----

| Nevada                                                         |   | 26-2137574                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| Gainey Center II                         |   |       |
|------------------------------------------|--------|------------|
| 8501 North Scottsdale Road, Suite 165    |   |       |
| Scottsdale, Arizona                      |   | 85253-2740 |
| (Address of principal executive offices) |   | (Zip Code) |

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

----

|     |   |                                                                                  | Page No. |
|----------|--------|---------------------------------------------------------------------------------------|----------|
|     |   | PART I - FINANCIAL INFORMATION                                                        |     |
|     |   |                                                                                  |     |
| Item 1.  |   | Financial Statements                                                                  | 1        |
|     |   |                                                                                  |     |
| Item 2.  |   | Management's Discussion and Analysis of Financial Condition and Results of Operations | 15       |
|     |   |                                                                                  |     |
| Item 3.  |   | Quantitative and Qualitative Disclosures About Market Risk                            | 21       |
|     |   |                                                                                  |     |
| Item 4T. |   | Controls and Procedures                                                               | 21       |
|     |   |                                                                                  |     |
|     |   | PART II - OTHER INFORMATION                                                           |     |
|     |   |                                                                                  |     |
| Item 1.  |   | Legal Proceedings                                                                     | 22       |
|     |   |                                                                                  |     |
| Item1A.  |   | Risk Factors                                                                          | 22       |
|     |   |                                                                                  |     |
| Item 2.  |   | Unregistered Sales of Equity Securities and Use of Proceeds                           | 23       |
|     |   |                                                                                  |     |
| Item 3.  |   | Defaults Upon Senior Securities                                                       | 23       |
|     |   |                                                                                  |     |
| Item 4.  |   | (Removed and Reserved)                                                                |     |
|     |   |                                                                                  |     |
| Item 5.  |   | Other Information                                                                     | 24       |
|     |   |                                                                                  |     |
| Item 6.  |   | Exhibits                                                                              | 24       |
|     |   |                                                                                  |     |
|     |   | Signature                                                                             | 25       |

----

| BOLLENTE COMPANIES, INC. (FORMERLY ALCANTARA BRANDS CORPORATION)                  |   |
|-----------------------------------------------------------------------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)                                                     |   |
| CONSOLIDATED BALANCE SHEETS                                                       |   |
|                                                                              |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |
|                                                                              |   | June 30, |   |   | December 31, |   |
|                                                                              |   | 2011 |   |   | 2010 |   |
|                                                                              |   | (unaudited) |   |   | (audited)(restated) |   |
| ASSETS                                                                            |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |
| Current assets:                                                                   |   |   |   |   |   |   |
| Cash                                                                              |   | $ | - |   |   | $ | 48 |   |
| Prepaid stock compensation                                                        |   |   | 287,500 |   |   |   | - |   |
| Total current assets                                                              |   |   | 287,500 |   |   |   | 48 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Other assets:                                                                     |   |   |   |   |   |   |   |   |
| Deferred financing cost, net                                                      |   |   | 4,620 |   |   |   | - |   |
| Security deposits                                                                 |   |   | 1,500 |   |   |   | - |   |
| Total other assets                                                                |   |   | 6,120 |   |   |   | - |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Total assets                                                                      |   | $ | 293,620 |   |   | $ | 48 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                             |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Current liabilities:                                                              |   |   |   |   |   |   |   |   |
| Bank overdraft                                                                    |   |   | 1,223 |   |   |   | 81 |   |
| Accounts payable                                                                  |   |   | 32,049 |   |   |   | 145,426 |   |
| Accounts payable - related party                                                  |   |   | 343 |   |   |   | 343 |   |
| Accrued salaries - related party                                                  |   |   | 9,500 |   |   |   | - |   |
| Notes payable - related party                                                     |   |   | 12,010 |   |   |   | 12,510 |   |
| Accrued interest payable - related party                                          |   |   | 15,374 |   |   |   | 598 |   |
| Line of credit - related party                                                    |   |   | 47,270 |   |   |   | 16,820 |   |
|     Notes payable, net of unamortized debt discount of $2,100 |   |   | 30,900 |   |   |   | - |   |
| Total current liabilities                                                         |   |   | 148,669 |   |   |   | 175,778 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Long-term liabilities:                                                            |   |   |   |   |   |   |   |   |
| Notes payable - related party                                                     |   |   | 500,278 |   |   |   | - |   |
| Total long-term liabilities                                                       |   |   | 500,278 |   |   |   | - |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Total liabilities                                                                 |   |   | 648,947 |   |   |   | 175,778 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Stockholders' deficit:                                                            |   |   |   |   |   |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares                              |   |   |   |   |   |   |   |   |
| authorized, no shares issued and outstanding                                      |   |   |   |   |   |   |   |   |
| as of June 30, 2011 and December 31, 2010, respectively                           |   |   | - |   |   |   | - |   |
| Common stock, $0.001 par value, 100,000,000 shares                                |   |   |   |   |   |   |   |   |
| authorized, 5,757,460 and 374,729 shares issued and outstanding                   |   |   |   |   |   |   |   |   |
| as of June 30, 2011 and December 31, 2010, respectively                           |   |   | 5,757 |   |   |   | 375 |   |
| Additional paid-in capital                                                        |   |   | 1,691,335 |   |   |   | 1,219,218 |   |
| Subscriptions payable                                                             |   |   | 56,600 |   |   |   | 50,000 |   |
| Deficit accumulated during development stage                                      |   |   | (2,109,019 | ) |   |   | (1,445,323 | ) |
| Total stockholders' deficit                                                       |   |   | (355,327 | ) |   |   | (175,730 | ) |
|                                                                              |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' deficit                                       |   | $ | 293,620 |   |   | $ | 48 |   |

----

| BOLLENTE COMPANIES, INC. (FORMERLY ALCANTARA BRANDS CORPORATION) |   |
|------------------------------------------------------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)                                    |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS                            |   |
|                                                             |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | Inception |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | (March 7, 2008) |   |
|                                                             |   | For the three months ended |   |   | For the six months ended |   |   | to |   |
|                                                             |   | June 30, |   |   | June 30, |   |   | June 30, |   |
|                                                             |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |
|                                                             |   |   |   |   | (restated) |   |   |   |   |   | (restated) |   |   | (restated) |   |
| Revenue                                                          |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                       |   |   | 55,829 |   |   |   | 750 |   |   |   | 72,761 |   |   |   | 11,443 |   |   |   | 129,069 |   |
| Product development - related party                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 39,576 |   |   |   | 336,014 |   |
| Professional fees                                                |   |   | 38,179 |   |   |   | 181,331 |   |   |   | 51,219 |   |   |   | 579,172 |   |   |   | 1,103,347 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                         |   |   | 94,008 |   |   |   | 182,081 |   |   |   | 123,980 |   |   |   | 630,191 |   |   |   | 1,568,430 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expenses:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense - related party                                 |   |   | (506 | ) |   |   | (227 | ) |   |   | (15,054 | ) |   |   | (323 | ) |   |   | (15,927 | ) |
| Interest expense                                                 |   |   | (1,920 | ) |   |   | - |   |   |   | (24,662 | ) |   |   | (750 | ) |   |   | (24,662 | ) |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other expenses                                             |   |   | (2,426 | ) |   |   | (227 | ) |   |   | (39,716 | ) |   |   | (1,073 | ) |   |   | (40,589 | ) |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   | $ | (96,434 | ) |   | $ | (182,308 | ) |   | $ | (163,696 | ) |   | $ | (631,264 | ) |   | $ | (1,609,019 | ) |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                         |   |   | 3,079,188 |   |   |   | 318,610 |   |   |   | 1,746,862 |   |   |   | 310,067 |   |   |   |   |   |
| outstanding - basic                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per common share - basic                                |   | $ | (0.24 | ) |   | $ | (0.60 | ) |   | $ | (0.41 | ) |   | $ | (2.09 | ) |   |   |   |   |

----

| BOLLENTE COMPANIES, INC. (FORMERLY ALCANTARA BRANDS CORPORATION) |   |
|------------------------------------------------------------------|--------|
| (A DEVELOPMENT STAGE COMPANY)                                    |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                            |   |
|                                                             |   |
|                                                             |   |   |   |   |   |   |   | Inception |   |
|                                                             |   |   |   |   |   |   |   | (March 7, 2008) |   |
|                                                             |   | For the six months ended |   |   | to |   |
|                                                             |   | June 30, |   |   | June 30, |   |
|                                                             |   | 2011 |   |   | 2010 |   |   | 2011 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                             |   |   |   |   | (restated) |   |   | (restated) |   |
| Net loss                                                         |   | $ | (163,696 | ) |   | $ | (631,264 | ) |   | $ | (1,609,019 | ) |
| Adjustments to reconcile net loss                                |   |   |   |   |   |   |   |   |   |   |   |   |
| to net cash used in operating activities:                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services                                       |   |   | 12,500 |   |   |   | - |   |   |   | 487,500 |   |
| Shares issued for employment agreement                           |   |   | 40,000 |   |   |   | 207,500 |   |   |   | 40,000 |   |
| Warrants issued for services                                     |   |   | - |   |   |   | 308,176 |   |   |   | 308,176 |   |
| Write-off of inventory deposit                                   |   |   | - |   |   |   |   |   |   |   | 21,000 |   |
| Shares payable for services                                      |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
| Non-cash financing cost                                          |   |   | 21,781 |   |   |   | - |   |   |   | 22,056 |   |
| Amortization of deferred financing cost                          |   |   | 1,980 |   |   |   | - |   |   |   | 1,980 |   |
| Amortization of debt discount                                    |   |   | 900 |   |   |   | - |   |   |   | 900 |   |
| Changes in operating assets and liabilities:                     |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase) in prepaid expenses                                   |   |   | - |   |   |   | 3,500 |   |   |   | (7,000 | ) |
| Decrease in prepaid inventory - related party                    |   |   | - |   |   |   | 7,000 |   |   |   | - |   |
| Decrease in other receivables                                    |   |   | - |   |   |   | (14,000 | ) |   |   | (14,000 | ) |
| (Increase) in security deposits                                  |   |   | (1,500 | ) |   |   | - |   |   |   | (1,500 | ) |
| Increase (decrease) in accounts payable                          |   |   | 2,341 |   |   |   | 49,525 |   |   |   | 133,532 |   |
| Increase in accounts payable - related party                     |   |   | - |   |   |   | - |   |   |   | 343 |   |
| Increase in accrued salaries - related party                     |   |   | 9,500 |   |   |   | - |   |   |   | 9,500 |   |
| Increase in deferred revenue                                     |   |   | - |   |   |   | - |   |   |   | 14,235 |   |
| Increase in accrued interest payable - related party             |   |   | 15,054 |   |   |   | 324 |   |   |   | 15,652 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash used in operating activities                            |   |   | (61,140 | ) |   |   | (69,239 | ) |   |   | (526,645 | ) |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Payments for due from related party                              |   |   | - |   |   |   | (40,000 | ) |   |   | (40,000 | ) |
| Repayments from due from related party                           |   |   | - |   |   |   | 40,000 |   |   |   | 40,000 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                            |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank overdraft                                                   |   |   | 1,142 |   |   |   | - |   |   |   | 1,223 |   |
| Proceeds from notes payable - related party                      |   |   | 850 |   |   |   | 21,950 |   |   |   | 12,610 |   |
| Repayments of notes payable - related party                      |   |   | (1,350 | ) |   |   | - |   |   |   | (1,350 | ) |
| Proceeds from line of credit - related party                     |   |   | 30,450 |   |   |   | - |   |   |   | 47,270 |   |
| Proceeds from notes payable                                      |   |   | 30,000 |   |   |   | - |   |   |   | 38,500 |   |
| Proceeds from sale of common stock, net of offering costs        |   |   | - |   |   |   | 43,500 |   |   |   | 421,282 |   |
| Donated capital                                                  |   |   | - |   |   |   | 3,555 |   |   |   | 7,110 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by financing activities                        |   |   | 61,092 |   |   |   | 69,005 |   |   |   | 526,645 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| NET CHANGE IN CASH                                               |   |   | (48 | ) |   |   | (234 | ) |   |   | - |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AT BEGINNING OF YEAR                                        |   |   | 48 |   |   |   | 1,238 |   |   |   | - |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AT END OF YEAR                                              |   | $ | - |   |   | $ | 1,004 |   |   | $ | - |   |
|                                                             |   |   |   |   |   |   |   |   |   | $ | - |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL INFORMATION:                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest paid                                                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Income taxes paid                                                |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash investing and financing activities:                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued as settlement of accounts payable                  |   | $ | (115,718 | ) |   | $ | - |   |   | $ | (115,718 | ) |
| Shares issued for employment agreement                           |   | $ | (40,000 | ) |   | $ | - |   |   | $ | (40,000 | ) |
| Shares issued for services                                       |   | $ | - |   |   | $ | - |   |   | $ | 10,000 |   |
| Warrants issued for services                                     |   | $ | - |   |   | $ | 308,176 |   |   | $ | 308,176 |   |
| Shares issued for prepaid stock compensation                     |   | $ | 300,000 |   |   | $ | - |   |   | $ | - |   |
| Amortization of prepaid stock compensation                       |   | $ | 12,500 |   |   | $ | 207,500 |   |   | $ | 477,500 |   |
| Deemed distribution to majority shareholder                      |   | $ | (500,000 | ) |   | $ | - |   |   | $ | (500,000 | ) |

----

----

----

----

|                                         |   | As Previously Reported |       |   | Adjustments for Pooling with Bollente, Inc. |   |    | As Restated |   |
|----------------------------------------------|--------|------------------------|------------|--------|---------------------------------------------|--------|---------|-------------|--------|
| Cash                                         |   | $                      | 48         |   |                                        | $      | -       |        |   | $ | 48 |   |
| Total Current Assets                         |   |                   | 48         |   |                                        |   | -       |        |   |   | 48 |   |
| Total Assets                                 |   | $                      | 48         |   |                                        | $      | -       |        |   | $ | 48 |   |
|                                         |   |                   |       |   |                                        |   |    |        |   |   |   |   |
| Bank Overdraft                               |   | $                      | -          |   |                                        | $      | 81      |        |   | $ | 81 |   |
| Accounts Payable                             |   |                   | 145,426    |   |                                        |   | -       |        |   |   | 145,426 |   |
| Accounts Payable - Related Party             |   |                   | 343        |   |                                        |   | -       |        |   |   | 343 |   |
| Notes Payable - Related Party                |   |                   | 16,132     |   |                                        |   | (3,622  | )           |   |   | 12,510 |   |
| Accrued Interest Payable - Related Party     |   |                   | 598        |   |                                        |   | -       |        |   |   | 598 |   |
| Line of Credit - Related Party               |   |                   | 16,820     |   |                                        |   | -       |        |   |   | 16,820 |   |
| Total Current Liabilities                    |   |                   | 179,319    |   |                                        |   | (3,541  | )           |   |   | 175,778 |   |
| Total Liabilities                            |   |                   | 179,319    |   |                                        |   | (3,541  | )           |   |   | 175,778 |   |
|                                         |   |                   |       |   |                                        |   |    |        |   |   |   |   |
| Common Stock                                 |   |                   | 375        |   |                                        |   | -       |        |   |   | 375 |   |
| Additional Paid in Capital                   |   |                   | 1,184,943  |   |                                        |   | 34,275  |        |   |   | 1,219,218 |   |
| Subscriptions Payable                        |   |                   | 50,000     |   |                                        |   | -       |        |   |   | 50,000 |   |
| Deficit Accumulated During Development Stage |   |                   | (1,414,589 | )      |                                        |   | (30,734 | )           |   |   | (1,445,323 | ) |
| Total Stockholders' Deficit                  |   |                   | (179,271   | )      |                                        |   | 3,541   |        |   |   | (175,730 | ) |
| Total Liabilities and Stockholders' Deficit  |   | $                      | 48         |   |                                        | $      | -       |        |   | $ | 48 |   |

|                              |   | As Previously Reported |     |   | Adjustments for Pooling with Bollente, Inc. |   |   | As Restated |   |
|-----------------------------------|--------|------------------------|----------|--------|---------------------------------------------|--------|--------|-------------|--------|
| Revenue                           |   | $                      | -        |   |                                        | $      | -      |        |   | $ | - |   |
|                              |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| General and Administrative        |   |                   | 249      |   |                                        |   | 501    |        |   |   | 750 |   |
| Professional Fees                 |   |                   | 181,332  |   |                                        |   | (1     | )           |   |   | 181,331 |   |
| Total Operating Expenses          |   |                   | 181,581  |   |                                        |   | 500    |        |   |   | 182,081 |   |
|                              |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Interest Expense - Related Party  |   |                   | (111     | )      |                                        |   | (116   | )           |   |   | (227 | ) |
| Total Other Expenses              |   |                   | (111     | )      |                                        |   | (116   | )           |   |   | (227 | ) |
|                              |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Net Loss                          |   | $                      | (181,692 | )      |                                        | $      | (616   | )           |   | $ | (182,308 | ) |
|                              |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Weighted Average Number of Common |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Shares Outstanding - Basic        |   |                   | 301,429  |   |                                        |   |   |        |   |   | 301,429 |   |
|                              |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Net Loss per Common Share - Basic |   | $                      | (0.60    | )      |                                        |   |   |        |   | $ | (0.60 | ) |

----

|                                |   | As Previously Reported |     |   | Adjustments for Pooling with Bollente, Inc. |   |   | As Restated |   |
|-------------------------------------|--------|------------------------|----------|--------|---------------------------------------------|--------|--------|-------------|--------|
| Revenue                             |   | $                      | -        |   |                                        | $      | -      |        |   | $ | - |   |
|                                |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| General and Administrative          |   |                   | 8,822    |   |                                        |   | 2,621  |        |   |   | 11,443 |   |
| Product Development - Related Party |   |                   | 39,576   |   |                                        |   | -      |        |   |   | 39,576 |   |
| Professional Fees                   |   |                   | 574,672  |   |                                        |   | 4,500  |        |   |   | 579,172 |   |
| Total Operating Expenses            |   |                   | 623,070  |   |                                        |   | 7,121  |        |   |   | 630,191 |   |
|                                |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Interest Expense - Related Party    |   |                   | (128     | )      |                                        |   | (195   | )           |   |   | (323 | ) |
| Interest Expense                    |   |                   | -        |   |                                        |   | (750   | )           |   |   | (750 | ) |
| Total Other Expenses                |   |                   | (128     | )      |                                        |   | (945   | )           |   |   | (1,073 | ) |
|                                |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Net Loss                            |   | $                      | (623,198 | )      |                                        | $      | (8,066 | )           |   | $ | (631,264 | ) |
|                                |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Weighted Average Number of Common   |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Shares Outstanding - Basic          |   |                   | 301,429  |   |                                        |   |   |        |   |   | 301,429 |   |
|                                |   |                   |     |   |                                        |   |   |        |   |   |   |   |
| Net Loss per Common Share - Basic   |   | $                      | (2.07    | )      |                                        |   |   |        |   | $ | (2.09 | ) |

|                                                                                                                                                                        |   | June 30,2011 |   |   | December 31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-------------------|--------|
| Note payable to an entity owned and controlled by an officer and director of the Company, unsecured, 0% interest, due upon demand                                           |   | $            | 9,400  |   |              | $      | 9,400 |   |
|                                                                                                                                                                        |   |         |   |   |              |   |   |   |
| Note payable to a former officer, director and shareholder, unsecured, 0% interest, due upon demand                                                                         |   |         | 160    |   |              |   | 160 |   |
|                                                                                                                                                                        |   |         |   |   |              |   |   |   |
| Note payable to an entity owned and controlled by an officer and director of the Company, unsecured, 10% interest, due July 2010,  in default as of June 30, 2011 |   |         | 800    |   |              |   | 800 |   |
|                                                                                                                                                                        |   |         |   |   |              |   |   |   |
| Note payable to an entity owned and controlled by an officer and director of the Company, unsecured, 10% interest, due August 2010, in default as of June 30, 2011          |   |         | 1,400  |   |              |   | 1,400 |   |
|                                                                                                                                                                        |   |         |   |   |              |   |   |   |
| Note payable to an officer, director and shareholder, unsecured, 0% interest, due upon demand                                                                               |   |         | 250    |   |              |   | - |   |
|                                                                                                                                                                        |   |         |   |   |              |   |   |   |
| Note payable to a shareholder, unsecured, 0% interest, due upon demand                                                                                                      |   |         | -      |   |              |   | 750 |   |
|                                                                                                                                                                        |   |         |   |   |              |   |   |   |
| Notes Payable – Current                                                                                                                                               |   | $            | 12,010 |   |              | $      | 12,510 |   |

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|                                                                                             |   | June 30,2011 |   |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-------------------|--------|
| Line of credit for up to $150,000, from a shareholder, unsecured, 5% interest, due December 2011 |   | $            | 47,270 |   |              | $      | 16,820 |   |
|                                                                                             |   |         |   |   |              |   |   |   |
| Line of credit – Current                                                                   |   | $            | 47,270 |   |              | $      | 16,820 |   |

|                                                                                       |   | June 30,2011 |   |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-------------------|--------|
| Note payable to an unrelated third party, unsecured, $3,000 in debt discount, due May 2012 |   | $            | 33,000 |   |              | $      | - |   |
| Unamortized debt discount                                                                  |   |         | (2,100 | )      |              |   | - |   |
|                                                                                       |   |         |   |   |              |   |   |   |
| Notes Payable – Long-Term                                                            |   | $            | 30,900 |   |              | $      | - |   |

|                                                                                                            |   | June 30,2011 |    |   | December 31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| Note payable with a shareholder, unsecured, 8% interest, quarterly payments of interest only, due February 2014 |   | $            | 500,000 |   |              | $      | - |   |
| Original issue discount                                                                                         |   |         | 278     |   |              |   |   |   |
|                                                                                                            |   |         |    |   |              |   |   |   |
| Notes Payable – Long Term                                                                                 |   | $            | 500,278 |   |              | $      | - |   |

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|                                  |   | Numberof Warrants |   |   | Weighted-AverageExercise Price |   |
|---------------------------------------|--------|-------------------|--------|--------|--------------------------------|--------|
| Outstanding at January 1, 2011        |   |              | 20,000 |   |                           | $      | 15.50 |   |
| Granted                               |   |              | -      |   |                           | $      | 0.50 |   |
| Exercised                             |   |              | -      |   |                           | $      | 0.00 |   |
| Cancelled                             |   |              | -      |   |                           | $      | 0.00 |   |
| Outstanding at June 30, 2011          |   |              | 20,000 |   |                           | $      | 15.50 |   |
| Warrants exercisable at June 30, 2011 |   |              | 20,000 |   |                           | $      | 15.50 |   |

|                             |   | STOCK WARRANTS OUTSTANDING AND EXERCISABLE |
|----------------------------------|--------|--------------------------------------------|
|    Exercise Price |   |  Number ofWarrantsOutstanding         |   | Weighted-AverageRemainingContractualLife in Years |   |  Weighted-AverageExercise Price |
| $ 15.50                          |   | 20,000                                     |   | 1.67 |   | $ 15.50 |

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

| ·   | inability to raise additional financing for working capital; |
|--------------------|--------------------------------------------------------------|

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

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

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

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

| ·   | adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | the inability of management to effectively implement our strategies and business plan; |
|--------------------|----------------------------------------------------------------------------------------|

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

| ·   | the unavailability of funds for capital expenditures; |
|--------------------|-------------------------------------------------------|

| ·   | other risks and uncertainties detailed in this report; |
|--------------------|--------------------------------------------------------|

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| ·   | Testing new, proprietary technologies for integration into our electric tankless water heating products; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Filing for patent and trademark protection for our electric tankless water heater line, |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | Launching our product website to educate retail consumers about our products; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Installing and testing prototype water heaters in the field in a variety of applications; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | Designing a secondary website geared towards providing service and technical guidance to industry professionals, trade persons, and wholesale sales companies on the benefits of offering our products to their customers; and, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Identifying candidates in the plumbing and building industry in select markets to support our initial marketing and sales efforts. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

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|                                                |   | Six months EndedJune 30, |    |
|-----------------------------------------------------|--------|--------------------------|---------|
|                                                |   | 2011                     |    |   | 2010 |   |
| Net cash provided by (used in) operating activities |   | $                        | (61,140 | ) |   | $ | (69,239 | ) |
| Net cash provided by (used in) investing activities |   |                     | -       |   |   |   | - |   |
| Net cash provided by (used in) financing activities |   |                     | 61,092  |   |   |   | 69,005 |   |
| Net increase/(decrease) in Cash                     |   |                     | (48     | ) |   |   | (234 | ) |
| Cash, beginning                                     |   |                     | 48      |   |   |   | 1,238 |   |
| Cash, ending                                        |   | $                        | -       |   |   | $ | 1,004 |   |

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| Exhibit No. |   | Description                                                                                                                                                                                       |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                              |
| 31.1        |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|        |   |                                                                                                                                                                                              |
| 32.1        |   | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                    |
|        |   |                                                                                                                                                                                              |
| 101.INS*    |   | XBRL Instance Document                                                                                                                                                                            |
|        |   |                                                                                                                                                                                              |
| 101.SCH*    |   | XBRL Taxonomy Extension Schema                                                                                                                                                                    |
|        |   |                                                                                                                                                                                              |
| 101.CAL*    |   | XBRL Taxonomy Extension Calculation Linkbase                                                                                                                                                      |
|        |   |                                                                                                                                                                                              |
| 101.DEF*    |   | XBRL Taxonomy Extension Definition Linkbase                                                                                                                                                       |
|        |   |                                                                                                                                                                                              |
| 101.LAB*    |   | XBRL Taxonomy Extension Label Linkbase                                                                                                                                                            |
|        |   |                                                                                                                                                                                              |
| 101.PRE*    |   | XBRL Taxonomy Extension Presentation Linkbase                                                                                                                                                     |

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