**UNITED
STATES**


**SECURITIES
AND EXCHANGE COMMISSION**


Washington,
D.C. 20549




**FORM
10-KSB**


****


**[** **X** **]**  **ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF** **THE
SECURITIES EXCHANGE ACT OF 1934**




For the
Fiscal Year Ended: December 31, 2004


****


**[**  **]**  **TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF** **THE
SECURITIES EXCHANGE ACT OF 1934**




For the
Transition Period From __________ to __________




Commission
File No. 000-29531




ADVANCED
MEDICAL INSTITUTE INC.


(Name of
small business issuer in its charter)




NEVADA
    88-0409144(State
      or other jurisdiction of
      incorporation
      or organization)
    (I.R.S.
      Employer Identification No.)6767
      Tropicana Avenue, Suite 207
      Las
      Vegas, Nevada
    89103(Address
      of principal executive offices)
    (Zip
      code)




Issuer’s
telephone number: (702) 248-1047




Securities
registered pursuant to Section 12(b) of the Act:




none




Securities
registered pursuant to Section 12(g) of the Act:




$.001
Common Stock


(Title of
Class)




Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15 (d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes /X / No / /




Check if
there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. / /




State the
issuer’s revenues for the December 31, 2004 fiscal year: $-0-.




The
aggregate market value of shares of common stock held by non-affiliates of the
issuer, as of the last business day of the most recent quarter and the date
hereof is $18,562,500 and $17,187,500 respectively.




As of
March 31, 2005, there were 25,000,000 shares of the issuer’s common stock, $.001
par value, outstanding.












**TABLE
OF CONTENTS**


Page**PART
      I**
    
    
    
    3Item
      1.
    
    Description
      of Business
    
    3Item
      2.
    
    Description
      of Property
    
    4Item
      3.
    
    Legal
      Proceedings
    
    5Item
      4.
    
    Submission
      of Matters to Vote of Security Holders
    
    6**PART
      II**
    
    
    
    6Item
      5.
    
    Market
      for Common Equity and Related Stockholder Matters
    
    6Item
      6.
    
    Management's
      Discussion and Analysis or Plan of Operation
    
    6Item
      7.
    
    Financial
      Statements
    
    8Item
      8.
    
    Changes
      in and Disagreements with Accountants on Accounting and Financial
      Disclosure
    
    8Item
      8A.
    
    Controls
      and Procedures
    
    8Item
      8B.
    
    Other
      Information
    
    8**PART
      III**
    
    
    
    8Item
      9.
    
    Directors,
      Executive Officers, Promoters and Control Persons; Compliance With Section
      16(a) of the Exchange Act
    
    8Item
      10.
    
    Executive
      Compensation
    
    11Item
      11.
    
    Security
      Ownership of Certain Beneficial Owners and Management and Related
      Stockholder Matters
    
    11Item
      12.
    
    Certain
      Relationships and Related Transactions
    
    12Item
      13.
    
    Exhibits
    
    13Item
      14.
    
    Principal
      Accountant Fees and Services
    
    13Signatures
    
    
    
    15Financial
      Statements
    
    
    
    F-1






2




**PART
I**





Item 1. **Description
of Business.**





Introduction




We were
incorporated under the name of Hawksdale Financial Visions, Inc. (sometimes the
“Company”) on December 6, 1996 under the laws of the State of Nevada. We
originally had intended to time share a single family dwelling house in the Rum
Cay area of the Bahamas, offering a one-twelfth fractional interest. As at March
31, 1997, all funds raised by the sale of shares of $.001 par value common stock
(“Common Stock”) in order to fulfill our initial objective had been expended and
we, thereafter, become dormant.




On
October 1, 2004, we formed a corporation under the laws of the State of Nevada
called “Advanced Medical Institute Inc.” and on October 5, 2004, we acquired one
hundred shares of its common stock for cash. On October 15, 2004, the subsidiary
was merged with and into the Company and as a result of the merger, the
Company’s corporate name was changed to “Advanced Medical Institute Inc.”




From
March 31, 1997 until January 28, 2005, we had been in the developmental stage
and have had no operations and we could be defined as a “shell” company, an
entity which is generally described as having no or nominal operations and with
no or nominal assets or assets consisting solely of cash and cash equivalents.




On
January 28, 2005, we entered into a Share Exchange Agreement (the “Exchange
Agreement”) with Advanced Medical Institute Pty Limited, a privately owned
Australian company (“AMI Australia”), and AMI Australia’s shareholders, (the
“Shareholders”), pursuant to which the parties agreed that we would acquire all
of the issued and outstanding shares of stock of AMI Australia in exchange for
the issuance in the aggregate of 14,600,000, or 58.4%, of our shares of Common
Stock (the “Shares”) to the Shareholders. On March 21, 2005, we closed the
transaction and issued our Shares, resulting in us acquiring the business of AMI
Australia (the “Share Exchange”), which is discussed below. As used herein, the
“Company” shall also mean AMI Australia after the close of the Share Exchange
when used for events after March 21, 2005, described herein.




General
Business Plan .




AMI
Australia was established in
February 2001 when it
entered into an agreement with On
Clinic, Health Services For Men, Australian Momentum Health to
acquire two chains of medical clinics which provide services relating to the
treatment of sexual dysfunction. AMI Australia currently operates 22 clinics
Australia wide. For the year ended December 31, 2003, AMI Australia’s revenues were
approximately AU$17.9 million (US$13,497,559).




AMI
Australia is a service provider company which arranges for patients to be
provided with medical services, pharmaceuticals and associated support services
to people with sexual dysfunction. Its treatment options include:




(a)  injections,
lozenges, tablets and nasal spray program options for the treatment of impotence
and erectile dysfunction; and




3




(b)  injections,
lozenges and nasal spray program options for the treatment of premature
ejaculation.




Each of
its treatment options are prescribed by registered Australian doctors and
prepared and delivered by an Australian registered compounding pharmacy in full
compliance with Australian regulatory requirements. AMI Australia's products and
services are only available by prescription and are sold on an "off-label"
basis. AMI Australia's treatment options are generally only available through
its medical clinics.




AMI
Australia licenses certain of the intellectual property used in its business
from Jacov (Jack) Vaisman, its founder, President and Director. This
intellectual property includes an innovation patent for its premature
ejaculation products (which patent is due to expire on 9 July 2012). AMI
Australia's injection, lozenge and tablet impotence and erectile dysfunction
treatment options are not patent protected.




AMI
Australia obtains customers through direct advertising and marketing and through
its existing customer database which exceeds 250,000 people. AMI Australia is in
the process of developing new treatment options and its subsidiary, Intelligent
Medical Technologies, has obtained a worldwide "perpetual" exclusive license
from Sheiman Ultasonic Research Foundation Pty Limited, to utilize certain
patents, intellectual property in the fields of impotence and sexual
dysfunction.




AMI
Australia has yet to expand its operations outside Australia but is considering
overseas expansion at this time.




Competition





AMI
Australia competes with rival treatments such as Viagra, Cialis and Levitra.
Companies of all sizes are engaged in the development and commercialization of
technologies similar to ours. Competition is intense in all of our businesses
and includes many large and small competitors. The principal means of
competition vary among product categories and business groups. However, the
efficacy, safety, patients’ and customers’ ease of use and cost effectiveness of
our products are important factors for success in all of our principal
businesses. Many of our competitors have substantially greater financial and
other resources, larger research and development staffs and more experience in
the regulatory approval process. Moreover, potential competitors have or may
have patents or other rights that conflict with patents covering our
technologies.




Employees




As of
April 30, 2005, the Company had a total of approximately 140 full-time staff,
working in the areas of sales and marketing, customer support, product
development and back office functions. None of the Company’s employees are
members of a union or labor organization.




Item 2. **Description
of Property.**




As of
December 31, 2004, we had no properties. Pursuant to the Exchange Agreement we
acquired the following properties: a leasehold interest in 24 Australian
leasehold properties, being the 22 clinics used to operate the business, the
Company's Australian head office in Sydney Australia and a leasehold interest in
part of the Company's former head office in Sydney which has been fully sublet
to another business. There are no encumbrances over the Company's interest in
these properties.




4





In
addition, we presently occupy office space supplied by our registered agent
representative in the State of Nevada at 6767 Tropicana Avenue, Suite 207, Las
Vegas, Nevada 89103. This space is provided to us on a rent free basis.




Item 3. **Legal
Proceedings.**




As of
December 31, 2004, there was no litigation pending or threatened by or against
the Company.




On July
19, 2004, the Australian Competition and Consumer Commission (collectively, the
“ACCC”) filed a suit against AMI Australia in the Federal Court of Australia
Sydney Registry. The ACCC claims that a series of advertisements made by AMI
Australia involving a celebrity that confessed impotence were misleading and
deceptive. AMI Australia has denied the allegation and is vigorously defending
this suit. ACCC is seeking corrective advertising for the alleged misleading and
deceptive advertisements. The ACCC has not made any claim for damages. The
hearing of the proceedings commenced on May 16, 2005 and continued through May
19, 2005. The hearing has been adjourned until August 30, 2005 and will continue
until September 2005, if necessary.




On August
10, 2004, Bradley Joyce, AMI Australia’s former Chief Executive Officer filed a
suit against AMI Australia in the Industrial Commission of NSW. Mr. Joyce
alleges that his contract is unfair and seeks to have the Industrial Commission
of NSW amend the contract to include a six month severance payment (which would
be approximately AU$100,000). These proceedings are at an early stage and a
compulsory conciliation conference did not resolve the claim. AMI Australia has
denied the allegations and is vigorously defending this suit.




On
December 17, 2002, Alan Hibberd, a former patient, notified a claim against AMI
Australia in accordance with the Personal Injuries Proceeding Act of 2002 (Qld).
AMI Australia received the notification on April 5, 2004. Mr. Hibberd claims
that we did not properly notify him of possible adverse effects of the medical
procedure he underwent. Mr. Hibberd is seeking reimbursement of wages in the
amount of AU$1,731 and presently unspecified damages for physical injuries.
These proceedings are in pre-court procedure. AMI Australia has denied the
allegations and is vigorously defending this suit.




On
September 27, 2004, Rocco Licastro, a former patient, filed a suit against AMI
Australia in the
District Court of NSW, Sydney Registry. Mr. Licastro’s claims result from an
injection therapy that Mr. Licastro claims caused physical injuries. Mr.
Licastro is seeking damages including medical expenses, but no amount has been
specified to date. These proceeding are in an early stage. AMI
Australia has
denied the allegations and is vigorously defending this suit.




On August
24, 2004, AMI
Australia initiated a suit against Mr. Mark Ryan, a former consultant, two companies
controlled by Mr. Ryan which now compete with us, Dr. Ian Davies, Mr. Ryan’s
partner, and a third company controlled by Dr. Davies (the “Defendants”) in the
Federal Court of Australia. AMI
Australia alleges
that Mr. Ryan breached his confidentiality agreement with it and misused its
intellectual property. AMI
Australia is
seeking an injunction restraining the Defendants from using its confidential
information and intellectual property. AMI
Australia is also
seeking an as of yet unspecified amount of damages. This proceeding is still in
the discovery stage. The Defendants have denied the allegations.




5





Item 4. **Submission
of Matters to Vote of Security Holders.**




No
matters were submitted to the Company’s security holders during the fourth
quarter of the fiscal year ended December 31, 2004.




**PART
II**





Item 5. **Market
for Common Equity and Related Stockholder Matters****.**





Our
Common Stock is listed on the Pink Sheets®, which is a centralized quotation
service that collects and publishes market maker quotes for over-the-counter
securities that is published by the Pink Sheets LLC, under the symbol “AVMD.PK”.
The following sets forth, for the periods indicated, the high and low bid price
for our Common Stock as reported in the Pink Sheets®. The Pink Sheets is a
limited, voluntary reporting service and may not include all transactions
regarding our Common Stock. The high and low bid price for our Common Stock for
the period from November 30, 2004 through December 31, 2004 was $1.25 and $1.25,
respectively and from January 1, 2005 through May 25, 2005 was $1.00 and $1.35,
respectively. The quotations set forth above reflect inter-dealer prices,
without retail mark-up, mark-down or commissions and may not represent actual
transactions.




As of
December 31, 2004, there were 22 holders of record of the Company’s Common
Stock, which includes shares of Common Stock held by CEDE & Co. and as May
19, 2005, there were 147 shareholders of record.




On
November 8, 2004, we paid a dividend of 14 shares of Common Stock for each
outstanding share of Common Stock. Except for the foregoing, we have not paid
any stock dividends and cash dividends to date and have no plans to pay any
stock or cash dividends in the immediate future.




Recent
Sales of Unregistered Securities




On March
21, 2005, we entered into the Share Exchange Agreement pursuant to which we
issued the Shares to five (5) Shareholders in exchange for all of the issued and
outstanding Shares of AMI Australia. The Shares were issued in reliance upon the
exemptions from registration afforded by Section 4(2) of the Securities Act of
1933, as amended (the “Act”) and Regulation S promulgated under the Act. We have
relied on certain representations of the Shareholders, including that the
Shareholders are accredited investors and/or non-U.S. persons.




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




The
statements contained in this Form 10-KSB that are not purely historical are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. These include statements about the Company’s expectations, beliefs,
intentions or strategies for the future, which are indicated by words or phrases
such as “anticipate,” “expect,” “intend,” “plan,” “will,” “the Company
believes,” “management believes” and similar words or phrases. The
forward-looking statements are based on the Company’s current expectations and
are subject to certain risks, uncertainties and assumptions. The Company’s
actual results could differ materially from results anticipated in these
forward-looking statements. All forward-looking statements included in this
document are based on information available to the Company on the date hereof,
and the Company assumes no obligation to update any such forward-looking
statements.




6





Plan
of Operation .




From
March 31, 1997 until January 28, 2005, we had been in the developmental stage
and have had no operations and we could be defined as a “shell” company, an
entity which is generally described as having no or nominal operations and with
no or nominal assets or assets consisting solely of cash and cash equivalents.
We were seeking to merge with an operating company.




On
October 1, 2004, we formed a corporation under the laws of the State of Nevada
called “Advanced Medical Institute Inc.” and on October 5, 2004, we acquired one
hundred shares of its common stock for cash. On October 15, 2004, the subsidiary
was merged with and into the Company and as a result of the merger, the
Company’s corporate name was changed to “Advanced Medical Institute Inc.” We
were the surviving corporation in the merger and, except for the name change,
there was no change at that time in our directors, officers, capital structure
or business.




On
January 28, 2005, we entered into the Exchange Agreement with AMI Australia and
all of the shareholders of AMI Australia, pursuant to which the parties agreed
that we would acquire all of the issued and outstanding shares of stock of AMI
Australia in exchange for the issuance of 14,600,000,
or 58.4%, of the s hares of
the Company to the shareholders of AMI Australia. On March 21, 2005, we closed
the transaction and issued our shares of Common Stock, resulting in us acquiring
AMI Australia.




AMI
Australia was established in
February 2001 when it
entered into an agreement with On
Clinic, Health Services For Men, Australian Momentum Health to
acquire two chains of medical clinics which provide services relating to the
treatment of sexual dysfunction. AMI Australia operates 22 clinics Australia
wide. For the year ended December 31, 2004, AMI Australia’s revenues were
approximately AU$17.9 million (US$13,497,559 million).




Liquidity
and Capital Resources .




As of
December 31, 2004, we had total liabilities of $40,644 and we had a negative net
worth of $40,644. As of December 31, 2003, we had total liabilities of $32,556
and a negative net worth of $32,556.




We have
had no revenues from inception through December 31, 2004. We have an accumulated
deficit from inception through December 31, 2004 of $51,044.




From time
to time our officer’s loaned us money to fund our activities. As of December 31,
2004, we owed our officers $40,135. The officers loaned us $7,833 in the year
ended December 31, 2004.




The
Company's bank balances as at 30 April 2005 was AU$133,550. The Company
forecasts that it will be able to generate sufficient funds from its business in
order to fund its operations in the ordinary course during the next 12 months.
As set out previously, the Company is considering expanding its business
offshore. If the Company expands its business in this manner the Company may
need to raise additional debt or equity funding in order to undertake any such
expansion. However, there can be no assurance that we can or will obtain
sufficient funds from operations or from additional financings on terms
acceptable to us. If we are unable to obtain sufficient additional financing, we
could be required to reduce spending and operations further in order to maintain
our operations at a reduced level.




7





Accounting
Treatment of the Acquisition Transaction .




The Share
Exchange with AMI Australia will be accounted for as a reverse acquisition with
the Company being the surviving company. Pursuant to the Exchange Agreement, the
Shareholders will exercise control over the Company. The Share Exchange will be
deemed to be a capital transaction where we are treated as a non-business
entity. Therefore, the accounting for the business combination is identical to
that resulting from a reverse merger, except no goodwill or other intangible
assets will be recorded. For accounting purposes, AMI Australia will be treated
as the accounting acquirer and, accordingly, will be presented as the continuing
entity.




Item 7. **Financial
Statements.**




Our
consolidated financial statements and the notes thereto begin on page F-1 of
this Annual Report on Form 10-KSB.




Item 8. **Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure.**





During
the last two fiscal years there have been no changes in or disagreements with
our Independent Accountant.




**Item
8A.**  **Controls
and Procedures** **.**




Evaluation
of Disclosure on Controls and Procedures .




We
carried out an evaluation as of December 31, 2004, under the supervision and
with the participation of our management, including our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of
our disclosure controls and procedures. Based upon and as of the date of that
evaluation, the President and Chief Financial Officer concluded that our
disclosure controls and procedures are effective.




Changes
in Internal Control Over Financial Reporting .




There
were no changes in our internal controls or in other factors that could have
significantly affected those controls subsequent to the date of our most recent
evaluation.




**Item
8B.**  **Other
Information** **.**




None.




8


****


**PART
III**








**Item 9. **Directors,
Executive Officers, Promoters and Control Persons; Compliance With Section 16(a)
of the Exchange Act.****


****


The
existing bylaws of the Company permit no more than three people to act as
directors of the Company. In connection with the Share Exchange Agreement and
the consent of a majority of the shareholders approving the Share Exchange, five
individuals were named to serve as directors. As a technical matter, the Company
did not at the time amend its bylaws to increase the permitted number of people
to act as a director. As a result, Messrs. Forhad (Tony) Khan and Spiro
Baramilis have resigned and are deemed to no longer act as directors of the
Company. Jacov (Jack) Vaisman, Anatoly Fanshil and Mark Shabshay each will
continue to serve as directors of the Company.




Since May
25, 2005, and as of the date hereof our directors and executive officers are as
follows:





**Name**
    **Ages**
    **Position**Jacov
      Vaisman
    59
    Chief
      Executive Officer, President and DirectorDilip
      Shrestha
    28
    Chief
      Financial OfficerForhad
      (Tony) Khan
    43
    SecretaryAnatoly
      Fanshil
    54
    DirectorMark
      Shabshay
    56
    Director




DR. JACOV
(JACK) VAISMAN, CHIEF EXECUTIVE OFFICER, PRESIDENT AND DIRECTOR - From February
2001 through the present, Dr. Vaisman has been the managing director, chief
executive officer and a major shareholder of AMI Australia. Dr. Vaisman is also
currently a consultant to and shareholder in Yayasan On Clinic, which operates a
similar business in Indonesia. From 1993 through 2001, Dr. Vaisman was the
founder and director of On Clinic International in Australia, a predecessor of
AMI Australia.




DILIP
SHRESTHA, CHIEF FINANCIAL OFFICER - Since 2001, Mr. Shrestha has been the
Financial Controller of AMI Australia. Prior to that he was an Assistant
Accountant with Australian Momentum Health Pty Ltd, a position he held from
1999. Mr. Shrestha holds a Bachelor of Business Accounting, Master of E-Commerce
and a Graduate Diploma of Information Services and E-Commerce, all from Central
Queensland University Sidney & Rockhampton Campus in Australia.




FORHAD
(TONY) KHAN, SECRETARY - From 2001 through the present, Mr. Khan has been
General Manager of AMI Australia. Prior to joining AMI Australia, Mr. Khan was
the Director and sole operator of Australian Momentum Health (“AMH”), one of two
medical establishments leading in providing impotency treatment in Australia.
Mr. Khan was Sales Manager and then Operations Manager for On Clinic
International prior to establishing AMH. Mr. Khan holds a Masters degree in
Commerce and Accounting.




ANATOLY
FANSHIL, DIRECTOR - From 1994 through the present, Mr. Fanshil has held the
position of director of Australian Overseas Shipping Services Pty Limited. From
1991 to 1994, Mr. Fanshil was an engineering service manager for Australian
Ocean Lines. From 1972 through 1991, Mr. Fanshil was employed by the Black Sea
Shipping Company as an electrical engineer and also had oversight over the
entire company for the repairs of various ships anchored in the seaports of
Finland, Greece, Italy and Germany. Mr. Fanshil holds a degree in electrical
engineering.




MARK
SHABSHAY, DIRECTOR - From 2000 through the present, Mr. Shabshay was the owner
of a taxi business. From 1990 to 2000, Mr. Shabshay was the owner and director
of a meat processing factory. Prior to 1999 Mr. Shabshay also owned and operated
a retail store and taxi business. Mr. Shabshay has been the founder, owner and
director of several closely held companies in Australia during the past 28
years.




9


All
directors hold office until the next annual stockholders’ meeting or until their
death, resignation, retirement, removal, disqualification, or until their
successors have been elected and are qualified. Our officers serve at the will
of the Board of Directors. Each of Anatoly Fanshil and Mark Shabshay meets the
independence requirements and standards currently established by the
SEC.




There are
no agreements or understandings for any officer or director of the Company to
resign at the request of another person and none of the officers or directors is
acting on behalf of or will act at the direction of any other
person.




Compliance
With Section 16(a) of Exchange Act




Based on
our review of copies of Forms 3, 4 and 5 filed with the SEC or written
representations from certain reporting persons, we believe that during fiscal
year 2004, all officers, directors, and greater than ten-percent beneficial
owners timely complied with the applicable filing requirements of Section 16(a)
of the Securities Exchange Act of 1934.




Code
of Ethics




On April
30, 2005, we adopted a code of ethics that applies to our officers, employees
and directors, including our Chief Executive Officer (principal executive
officer) and Chief Financial Officer (principal financial and accounting
officer), and other persons who perform similar functions. A copy of our Code of
Ethics is filed as an exhibit to this Annual Report on Form 10-KSB. Our Code of
Ethics is intended to be a codification of the business and ethical principles
which guide us, and to deter wrongdoing, to promote honest and ethical conduct,
to avoid conflicts of interest, and to foster full, fair, accurate, timely and
understandable disclosures, compliance with applicable governmental laws, rules
and regulations, the prompt internal reporting of violations and accountability
for adherence to this Code.




Audit
Committee




The Board
of Directors currently has an Audit Committee. The Audit Committee formerly
consisted of three directors Anatoly Fanshil, Mark Shabshay and Spiro Baramilis.
Each of Anatoly Fanshil, Mark Shabshay and Spiro Baramilis meets the
independence requirements and standards currently established by the SEC.
Because of the resignation of Mr. Baramilis, the Board of Directors will act as
the Audit Committee until such time that the Company has three independent
directors. In addition, the Board of Directors has not yet designated a member
to serve on the Audit Committee member as an "audit committee financial expert"
within the meaning of the rules and regulations of the SEC because they have not
found a qualified independent individual who meets the requirements for the
position. The Company is currently in the process of meeting with independent
persons who have the qualifications to serve as the "audit committee financial
expert" for the Audit Committee.




The Audit
Committee assists the Board by overseeing the performance of the independent
auditors and the quality and integrity of our internal accounting, auditing and
financial reporting practices. The Audit Committee is responsible for retaining
(subject to stockholder ratification) and, as necessary, terminating, the
independent auditors, annually reviews the qualifications, performance and
independence of the independent auditors and the audit plan, fees and audit
results, and pre-approves audit and non-audit services to be performed by the
auditors and related fees.




10




Item 10. **Executive
Compensation.**





As at
December 31, 2004, none of our then officers and/or directors received any
compensation for their respective services rendered to the Company, nor have
they received such compensation in the past.




We have
not adopted any retirement, pension, profit sharing, stock option or insurance
programs or other similar programs for the benefit of our directors, officers
and/or employees.




None of
our executive officers have entered into any employment agreement with us and
none of our executive officers or directors owned any securities exercisable for
or convertible into our Common Stock as of December 31, 2004.




Item 11.  **Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters.**





The
following table sets forth, as of May 13, 2005, certain information concerning
the beneficial ownership of our Common Stock by (i) each stockholder known by us
to own beneficially five percent or more of our outstanding common stock; (ii)
each director; (iii) each executive officer; and (iv) all of our executive
officers and directors as a group, and their percentage ownership and voting
power.





**Name
      and Address of Beneficial Owner**
    
    
    **Shares
      Beneficially Owned (1**)****
    ****
    
    **Percent
      of Class**Jacov
      Vaisman
      Unit
      131
      18-34
      Waverley Street
      Bondi
      Junction NSW 2022 Australia
    
    
    10,250,000
    
    
    41
    %Huntleigh
      Investment Fund Limited
      49
      Micoud Street
      Castries,
      St. Lucia
    
    
    1,932,500
    
    
    7.73
    %Avina
      Investments Limited
      Vanterpool
      Plaza, 2ndFloor, Wickhams Cay I, Road
      Town,
      Tortola, British Virgin Islands
    
    
    1,500,000
    
    
    6
    %Forhad
      (Tony) Khan
      Suite
      4, Level 1
      26/3
      Wolesly Grove
      Zetland
      NSW 2017 Australia
    
    
    250,000
    
    
    1
    %
  11
  **Name
      and Address of Beneficial Owner**
    
    
    **Shares
      Beneficially Owned (1**)****
    ****
    
    **Percent
      of Class**
 Dilip
      Shrestha
      18/30
      Mary Street
      Lidcambe
      NSW 2141 Australia
    
    
    0
    
    
    *Anatoly
      Fanshil
      22/2
      Ocean Street
      Bondi
      Junction NSW 2026 Australia
    
    
    0
    
    
    *Mark
      Shabshay
      137
      Oberon Street
      Coogee
      NSW 2015 Australia
    
    
    0
    
    
    *All
      Directors and Officers (5 people)
    
    
    10,500,000
    
    
    42
    %




__________




* Less
than one percent.




(1)  Except as
indicated in the footnotes to this table and pursuant to applicable community
property laws, the persons named in the table have sole voting and investment
power with respect to all shares of common stock.




Equity
Compensation Plan Information




We do not
have any equity compensation plans.




Item 12. **Certain
Relationships and Related Transactions.**





Throughout
our history, certain members of the Board of Directors, shareholders and general
management have made loans to us to cover our expenses.




As of
December 31, 2004, we owed Christina Escobedo, our former President and a former
director, $40,644.00 to repay advances made to us. Such loans were non
interest-bearing. Ms. Escobedo did not make a profit in any way on the loan of
money to us. All outstanding loans by Ms. Escobedo were forgiven on March 21,
2005 after closing of the Share Exchange.




12





Item 13. **Exhibits.**




**Exhibit
      Number**
    **Description**2.1
    Share
      Exchange Agreement, dated January 28, 2005 (incorporated herewith by
      reference to Exhibit 2.1 to Advanced Medical Institute Inc.’s Current
      Report on Form 8-K dated March 21, 2005 and filed with the Securities and
      Exchange Commission on March 28, 2005).3.1
    Certificate
      of Incorporation of Advanced Medical Institute Inc. (incorporated herewith
      by reference to Exhibit 3.1 to Advanced Medical Institute Inc.’s
      Registration Statement on Form 10-SB filed with the Securities and
      Exchange Commission on February 16, 2000).3.2
    By-laws
      of Advanced Medical Institute Inc. (incorporated herewith by reference to
      Exhibit 3.2 to Advanced Medical Institute Inc.’s Registration Statement on
      Form 10-SB filed with the Securities and Exchange Commission on February
      16, 2000).14.1
    Code
      of Ethics.31.1
    Certification
      of Chief Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the
      Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.31.2
    Certification
      of the Principal Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of
      the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
      the Sarbanes-Oxley Act of 2002.32.1
    Certification
      of Chief Executive Officer and the Principal Financial Officer Pursuant to
      18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of
      2002).




Item 14. **Principal
Accountant Fees and Services.**





Audit
Fees .




Audit
fees consist of fees billed for professional services rendered for the audit of
our financial statements and the review or audit of the interim statements. The
total fees billed for Kyle L. Tingle for the fiscal year ended December 31, 2004
was $2,000 and applicable for the fiscal year ended December 31, 2003 was
$2,000.




Audit
Related Fees .




There
were no audit related services and no fees billed for audit related services for
the fiscal year ended December 31, 2003 and December 31, 2004.




Tax
Fees .




There
were no tax fees billed for the fiscal years ended December 31, 2003 and
2004.




13





All
Other Fees .




There
were no other accounting fees billed for the fiscal years ended December 31,
2003 and 2004.




Pre-Approval
of Services .




The Audit
Committee pre-approves all services, including audit services, provided by our
independent accountants. For audit services, the independent auditor provides
the board with an engagement letter outlining the scope of the audit services
proposed to be performed during the year, which must be formally accepted by the
board before the audit commences. Prior to the reconfiguration of the Audit
Committee described in Item 9 herein, the entire Board of Directors will act as
the Audit Committee.





14







**SIGNATURES**




Pursuant
to the requirements of Section 12 of the Securities Exchange Act of 1934, the
Company has duly caused this Form 10-KSB to be signed on its behalf by the
undersigned, thereunto duly authorized.





ADVANCED MEDICAL
      INSTITUTE INC.Date: May 24, 2005
    By:
    /s/ Jacov (Jack) VaismanJacov (Jack) VaismanChief
      Executive Officer




Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.


****Date: May 24, 2005
    By:
    /s/ Jacov (Jack)
      VaismanJacov (Jack) VaismanChief
      Executive Officer




****Date: May 24, 2005
    By:
    /s/ Dilip
  ShresthaDilip ShresthaChief
      Financial Officer




****Date: May 24, 2005
    By:
    /s/ Forhad (Tony)
    KahnForhad (Tony) KahnSecretary




****Date: May 24, 2005
    By:
    /s/ Anatoly
  FanshilAnatoly FanshilDirector




****Date: May 24, 2005
    By:
    /s/ Mark
ShabshayMark ShabshayDirector
   15




Exhibit
Index




**Exhibit
      Number**
    **Description**2.1
    Share
      Exchange Agreement, dated January 28, 2005 (incorporated herewith by
      reference to Exhibit 2.1 to Advanced Medical Institute Inc.’s Current
      Report on Form 8-K dated March 21, 2005 and filed with the Securities and
      Exchange Commission on March 28, 2005).3.1
    Certificate
      of Incorporation of Advanced Medical Institute Inc. (incorporated herewith
      by reference to Exhibit 3.1 to Advanced Medical Institute Inc.’s
      Registration Statement on Form 10-SB filed with the Securities and
      Exchange Commission on February 16, 2000).3.2
    By-laws
      of Advanced Medical Institute Inc. (incorporated herewith by reference to
      Exhibit 3.2 to Advanced Medical Institute Inc.’s Registration Statement on
      Form 10-SB filed with the Securities and Exchange Commission on February
      16, 2000).14.1
    Code
      of Ethics.31.1
    Certification
      of Chief Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the
      Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.31.2
    Certification
      of the Principal Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of
      the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
      the Sarbanes-Oxley Act of 2002.32.1
    Certification
      of Chief Executive Officer and the Principal Financial Officer Pursuant to
      18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of
      2002).









16




**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**




**FINANCIAL
STATEMENTS**






**TABLE
OF CONTENTS**




REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    F-1FINANCIAL
      STATEMENTSBalance
      Sheets
    F-2Statements
      of Income
    F-3Statements
      of Stockholders' Deficit
    F-4Statements
      of Cash Flows
    F-5Notes
      to Financial Statements
    F-6-
      F-11














**Report
of Independent Registered Public Accounting Firm**








To the
Board of Directors


Advanced
Medical Institute, Inc. fka Hawksdale Financial Visions, Inc.


Las
Vegas, Nevada








I have
audited the accompanying balance sheets of Advanced Medical Institute, Inc. fka
Hawksdale Financial Visions, Inc. (A Development Stage Company) as of December
31, 2004 and 2003 and the related statements of income, stockholders’ deficit,
and cash flows for the years then ended and the period December 6, 1996
(inception) through December 31, 2004. These financial statements are the
responsibility of the Company's management. My responsibility is to express an
opinion on these financial statements based on my audit.





I
conducted my audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that I plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. I believe that my audit provides a reasonable
basis for my opinion.





In my
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Advanced Medical Institute, Inc.
fka Hawksdale Financial Visions, Inc. (A Development Stage Company) as of
December 31, 2004 and 2003 and the results of its operations and cash flows for
the years then ended and the period December 6, 1996 (inception) through
December 31, 2004, in conformity with U.S. generally accepted accounting
principles.





The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As discussed in Note 1 to the financial
statements, the Company has limited operations and has no established source of
revenue. This raises substantial doubt about its ability to continue as a going
concern. Management’s plan in regard to these matters is also described in Note
1. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.










Kyle L.
Tingle, CPA, LLC








February
7, 2005


Las
Vegas, Nevada





F-1





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**BALANCE
SHEETS**




December 31,
      2004
    
    
    December 31,
      2003ASSETSCURRENT
      ASSETSTotal
      current assets
    
    $
    0
    
    $
    0Total
      assets
    
    $
    0
    
    $
    0LIABILITIES
      AND STOCKHOLDERS' DEFICITCURRENT
      LIABILITIESAccounts
      payable
    
    $
    510
    
    $
    255Officers
      advances
    
    
    40,134
    
    
    32,301Total
      current liabilities
    
    $
    40,644
    
    $
    32,556STOCKHOLDERS'
      DEFICITCommon
      stock: $0.001 par value;authorized
      25,000,000 shares;issued
      and outstanding:33,600,000 shares at December 31, 2003:
    
    $
    
    
    $
    $
      33,60010,400,000 shares at December 31, 2004;
    
    
    10,400Additional
      paid in capital
    
    
    0
    
    
    0Accumulated
      deficit during development stage
    
    
    (51,044
    )
    
    (66,156
    )Total
      stockholders' deficit
    
    $
    (40,644
    )
    $
    (32,556
    )Total
      liabilities and stockholders' deficit
    
    $
    0
    
    $
    0

See
Accompanying Notes to Financial Statements.





F-2





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**STATEMENTS
OF INCOME**


Year
      endedDecember
      31,
      2004
    
    
    December 31,
      2003
    
    
    Dec.
      6, 1996
      (inception)
      to
      December
      31,
      2004Revenues
    
    $
    0
    
    $
    0
    
    $
    0Cost
      of revenue
    
    
    0
    
    
    0
    
    
    0Gross
      profit
    
    $
    0
    
    $
    0
    
    $
    0General,
      selling and administrative expenses
    
    
    8,088
    
    
    85
    
    
    42,744Operating
      loss
    
    $
    (8,088
    )
    $
    (85
    )
    $
    (42,744
    )Nonoperating
      income (expense)
    
    
    0
    
    
    0
    
    
    0Net
      loss
    
    $
    (8,088
    )
    $
    (85
    )
    $
    (42,744
    )Net
      loss per share, basic and diluted
    
    $
    (0.00
    )
    $
    (0.00
    )Average
      number of shares of common stock outstanding
    
    
    29,532,055
    
    
    33,600,000
 
 See
Accompanying Notes to Financial Statements.





F-3





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**STATEMENTS
OF STOCKHOLDERS’ DEFICIT**


Common
      StockShares
    
    
    Amount
    
    
    Additional
      Paid-In
      Capital
    
    
    Accumulated
      
      (Deficit)
      During
      Development
      Stage
    
    
    TotalDecember
      10, 1996, issuecommon stock
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (31,500
    )
    $
    2,100Net
      loss, December 31, 1996
    
    
    
    
    
    
    
    
    
    
    
    (2,100
    )
    
    (2,100
    )Balance,
      December 31, 1996
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (33,600
    )
    $
    0Net
      loss, December 31, 1997
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0Balance,
      December 31, 1997
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (33,600
    )
    $
    0Net
      loss, December 31, 1998
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0Balance,
      December 31, 1998
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (33,600
    )
    $
    0November
      29, 1999, changedfrom no par value to $0.001
    
    
    
    
    
    (31,185
    )
    
    31,185November
      29, 1999, forwardstock split 100:1
    
    
    
    
    
    31,185
    
    
    (31,185
    )Net
      loss, December 31, 1999
    
    
    
    
    
    
    
    
    
    
    
    (350
    )
    
    (350
    )Balance,
      December 31, 1999
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (33,950
    )
    $
    (350
    )Net
      loss, December 31, 2000
    
    
    
    
    
    
    
    
    
    
    
    (24,677
    )
    
    (24,677
    )Balance,
      December 31, 2000
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (58,627
    )
    $
    (25,027
    )Net
      loss December 31, 2001
    
    
    
    
    
    
    
    
    
    
    
    (4,728
    )
    
    (4,728
    )Balance,
      December 31, 2001
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (63,355
    )
    $
    (29,755
    )Net
      loss, December 31, 2002
    
    
    
    
    
    
    
    
    
    
    
    (2,716
    )
    
    (2,716
    )Balance,
      December 31, 2002
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (66,071
    )
    $
    (32,471
    )Net
      loss, December 31, 2003
    
    
    
    
    
    
    
    
    
    
    
    (85
    )
    
    (85
    )Balance,
      December 31, 2003
    
    
    33,600,000
    
    $
    33,600
    
    $
    0
    
    $
    (66,156
    )
    $
    (32,556
    )October
      28, 2004, surrenderand cancellation of
shares
    
    
    (23,200,000
    )
    
    (23,200
    )
    
    
    
    
    23,200November
      8, 2004, stockdividend 15:1 (Note 2)Net
      loss, December 31, 2004
    
    
    
    
    
    
    
    
    
    
    
    (8,088
    )
    
    (8,088
    )Balance,
      December 31, 2004
    
    
    10,400,000
    
    $
    10,400
    
    $
    0
    
    $
    (51,044
    )
    $
    (40,644
    )








See
Accompanying Notes to Financial Statements.





F-4





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**STATEMENTS
OF CASH FLOWS**


Year
      endedDecember
      31,
      2004
    
    
    December
      31,
      2003
    
    
    Dec.
      6, 1996
      
      (inception)
      to
      December 31,
      2004Cash
      Flows From Operating ActivitiesNet
      loss
    
    $
    (8,088
    )
    $
    (85
    )
    $
    (42,744
    )Adjustments
      to reconcile net loss to cash used in operating
activities:Changes
      in assets and liabilitiesIncrease
      in accounts payable
    
    
    255
    
    
    85
    
    
    510Net
      cash used in operating activities
    
    $
    (7,833
    )
    $
    0
    
    $
    (42,234
    )Cash
      Flows From Investing Activities
    
    $
    0
    
    $
    0
    
    $
    0Cash
      Flows From Financing ActivitiesIssuance
      of common stock
    
    
    0
    
    
    0
    
    
    2,100Increase
      in officer advances
    
    
    7,833
    
    
    0
    
    
    40,134Net
      cash provided by financing activities
    
    $
    7,833
    
    $
    0
    
    $
    42,234Net
      increase (decrease) in cash
    
    $
    0
    
    $
    0
    
    $
    0Cash,
      beginning of period
    
    
    0
    
    
    0
    
    $
    0Cash,
      end of period
    
    $
    0
    
    $
    0
    
    $
    0SUPPLEMENTAL
      INFORMATIONInterest
      Paid
    
    $
    0
    
    $
    0
    
    $
    0Income
      Taxes Paid
    
    $
    0
    
    $
    0
    
    $
    0


See
Accompanying Notes to Financial Statements.





F-5





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**NOTES
TO FINANCIAL STATEMENTS**


**December
31, 2004 and 2003**





**Note
1.**  **Nature
of Business and Significant Accounting Policies**





Nature
of business:





Advanced
Medical Institute, Inc. fka Hawksdale Financial Visions, Inc. (“Company”) was
organized December 6, 1996 under the laws of the State of Nevada. The Company
currently has no operations and, in accordance with Statement of Financial
Accounting Standard (SFAS) No. 7, “ *Accounting
and Reporting by Development Stage Enterprises* ,” is
considered a development stage company. The Company is registered with the
Securities and Exchange Commission with the desire to locate an operating
company with which to merge.





On
October 1, 2004, the Company formed Advanced Medical Institute, Inc., a Nevada
Company, acquiring all 100 shares of its common stock outstanding. On October
15, 2004, the Company merged with its subsidiary and changed the corporate name
of the registrant to Advanced Medical Institute, Inc.





A
summary of the Company’s significant accounting policies is as
follows:





Estimates





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





Cash





For the
Statements of Cash Flows, all highly liquid investments with maturity of three
months or less are considered to be cash equivalents. There were no cash
equivalents as of December 31, 2004 and 2003.





Income
taxes





Income
taxes are provided for using the liability method of accounting in accordance
with SFAS No. 109 *“Accounting
for Income Taxes.”* A
deferred tax asset or liability is recorded for all temporary differences
between financial and tax reporting. Temporary differences are the differences
between the reported amounts of assets and liabilities and their tax basis.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized. Deferred tax assets and liabilities are
adjusted for the effect of changes in tax laws and rates on the date of
enactment.





Going
concern





The
Company’s financial statements are prepared in accordance with generally
accepted accounting principles applicable to a going concern. This contemplates
the realization of assets and the liquidation of liabilities in the normal
course of business. Currently, the Company does not have significant cash of
other material assets, nor does it have operations or a source of revenue
sufficient to cover its operation costs and allow it to continue as a going
concern. The officers and directors have committed to advancing certain
operating costs of the Company.





F-6





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**NOTES
TO FINANCIAL STATEMENTS**


**December
31, 2004 and 2003**





Note 1.  **Nature
of Business and Significant Accounting Policies
(continued)**




New
Accounting Pronouncements




In
January 2003, the Financial Accounting Standards Board issued FASB
Interpretation No. 46, Consolidation of Variable Interest Entities
(“FIN 46”). Under that interpretation, certain entities known as “Variable
Interest Entities” (“VIE”) must be consolidated by the “primary beneficiary” of
the entity. The primary beneficiary is generally defined as having the majority
of the risks and rewards arising from the VIE. For VIE’s in which a significant
(but not majority) variable interest is held, certain disclosures are required.
FIN 46 requires disclosure of Variable Interest Entities in financial
statements issued after January 31, 2003, if it is reasonably possible that
as of the transition date: (1) the Company will be the primary beneficiary
of an existing VIE that will require consolidation or, (2) the Company will
hold a significant variable interest in, or have significant involvement with,
an existing VIE. Any VIEs created after January 31, 2003, are immediately
subject to the consolidation guidance in FIN 46. The measurement principles
of this interpretation will be effective for the Company’s 2003 financial
statements. The Company does not have any entities that require disclosure or
new consolidation as a result of adopting the provisions of FIN 46.




In April
2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on Derivative
Instruments and Hedging Activities." The Statement amends and clarifies
accounting for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities under SFAS No. 133. SFAS
No. 149 is effective for contracts entered into or modified after June 30, 2003,
for hedging relationships designated after June 30, 2003, and to certain
preexisting contracts. We adopted SFAS No. 149 on July 1, 2003 on a prospective
basis in accordance with the new statement. The adoption of SFAS No. 149 did not
have a material impact on our financial condition or results of
operations.




In May
2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity." This Statement
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liabilities and equity. SFAS
No. 150 requires that an issuer classify a financial instrument that is within
its scope as a liability or, in some circumstances, as an asset, with many such
financial instruments having been previously classified as equity. We adopted
SFAS No. 150 on July 1, 2003. The FASB is addressing certain implementation
issues associated with the application of SFAS No. 150. In October 2003, the
FASB decided to defer certain provisions of SFAS No. 150 related to mandatorily
redeemable financial instruments representing non-controlling interests in
subsidiaries included in consolidated financial statements. The adoption of SFAS
No. 150 did not have a material impact on our financial condition or results of
operations.





F-7





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**NOTES
TO FINANCIAL STATEMENTS**


**December
31, 2004 and 2003**




Note 1.  **Nature
of Business and Significant Accounting Policies
(continued)**





In
November 2003, the EITF reached a consensus on Issue 03-01, *The
Meaning of Other-Than-Temporary Impairment and its Application to Certain
Investments* (EITF
03-01). EITF 03-01 establishes additional disclosure requirements for each
category of FAS 115 investments in a loss position. Effective for years ending
after December 15, 2003, companies must disclose the aggregate amount of
unrealized losses, and the aggregate related fair value of their investments
with unrealized losses. Those investments are required to be segregated by those
in a loss position for less than 12 months and those in a loss position for
greater than 12 months. Additionally, certain qualitative disclosures should be
made to clarify a circumstance whereby an investment’s fair value that is below
cost is not considered other-than-temporary. The provisions of this consensus do
not have a significant effect on our financial position or operating results.





In
November 2003, the EITF reached a consensus on Issue 03-10, *Application
of EITF 02-16 by Resellers to Sales Incentives Offered to Consumers by
Manufacturers* ,
addressing how a reseller is to account for the redemption of a manufacturer’s
coupon by a consumer at the reseller’s location (EITF 03-10). EITF 03-10
eliminates the option that permitted resellers to report the value of the
consideration received as a reduction in costs of goods sold, but rather
mandates that it be recorded as revenue. EITF 03-10 is applicable to new
arrangements, including modifications to existing arrangements, entered into in
fiscal periods beginning after November 25, 2003. The provisions of this
consensus do not have a significant effect on our financial position or
operating results.





In
December 2003, the FASB issued SFAS No. 132 (revised 2003), *Employers’
Disclosures about Pensions and Other Postretirement Benefits.* SFAS No. 132
(revised 2003) revises employers’ disclosures about pension plans and other
postretirement benefit plans. The statement does not change the measurement or
recognition of those plans required by SFAS No. 87, *Employers’
Accounting for Pensions,* SFAS No. 88, *Employers’
Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and
for Termination Benefits,* and
SFAS No. 106, *Employers’
Accounting for Postretirement Benefits Other Than Pensions.* The
revised statement retains the disclosure requirements contained in the original
SFAS No. 132 and requires additional disclosures about the assets,
obligations, cash flows, and net periodic benefit cost of defined benefit
pension plans and other defined benefit postretirement plans. The revised
statement is effective for fiscal years ending after December 15,
2003.  The
adoption of SFAS No. 132 (revised) did not have an impact on our financial
condition or results of operations.




Note 2. **Stockholders’
Equity**





Common
stock





The
authorized common stock of the Company consists of 25,000,000 shares with par
value of $0.001. On December 10, 1996, the Company issued 21,000 shares of its
no par value common stock in consideration of $2,100 in cash.





On
November 29, 1999, the State of Nevada approved the Company’s restated Articles
of Incorporation, which increased its capitalization from 25,000 common shares
to 25,000,000 common shares. The par value was changed to $0.001 per
share.





F-8





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**NOTES
TO FINANCIAL STATEMENTS**


**December
31, 2004 and 2003**





Note 2. Stockholders’
Equity (continued)





On
November 29, 1999, the Company’s shareholders approved a forward split of its
common stock at one hundred shares for one share of the existing shares. The
number of common stock shares outstanding increased from 21,000 to 2,100,000.
Prior period information has been restated to reflect the stock
split





On
October 1, 2004, the Company formed Advanced Medical Institute, Inc., a Nevada
Company, acquiring all 100 shares of its common stock outstanding. On October 5,
2004, the Company merged with its subsidiary and changed the corporate name of
the registrant to Advanced Medical Institute, Inc.





On
November 8, 2004, the officers and directors of the Company surrendered for
cancellation 1,450,000 shares of common stock.





Subsequent
to the cancellation of the common stock of the officers and directors, the
Company issued a stock dividend of 15 shares for each share outstanding on
November 8, 2004. This resulted in common stock outstanding of 10,400,000 after
the stock dividend.





All prior
year information has been adjusted to reflect the stock dividend.





The
Company has not authorized any preferred stock.





Net
loss per common share





Net loss
per share is calculated in accordance with SFAS No. 128, “ *Earnings
Per Share.* ” The
weighted-average number of common shares outstanding during each period is used
to compute basic loss per share. Diluted loss per share is computed using the
weighted averaged number of shares and dilutive potential common shares
outstanding. Dilutive potential common shares are additional common shares
assumed to be exercised.





Basic net
loss per common share is based on the weighted average number of shares of
common stock outstanding of 30,231,233 and 33,600,000 during 2004, and 2003,
respectively. As of December 31, 2004, 2003 and since inception, the Company had
no dilutive potential common shares.




Note 3. **Income
Taxes**




We did
not provide any current or deferred U.S. federal income tax provision or benefit
for any of the periods presented because we have experienced operating losses
since inception. We provided a full valuation allowance on the net deferred tax
asset, consisting of net operating loss carryforwards, because management has
determined that it is more likely than not that we will not earn income
sufficient to realize the deferred tax assets during the carryforward
period.





F-9





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**NOTES
TO FINANCIAL STATEMENTS**


**December
31, 2004 and 2003**





Note 3. Income
Taxes (continued)




The
components of the Company’s deferred tax asset as of December 31, 2004 and 2003
is as follows:


2004
    
    
    2003Net
      operating loss carryforward
    
    $
    14,960
    
    $
    12,129Valuation
      allowance
    
    
    (14,960
    )
    
    (12,129
    )Net
      deferred tax asset
    
    $
    0
    
    $
    0





A
reconciliation of income taxes computed at the statutory rate to the income tax
amount recorded is as follows:


2004
    
    
    2003
    
    
    Since InceptionTax
      at statutory rate (35%)
    
    $
    2,831
    
    $
    29
    
    $
    14,960Increase
      in valuation allowance
    
    
    (2,831
    )
    
    (29
    )
    
    (14,960
    )Net
      deferred tax asset
    
    $
    0
    
    $
    0
    
    $
    0


The net
federal operating loss carry forward will expire between 2016 and 2024. This
carry forward may be limited upon the consummation of a business combination
under IRC Section 381.




Note 4. **Related
Party Transactions**





The
Company neither owns nor leases any real or personal property. An officer or
resident agent of the corporation provides office services without charge. Such
costs are immaterial to the financial statements and accordingly, have not been
reflected therein. The officers and directors for the Company are involved in
other business activities and may, in the future, become involved in other
business opportunities. If a specific business opportunity becomes available,
such persons may face a conflict in selecting between the Company and their
other business interest. The Company has not formulated a policy for the
resolution of such conflicts.




Note 5. **Warrants
and Options**




There are
no warrants or options outstanding to acquire any additional shares of common
stock of the Company.




Note 6. **Officers
Advances**





The
Company has incurred costs while seeking additional capital through a merger
with an existing company. An officer of the Company has advanced funds on behalf
of the Company to pay for these costs. These funds have been advanced interest
free.





F-10





**ADVANCED
MEDICAL INSTITUTE, INC.**


**FKA
HAWKSDALE FINANCIAL VISIONS, INC.**


**(A
Development Stage Company)**


**NOTES
TO FINANCIAL STATEMENTS**


**December
31, 2004 and 2003**





Note 7.  **Subsequent
Events**





On
January 28, 2005, the Company entered into a “Share Exchange Agreement” with
Advanced Medical Institute Pty Limited (“AMIP”), a company incorporated in
Australia. The transaction is treated as a reverse merger, with the AMIP as the
acquirer and the Company as the acquired company. The Company exchanged
14,600,000 shares of stock for 100% of the outstanding stock of AMIP. The
exchange is intended to constitute a tax-free reorganization within the meaning
of Section 368(a) (1)(B) of the Internal Revenue Code.





As part
of the agreement the officers and directors of the Company will resign and the
officers and directors of AMIP will be appointed ten (10) days after the
Schedule 14f-1 has been filed with the Security and Exchange Commission. The
Schedule 14f-1 was filed on February 2, 2005.









F-11