----

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| Nevada                                                         |   | 26-1607874                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| 180 Avenida La Pata, Suite 200, San Clemente, California |   | 92673      |
|----------------------------------------------------------|--------|------------|
| (Address of principal executive offices)                 |   | (Zip Code) |

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

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|     |   |                                                                                  | Page No. |
|----------|--------|---------------------------------------------------------------------------------------|----------|
|     |   | PART I - FINANCIAL INFORMATION                                                        |     |
|     |   |                                                                                  |     |
| Item 1.  |   | Financial Statements                                                                  | 3        |
|     |   |                                                                                  |     |
| Item 2.  |   | Management's Discussion and Analysis of Financial Condition and Results of Operations | 16       |
|     |   |                                                                                  |     |
| Item 3.  |   | Quantitative and Qualitative Disclosures About Market Risk                            | 24       |
|     |   |                                                                                  |     |
| Item 4T. |   | Controls and Procedures                                                               | 24       |
|     |   |                                                                                  |     |
|     |   | PART II - OTHER INFORMATION                                                           |     |
|     |   |                                                                                  |     |
| Item 1.  |   | Legal Proceedings                                                                     | 25       |
|     |   |                                                                                  |     |
| Item1A.  |   | Risk Factors                                                                          | 25       |
|     |   |                                                                                  |     |
| Item 2.  |   | Unregistered Sales of Equity Securities and Use of Proceeds                           | 25       |
|     |   |                                                                                  |     |
| Item 3.  |   | Defaults Upon Senior Securities                                                       | 28       |
|     |   |                                                                                  |     |
| Item 4.  |   | (Removed and Reserved)                                                                | --       |
|     |   |                                                                                  |     |
| Item 5.  |   | Other Information                                                                     | 29       |
|     |   |                                                                                  |     |
| Item 6.  |   | Exhibits                                                                              | 30       |
|     |   |                                                                                  |     |
|     |   | Signatures                                                                            |     |

----

| ELEVATE, INC. AND SUBSIDIARIES(FORMERLY HIGHLAND BUSINESS SERVICES, INC.)CONSOLIDATED BALANCE SHEETS                                                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                     |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                                                                                                     |   | February 292012 |   |   | May 31,2011 |   |
|                                                                                                                                                                                                                     |   | (Unaudited) |   |   | (Audited) |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |
| CURRENT ASSETS                                                                                                                                                                                                           |   |   |   |   |   |   |
|      Cash                                                                                                                                                                                       |   | $ | - |   |   | $ | - |   |
|      Accounts receivable                                                                                                                                                                        |   |   | 32,524 |   |   |   | 685 |   |
|      Prepaid expenses                                                                                                                                                                           |   |   | 427,620 |   |   |   | 44,257 |   |
|      Inventory                                                                                                                                                                                  |   |   | 29,187 |   |   |   | 8,616 |   |
|      Total current assets                                                                                                                                                                       |   |   | 489,331 |   |   |   | 53,558 |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|      Property & equipment, net                                                                                                                                                              |   |   | 25,856 |   |   |   | 21,118 |   |
|      Other assets                                                                                                                                                                               |   |   | 12,619 |   |   |   | 10,800 |   |
| TOTAL ASSETS                                                                                                                                                                                                             |   | $ | 527,806 |   |   | $ | 85,476 |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|      Accounts payable                                                                                                                                                                           |   | $ | 384,828 |   |   | $ | 200,568 |   |
|      Cash overdraft                                                                                                                                                                             |   |   | 21,203 |   |   |   | 3,300 |   |
|      Accrued expenses                                                                                                                                                                           |   |   | 149,054 |   |   |   | 22,499 |   |
|      Loans payable                                                                                                                                                                              |   |   | - |   |   |   | 144,240 |   |
|      Loan payable - related party                                                                                                                                                               |   |   | 1,512,311 |   |   |   | 1,050,558 |   |
|      Total current liabilities                                                                                                                                                                  |   |   | 2,067,396 |   |   |   | 1,421,165 |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|      Total liabilities                                                                                                                                                                          |   |   | 2,067,396 |   |   |   | 1,421,165 |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|         Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0  and 0 shares issued and outstanding as of February 29, 2012, and May 31, 2011 respectively |   |   | - |   |   |   | - |   |
| Common stock, $.001 par value, 100,000,000 authorized,    26,661,404 and 24,686,600 shares issued and outstanding as of February 29, 2012, and May 31, 2011, respectively.                           |   |   | 26,661 |   |   |   | 24,687 |   |
|      Additional paid-in capital                                                                                                                                                                 |   |   | 3,003,166 |   |   |   | 112,974 |   |
|      Stock payable                                                                                                                                                                              |   |   | 15,973 |   |   |   | - |   |
|      Notes receivable - related party                                                                                                                                                           |   |   | (102,893 | ) |   |   | (141,358 | ) |
|      Accumulated deficit                                                                                                                                                                        |   |   | (4,482,497 | ) |   |   | (1,331,992 | ) |
|      Total stockholder's deficit                                                                                                                                                                |   |   | (1,539,590 | ) |   |   | (1,335,689 | ) |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND  STOCKHOLDERS' DEFICIT                                                                                                                                                                   |   | $ | 527,806 |   |   | $ | 85,476 |   |

----

| ELEVATE, INC. AND SUBSIDIARIES(FORMERLY HIGHLAND BUSINESS SERVICES, INC.)CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   | For three months ended |   |   | For nine months ended |   |
|                                                                                                                       |   | February 29, 2012 |   |   | February 28,2011 |   |   | February 29, 2012 |   |   | February 28, 2011 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING REVENUES                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|      Revenues                                                                                     |   | $ | 299,895 |   |   | $ | 77,531 |   |   | $ | 485,095 |   |   | $ | 162,201 |   |
| OPERATING EXPENSES                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Direct cost of services                                                                      |   |   | 15,853 |   |   |   | 12,048 |   |   |   | 89,735 |   |   |   | 13,831 |   |
|      Other costs                                                                                  |   |   | 157,800 |   |   |   | - |   |   |   | 390,118 |   |   |   | - |   |
|      Total direct cost of services                                                                |   |   | 173,653 |   |   |   | 12,048 |   |   |   | 479,853 |   |   |   | 13,831 |   |
| Gross Profit                                                                                                          |   |   | 126,242 |   |   |   | 65,483 |   |   |   | 5,242 |   |   |   | 148,370 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Legal and professional                                                                       |   |   | 63,928 |   |   |   | 46,131 |   |   |   | 222,630 |   |   |   | 81,291 |   |
|      Selling, general and administrative                                                          |   |   | 438,378 |   |   |   | 189,727 |   |   |   | 1,300,882 |   |   |   | 461,466 |   |
|      Consulting expense - stock based                                                             |   |   | 79,885 |   |   |   | - |   |   |   | 930,957 |   |   |   | - |   |
|      Consulting expense                                                                           |   |   | 277,453 |   |   |   | - |   |   |   | 644,325 |   |   |   | - |   |
|      Depreciation                                                                                 |   |   | 1,564 |   |   |   | 1,786 |   |   |   | 4,399 |   |   |   | 1,786 |   |
|      Total operating expenses                                                                     |   |   | 861,208 |   |   |   | 237,644 |   |   |   | 3,103,193 |   |   |   | 544,543 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss from operations                                                                                                   |   |   | (734,966 | ) |   |   | (172,161 | ) |   |   | (3,097,951 | ) |   |   | (396,173 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME AND (EXPENSE)                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Interest expense                                                                             |   |   | (6,950 | ) |   |   | (4,113 | ) |   |   | (57,350 | ) |   |   | (4,113 | ) |
|      Other income                                                                                 |   |   | 1,585 |   |   | - ` |   |   |   | 4,796 |   |   |   | - |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total other income (expense)                                                                 |   |   | (5,365 | ) |   |   | (4,113 | ) |   |   | (52,554 | ) |   |   | (4,113 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                   |   |   | (740,331 | ) |   |   | (176,274 | ) |   |   | (3,150,505 | ) |   |   | (400,286 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per common share outstanding                                                                                    |   | $ | (0.03 | ) |   | $ | (0.01 | ) |   | $ | (0.13 | ) |   | $ | (0.02 | ) |
| Basic weighted average numberShares outstanding                                                                            |   |   | 25,693,402 |   |   |   | 19,000,000 |   |   |   | 25,070,599 |   |   |   | 19,000,000 |   |

----

| ELEVATE, INC. AND SUBSIDIARIES(FORMERLY HIGHLAND BUSINESS SERVICES, INC.)CONSOLIDATED STATEMENT OF CASH FLOWS(UNAUDITED) |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                     |   | For nine months ended |   |
|                                                                                                                     |   | February 29,2012 |   |   | February 28, 2011 |   |
|                                                                                                                     |   |   |   |   |   |   |
| Cash flows from operating activities:                                                                                    |   |   |   |   |   |   |
|      Net loss                                                                                   |   | $ | (3,150,505 | ) |   | $ | (400,286 | ) |
| Adjustments to reconcile net loss to net cash used inoperating activities:                                               |   |   |   |   |   |   |   |   |
|      Depreciation                                                                               |   |   | 4,399 |   |   |   | 1,786 |   |
|      Stock issued for compensation                                                              |   |   | 272,273 |   |   |   | - |   |
|      Stock issued for services                                                                  |   |   | 254,702 |   |   |   | - |   |
|      Stock option amortization                                                                  |   |   | 649,106 |   |   |   | - |   |
|      Stock issued for interest expense                                                          |   |   | 46,477 |   |   |   | - |   |
| Changes in operating assets and liabilities                                                                              |   |   |   |   |   |   |   |   |
|     Accounts receivable                                                                              |   |   | (31,839 | ) |   |   | - |   |
|     Prepaid expenses                                                                                 |   |   | (19,135 | ) |   |   | - |   |
|     Inventory                                                                                        |   |   | (20,571 | ) |   |   | (57,657 | ) |
|     Other assets                                                                                     |   |   | (1,819 | ) |   |   | - |   |
|     Accounts payable                                                                                 |   |   | 184,260 |   |   |   | 167,573 |   |
|     Accrued expenses                                                                                 |   |   | 130,668 |   |   |   | 15,900 |   |
| Net cash used in operating activities                                                                                    |   |   | (1,681,984 | ) |   |   | (272,684 | ) |
|                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                    |   |   |   |   |   |   |   |   |
|     Repayment of notes receivable, related party                                                     |   |   | (86,014 | ) |   |   | (79,109 | ) |
|     Purchase of equipment                                                                            |   |   | (9,137 | ) |   |   | (169,881 | ) |
| Net cash used in investing activities                                                                                    |   |   | (95,151 | ) |   |   | (248,990 | ) |
|                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                    |   |   |   |   |   |   |   |   |
|     Bank overdraft                                                                                   |   |   | 17,903 |   |   |   | 3,300 |   |
|     Proceeds from loans payable                                                                      |   |   | 126,000 |   |   |   | 126,000 |   |
|     Repayment of loans payable                                                                       |   |   | (146,001 | ) |   |   | (11,322 | ) |
|     Proceeds from loans payable, related party                                                       |   |   | 751,000 |   |   |   | 473,659 |   |
|     Repayment of loans payable, related party                                                        |   |   | (588,767 | ) |   |   | (72,213 | ) |
|     Member Investment                                                                                |   |   | - |   |   |   | 88 |   |
|     Stock to be issued for cash                                                                      |   |   | 12,000 |   |   |   | - |   |
|     Payment for the cancellation of shares - related party                                           |   |   | (30,000 | ) |   |   | - |   |
|     Proceeds from issuance of common stock                                                           |   |   | 1,635,000 |   |   |   | - |   |
| Net cash provided by financing activities                                                                                |   |   | 1,777,135 |   |   |   | 519,512 |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash                                                                                          |   |   | - |   |   |   | (2,162 | ) |
| Cash, beginning of year                                                                                                  |   |   | - |   |   |   | 4,563 |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash, end of year                                                                                                        |   | $ | - |   |   | $ | 2,401 |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |
| Supplemental Information:                                                                                                |   |   |   |   |   |   |   |   |
|      Cash paid for:                                                                             |   |   |   |   |   |   |   |   |
|      Taxes                                                                                      |   | $ | - |   |   | $ | - |   |
|      Interest Expense                                                                           |   | $ | - |   |   | $ | - |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |
| Non-cash changes in investment and financing activities:                                                                 |   |   |   |   |   |   |   |   |
|      Deemed distributions to shareholders                                                       |   | $ | 749,520 |   |   | $ | - |   |
|      Non cash increase in prepaid expenses                                                      |   | $ | (430,747 | ) |   | $ | - |   |
|      Shares issued as repayment of convertible notes                                            |   | $ | 574,240 |   |   | $ | - |   |

----

----

----

----

----

|                      |   | February 29, 2012 |    |   | May 31, 2011 |   |
|---------------------------|--------|-------------------|---------|--------|--------------|--------|
|                      |   |              |    |   |         |   |
| Platform Fees             |   |              | 3,542   |   |         |   | 7,709 |   |
| Executive Expense Account |   |              | 4,654   |   |         |   | 7,486 |   |
| Consulting                |   |              | 10,000  |   |         |   | 29,062 |   |
| Employee Advances         |   |              | 16,810  |   |         |   |   |   |
| Consulting Stock Option   |   |              | 78,713  |   |         |   |   |   |
| Consulting Stock Based    |   |              | 285,515 |   |         |   |   |   |
| Dues & Subscriptions  |   |              | 6,143   |   |         |   |   |   |
| Professional Fees         |   |              | 15,467  |   |         |   |   |   |
| Licensing                 |   |              | 2,600   |   |         |   |   |   |
| Liability Insurance       |   |              | 4,176   |   |         |   |   |   |
|                      |   |              |    |   |         |   |   |   |
|                      |   |              | 427,620 |   |         |   | 44,257 |   |

----

| Loans Payable consist of the following:         |   |         |   |   |    |   |
|-------------------------------------------------|--------|--------------|--------|--------|---------|--------|
|                                            |   |         |   |   |    |   |
|                                            |   | February 29, |   |   | May 31, |   |
|                                            |   | 2012         |   |   | 2011    |   |
|                                            |   |         |   |   |    |   |
| Convertible debt with investor                  |   |         |   |   |    |   |
| 10% interest rate until Dec 2010, conversion at |   |         |   |   |    |   |
| value determined at date of conversion,         |   |         |   |   |    |   |
| due on demand                                   |   | $            | -      |   |    | $      | 86,000 |   |
|                                            |   |         |   |   |    |   |   |   |
| Convertible debt with investor                  |   |         |   |   |    |   |   |   |
| 10% interest rate until Dec 2010, conversion at |   |         |   |   |    |   |   |   |
| value determined at date of conversion,         |   |         |   |   |    |   |   |   |
| due on demand                                   |   |         | -      |   |    |   | 38,240 |   |
|                                            |   |         |   |   |    |   |   |   |
| Note payable with a marketing company, no       |   |         |   |   |    |   |   |   |
| interest rate, payable upon demand              |   |         | -      |   |    |   | 20,000 |   |
|                                            |   |         |   |   |    |   |   |   |
|                                            |   |         |   |   |    |   |   |   |
|                                            |   | $            | -      |   |    | $      | 144,240 |   |

----

|                                                                                                                                                                                                                        |   | February 29,2012 |      |   | May 31,2011 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|-------------|--------|
|                                                                                                                                                                                                                        |   |             |      |   |        |   |
| Convertible debt with related party (companyin which the CFO was also serving as CFO ofthe Company for the period represented bythis report), no interest rate, conversion atmarket value on date of conversion, unsecured, |   |             |      |   |        |   |
| due on demand                                                                                                                                                                                                               |   | $                | 1,082,170 |   |        | $      | 1,050,558 |   |
|                                                                                                                                                                                                                        |   |             |      |   |        |   |   |   |
| Note  payable to related party (CEO of aCompany in which the CFO was servingas CFO of the Company for the periodrepresented by this report), no interest rate                                                     |   |             |      |   |        |   |   |   |
| unsecured, payable upon demand                                                                                                                                                                                              |   |             | 105,000   |   |        |   |   |   |
|                                                                                                                                                                                                                        |   |             |      |   |        |   |   |   |
| Note payable with related party (company                                                                                                                                                                                    |   |             |      |   |        |   |   |   |
| in which the owner is the spouse of the CEO                                                                                                                                                                                 |   |             |      |   |        |   |   |   |
| of the Company), 5% interest, unsecured,                                                                                                                                                                                    |   |             |      |   |        |   |   |   |
| due upon demand                                                                                                                                                                                                             |   |             | 173,729   |   |        |   | - |   |
|                                                                                                                                                                                                                        |   |             |      |   |        |   |   |   |
| Note payable with related party (company in                                                                                                                                                                                 |   |             |      |   |        |   |   |   |
| which the owner is also serving as an officer of                                                                                                                                                                            |   |             |      |   |        |   |   |   |
| the Company), no interest rate, unsecured,                                                                                                                                                                                  |   |             |      |   |        |   |   |   |
| due upon demand                                                                                                                                                                                                             |   |             | 6,540     |   |        |   | - |   |
|                                                                                                                                                                                                                        |   |             |      |   |        |   |   |   |
| Note payable to an employee, no interest rate,                                                                                                                                                                              |   |             |      |   |        |   |   |   |
| unsecured, due upon demand                                                                                                                                                                                                  |   |             | 811       |   |        |   | - |   |
|                                                                                                                                                                                                                        |   |             |      |   |        |   |   |   |
| Note payable for an asset purchase agreement                                                                                                                                                                                |   |             |      |   |        |   |   |   |
| with a related party (company in which the                                                                                                                                                                                  |   |             |      |   |        |   |   |   |
| owner is also serving as an officer of the                                                                                                                                                                                  |   |             |      |   |        |   |   |   |
| Company),  no interest rate, unsecured,                                                                                                                                                                           |   |             |      |   |        |   |   |   |
| due upon demand.                                                                                                                                                                                                            |   |             | 144,061   |   |        |   | - |   |
|                                                                                                                                                                                                                        |   |             |      |   |        |   |   |   |
|                                                                                                                                                                                                                        |   | $                | 1,512,311 |   |        | $      | 1,050,558 |   |

----

----

| o   | On June 17, 2011, 350,000 units to an accredited investor for a total purchase price of $700,000, all of which was paid in cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On June 21, 2011, per terms of the Employment Agreement with Rod Place, Chief Operating Officer, 50,000 common shares valued at $87,500. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On August 17, 2011, per the terms of an investor relations contract, 150,000 shares of restricted common stock.  These shares were held in escrow until January 16, 2012 when the shares were distributed to the investor relations company and a value of $142,500.. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On October 11, 2011, the Company entered into a separation agreement and release with Mr. Alex Chester wherein he agreed that as of October 20, 2011, he shall cease to be employed by the Company and any of its subsidiaries.  Pursuant to the separation agreement, the Company agreed to pay Mr. Chester a severance payment.  As a result of the severance agreement the net shares returned and cancelled were 546,240 and the Company paid $30,000 in severance payment.  The net value of the cancelled shares was based on the $30,000 severance payment made.  (See Note 4 “Changes in Management” for further information) |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On November 3, 2011, per the terms of a consulting agreement, 150,000 shares of restricted common stock were issued.  The terms of the agreement stipulated that 50,000 shares would be earned upon full completion of three benchmarks.  The first benchmark was completed on August 2, 2011 of which 50,000 shares were valued based on the closing price of $1.20.  The second was completed on October 13, 2011, 50,000 shares were valued based on the closing price of $1.05.  The third benchmark was completed on November 16, 2011, 50,000 shares were valued at $1.22.  The total value of shares issued was determined to be $173,500 and was recorded as consulting expense. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On November 3, 2011, 50,000 units to an accredited investor for a total purchase price of $100,000, all of which was paid in cash.  Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On November 23, 2011, 40,000 units to an accredited investor for a total purchase price of $40,000, all of which was paid in cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00 |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| o   | On November 23, 2011, 25,000 units to an accredited investor for a total purchase price of $25,000, all of which was paid in cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On November 14, 2011, the Board of Directors of the Company approved the Certificate of Designation of “Series “A” Convertible Preferred Stock” and authorized the issuance of 425,000 shares of Preferred Stock at $0.001 par value designated as “Series “A” Convertible Preferred Stock” and 850,000 common stock purchase warrants exercisable at $3.00 to an accredited investor for $500,000.  The holder of the “Series “A” Convertible Preferred Stock” shall have the right to convert each share into two (2) shares of the Company’s common stock, $0.001 par value per share.  The investor  has since agreed to convert the preferred stock to 850,000 shares of common stock  and the share issued on December 13, 2011 |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On December 15, 2011, 124,240 shares of common stock for conversion of notes payable valued at $124,240 plus accrued interest of $4,113.  The shares were valued at $129,210. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On December 15, 2011, 124,240 shares of common stock for consulting services valued at $121,755 to be expensed over one year beginning in December, 2011.  The Company expensed $27,020 for the consulting services during the three month period ended February 29, 2012. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On December 15, 2011, 10,000 shares of common stock to employees valued at $10,000 issued as a one time year-end bonus. |
|---------------|-------------------------------------------------------------------------------------------------------------------------|

| o   | On January 9, 2012, 450,564 shares of common stock to settle a $495,620 stock payable. |
|---------------|----------------------------------------------------------------------------------------|

| o   | On January 26, 2012, 150,000 units to an accredited investor for $150,000 cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On January 26, 2012, 10,000 units to an accredited investor for $10,000 cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On January 26, 2012, 10,000 units to an accredited investor cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On February 17, 2012, 100,000 units to an accredited investor for $50,000 cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| o   | On February 17, 2012, 100,000 units to an accredited for $50,000 cash. Each unit consisted of one share of common stock and one three year warrant with an exercise price of $3.00. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On February 17, 2012, per consulting agreement, 177,000 shares of restricted common stock valued at $173,460 to be expensed over one year.  The Company recorded $28,514 of consulting expense during the three month period ended February 29, 2012. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On February 17, 2012, 40,000 shares of restricted stock to two independent contractors for consulting services, 20,000 each, valued at $40,000. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | On February 29, 2012, 10,000 shares of restricted stock to an employee as a one-time bonus valued at $9,800. |
|---------------|--------------------------------------------------------------------------------------------------------------|

| o   | On February 29, 2012, 50,000 shares of restricted stock to an independent contractor for consulting services valued at $50,000 to be expensed over one year.  The Company recorded $4,167 in consulting expense during the three month period ended February 29, 2012. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                             |   | Numberof Warrants |      |   | Weighted-AverageExercise Price |   |       | Weighted-AverageRemaining Life (Years) |   |
|----------------------------------|--------|-------------------|-----------|--------|--------------------------------|--------|------------|----------------------------------------|--------|
| Outstanding at June 1, 2011      |   |              | -         |   |                           | $      | 0.00       |                                   |   |   | - |   |
| Granted                          |   |              | 1,695,000 |   |                           | $      |  3.00 |                                   |   |   | 2.59 |   |
| Exercised                        |   |              | -         |   |                           | $      | 0.00       |                                   |   |   | - |   |
| Cancelled                        |   |              | -         |   |                           | $      | 0.00       |                                   |   |   | - |   |
| Outstanding at February 29, 2012 |   |              | 1,695,000 |   |                           | $      |  3.00 |                                   |   |   | 2.59 |   |
| Exercisable at February 29, 2012 |   |              | 1,695,000 |   |                           | $      |  3.00 |                                   |   |   | 2.59 |   |

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|                             |   | Numberof Options |      |   | Weighted-AverageExercise Price |   |       | Weighted-AverageRemaining Life (Years) |   |
|----------------------------------|--------|------------------|-----------|--------|--------------------------------|--------|------------|----------------------------------------|--------|
| Outstanding at June 1, 2011      |   |             | -         |   |                           | $      | 0.00       |                                   |   |   | - |   |
| Granted                          |   |             | 1,200,000 |   |                           | $      |  1.25 |                                   |   |   | 4.24 |   |
| Exercised                        |   |             | -         |   |                           | $      | 0.00       |                                   |   |   | - |   |
| Cancelled                        |   |             | -         |   |                           | $      | 0.00       |                                   |   |   | - |   |
| Outstanding at February 29, 2012 |   |             | 1,200,000 |   |                           | $      |  1.25 |                                   |   |   | 4.24 |   |
| Exercisable at February 29, 2012 |   |             | 700,000   |   |                           | $      |  1.29 |                                   |   |   | 4.24 |   |

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| o   | our ability to diversify our operations; |
|---------------|------------------------------------------|

| o   | our ability to implement our business plan as a provider of communications and digital services; |
|---------------|--------------------------------------------------------------------------------------------------|

| o   | unavailability of funds for capital expenditures and/or general working capital; |
|---------------|----------------------------------------------------------------------------------|

| o   | the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | our ability to attract key personnel; |
|---------------|---------------------------------------|

| o   | our ability to operate profitably; |
|---------------|------------------------------------|

| o   | our ability to incorporate the Elevate assets into our operations; |
|---------------|--------------------------------------------------------------------|

| o   | our ability to generate sufficient funds to operate the Elevate operations, as a result of completion of our merger; |
|---------------|----------------------------------------------------------------------------------------------------------------------|

| o   | deterioration in general or regional economic conditions; |
|---------------|-----------------------------------------------------------|

| o   | changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate; |
|---------------|-------------------------------------------------------------------------------------------------------------------|

| 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   | inability to achieve future sales levels or other operating results; |
|---------------|----------------------------------------------------------------------|

| o   | the inability of management to effectively implement our strategies and business plans; |
|---------------|-----------------------------------------------------------------------------------------|

----

| 1.   | Elevate Broadband |
|----------------|-------------------|

| 2.   | Elevate Digital Voice (VoIP) |
|----------------|------------------------------|

| 3.   | Elevate Entertainment (Retail relationships with top satellite entertainment companies) |
|----------------|-----------------------------------------------------------------------------------------|

| 4.   | Elevate Smart Home |
|----------------|--------------------|

| 5.   | Elevate Mobile |
|----------------|----------------|

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----

| ·   | Win new customers through an unprecedented engagement model, improved sales force automation tools and streamlined on boarding processes. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Retain existing customers through enhanced customer relationship management. |
|--------------------|------------------------------------------------------------------------------|

| ·   | Add 1,000 Independent Elevate Direct Sales Representatives |
|--------------------|------------------------------------------------------------|

| ·   | Add 3,500 Independent Elevate Affiliate Sales Representatives |
|--------------------|---------------------------------------------------------------|

| ·   | Create a strong brand presence by delivering in the brand promise. “To “elevate your digital experience. Expect More. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Elevate Defined: “To move or raise to a higher state, to exalt, to raise the voice.” |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | Execute the tactical measures defined in the plan |
|--------------------|---------------------------------------------------|

| ·   | Be vigilant in operating customer management systems to streamline the customer on boarding process and provide complete transparency into the entire engagement process |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Continuous investment to improve enterprise back-office systems to support the Elevate customer journey |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Streamline recruiting processes |
|--------------------|---------------------------------|

| ·   | Complete the roll out of all remaining Elevate Products and Services |
|--------------------|----------------------------------------------------------------------|

| ·   | Create a strong brand presence. |
|--------------------|---------------------------------|

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----

----

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|                                      |   | Nine months EndedFebruary 29, |       |
|-------------------------------------------|--------|-------------------------------|------------|
|                                      |   | 2012                          |       |   | 2011 |   |
| Net cash used in operating activities     |   | $                             | (1,681,984 | ) |   | $ | (272,684 | ) |
| Net cash used in investing activities     |   |                          | (95,151    | ) |   |   | (248,990 | ) |
| Net cash provided by financing activities |   |                          | 1,777,135  |   |   |   | 519,512 |   |
| Net increase/(decrease) in Cash           |   |                          | 0          |   |   |   | (2,162 | ) |
| Cash, beginning of year                   |   |                          | -          |   |   |   | 4,563 |   |
| Cash, end of year                         |   | $                             | 0          |   |   | $ | 2,401 |   |

----

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|          |                                                                                                                         |          | Incorporated by reference |
|---------------|------------------------------------------------------------------------------------------------------------------------------|---------------|---------------------------|
| ExhibitNumber | Exhibit Description                                                                                                          | Filedherewith | Form                      | Periodending | Exhibit | Filing date |
| 2.1           | Acquisition Agreement and Plan of Merger – Dated February 2, 2011                                                      |          | 8-K                       |   | 2.1 | 2/4/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 2.2           | Addendum No 1 to Acquisition Agreement and Plan of Merger – Dated February 11, 2011                                    |          | 8-K                       |   | 2.2 | 2/11/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 3i(a)         | Articles of Incorporation – Dated February 24, 2006                                                                    |          | S-1                       |   | 3.1 | 9/30/08 |
|          |                                                                                                                         |          |                      |   |   |   |
| 3i(b)         | Certificate of Amendment to Articles of Incorporation – Dated December 17, 2007                                        |          | S-1                       |   | 3.2 | 9/30/08 |
|          |                                                                                                                         |          |                      |   |   |   |
| 3i(c)         | Certificate of Change – Dated February 7, 2011                                                                         |          | 8-K                       |   | 3i(c) | 4/8/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 3i(d)         | Articles of Merger – Dated March 2, 2011                                                                               |          | 8-K                       |   | 3i(d) | 4/8/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 3i(e)         | Certificate of Amendment to Articles of Incorporation – Dated October 14, 2011                                         |          | 10-Q                      | 8/31/11 | 3i(e) | 10/17/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 3ii(a)        | Bylaws                                                                                                                       |          | S-1                       |   | 3.3 | 9/30/08 |
|          |                                                                                                                         |          |                      |   |   |   |
| 10.6          | Rescission Letter of Merger Agreement by and among HGLB, Highland Sub Co and RiteWire, Inc. – Dated September 12, 2011 |          | 10-K                      | 5/31/11 | 10.6 | 9/20/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 10.7          | 2011 Stock Incentive Plan                                                                                                    |          | 10-Q                      | 8/31/11 | 10.7 | 10/17/11 |
|          |                                                                                                                         |          |                      |   |   |   |
| 31.1          | Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act                                                       | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 31.2          | Certification CFO pursuant to Section 302 of the Sarbanes-Oxley Act                                                          | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 32.1          | Certification of CEO pursuant to Section 906 of the Sarbanes-Oxley Act                                                       | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 32.2          | Certification CFO pursuant to Section 906 of the Sarbanes-Oxley Act                                                          | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 101.INS*      | XBRL Instance Document                                                                                                       | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 101.SCH*      | XBRL Taxonomy Extension Schema                                                                                               | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 101.CAL*      | XBRL Taxonomy Extension Calculation Linkbase                                                                                 | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 101.DEF*      | XBRL Taxonomy Extension Definition Linkbase                                                                                  | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 101.LAB*      | XBRL Taxonomy Extension Label Linkbase                                                                                       | X             |                      |   |   |   |
|          |                                                                                                                         |          |                      |   |   |   |
| 101.PRE*      | XBRL Taxonomy Extension Presentation Linkbase                                                                                | X             |                      |   |   |   |

| * | XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                 |   | ELEVATE, INC. |
|----------------------|--------|---------------|
|                 |   |          |   |
|                 |   |          |   |
| Date: April 23, 2012 |   | By:           | /S/ Donna Moore |
|                 |   |          | Donna Moore, Chief Financial Officer |
|                 |   |          | (Principal Financial Officer and duly authorized signatory) |

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