|   | (Do      not check if a smaller reportingcompany) |
|--------|---------------------------------------------------|

----

----

|                                                                               |   | March      31,                                                                  |   | June      30, |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|---------------|
|                                                                               |   | 2009                                                                            |   |          | 2008 |
|                                                                               |   | (unaudited)                                                                     |   |          |   |
| ASSETS                                                                             |
| Current      Assets:                                                               |   |                                                                            |   |          |   |
|  Cash                                                                         | $      |            6,781         |   |  $       |               470 |
|  Accounts      receivable                                                     |   |             572     |   |          |             6,459 |
|  Prepaid      expenses                                                        |   |              - |   |          |               645 |
|  Note      receivable – related party (Note 3)                          |   | 26,765                                                                          |   |          | - |
| Total      current assets                                                          |   |            34,118        |   |          |             7,574 |
|                                                                               |   |                                                                            |   |          |   |
| Property      and Equipment (Note 2):                                              |   |                                                                            |   |          |   |
|  Horses                                                                       |   |           12,500              |   |          |           34,512 |
|  Office      furniture                                                        |   |             2,200   |   |          |             2,200 |
| Total      property and equipment                                                  |   |           14,700              |   |          |           36,712 |
|   Less:  Accumulated      depreciation                         |   |           (6,302)             |   |          |          (15,863) |
| Net      property and equipment                                                    |   |             8,398   |   |          |           20,849 |
|                                                                               |   |                                                                            |   |          |   |
| Other      Assets:                                                                 |   |                                                                            |   |          |   |
| Stallion      syndicates, net of accumulated amortization (Note 2)                 |   | 2,678                                                                           |   |          | 6,071 |
| Total      Assets                                                                  | $      |           45,194              |   |  $       |           34,494 |
|                                                                               |   |                                                                            |   |          |   |
| LIABILITIES      AND STOCKHOLDERS’ DEFICIT                                   |
|                                                                               |   |                                                                            |   |          |   |
| Current      Liabilities:                                                          |   |                                                                            |   |          |   |
|  Accounts      payable - trade                                                | $      |           38,136              |   |  $       |           45,475 |
|  Accounts      payable - related party (Note 3)                               |   |           75,344              |   |          |           49,193 |
|  Short-term      notes payable - related party (Note 3)                       |   |             4,200   |   |          |             6,500 |
|  Accrued      interest, short-term notes payable - related party (Note3)      |   | 1,278                                                                           |   |          | 215 |
| Total      current liabilities                                                     |   |         118,958                         |   |          |         101,383 |
|                                                                               |   |                                                                            |   |          |   |
| Long-term      Liabilities:                                                        |   |                                                                            |   |          |   |
|  Long-term      notes payable - related parties (Note 3)                      |   |           -                   |   |          |           20,000 |
|  Convertible      debentures  (Note 4)                              |   | 30,200                                                                          |   |          | - |
| Total      long-term liabilities                                                   |   | 30,200                                                                          |   |          | 20,000 |
| Total      liabilities                                                             |   |         149,158                         |   |          |         121,383 |
|                                                                               |   |                                                                            |   |          |   |
| Stockholders’      Deficit (Note 5):                                         |   |                                                                            |   |          |   |
|  Common      stock, $.001 share par value, 75,000,000 shares                  |   |                                                                            |   |          |   |
|   authorized,      4,906,000 and 4,533,000 shares issued and outstanding |   | 4,906                                                                           |   |          | 4,533 |
|  Additional      paid-in capital                                              |   |         271,104                         |   |          |         238,977 |
|  Deficit      accumulated during the development stage                        |   |        (379,974)                             |   |          |        (330,399) |
| Total      stockholders’ deficit                                             |   |        (103,964)                             |   |          |          (86,889) |
| Total      Liabilities and Stockholders’ Deficit                             | $      |           45,194              |   |  $       |           34,494 |
|                                                                               |
| See      notes to unaudited financialstatements                                    |

----

|                                                    |   | Three                                                                                                               |   | Nine                                                                                                                            |   | Three                                                                                                   |   | Nine                                                                                                                |           | July      15, 2004  |
|---------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|----------------|---------------------|
|                                                    |   | Months                                                                                                              |   | Months                                                                                                                          |   | Months                                                                                                  |   | Months                                                                                                              |           | (Inception)      to |
|                                                    |   | Ended                                                                                                               |   | Ended                                                                                                                           |   | Ended                                                                                                   |   | Ended                                                                                                               | March      31, |
|                                                    |   | March      31, 2009                                                                                                 |   | March  31,      2008                                                                                                  |   | 2009                                                                                                    |
| Income                                                  |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                    |   |                                                                                                                |           |                |
|   Race      winnings                          | $      | -                                                                                                                   | $      |       2,440                                                                                       | $      |             -                               | $      |   7,999                                                                                                   | $              | 13,429              |
|   Breeding      sales                         |   |                  -             |   |                     -       |   | -                                                                                                       |   |              6,200                                 |           | 6,200               |
| Total      Income                                       |   |            -                                                 |   |              2,440                                             |   | -                                                                                                       |   |            14,199                                            |           | 19,629              |
| Operating      Expenses                                 |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                    |   |                                                                                                                |           |                |
|   Boarding      fees                          |   |     4,242                                                                                       |   | 18,265                                                                                                                          |   | 6,817                                                                                                   |   |           29,188                                                  |           | 84,397              |
|   Training      fees                          |   |       -                                                                               |   |              1,820                                             |   |           1,208                                       |   |              6,586                                 |           | 19,750              |
|   Depreciation      and amortization          |   |             705                                         |   |        2,603                                                                                 |   |          2,363                                             |   |              7,498                                 |           | 22,540              |
|   Breeding      fees                          |   |                  -             |   |                  -                         |   |                  - |   |                  -             |           | 4,500               |
|   Consulting      expense - related party     |   |                    - |   |   2,109                                                                                                               |   |          3,586                                             |   |            19,069                                            |           | 108,756             |
|   Consulting      expense – other       |   |               450                             |   |                 450                             |   |                  - |   |                  -             |           | 27,847              |
|   General      and administrative expenses    |   |          5,046                                                         |   |           21,054                                                              |   |        20,428                                                        |   |           41,708                                                  |           | 130,897             |
| Total      Operating Expenses                           |   |       10,443                                                                          |   |            46,301                                                        |   |        34,402                                                        |   |          104,049                                                       |           | 398,687             |
| Net      Loss from Operations                           |   | (10,443)                                                                                                            |   | (43,861)                                                                                                                        |   | (34,402)                                                                                                |   | (89,850)                                                                                                            |           | (379,058)           |
| Other      Income (Expenses)                            |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                    |   |                                                                                                                |           |                |
|   Interest      expense - related party       |   |       (242)                                                                           |   |           (2,463)                                                             |   |                  - |   |   -                                                                                                       |           | (2,678)             |
|   Interest      expense – other         |   | (702)                                                                                                               |   | (1,176)                                                                                                                         |   | -                                                                                                       |   | -                                                                                                                   |           | (1,176)             |
|   Gain      (loss) on sale of assets (Note 2) |   |          -                                                             |   |           (2,075)                                                             |   | (355)                                                                                                   |   |   (355)                                                                                                   |           | (2,430)             |
|   Insurance      proceeds                     |   |                  -             |   |                  -                         |   |                  - |   |   -                                                                                                       |           | 5,000               |
|   Other      income                           |   |                    - |   |                      - |   |               -                   |   |                 -                   |           | 368                 |
| Total      Other Income (Expenses)                      |   |         (944)                                                               |   |           (5,714)                                                             |   |             -                               |   |               (355)                           |           | (916)               |
| Net      Loss Before Provision for Income Taxes         |   |       (11,387)                                                                        |   |         (49,575)                                                                        |   |     (34,757)                                                                        |   |        (90,205)                                                                  |           | (379,974)           |
| Provision      for Income Taxes                         |   |                  -             |   |                     -       |   |                  - |   |                    - |           | -                   |
| Net      Loss Available to Common Stockholders          | $      |       (11,387)                                                                        | $      |         (49,575)                                                                        | $      |     (34,757)                                                                        | $      |         (90,205)                                                            | $              | (379,974)           |
|                                                    |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                    |   |                                                                                                                |           |                |
| Net      Loss Per Basic & Diluted Share             | $      |        (0.00)                                                                    | $      |             (0.01)                                                  | $      |         (0.00)                                                  | $      |             (0.02)                                      |           |                |
|                                                    |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                    |   |                                                                                                                |           |                |
| Weighted      Average Number of                         |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                    |   |                                                                                                                |           |                |
|  Common      Shares Outstanding                    |   |   4,689,467                                                                                               |   |       4,584,394                                                                                   |   |   4,529,089                                                                                   |   |       4,509,979                                                                       |           |                |

----

|                                               | Common      Stock |   |   | Additional |   |   | Deficit      Accum |   |   | Total            |
|----------------------------------------------------|-------------------|--------|--------|------------|--------|--------|--------------------|--------|--------|------------------|
|                                               | Number            |   |   |       |   |   | Paid-In            |   |   | During      Dev. |   |   | Stockholders’ |
|                                               | of      Shares    |   |   | Amount     |   |   | Capital            |   |   | Stage            |   |   | Equity      (Deficit) |
| Balance,      July 15, 2004  (Inception) | -                 |   | $      | -          |   | $      | -                  |   | $      | -                |   | $ | - |
|                                               |              |   |   |       |   |   |               |   |   |             |   |   |   |
| Common      Stock:                                 |              |   |   |       |   |   |               |   |   |             |   |   |   |
|  Shares      issued for cash                  | 1,000,000         |   |   | 1,000      |   |   | -                  |   |   | -                |   |   | 1,000 |
|  Shares      issued for services              | 10,000            |   |   | 10         |   |   | -                  |   |   | -                |   |   | 10 |
| Net      Loss                                      | -                 |   |   | -          |   |   | -                  |   |   | (26,944)         |   |   | (26,944) |
| Balance,      June 30, 2005                        | 1,010,000         |   |   | 1,010      |   |   | -                  |   |   | (26,944)         |   |   | (25,934) |
|                                               |              |   |   |       |   |   |               |   |   |             |   |   |   |
| Common      Stock:                                 |              |   |   |       |   |   |               |   |   |             |   |   |   |
|  Shares      issued for cash                  | 1,050,000         |   |   | 1,050      |   |   | 103,950            |   |   | -                |   |   | 105,000 |
|  Stock      dividend                          | 1,260,000         |   |   | 1,260      |   |   | (1,260)            |   |   | -                |   |   | - |
| Net      Loss                                      | -                 |   |   | -          |   |   | -                  |   |   | (68,843)         |   |   | (68,843) |
| Balance,      June 30, 2006                        | 3,320,000         |   |   | 3,320      |   |   | 102,690            |   |   | (95,787)         |   |   | 10,223 |
|                                               |              |   |   |       |   |   |               |   |   |             |   |   |   |
| Common      Stock:                                 |              |   |   |       |   |   |               |   |   |             |   |   |   |
|  Shares      issued for cash                  | 1,105,000         |   |   | 1,105      |   |   | 109,395            |   |   | -                |   |   | 110,500 |
| Net      Loss                                      | -                 |   |   | -          |   |   | -                  |   |   | (132,458)        |   |   | (132,458) |
| Balance,      June 30, 2007                        | 4,425,000         |   |   | 4,425      |   |   | 212,085            |   |   | (228,245)        |   |   | (11,735) |
|                                               |              |   |   |       |   |   |               |   |   |             |   |   |   |
| Common      Stock:                                 |              |   |   |       |   |   |               |   |   |             |   |   |   |
|  Shares      issued for cash                  | 108,000           |   |   | 108        |   |   | 26,892             |   |   | -                |   |   | 27,000 |
| Net      Loss                                      | -                 |   |   | -          |   |   | -                  |   |   | (102,154)        |   |   | (102,154) |
| Balance,      June 30, 2008                        | 4,533,000         |   |   | 4,533      |   |   | 238,977            |   |   | (330,399)        |   |   | (86,889) |
|                                               |              |   |   |       |   |   |               |   |   |             |   |   |   |
| Common      Stock:                                 |              |   |   |       |   |   |               |   |   |             |   |   |   |
|  Shares      issued for cash                  | 196,000           |   |   | 196        |   |   | 14,604             |   |   | -                |   |   | 14,800 |
| Shares      issued for conversion of debentures    | 167,000           |   |   | 167        |   |   | 16,533             |   |   | -                |   |   | 16,700 |
|  Shares      issued for repayment of debt     | 10,000            |   |   | 10         |   |   | 990                |   |   | -                |   |   | 1,000 |
| Net      Loss                                      | -                 |   |   | -          |   |   | -                  |   |   | (49,575)         |   |   | (49,575) |
| Balance,      March 31, 2009 (unaudited)           | 4,906,000         |   | $      | 4,906      |   | $      | 271,104            |   | $      | (379,974)        |   | $ | (103,964) |

----

|                                                                                                        |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   | July      15, 2004                                                                                                        |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|
|                                                                                                        |   |                                               | Nine      Months Ended                                                                                              |                                               |   | (Inception)      to                                                                                                 |
|                                                                                                        |   |       March      31, |                                                                                                                |       March      31, |
|                                                                                                        |   |                                               | 2009                                                                                                                |                                               |   | 2008                                                                                                                |   |   | 2009                                                                                                                      |
| Cash      Flows from Operating Activities:                                                                  |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Net      loss                                                                                               |   | $                                                  |      (49,575)                                                                              |                                               | $      |        (90,205)                                                                  |   | $      |      (379,974)                                                                                   |
|  Adjustments      to reconcile net loss to net cash                                                    |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
|   used      in operating activities:                                                              |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
|    Depreciation      and amortization                                                        |   |                                               |            2,603                                             |                                               |   |            7,498                                             |   |   |          22,540                                                              |
|    Loss      on disposal of horses and syndicates                                            |   |                                               |            2,075                                             |                                               |   |  355                                                                                                           |   |   |            2,430                                                   |
|    Common      stock issued for services                                                     |   |                                               |                                                                                                                |                                               |   |  -                                                                                                             |   |   |                10                              |
| Changes      in operating assets and liabilities:                                                           |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
|     (Increase)      decrease in accounts receivable                                     |   |                                               |  5,887                                                                                                         |                                               |   |          (6,083)                                                       |   |   |          (572)                                                               |
|     Decrease      in prepaid expenses                                                   |   |                                               |              645                                   |                                               |   |             1,863                                       |   |   |            -                                                       |
|     Increase      in accounts payable                                                   |   |                                               |        4,827                                                                     |                                               |   |           19,949                                                  |   |   |          50,302                                                              |
|     Increase      in accounts payable - related party                                   |   |                                               |          26,151                                                        |                                               |   |           10,586                                                  |   |   |          73,844                                                              |
|     Increase      in accrued interest, notes payable - related party                    |   |                                               | 2,463                                                                                                               |                                               |   | -                                                                                                                   |   |   | 2,678                                                                                                                     |
| Net      Cash Used in Operating Activities                                                                  |   |                                               |        (4,924)                                                                   |                                               |   |        (56,037)                                                                  |   |   |      (228,742)                                                                                   |
|                                                                                                        |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Cash      Flows from Investing Activities:                                                                  |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
|  Issuance      of notes receivable                                                                     |   |                                               | (26,765)                                                                                                            |                                               |   | -                                                                                                                   |   |   | (26,765)                                                                                                                  |
|  Purchase      of horses and stallion syndicates                                                       |   |                                               |   -                                                                                                       |                                               |   |  -                                                                                                             |   |   |        (49,012)                                                                        |
|  Proceeds      from sale of horses                                                                     |   |                                               | -                                                                                                                   |                                               |   |  4,000                                                                                                         |   |   |          4,000                                                               |
|  Purchase      of office furniture                                                                     |   |                                               |                    - |                                               |   |                -                         |   |   |          (2,200)                                                             |
| Net      Cash Provided by (Used in) Investing Activities                                                    |   |                                               |          (26,765)                                                      |                                               |   |            4,000                                             |   |   |        (73,977)                                                                        |
|                                                                                                        |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Cash      Flows from Financing Activities:                                                                  |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
|  Proceeds      from sale of common stock                                                               |   |                                               |   14,800                                                                                                  |                                               |   |          27,000                                                        |   |   |        258,300                                                                         |
|  Proceeds      from issuance of convertible debentures                                                 |   |                                               | 25,500                                                                                                              |                                               |   | -                                                                                                                   |   |   | 25,500                                                                                                                    |
|  Proceeds      from related party notes payable                                                        |   |                                               |  -                                                                                                             |                                               |   |  26,500                                                                                                        |   |   |          40,500                                                              |
|  Payments      on related party notes payable                                                          |   |                                               |        (2,300)                                                                   |                                               |   |                    - |   |   |        (14,800)                                                                        |
| Net      Cash Provided by Financing Activities                                                              |   |                                               |          38,000                                                        |                                               |   |          53,500                                                        |   |   |        309,500                                                                         |
|                                                                                                        |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Net      (Decrease) Increase in Cash                                                                        |   |                                               |             6,311                                       |                                               |   |             1,463                                       |   |   |               6,781                                 |
| Cash,      Beginning of the Period                                                                          |   |                                               |              470                                   |                                               |   |              710                                   |   |   |                  -                   |
| Cash,      End of the Period                                                                                |   | $                                                  |             6,781                                       |                                               | $      |            2,173                                             |   | $      |              6,781                                       |
|                                                                                                        |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Supplemental      Cash Flow Information:                                                                    |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Cash      paid for interest                                                                                 |   | $                                                  |                   -       |                                               | $      |                    - |   | $      |                     - |
| Cash      paid for income taxes                                                                             |   | $                                                  |                   -       |                                               | $      |                    - |   | $      |                     - |
|                                                                                                        |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| Non-Cash      Investing and Financing Activities:                                                           |   |                                               |                                                                                                                |                                               |   |                                                                                                                |   |   |                                                                                                                      |
| 1,260,000      common shares issued as stock dividend                                                       |   | $                                                  |                    - |                                               | $      |                    - |   | $      |             1,260                                             |
| 10,000      common shares issued as debt settlement                                                         |   | $                                                  | 1,000                                                                                                               |                                               | $      | -                                                                                                                   |   | $      | 1,000                                                                                                                     |
| Conversion      of notes payable – related party plus accrued interest to convertible      debentures |   | $                                                  | 21,400                                                                                                              |                                               | $      | -                                                                                                                   |   | $      | 21,400                                                                                                                    |
| Conversion      of debentures into 167,000 shares of common stock                                           |   | $                                                  | 16,700                                                                                                              |                                               |   | -                                                                                                                   |   | $      | 16,700                                                                                                                    |
| Transfer      of horses and stallion syndicate to vendor for payment of    debt                             |   | $                                                  | 11,168                                                                                                              |                                               | $      | -                                                                                                                   |   | $      | 11,168                                                                                                                    |

----

----

|                                                  |                              |   | March      31,2009 |                                                     | June      30, 2008 |
|-------------------------------------------------------|-----------------------------------|--------|--------------------|-----------------------------------------------------|--------------------|
| Property      and equipment is summarized as follows: |                              |   |               |                                                |               |   |
|                                                  | Property      and equipment:      |   |               |                                                |               |   |   |
|                                                  | Horses                            |   | $                  |    12,500                            |               | $ |    34,512 |
|                                                  | Office      furniture             |   |               |      2,200                 |               |   |      2,200 |
|                                                  | Total      property and equipment |   |               |    14,700                            |               |   |    36,712 |
|                                                  |                              |   |               |                                                |               |   |   |
|                                                  | Accumulated      depreciation:    |   |               |                                                |               |   |   |
|                                                  | Horses                            |   |               |      5,506                 |               |   |    15,303 |
|                                                  | Office      furniture             |   |               |         796 |               |   |         560 |
|                                                  | Total      property and equipment |   |               |      6,302                 |               |   |    15,863 |
|                                                  |                              |   |               |                                                |               |   |   |
|                                                  | Net      property and equipment   |   | $                  |      8,398                 |               | $ |    20,849 |
|                                                  |                              |   |               |                                                |               |   |   |
| Stallion      syndicates are summarized as follows:   |                              |   |               |                                                |               |   |
|                                                  | Stallion      syndicates          |   | $                  |      5,000                 |               | $ |      9,000 |
|                                                  | Accumulated      amortization     |   |               |     (2,322)                     |               |   |    (2,929) |
|                                                  | Net      stallion syndicates      |   | $                  |      2,678                 |               | $ |      6,071 |

----

|                              | Historical                                |   | Carrying                            |   | Debt                                            |   | Gain                                            |
|-----------------------------------|-------------------------------------------|--------|-------------------------------------|--------|-------------------------------------------------|--------|-------------------------------------------------|
| Asset                             | Cost                                      |   | Value                               |   | Settled                                         |   | (Loss)                                          |
| Horse                             |  $      12,500                       |   |  $  7,887            |   |  $    5,000            |   |  $      (2,887)                            |
| Racehorse      ownership interest |       9,512 |   |      2,642 |   |        1,668 |   |        (974) |
| Stallion      syndicate           |       4,000 |   |      2,714 |   |        4,500 |   |       1,786       |
| Total      (Net)                  |  $      26,012                       |   |  $13,243                       |   |  $  11,168                       |   |  $      (2,075)                            |

----

----

----

|       |   | Number      of                                                                 |   |                                           |   | Total                                                     |
|------------|--------|--------------------------------------------------------------------------------|--------|------------------------------------------------|--------|-----------------------------------------------------------|
| Date       |   | Shares                                                                         |   | Price                                          |   | Proceeds                                                  |
| 7/16/2004  |   |           175,000            |   |  $   0.001                 |   |  $      175            |
| 7/22/2004  |   |           175,000            |   |       0.001      |   |          175 |
| 11/4/2004  |   |           650,000            |   |       0.001      |   |          650 |
| 12/19/2005 |   |           150,000            |   |        0.10 |   |      15,000                      |
| 12/31/2005 |   |           100,000            |   |        0.10 |   |      10,000                      |
| 3/3/2006   |   |             20,000 |   |        0.10 |   |        2,000           |
| 4/17/2006  |   |           150,000            |   |        0.10 |   |      15,000                      |
| 5/8/06     |   | 30,000                                                                         |   | 0.10                                           |   | 3,000                                                     |
| 6/23/06    |   | 600,000                                                                        |   | 0.10                                           |   | 60,000                                                    |
| 8/11/06    |   | 5,000                                                                          |   | 0.10                                           |   | 500                                                       |
| 8/18/06    |   | 305,000                                                                        |   | 0.10                                           |   | 30,500                                                    |
| 9/18/06    |   | 15,000                                                                         |   | 0.10                                           |   | 1,500                                                     |
| 9/19/06    |   | 40,000                                                                         |   | 0.10                                           |   | 4,000                                                     |
| 10/24/06   |   | 10,000                                                                         |   | 0.10                                           |   | 1,000                                                     |
| 11/20/06   |   | 25,000                                                                         |   | 0.10                                           |   | 2,500                                                     |
| 2/8/07     |   | 615,000                                                                        |   | 0.10                                           |   | 61,500                                                    |
| 2/22/07    |   | 25,000                                                                         |   | 0.10                                           |   | 2,500                                                     |
| 5/1/07     |   | 65,000                                                                         |   | 0.10                                           |   | 6,500                                                     |
| 8/14/07    |   | 100,000                                                                        |   | 0.25                                           |   | 25,000                                                    |
| 2/13/08    |   | 8,000                                                                          |   | 0.25                                           |   | 2,000                                                     |
| 1/16/09    |   | 100,000                                                                        |   | 0.10                                           |   | 10,000                                                    |
| 2/19/09    |   | 96,000                                                                         |   | 0.05                                           |   | 4,800                                                     |
|       |   | 3,459,000                                                                      |   |                                           |   | $  258,300                                      |

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| Nanotech      is a privately held corporation that holds intellectual property in the      development and sales of technology and games for the coin-op / arcade,      casino gaming, and consumer entertainment  markets. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Operating and General & AdministrativeExpenses

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|   | 31 | Rule      13a-14(a)/15d-14a(a) Certifications |
|--------|----|-----------------------------------------------|

|   | 32 | Section      1350 Certifications |
|--------|----|----------------------------------|