----

----

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                                                          |   | 52-2158936                                |
|-------------------------------------------------------------------|--------|-------------------------------------------|
| State or other jurisdiction of incorporation or organization |   | (I.R.S. Employer Identification No.) |

----

|     |                                                                                                               | Page   |
|----------|--------------------------------------------------------------------------------------------------------------------|--------|
| PART I   |                                                                                                               |
| Item 1.  | Business                                                                                                           | 3      |
| Item 1A. | Risk Factors                                                                                                       | 4      |
| Item 2.  | Properties                                                                                                         | 6      |
| Item 3.  | Legal Proceedings                                                                                                  | 6      |
| Item 4.  | Removed and Reserved                                                                                               | 6      |
|     |                                                                                                               |   |
| PART II  |                                                                                                               |
| Item 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 6      |
| Item 6.  | Selected Financial Data                                                                                            | 7      |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 7      |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                         | 9      |
| Item 8.  | Financial Statements and Supplementary Data                                                                        | 9      |
| Item 9.  | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 10     |
| Item 9A. | Controls and Procedures                                                                                            | 10     |
| Item 9B. | Other Items                                                                                                        | 11     |
|     |                                                                                                               |   |
| PART III |                                                                                                               |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                             | 11     |
| Item 11. | Executive Compensation                                                                                             | 12     |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 13     |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence                                          | 14     |
| Item 14. | Principal Accounting Fees and Services                                                                             | 14     |
|     |                                                                                                               |   |
| PART IV  |                                                                                                               |
| Item 15. | Exhibits, Financial Statement Schedules                                                                            | 17     |

----

| ITEM 1. | BUSINESS |
|---------|----------|

----

| ITEM 1A. | RISK FACTORS |
|---------------|--------------|

----

----

| ITEM 2. | PROPERTIES |
|---------|------------|

| ITEM 3. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 4. | REMOVED AND RESERVED |
|---------|----------------------|

| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------|

----

|                                                       |   | (a)                                                                                                                                                          |    |   | (b)                                                                                                                       |   |    | (c)                                                                                                                                                                                                                       |   |
|------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights |    |   | Weighted-Average Exercise Price of  Outstanding Options, Warrants and Rights |   |    | Number of Securities Remaining Available or Future Issuance underEquity Compensation Plans (Excluding Securities Reflected in Column (a)) |   |
| Equity compensation plans not approved by security holders |   |                                                                                                                                                         |    |   |                                                                                                                      |   |    |                                                                                                                                                                                                                      |   |
| 2001 Stock Option Plan                                     |   |                                                                                                                                                         | — |   |                                                                                                                      |   | — |                                                                                                                                                                                                                      |   |   | 750,000 |   |
| Total                                                      |   |                                                                                                                                                         | — |   |                                                                                                                      |   | — |                                                                                                                                                                                                                      |   |   | 750,000 |   |

| ITEM 6. | SELECTED FINANCIAL DATA |
|--------------|-------------------------|

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

----

| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
|----------|-----------------------------------------------------------|

| ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|---------|---------------------------------------------|

|                                                                                 |   | Page   |
|--------------------------------------------------------------------------------------|--------|--------|
|                                                                                 |   |   |
| Report of Colabella & Company LLP, Independent Registered Public Accounting Firm |   | F-1    |
|                                                                                 |   |   |
| Balance Sheets                                                                       |   | F-2    |
|                                                                                 |   |   |
| Statements of Operations                                                             |   | F-3    |
|                                                                                 |   |   |
| Statements of Deficiency in Stockholders’ Equity                               |   | F-4    |
|                                                                                 |   |   |
| Statements of Cash Flows                                                             |   | F-5    |
|                                                                                 |   |   |
| Notes to Financial Statements                                                        |   | F-6    |

----

----

|                                                                                                                    |   | December 31, |       |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                                                                                         |   | 2010              |       |   | 2009              |   |
|                                                                                                                         |   |              |       |   |              |   |
| Assets                                                                                                                       |   |              |       |   |              |   |
|                                                                                                                         |   |              |       |   |              |   |
| Current assets:                                                                                                              |   |              |       |   |              |   |
| Cash                                                                                                                         |   | $                 | 6,817      |   |              | $      | 14,185 |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Total assets                                                                                                                 |   | $                 | 6,817      |   |              | $      | 14,185 |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Liabilities and deficiency in stockholders' equity                                                                           |   |              |       |   |              |   |   |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Current liabilities:                                                                                                         |   |              |       |   |              |   |   |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Accounts payable and accrued expenses                                                                                        |   | $                 | 145,503    |   |              | $      | 84,752 |   |
| Accrued interest - stockholder                                                                                               |   |              | 1,901      |   |              |   | 459 |   |
| Advance payable                                                                                                              |   |              | 3,600      |   |              |   | - |   |
| Note payable - stockholder                                                                                                   |   |              | 25,000     |   |              |   | - |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Total current liabilities                                                                                                    |   |              | 176,004    |   |              |   | 85,211 |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Note payable - stockholder                                                                                                   |   |              | 10,000     |   |              |   | 25,000 |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Total liabilities                                                                                                            |   |              | 186,004    |   |              |   | 110,211 |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Deficiency in stockholders' equity:                                                                                          |   |              |       |   |              |   |   |   |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Preferred stock, par value $.01 per share; 25,000,000 shares authorized, no shares issued and outstanding                    |   |              | -          |   |              |   | - |   |
| Common stock, par value $.01 per share; 125,000,000 shares authorized, 1,515,920 shares issued and outstanding, respectively |   |              | 15,159     |   |              |   | 15,159 |   |
| Additional paid-in capital                                                                                                   |   |              | 2,479,961  |   |              |   | 2,479,961 |   |
| Deficit accumulated during the development stage                                                                             |   |              | (2,674,307 | )      |              |   | (2,591,146 | ) |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Total deficiency in stockholders' equity                                                                                     |   |              | (179,187   | )      |              |   | (96,026 | ) |
|                                                                                                                         |   |              |       |   |              |   |   |   |
| Total liabilities and deficiency in stockholders' equity                                                                     |   | $                 | 6,817      |   |              | $      | 14,185 |   |

----

|                                                     |   |                                    |      |   |              |   |      | For the Period |   |
|---------------------------------------------------------------|--------|-----------------------------------------|-----------|--------|-------------------|--------|-----------|--------------------------|--------|
|                                                          |   |                                    |      |   |              |   |      | March 25, 1999 |   |
|                                                          |   |                                    |      |   |              |   |      | (Inception) to      |   |
|                                                          |   | Years ended December 31, |      |   | December 31, |   |
|                                                          |   | 2010                                    |      |   | 2009              |   |      | 2010                     |   |
|                                                          |   |                                    |      |   |              |   |      |                     |   |
| Fees - consulting                                             |   | $                                       | -         |   |              | $      | -         |                     |   | $ | 534,634 |   |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Operating expenses                                            |   |                                    | 81,719    |   |              |   | 85,229    |                     |   |   | 1,716,970 |   |
| Depreciation and amortization                                 |   |                                    | -         |   |              |   | -         |                     |   |   | 277,177 |   |
| Write-off of intangibles                                      |   |                                    | -         |   |              |   | -         |                     |   |   | 776,065 |   |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Total expense                                                 |   |                                    | 81,719    |   |              |   | 85,229    |                     |   |   | 2,770,212 |   |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Loss from operations before other income and interest expense |   |                                    | (81,719   | )      |              |   | (85,229   | )                        |   |   | (2,235,578 | ) |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Gain on distribution of shares                                |   |                                    | -         |   |              |   | -         |                     |   |   | 1,750 |   |
| Other income                                                  |   |                                    | -         |   |              |   | -         |                     |   |   | 5,879 |   |
| Interest expense, net                                         |   |                                    | (1,442    | )      |              |   | (459      | )                        |   |   | (446,358 | ) |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Loss before income taxes                                      |   |                                    | (83,161   | )      |              |   | (85,688   | )                        |   |   | (2,674,307 | ) |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Provision for income taxes                                    |   |                                    | -         |   |              |   | -         |                     |   |   | - |   |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Net loss                                                      |   |                                    | (83,161   | )      |              |   | (85,688   | )                        |   |   | (2,674,307 | ) |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Net loss per basic and diluted share                          |   | $                                       | (0.05     | )      |              | $      | (0.06     | )                        |   |   |   |   |
|                                                          |   |                                    |      |   |              |   |      |                     |   |   |   |   |
| Weighted average shares outstanding, basic and diluted        |   |                                    | 1,515,920 |   |              |   | 1,515,920 |                     |   |   |   |   |

----

|                                                        |   |               |   |              |      |   |    |   |   |        |   |   | Deficit         |   |   |       |       |
|------------------------------------------------------------------|--------|--------------------|--------|-------------------|-----------|--------|---------|--------|--------|-------------|--------|--------|-----------------|--------|--------|------------|------------|
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   | Accumulated     |   |   |       |       |
|                                                             |   |               |   |              |      |   |    |   |   | Additional  |   |   | During the |   |   |       |       |
|                                                             |   |               |   | Common Stock |      |   | Paid-in |   |   | Development |   |   | Stockholders'   |   |
|                                                             |   |               |   | Shares            |      |   | Amount  |   |   | Capital     |   |   | Stage           |   |   | Deficiency |       |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |
| Common stock sold for cash                                       |   | March 25, 1999     |   |              | 1         |   |    | $      | -      |        |   | $      | 50,000          |   |   | $          | -          |   |   | $ | 50,000 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Intangible assets contributed in                                 |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| spin-off transaction                                             |   | June 30, 1999      |   |              | -         |   |    |   | -      |        |   |   | 165,652         |   |   |       | -          |   |   |   | 165,652 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock sold for cash                                       |   | September 27, 1999 |   |              | 76,410    |   |    |   | 764    |        |   |   | 299,236         |   |   |       | -          |   |   |   | 300,000 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock sold for cash                                       |   | October 4, 1999    |   |              | 19,200    |   |    |   | 192    |        |   |   | 19,008          |   |   |       | -          |   |   |   | 19,200 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (33,139    | ) |   |   | (33,139 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 1999                                       |   |               |   |              | 95,611    |   |    |   | 956    |        |   |   | 533,896         |   |   |       | (33,139    | ) |   |   | 501,713 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock sold for cash                                       |   | December 4, 2000   |   |              | 18,750    |   |    |   | 188    |        |   |   | 374,812         |   |   |       | -          |   |   |   | 375,000 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (1,211,910 | ) |   |   | (1,211,910 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2000                                       |   |               |   |              | 114,361   |   |    |   | 1,144  |        |   |   | 908,708         |   |   |       | (1,245,049 | ) |   |   | (335,197 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for services                                 |   | June 11, 2001      |   |              | 2,500     |   |    |   | 25     |        |   |   | 15,975          |   |   |       | -          |   |   |   | 16,000 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for services                                 |   | December 31, 2001  |   |              | 4,250     |   |    |   | 42     |        |   |   | 27,158          |   |   |       | -          |   |   |   | 27,200 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for debt                                     |   | December 31, 2001  |   |              | 234,444   |   |    |   | 2,344  |        |   |   | 372,656         |   |   |       | -          |   |   |   | 375,000 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (262,970   | ) |   |   | (262,970 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2001                                       |   |               |   |              | 355,555   |   |    |   | 3,555  |        |   |   | 1,324,497       |   |   |       | (1,508,019 | ) |   |   | (179,967 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for services                                 |   | March 31, 2002     |   |              | 4,950     |   |    |   | 50     |        |   |   | 31,630          |   |   |       | -          |   |   |   | 31,680 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for services                                 |   | June 30, 2002      |   |              | 2,500     |   |    |   | 25     |        |   |   | 15,975          |   |   |       | -          |   |   |   | 16,000 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (533,871   | ) |   |   | (533,871 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2002                                       |   |               |   |              | 363,005   |   |    |   | 3,630  |        |   |   | 1,372,102       |   |   |       | (2,041,890 | ) |   |   | (666,158 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (121,281   | ) |   |   | (121,281 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2003                                       |   |               |   |              | 363,005   |   |    |   | 3,630  |        |   |   | 1,372,102       |   |   |       | (2,163,171 | ) |   |   | (787,439 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (127,030   | ) |   |   | (127,030 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2004                                       |   |               |   |              | 363,005   |   |    |   | 3,630  |        |   |   | 1,372,102       |   |   |       | (2,290,201 | ) |   |   | (914,469 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net income                                                       |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | 28,686     |   |   |   | 28,686 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2005                                       |   |               |   |              | 363,005   |   |    |   | 3,630  |        |   |   | 1,372,102       |   |   |       | (2,261,515 | ) |   |   | (885,783 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (91,829    | ) |   |   | (91,829 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2006                                       |   |               |   |              | 363,005   |   |    |   | 3,630  |        |   |   | 1,372,102       |   |   |       | (2,353,344 | ) |   |   | (977,612 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net income                                                       |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | 28,115     |   |   |   | 28,115 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2007                                       |   |               |   |              | 363,005   |   |    |   | 3,630  |        |   |   | 1,372,102       |   |   |       | (2,325,229 | ) |   |   | (949,497 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for services                                 |   | April 21, 2008     |   |              | 36,250    |   |    |   | 362    |        |   |   | 17,763          |   |   |       | -          |   |   |   | 18,125 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued upon conversion of debt and accrued interest |   | August 14,2008     |   |              | 656,665   |   |    |   | 6,567  |        |   |   | 1,044,096       |   |   |       | -          |   |   |   | 1,050,663 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock sold for cash                                       |   | October 20, 2008   |   |              | 450,000   |   |    |   | 4,500  |        |   |   | 45,000          |   |   |       | -          |   |   |   | 49,500 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Common stock issued for services                                 |   | October 20, 2008   |   |              | 10,000    |   |    |   | 100    |        |   |   | 1,000           |   |   |       | -          |   |   |   | 1,100 |   |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (180,229   | ) |   |   | (180,229 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2008                                       |   |               |   |              | 1,515,920 |   |    |   | 15,159 |        |   |   | 2,479,961       |   |   |       | (2,505,458 | ) |   |   | (10,338 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (85,688    | ) |   |   | (85,688 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2009                                       |   |               |   |              | 1,515,920 |   |    |   | 15,159 |        |   |   | 2,479,961       |   |   |       | (2,591,146 | ) |   |   | (96,026 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Net loss                                                         |   |               |   |              | -         |   |    |   | -      |        |   |   | -               |   |   |       | (83,161    | ) |   |   | (83,161 | ) |
|                                                             |   |               |   |              |      |   |    |   |   |        |   |   |            |   |   |       |       |   |   |   |   |   |
| Balance, December 31, 2010                                       |   |               |   |              | 1,515,920 |   |    | $      | 15,159 |        |   | $      | 2,479,961       |   |   | $          | (2,674,307 | ) |   | $ | (179,187 | ) |

----

|                                                                   |   |                                    |    |   |              |   |    | For the Period |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------------|---------|--------|-------------------|--------|---------|--------------------------|--------|
|                                                                        |   |                                    |    |   |              |   |    | March 25, 1999 |   |
|                                                                        |   |                                    |    |   |              |   |    | (Inception) to      |   |
|                                                                        |   | Years ended December 31, |    |   | December 31, |   |
|                                                                        |   | 2010                                    |    |   | 2009              |   |    | 2010                     |   |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |
| Cash flows from operating activities:                                       |   |                                    |    |   |              |   |    |                     |   |
| Net loss                                                                    |   | $                                       | (83,161 | )      |              | $      | (85,688 | )                        |   | $ | (2,674,307 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Depreciation and amortization                                               |   |                                    | -       |   |              |   | -       |                     |   |   | 424,160 |   |
| Stock based compensation                                                    |   |                                    | -       |   |              |   | -       |                     |   |   | 66,905 |   |
| Gain on reduction of stockholder loan                                       |   |                                    | -       |   |              |   | -       |                     |   |   | (1,750 | ) |
| Write off of intangibles                                                    |   |                                    | -       |   |              |   | -       |                     |   |   | 645,631 |   |
| Change in operating assets and liabilities                                  |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Accounts payable and accrued expenses                                       |   |                                    | 60,751  |   |              |   | 57,270  |                     |   |   | 145,503 |   |
| Accrued interest                                                            |   |                                    | 1,442   |   |              |   | 459     |                     |   |   | 280,773 |   |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Net cash used in operating activities                                       |   |                                    | (20,968 | )      |              |   | (27,959 | )                        |   |   | (1,113,085 | ) |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Cash flows from investing activities:                                       |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Purchase of intangible assets and equipment                                 |   |                                    | -       |   |              |   | -       |                     |   |   | (904,139 | ) |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Net cash used by investing activities                                       |   |                                    | -       |   |              |   | -       |                     |   |   | (904,139 | ) |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Cash flows from financing activities:                                       |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Debt conversion to equity                                                   |   |                                    | -       |   |              |   | -       |                     |   |   | (34,264 | ) |
| Proceed from the sale of common stock                                       |   |                                    | -       |   |              |   | -       |                     |   |   | 841,925 |   |
| Advance payable                                                             |   |                                    | 3,600   |   |              |   | -       |                     |   |   | 3,600 |   |
| Proceeds from stockholder note                                              |   |                                    | 10,000  |   |              |   | 25,000  |                     |   |   | 1,212,780 |   |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Net cash provided by financing activities                                   |   |                                    | 13,600  |   |              |   | 25,000  |                     |   |   | 2,024,041 |   |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Net increase (decrease) in cash                                             |   |                                    | (7,368  | )      |              |   | (2,959  | )                        |   |   | 6,817 |   |
| Cash, beginning of period                                                   |   |                                    | 14,185  |   |              |   | 17,144  |                     |   |   | - |   |
| Cash, end of period                                                         |   | $                                       | 6,817   |   |              | $      | 14,185  |                     |   | $ | 6,817 |   |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Supplemental cash flow information:                                         |   |                                    |    |   |              |   |    |                     |   |   |   |   |
|                                                                        |   |                                    |    |   |              |   |    |                     |   |   |   |   |
| Cash paid for interest                                                      |   | $                                       | -       |   |              | $      | -       |                     |   |   |   |   |
| Cash paid for income taxes                                                  |   | $                                       | -       |   |              | $      | -       |                     |   |   |   |   |

----

----

----

|                                        |   | 2010   |    |   | 2009                               |   |
|-------------------------------------------------------|--------|--------|---------|--------|------------------------------------|--------|
|                                        |   | Number |    |   | WeightedAverageExercise Price |   |   | Number |   |   | WeightedAverageExercise Price |   |
| Outstanding at beginning of the period |   |   | 13,750  |   |                               | $      | 30.00 |   |   |   | 13,750 |   |   | $ | 30.00 |   |
| Granted during the period                             |   |   | — |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Exercised during the period                           |   |   | — |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Terminated during the period                          |   |   | — |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Outstanding at end of the period                      |   |   | 13,750  |   |                               | $      | 30.00 |   |   |   | 13,750 |   |   | $ | 30.00 |   |
| Exercisable at end of the period                      |   |   | 13,750  |   |                               | $      | 30.00 |   |   |   | 13,750 |   |   | $ | 30.00 |   |

----

|                                     |   | 2010   |     |   | 2009   |   |
|------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                     |   |   |     |   |   |   |
| Deferred tax assets:                     |   |   |     |   |   |   |
| Net operating loss carryforward          |   |   | 824,000  |   |   |   | 796,000 |   |
| Valuation allowance                      |   |   | (824,000 | )      |   |   | (796,000 | ) |
|                                     |   |   |     |   |   |   |   |   |
| Net deferred tax assets                  |   | $      | -        |   |   | $      | - |   |
|                                     |   |   |     |   |   |   |   |   |
| Statutory federal income tax rate        |   |   | -34      | %      |   |   | -34 | % |
| State income taxes, net of federal taxes |   |   | -0       | %      |   |   | -0 | % |
| Valuation allowance                      |   |   | 34       | %      |   |   | 34 | % |
|                                     |   |   |     |   |   |   |   |   |
| Effective income tax rate                |   |   | 0        | %      |   |   | 0 | % |

----

| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

| ITEM 9A. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

|   | · | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 9B  | OTHER INFORMATION |
|--------------------|-------------------|

| ITEM 10.  | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|---------------------|--------------------------------------------------------|

| Name               |    | Principal Occupation                          |    | Age |    | DirectorSince |
|--------------------|--------------|----------------------------------------------------|--------------|-----|--------------|---------------|
| Lawrence Chimerine |         | President of Radnor International Consulting, Inc. |         | 70  |         | 8/08          |

----

| Name                          |    | Position                                            |    | Age |    | Position Since |
|-------------------------------|--------------|-----------------------------------------------------|--------------|-----|--------------|---------------------|
| Lawrence  Chimerine |         | Chief Executive Officer and Chief Financial Officer |         | 70  |         | 8/08                |

| ITEM 11.  | EXECUTIVE COMPENSATION |
|---------------------|------------------------|

|                                                 |   |    |   |                       |   |   |        |   |              |   |                 |   |                                     |   |                           |   |                                |   |        |   |
|------------------------------------------------------|--------|---------|--------|----------------------------|--------|--------|-------------|--------|-------------------|--------|----------------------|--------|------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|-------------|--------|
| Name andprincipalposition(a)                    |   | Year(b) |   | Salary  ($)  (c) |   |   | Bonus($)(d) |   | StockAwards($)(e) |   | OptionAward($)(f)(2) |   | NonequityIncentivePlancompensation($)(g) |   | Non-qualifieddeferredcompensationearning($)(h)                                                                                                         |   | All otherCompensation($)(i)(1) |   | Total($)(j) |   |
|                                                 |   |    |   |                       |   |   |        |   |              |   |                 |   |                                     |   |                                                                                                                                                   |   |                                |   |        |   |
| Lawrence  ChimerineChief Executive Officer |   | 2010    |   | $                          | 12,000 | (1)    |        |   |              |   |                 |   |                                     |   |                                                                                                                                                   |   |                                |   |        | $      | 12,000 |   |
|                                                 |   | 2009    |   | $                          | 12,000 | (1)    |        |   |              |   |                 |   |                                     |   |                                                                                                                                                   |   |                                |   |        | $      | 12,000 |   |

----

----

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|---------------|------------------------------------------------------------------------------------------------|

| · | each person, or group of affiliated persons, known by us to be the beneficial owner of 5% or more of any class of our voting securities; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| · | each of our current directors and nominees; |
|--------|---------------------------------------------|

| · | each of our current named executive officers; and |
|--------|---------------------------------------------------|

| · | all current directors and named executive officers as a group. |
|--------|----------------------------------------------------------------|

|                                    |   | Common Stock |    |
|-----------------------------------------|--------|--------------|---------|
| Name and Address of Beneficial Owner(1) |   | Shares       |    |   | SharesUnderlyingConvertibleSecurities(2) |   |   | Total |   |   | Percent of Class(2) |   |
| Directors and named executive officers  |   |         |    |   |                                    |   |   |   |   |   |   |   |
| Lawrence Chimerine                      |   |         | 18,022  |   |   |   | — |   |   |   | 18,022 |   |   |   | 1.2 | % |
| Beneficial Owners of 5% or more         |   |         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vision Opportunity Master Fund, Ltd.    |   |         | 627,533 |   |   |   | — |   |   |   | 627,533 |   |   |   | 41.4 | % |
| Potomac Investments                     |   |         | 420,000 |   |   |   |   |   |   |   | 420,000 |   |   |   | 27.7 | % |
| Castle Bison, Inc.                      |   |         | 183,796 |   |   |   | — |   |   |   | 183,796 |   |   |   | 12.1 | % |

| * | Less than one percent. |
|---|------------------------|

| (1) | Except as otherwise indicated, the persons named in this table have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to community property laws where applicable and to the information contained in the footnotes to this table. Unless otherwise indicated, the address of the beneficial owner is First Transaction Management, Inc., 31200 Via Colinas, Suite 200, Westlake Village, CA 91362. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Pursuant to Rules 13d-3 and 13d-5 of the Exchange Act, beneficial ownership includes any shares as to which a shareholder has sole or shared voting power or investment power, and also any shares which the shareholder has the right to acquire within 60 days, including upon exercise of common shares purchase options or warrant. There are 1,515,920 shares of common stock issued and outstanding as of March 16, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|---------------|---------------------------------------------------------------------------|

| ITEM 14.  | PRINCIPAL ACCOUNTING FEES AND SERVICES |
|---------------------|----------------------------------------|

| Type of Fees       |   | 2010   |   |   | 2009   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| Audit Fees         |   | $      | 8,500  |   |   | $      | 8,500 |   |
|               |   |   |   |   |   |   |   |   |
| Audit Related Fees |   |   | 7,500  |   |   |   | 7,500 |   |
|               |   |   |   |   |   |   |   |   |
| Tax Fees           |   |   | -      |   |   |   | - |   |
|               |   |   |   |   |   |   |   |   |
| All Other Fees     |   |   | -      |   |   |   | - |   |
|               |   |   |   |   |   |   |   |   |
| Total Fees         |   | $      | 16,000 |   |   | $      | 16,000 |   |

| ITEM 15.  | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
|---------------------|-----------------------------------------|

|   | 1. | Financial Statements: See “Index to Financial Statements” in Part II, Item 8 of this Form 10-K. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | 2.  | Exhibits: The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as part of this Form 10-K. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | may have been qualified by disclosures that were made to the other parties in connection with the negotiation of the agreements, which disclosures are not necessarily reflected in the agreements; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | may apply standards of materiality that differ from those of a reasonable investor; and |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | were made only as of specified dates contained in the agreements and are subject to later developments. |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|           | FIRST TRANSACTION MANAGEMENT, INC |
|--------------------------------------------------------|-----------------------------------|
|                                         |                    |
| Dated: March 31, 2011              | By:                | /S/ Lawrence Chimerine |
|           |          | Lawrence ChimerineChief Executive Officer |

----

| Name                                             |   | Title                                                                       |   | Date           |
|--------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|----------------|
|                                             |   |                                                                        |   |           |
| /s/ Lawrence Chimerine                           |   | Chief Executive Officer and Principal Accounting Officer and Director       |   | March 31, 2011 |
|      Lawrence Chimerine |   | (Principal executive officer and Principal financial and accountingofficer) |   |           |

----

|             |   |                                                                                                       |   |                |   | Incorporated by Reference |
|------------------|--------|------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|---------------------------|
| Exhibit No. |   | Description                                                                                                |   | Filed Herewith |   | Form                      |   | Exhibit No. |   | File No. |   | Filing Date |
| 3.01             |   | Certificate of Incorporation dated March 25, 1999                                                          |   |                |   | 10SB12G                   |   | 3.1 |   | 000-27615 |   | 10/13/99 |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 3.02             |   | Certificate of Amendment dated September 24, 1999                                                          |   |                |   | 10SB12G                   |   | 3.2 |   | 000-27615 |   | 10/13/99 |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 3.03             |   | Certificate of Amendment filed August 20, 2001                                                             |   |                |   | 10KSB                     |   | 3.3 |   | 000-27615 |   | 8/24/07 |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 3.04             |   | Bylaws                                                                                                     |   |                |   | 10SB12G                   |   | 3.4 |   | 000-27615 |   | 10/13/99 |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 4.01             |   | 1999 Incentive Stock Plan                                                                                  |   |                |   | 10SB12G/A                 |   | 4.1 |   | 000-27615 |   | 11/24/99 |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 31.1             |   | Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | *                   |   |                      |   |   |   |   |   |   |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 31.2             |   | Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | *                   |   |                      |   |   |   |   |   |   |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 32.1             |   | Certification of Principal Executive Officer Pursuant to 18 U.S.C. § 1350                             |   | *                   |   |                      |   |   |   |   |   |   |
|             |   |                                                                                                       |   |                |   |                      |   |   |   |   |   |   |
| 32.2             |   | Certification of Principal Financial Officer Pursuant to 18 U.S.C. § 1350                             |   | *                   |   |                      |   |   |   |   |   |   |

----