 |   |
| Change in operating assets and liabilities:                                           |   |                       |     |   |   |   |   |   |
| Accounts receivable                                                                   |   |                       | 2        |   |   |   | 6,087 |   |
|     Inventory                                                     |   |                       | -        |   |   |   | 14,297 |   |
| Prepaid expenses                                                                      |   |                       | (6,593   | ) |   |   | (37,044 | )  |
| Other assets                                                                          |   |                       | (4,630   | )  |   |   | - |   |
| Accounts payable                                                                      |   |                       | (29,380  | )  |   |   | 229,693 |   |
| Accrued wages                                                                         |   |                       | 79,256   |   |   |   | - |   |
| Accrued liabilities                                                                   |   |                       | 246,287  |   |   |   | 162,209 |   |
| Net cash provided by (used in) operating activities                                   |   |                       | 2,596    |   |   |   | (397,031 | ) |
|                                                                                  |   |                       |     |   |   |   |   |   |
| Cash flows from investing activities:                                                 |   |                       |     |   |   |   |   |   |
| Purchase of fixed assets                                                              |   |                       | (7,954   | ) |   |   | - |   |
| Other assets                                                                          |   |                       | -        |   |   |   | (8,252 | ) |
| Net cash used in investing activities                                                 |   |                       | (7,954   | )  |   |   | (8,252 | ) |
|                                                                                  |   |                       |     |   |   |   |   |   |
| Cash flows from financing activities:                                                 |   |                       |     |   |   |   |   |   |
| Proceeds from notes payable - related party                                           |   |                       | 9,500    |   |   |   | - |   |
|     Cash received for stock to be issued                          |   |                       | -        |   |   |   |  250,000 |   |
| Proceeds from sale of common stock                                                    |   |                       | -        |   |   |   | 144,000 |   |
| Net cash provided by financing activities                                             |   |                       | 9,500    |   |   |   | 394,000 |   |
| Net increase (decrease) in cash                                                       |   |                       | 4,142    |   |   |   | (11,283 | ) |
| Cash of discontinued operations                                                       |   |                       | (552     | ) |   |   | - |   |
| Cash - beginning of period                                                            |   |                       | 3,415    |   |   |   | 12,319 |   |
| Cash - ending of period                                                               |   | $                          | 7,005    |   |   | $ | 1,036 |   |
|                                                                                  |   |                       |     |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                     |   |                       |     |   |   |   |   |   |
| Non-cash investing and financing activities:                                          |   |                       |     |   |   |   |   |   |
| Exercise of stock options in settlement of accrued expenses                           |   | $                          | 70,813   |   |   | $ | - |   |
| Conversion of stock options with notes payable and accrued interest                   |   | $                          | -        |   |   | $ | 164,913 |   |

----

----

|                      |   | 2009   |       |   | 2008   |   |
|---------------------------|--------|--------|------------|--------|--------|--------|
|                      |   |   |       |   |   |   |
| Common stock options      |   |   | 6,121,455  |   |   |   | 7,903,579 |   |
| Common stock warrants     |   |   | 16,444,328 |   |   |   | 15,950,440 |   |
| Secured convertible notes |   |   | 9,532,700  |   |   |   | - |   |
| Totals                    |   |   | 32,098,483 |   |   |   | 23,854,019 |   |

|                                                            |   | June 30, 2009 |    |   | March 31, 2009 |   |
|-----------------------------------------------------------------|--------|---------------|---------|--------|----------------|--------|
| Office equipment, computer software, and furniture and fixtures |   | $             | 55,216  |   |           | $      | 47,254 |   |
| Accumulated depreciation                                        |   |          | (19,506 | )      |           |   | (16,739 | ) |
| Total                                                           |   | $             | 35,710  |   |           | $      | 30,515 |   |

----

|                                                          |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Sales                                                         |   | $      | 4,800  |   |   | $      | 29,618 |   |
| Income taxes                                                  |   |   | -      |   |   |   | - |   |
| Income (loss) from discontinued operations after income taxes |   | $      | 20,580 |   |   | $      | (150,406 | )  |

----

|                      |   | June 30,2009 |    |   | March, 312009 |   |
|---------------------------|--------|--------------|---------|--------|---------------|--------|
| Assets                    |   |         |    |   |          |   |
| Current assets:           |   |         |    |   |          |   |
| Cash and cash equivalents |   | $            | 552     |   |          | $      | 405 |   |
| Other current assets      |   |         | -       |   |          |   | 2,160 |   |
| Total current assets      |   |         | 552     |   |          |   | 2,565 |   |
| Other assets              |   |         | 3,094   |   |          |   | 3,094 |   |
| Total assets              |   | $            | 3,646   |   |          | $      | 5,659 |   |
|                      |   |         |    |   |          |   |   |   |
| Liabilities               |   |         |    |   |          |   |   |   |
| Current liabilities:      |   |         |    |   |          |   |   |   |
| Accounts payable          |   | $            | 178,858 |   |          | $      | 187,341 |   |
| Accrued expenses          |   |         | 1,541   |   |          |   | 22,747 |   |
| Total liabilities         |   | $            | 180,399 |   |          | $      | 210,088 |   |

|                                   |   | June 30,2009 |    |   | March 31,2009 |   |
|----------------------------------------|--------|--------------|---------|--------|---------------|--------|
| Deposit against future Catalyx royalty |   | $            | 175,652 |   |          | $      | 180,331 |   |
| Other                                  |   |         | 27,656  |   |          |   | 18,347 |   |
| Total                                  |   | $            | 203,308 |   |          | $      | 198,678 |   |

|                                           |   | June 30,2009 |    |   | March 31,2009 |    |
|------------------------------------------------|--------|--------------|---------|--------|---------------|---------|
| Amounts due to YPC (see Note 12)               |   | $            | 230,972 |   |          | $  | 230,972 |   |
| Accrued interest                               |   |         | 134,514 |   |          |    | 120,327 |   |
| Cash received for preferred stock to be issued |   |         | 378,562 |   |          |    | 141,112 |   |
| Accrued consulting fees                        |   |         | 85,391  |   |          |    | 128,235 |   |
| Other                                          |   |         | 72,353  |   |          |    | 73,714 |   |
| Totals:                                        |   | $            | 901,792 |   |          | $       | 694,360 |   |

----

|                           |   | Number    |        |
|--------------------------------|--------|-----------|-------------|
|                           |   | of Shares |        |
| Balance, March 31, 2009        |   |      | 7,618,255   |   |
| Options granted                |   |      | -           |   |
| Options exercised              |   |      | (1,496,800) |   |
| Options cancelled or forfeited |   |      | -           |   |
|                           |   |      |        |   |
| Balance, June 30, 2009         |   |      | 6,121,455   |   |

----

|                    |  June 30, |    | April 1, |                                                                                        |
|-------------------------|----------------|---------|----------|---------------------------------------------------------------------------------------------|
|                    |  2009     |    | 2009     |                                                                                        |
| Annual dividend yield   |  -        |    |     |                - |   |   |
| Expected life           |  3.92     |    |     |              4.17          |   |   |
| Risk-free interest rate |  1.65     | %  |     | 1.65                                                                                        | % |   |
| Expected volatility     |  250      | %  |     | 250                                                                                         | % |   |

----

|                                            |   | AdditionalPaid-in |       |   | Accumulated |   |
|-------------------------------------------------|--------|-------------------|------------|--------|-------------|--------|
|                                            |   | Capital           |       |   | Deficit     |   |
|                                            |   |              |       |   |        |   |
| Balances at March 31, 2009                      |   | $                 | 37,593,763 |   |        | $      | (40,512,708 | ) |
|                                            |   |              |       |   |        |   |   |   |
| Cumulative effect of warrants reclassified      |   |              | (3,117,617 | )      |        |   | 3,117,618 |   |
| Reclassification of long term warrant liability |   |              | -          |   |        |   | (474,710 | ) |
| Q1 equity issuances                             |   |              | 110,119    |   |        |   | - |   |
| Net loss                                        |   |              | -          |   |        |   | (241,243 | ) |
|                                            |   |              |       |   |        |   |   |   |
|  Balances at June 30, 2009                 |   | $                 | 34,586,265 |   |        | $      | (38,111,043 | ) |

|                    |   | Number    |       |
|-------------------------|--------|-----------|------------|
|                    |   | Of Shares |       |
|                    |   |      |       |
| Balance, March 31, 2009 |   |      | 16,444,328 |   |
| Warrants granted        |   |      | -          |   |
| Warrants exercised      |   |      | -          |   |
| Balance, June 30, 2009  |   |      | 16,444,328 |   |

----

----

|   | o | Increased competitive pressures from existing competitors and new entrants;                                                                                                                                                                                         |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | o | Deterioration in general or regional economic conditions;                                                                                                                                                                                                           |
|   | o | Adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations;                                                                                                  |
|   | o | Ability to grow business in DynIX wastewater treatment technology, and meet or exceed its return on shareholders’ equity target, which will depend on the Company’s ability to manage its capital needs and the effect of business and/or acquisitions; |
|   | o | If acquisitions are made, the costs and successful integration of acquisitions;                                                                                                                                                                                     |
|   | o | Barriers in trade with foreign countries or tariff regulations and other United States and foreign laws;                                                                                                                                                            |
|   | o | Loss of customers or sales weakness;                                                                                                                                                                                                                                |
|   | o | Effect of environmental regulations in the field of wastewater treatment associated with coal bed methane mining;                                                                                                                                                   |
|   | o | Inability to achieve future sales levels or other operating results;                                                                                                                                                                                                |
|   | o | Ability to locate suitable new products for distribution within our business sector, and retain licensing rights to such new products on acceptable terms;                                                                                                          |
|   | o | The continuation of favorable trends, including the drop in affordable potable water globally;                                                                                                                                                                      |
|   | o | Outcomes and costs associated with litigation and potential compliance matters;                                                                                                                                                                                     |
|   | o | Inadequacies in the Company’s internal control over financial reporting, which could result in inaccurate or incomplete financial reporting;                                                                                                                  |
|   | o | Dilution to Shareholders from convertible debt or equity financings;                                                                                                                                                                                                |
|   | o | Loss of key management or other unanticipated personnel changes;                                                                                                                                                                                                    |
|   | o | The unavailability of funds for capital expenditures; and                                                                                                                                                                                                           |
|   | o | Operational inefficiencies in distribution or other systems.                                                                                                                                                                                                        |

----

RG Global

|                                         |   | Three Months Ended June 30, |     |
|----------------------------------------------|--------|-----------------------------|----------|
|                                         |   | 2009                        |     |   | 2008 |   |
| INCOME STATEMENT DATA                        |   |                        |     |   |   |   |
| Revenue                                      |   | $                           | 57,739   |   |   | $ | 90,419 |   |
| Gross profit (loss)                          |   | $                           | (9,344   | ) |   | $ | (127,633 | ) |
| Loss from operations                         |   | $                           | (329,196 | ) |   | $ | (1,398,952 | ) |
| Net income (loss) from continuing operations |   |                        | (261,823 | ) |   |   | (1,446,806 | ) |
| Net loss                                     |   | $                           | (241,243 | ) |   | $ | (1,597,212 | ) |
| Net loss per weighted average common share   |   | $                           | (0.00    | ) |   | $ | (0.04 | ) |
|                                         |   |                        |     |   |   |   |   |   |

|                  |   | As of              |       |   | As of               |   |
|-----------------------|--------|-------------------------|------------|--------|--------------------------|--------|
|                  |   | June 30, 2009 |       |   | March 31, 2009 |   |
| BALANCE SHEET DATA    |   |                    |       |   |                     |   |   |   |
| Total assets          |   | $                       | 1,245,083  |   |                     | $      | 1,238,925 |   |
| Total liabilities     |   | $                       | 4,691,996  |   |                     | $      | 4,081,501 |   |
| Stockholders' deficit |   | $                       | (3,446,913 | )      |                     | $      | (2,842,576 | ) |

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|     |   |                           |   |   |                |   |   |   |   |   |    |   |
|----------|--------|--------------------------------|--------|--------|---------------------|--------|--------|--------|--------|--------|---------|--------|
|     |   | For the quarter ended June 30, |   |   | Increase/(Decrease) |   |
|     |   | 2009                           |   |   | 2008                |   |   | $      |   |   |    | %      |   |
| Revenues |   | $                              | 57,739 |   |                | $      | 90,419 |   |   | $      | (32,680 | )      |   |   | (36 % | ) |

|                    |   |                           |   |   |                |   |     |    |   |   |    |   |
|-------------------------|--------|--------------------------------|--------|--------|---------------------|--------|----------|---------|--------|--------|---------|--------|
|                    |   | For the quarter ended June 30, |   |   | Increase/(Decrease) |   |
|                    |   | 2009                           |   |   | 2008                |   |     | $       |   |   |    | %      |   |
| Gross  (loss) |   | $                              | (9,334 | )      |                | $      | (127,633 | )  |   | $      | 118,299 |   |   |   | 93% |   |

|                     |   |                           |    |   |                |   |      |   |   |   |     |    |
|--------------------------|--------|--------------------------------|---------|--------|---------------------|--------|-----------|--------|--------|--------|----------|---------|
|                     |   | For the quarter ended June 30, |    |   | Increase/(Decrease) |   |
|                     |   | 2009                           |    |   | 2008                |   |      | $      |   |   |     | %       |   |
| Total Operating Expenses |   | $                              | 319,862 |   |                | $      | 1,271,319 |   |   | $      | (951,457 | )  |   |   | 75% |

|                    |   |                           |   |   |                |   |     |    |   |   |    |   |
|-------------------------|--------|--------------------------------|--------|--------|---------------------|--------|----------|---------|--------|--------|---------|--------|
|                    |   | For the quarter ended June 30, |   |   | Increase/(Decrease) |   |
|                    |   | 2009                           |   |   | 2008                |   |     | $       |   |   |    | %      |   |
| Discontinued Operations |   | $                              | 20,580 |   |                | $      | (150,406 | )  |   | $      | 170,986 |   |   |   | 114% |

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| ExhibitNumber |   | Description of Document                                    |
|---------------|--------|----------------------------------------------------------------------|
| 31.1          |   | Certification pursuant to Section 302 of the Sarbanes-Oxley Act |
| 31.2          |   | Certification pursuant to Section 302 of the Sarbanes-Oxley Act |
| 32.1          |   | Certification pursuant to Section 906 of the Sarbanes-Oxley Act |
| 32.2          |   | Certification pursuant to Section 906 of the Sarbanes-Oxley Act |

| Signature                   | Title                         | Date            |
|-----------------------------|-------------------------------|-----------------|
|                        |                          |            |
| ___________________________ |                          |            |
| Grant King                  |  Chief Executive Officer | August 17, 2009 |
|                        |                          |            |
| ___________________________ |                          |            |
| Richard Lambright           | Principal Accounting Officer  | August 17, 2009 |

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