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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2010

OR

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

For the transition period from __________ to __________.

Commission file number 000-53530

BARK GROUP INC.(Exact name of registrant as specified in its charter)

|Nevada                                                               | Not applicable                      
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|                                                                     |                                     
|Ostergade 17-19, 3rdFloor,
      DK-1100                             | DK-1100                             
|Copenhagen K, Denmark                                                | (Zip Code)                          
|(Address of principal executive offices)                             |                                     

Registrants telephone number: +45 7026 9926

Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X]No [   ]

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate website, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).Yes [   ]    No [   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act. (Check one):

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

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).Yes [  
]    No [X]

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date. As of May
20, 2010, there were 403,607,761 shares of the issuers common stock
outstanding.

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BARK GROUP INC

Table of Contents

|                |                                                                                                                            | Page
|--------------- | -------------------------------------------------------------------------------------------------------------------------- | ----
|                |                                                                                                                            |     
|Part
      I    | FINANCIAL
      INFORMATION                                                                                                |     
|                |                                                                                                                            |     
|Item
      1.   | Financial
      Statements.                                                                                                |     
|                |                                                                                                                            |     
|                | Condensed
      Consolidated Balance Sheets as of March 31, 2010 (unaudited) and December
      31, 2009                   | 1-2 
|                |                                                                                                                            |     
|                | Condensed
      Consolidated Statements of Operations for the three months ended March 31,
      2010 and 2009 (unaudited) | 3   
|                |                                                                                                                            |     
|                | Condensed
      Consolidated Statements of Cash Flows for the three months ended March 31,
      2010 and 2009 (unaudited) | 4   
|                |                                                                                                                            |     
|                | Notes
      to Unaudited Condensed Consolidated Financial Statements                                                       | 5   
|                |                                                                                                                            |     
|Item
      2.   | Managements
      Discussion and Analysis of Financial Condition and Results of Operations.                               | 15  
|                |                                                                                                                            |     
|Item
      3.   | Quantitative
      and Qualitative Disclosures about Market Risk.                                                          | 25  
|                |                                                                                                                            |     
|Item
      4 T. | Controls
      and Procedures.                                                                                             | 25  
|                |                                                                                                                            |     
|Part
      II   | OTHER
      INFORMATION                                                                                                    |     
|                |                                                                                                                            |     
|Item
      1    | Legal
      Proceeding                                                                                                     | 27  
|                |                                                                                                                            |     
|Item
      2    | Recent
      Sales of Unregistered Securities and Use of Proceeds                                                          | 36  
|                |                                                                                                                            |     
|Item
      5    | Other
      information                                                                                                    | 38  
|                |                                                                                                                            |     
|Item
      6.   | Exhibits.                                                                                                                  | 39  

- i -

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PART IFINANCIAL INFORMATION

Item 1. Financial Statements

Bark Group Inc. and Subsidiaries Condensed Consolidated
Balance Sheets (In thousands of USD)

|                                                                                 |   | Unaudited |  |   |              | 
|-------------------------------------------------------------------------------- | - | --------- |  | - | ------------ | 
|                                                                                 |   | March 31, |  |   | December 31, | 
|Assets                                                                           |   | 2010      |  |   | 2009         | 
|Current assets:                                                                  |   |           |  |   |              | 
|Cash and cash equivalents                                                        | $ | 5         |  | $ | 5            | 
|Accounts receivable, net                                                         |   | 770       |  |   | 526          | 
|Costs and estimated
      earnings in excess of billings on projects in progress |   | 747       |  |   | 743          | 
|Prepaid expenses and other current assets                                        |   | 57        |  |   | 34           | 
|                                                                                 |   |           |  |   |              | 
|Total current assets                                                             |   | 1,579     |  |   | 1,308        | 
|                                                                                 |   |           |  |   |              | 
|Property, plant and equipment, net of
      accumulated depreciation             |   | 4,704     |  |   | 5,026        | 
|Equity investment                                                                |   | 2,065     |  |   | -            | 
|Goodwill                                                                         |   | 3,091     |  |   | 3,289        | 
|Other intangible assets, net
      of accumulated amortization                   |   | 16        |  |   | 22           | 
|Deferred financing costs, net of accumulated
      amortization                  |   | 54        |  |   | 57           | 
|Total assets                                                                     | $ | 11,509    |  | $ | 9,702        | 

The accompanying notes are an integral part of these
condensed consolidated financial statements

1

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Bark Group Inc. and Subsidiaries Condensed Consolidated
Balance Sheets (continued) (In thousands of USD)

|                                                                                                                                                                                                                                                                     |   | Unaudited |   |   |              |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | --------- | - | - | ------------ | -
|                                                                                                                                                                                                                                                                     |   | March 31, |   |   | December 31, |  
|Liabilities                                                                                                                                                                                                                                                          |   | 2010      |   |   | 2009         |  
|Current liabilities:                                                                                                                                                                                                                                                 |   |           |   |   |              |  
|Accounts payable                                                                                                                                                                                                                                                     | $ | 2,087     |   | $ | 1,736        |  
|Accrued liabilities                                                                                                                                                                                                                                                  |   | 905       |   |   | 1,758        |  
|Billings in excess of costs
      and estimated 
       earnings on projects in progress                                                                                                                                                                             |   | 756       |   |   | 720          |  
|Current portion of long-term
      debt                                                                                                                                                                                                                              |   | 2,781     |   |   | 2,189        |  
|Current portion of obligations under
      capital leases                                                                                                                                                                                                            |   | 111       |   |   | 123          |  
|Current portion of debt
      to redeemed stockholders                                                                                                                                                                                                               |   | 131       |   |   | 192          |  
|Advances from related parties                                                                                                                                                                                                                                        |   | 174       |   |   | 399          |  
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Total current liabilities                                                                                                                                                                                                                                            |   | 6,945     |   |   | 7,117        |  
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Long-term debt , net of current portion                                                                                                                                                                                                                              |   | 3,897     |   |   | 4,162        |  
|Long-term obligations
      under capital leases, net of current portion                                                                                                                                                                                             |   | 61        |   |   | 93           |  
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Total liabilities                                                                                                                                                                                                                                                    |   | 10,903    |   |   | 11,372       |  
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Non-Controlling interests                                                                                                                                                                                                                                            |   | 1,223     |   |   | 1,301        |  
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Commitments and contingencies                                                                                                                                                                                                                                        |   |           |   |   |              |  
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Stockholders Deficiency                                                                                                                                                                                                                                             |   |           |   |   |              |  
|Stockholders' deficiency:                                                                                                                                                                                                                                            |   |           |   |   |              |  
|Preferred stock
      $0.001 per share par
      value;        100,000,000
      authorized; 0 issued and outstanding.                                                                                                                                               |   | -         |   |   | -            |  
|Common stock
      $0.001 per share par
      value;        2,000,000,000
      shares authorized,
      367,807,761        and
      351,364,254 shares issued and
      outstanding        at March
      31, 2010 and December
      31,2009,        respectively |   | 368       |   |   | 351          |  
|Additional paid-in capital                                                                                                                                                                                                                                           |   | 5,534     |   |   | 2,919        |  
|Accumulated deficit                                                                                                                                                                                                                                                  |   | (6,482    | ) |   | (6,181       | )
|Accumulated other
      comprehensive income                                                                                                                                                                                                                         |   | (37       | ) |   | (60          | )
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Total stockholders
      deficiency                                                                                                                                                                                                                                 |   | (617      | ) |   | (2,971       | )
|                                                                                                                                                                                                                                                                     |   |           |   |   |              |  
|Totals liabilities and
      stockholders` deficiency                                                                                                                                                                                                                | $ | 11,509    |   | $ | 9,702        |  

The accompanying notes are an integral part of these
condensed consolidated financial statements

- 2 -

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Bark Group Inc. and Subsidiaries Condensed Consolidated
Statements of Operations (Unaudited) (In thousands of USD, except for
per share amounts)

|                                                                                                     |   | Three Months
      Ended March 31, |  
|---------------------------------------------------------------------------------------------------- | - | ---------------------------------- | -
|                                                                                                     |   | 2010                               |  
|                                                                                                     |   |                                    |  
|Net revenues                                                                                         | $ | 1,364                              |  
|Cost of revenues                                                                                     |   | (1,052                             | )
|                                                                                                     |   |                                    |  
|Gross Profit                                                                                         |   | 312                                |  
|                                                                                                     |   |                                    |  
|Selling, general and administrative expenses                                                         |   | (448                               | )
|Depreciation and amortization                                                                        |   | (38                                | )
|Listing expenses                                                                                     |   | (2                                 | )
|                                                                                                     |   |                                    |  
|Loss from operations                                                                                 |   | (176                               | )
|                                                                                                     |   |                                    |  
|Other income (expense),net:                                                                          |   |                                    |  
|                                                                                                     |   |                                    |  
|Loss from equity investment                                                                          |   | (18                                | )
|Interest expense                                                                                     |   | (114                               | )
|                                                                                                     |   |                                    |  
|Total other income (expenses),
      net                                                             |   | (132                               | )
|                                                                                                     |   |                                    |  
|Loss before income taxes
      and minority interest                                                 |   | (308                               | )
|                                                                                                     |   |                                    |  
|Net loss attributable to non-controlling interest                                                    |   | 6                                  |  
|                                                                                                     |   |                                    |  
|Loss available to common
      stockholders                                                          | $ | (302                               | )
|                                                                                                     |   |                                    |  
|Loss per share 
     Basic and diluted                                                               | $ | (-)                                |  
|                                                                                                     |   |                                    |  
|Weighted-average shares used to calculate net loss per common
      share: 
       Basic and diluted |   | 351,494,775                        |  

- 3 -

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Bark Group Inc. and Subsidiaries Condensed Consolidated
Statements of Cash Flows (Unaudited)(In thousands of USD)

|                                                                                  |   | Three Months Ended |   |   | Three Months Ended |  
|--------------------------------------------------------------------------------- | - | ------------------ | - | - | ------------------ | -
|                                                                                  |   | March 31, 2010     |   |   | March 31, 2009     |  
|Cash flows from operating
      activities:                                       |   |                    |   |   |                    |  
|Net loss                                                                          | $ | (302               | ) | $ | (559               | )
|Adjustments to reconcile net
      loss to net cash used in operating activities: |   |                    |   |   |                    |  
|Depreciation and amortization                                                     |   | 33                 |   |   | 32                 |  
|Amortization of customer
      relationship                                       |   | 4                  |   |   | 15                 |  
|Loss on equity investment                                                         |   | 18                 |   |   | -                  |  
|Provision (credit) for
      doubtful accounts                                    |   | (25                | ) |   | 10                 |  
|Stock based compensation                                                          |   | 82                 |   |   | 57                 |  
|Non-Controlling interests                                                         |   | (7                 | ) |   | (17                | )
|Changes in working capital:                                                       |   |                    |   |   |                    |  
|Accounts
      receivable                                                         |   | (251               | ) |   | (180               | )
|Cost and estimated earnings in
      excess of billings on projects               |   | (49                | ) |   | (75                | )
|Value added tax
      refund receivable                                           |   | -                  |   |   | 112                |  
|Prepaid expenses and other
      current assets                                   |   | (25                | ) |   | 36                 |  
|Accounts payable                                                                  |   | 457                |   |   | 147                |  
|Accrued expenses and other
      liabilities                                      |   | (673               | ) |   | 195                |  
|Billings in
      excess of costs and estimated earnings                          |   | 79                 |   |   | 118                |  
|Net cash used in
      operating activities                                       |   | (659               | ) |   | (109               | )
|Cash flows from investing
      activities:                                       |   |                    |   |   |                    |  
|(Purchase) and disposal of
      property and equipment                           |   | (14                | ) |   | 3                  |  
|Net cash (used) provided by investing activities                                  |   | (14                | ) |   | 3                  |  
|Cash flows from financing activities:                                             |   |                    |   |   |                    |  
|Repayments of
      debt                                                          |   | (11                | ) |   | (16                | )
|Repayment of capital leases                                                       |   | (44                | ) |   | (34                | )
|Payment to
      redeemed stockholder                                             |   | (58                | ) |   | -                  |  
|Proceeds from debt                                                                |   | 783                |   |   | 143                |  
|Net proceeds
      from borrowings from related party                             |   | 22                 |   |   | 57                 |  
|Proceeds from issuance of
      common stock, net of issuance costs               |   | 48                 |   |   | -                  |  
|Net cash provided by financing activities                                         |   | 740                |   |   | 150                |  
|Effect of exchange rates on cash and cash
      equivalents                       |   | (67                | ) |   | 67                 |  
|Net increase (decrease) in
      cash and cash equivalents                        |   | 0                  |   |   | 111                |  
|Cash and cash equivalents at beginning of
      period                            |   | 5                  |   |   | 86                 |  
|Cash and
      cash equivalents at end of period                                  | $ | 5                  |   | $ | 197                |  
|                                                                                  |   |                    |   |   |                    |  
|Supplemental information:                                                         |   |                    |   |   |                    |  
|Cash paid for interest                                                            | $ | 84                 |   | $ | 70                 |  
|Non-cash investing and
      financing activities:                                |   |                    |   |   |                    |  
|Note payable converted into
      common shares                                   | $ | 62                 |   | $ | -                  |  
|Extinguishment
      of debt from related parties                                 | $ | 223                |   | $ | -                  |  
|Issuance of common stock to
      acquire a 51% interest in Anaconda.tv GmbH      | $ | 2,083              |   | $ | -                  |  
|Adjustment of
      Non-Controlling interest to redemption value                  | $ | 56                 |   | $ | 29                 |  

The accompanying notes are an integral part of these
condensed consolidated financial statements

- 4 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Nature of Business

Bark
Corporation, incorporated on October 9, 2006, is a holding company that conducts
its operations through its 90.05% owned subsidiary Bark Advertising A/S ("Bark
Advertising"), that was incorporated on October 12, 2006 and the wholly owned
subsidiary Bark Property ApS ("Bark Property") that was incorporated on
September 28, 2007. On May 14, 2007 Bark Advertising purchased 100% of the
capital stock of Bark Copenhagen A/S ("Bark Copenhagen"), formerly known as
LivingBrands A/S, and 100% of the capital stock of Bark Media ApS ("Bark Media),
formerly known as Radar 360 ApS.

During
the first quarter of 2010, Bark Group completed the acquisition of a 51%
interest in Anaconda.tv GmbH (Anaconda), a television production company
incorporated in Germany. The acquisition was completed subject to various
agreements, culminating in a Purchase Agreement (the Purchase Agreement) dated
February 23, 2010 between Bark Group and Bark Holding Ltd. (Holding), formerly
known as TVI Productions Ltd. Holding is a private corporation owned by René
Lauritsen and Jesper Svane, each of whom is the owner of more than 10% of Bark
Groups outstanding common stock. Under the terms of the Purchase Agreement,
Bark Group purchased a 25.5% interest in the issued and outstanding share
capital of Anaconda on January 18, 2010. The Purchase Agreement also included an
option for Bark Group to purchase an additional 25.5% interest in Anaconda,
which was subsequently exercised effective March 31, 2010, giving Bark Group an
aggregate 51% interest in Anaconda. Anaconda was founded by Matthias Lange,
along with Mr. Lauritsen and Mr. Svane, who previously held 51% of Anaconda via
Holding. As consideration for the acquisition, Bark Group issued an aggregate of
14 million shares of its common stock (7 million shares were issued on January
18, 2010 and 7 million shares were issued on March 31, 2010). At the direction
of Holding, 7 million shares were issued directly to each of Mr. Lauritsen and
Mr. Svane. The 14 million shares of common stock issued have not been registered
under the Securities Act of 1933, as amended (the Act) and were based on a
share price established via a fair value report at $0.1488 per share. Bark Group
relied on Section 4(2) of the Act in completing the issuance of these shares
based on the fact that Holding is controlled by two of Bark Groups shareholders
who each own more than 10% of Bark Groups outstanding shares. All certificates
representing the shares were endorsed with restrictive legends under the Act.
Subsequent to March 31, 2010, Mr. Lange remains as the minority shareholder,
with a 49% interest, as well as Managing Director of Anaconda. The Purchase
Agreement specifies that a 62% majority vote of Anacondas shareholders is
required to replace or supplement the Managing Director. In accordance with the
authoritative guidance contained in ASC 805, Business Combinations, and
ASC 810, Consolidation, management has performed an assessment based on
all relevant facts and circumstances, and concluded that Mr. Lange has been
granted a substantive participating right that precludes Bark Groups majority
voting interest from being considered a controlling financial interest. As such,
Bark Group is required to account for its investment in Anaconda under the
equity method, in accordance with ASC 323, InvestmentsEquity Method and
Joint Ventures.

Business

Bark
Group and its subsidiaries (collectively, the "Company") offer its customers a
network of advertising and media services. The Companys strategy is to acquire
mid-size well established businesses throughout Europe in order to form a
European network of advertising and media agencies.

Going Concern

The
accompanying unaudited condensed consolidated financial statements have been
prepared assuming that the Company will continue as a going concern. The Company
continues to operate with negative working capital (approximately $5,366,000 at
March 31, 2010) and has limited financial resources available to pay ongoing
financial obligations as they become due. Additionally, as of March 31, 2010,
the Company reported a stockholders deficiency of approximately $617,000 which
resulted primarily from operating losses incurred

The
Company's current source of funding, in addition to cash from operations and its
operating line of credit, is a loan commitment of DKK 4,000,000 ($724,200) from
Bark Holding. No advances have been made on this loan commitment as of May 15,
2010

- 5 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

The
Company plans to use both (i) its operating line of credit and (ii) loan from
Bark Holding to finance its operations over the next twelve months. However, the
Company will require additional financing to conduct its business in accordance
with its plan of operations on a long term basis. Further, there is no assurance
that Bark Holding will advance the loan that it has committed to make. The
Company plans to conduct an equity financing of its securities in order to raise
additional financing. The Company will also pursue bridge loans and private
placements from investors located outside of the United States, primarily in
Europe, in order to raise the required funds. If the Company is not successful
in raising additional financing, then the Company will attempt to reduce its
operating expenses significantly such that the Company would within a six month
period be able to generate cash from operating activities. In the event that the
Company fails to achieve additional financing, it will reconsider its
acquisition strategy, and will further reconsider whether its status as a public
company is beneficial, from a cost benefit perspective. The reduction in costs
related to business development activities may impact on the Companys ability
to expand its business. These consolidated financial statements do not include
any adjustment that might result from the outcome of this uncertainty.

Based
on the Company's current forecast it anticipates that cash flow from operations
will be sufficient to cover its current on-going operating expenses. Therefore
the Company estimates that it will require approximately $5,100,000 over the
next twelve months in order to sustain its current obligations and to satisfy
its working capital deficiency. This amount does not include any funds necessary
for the Company to expand its business. Accordingly, the Company will require
additional financing in order to pursue the expansion of its business, either
through growth or acquisitions. There is also a risk that cash used in
operations will be greater than anticipated in the event that projected revenues
are not achieved or if we incur higher than anticipated costs in connection with
our acquisition and integration of Tre Kronor (See note 12) and Anaconda.

These
conditions raise substantial doubt about the Companys ability to continue as a
going concern. Accordingly, the accompanying unaudited condensed consolidated
financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America, which contemplates
continuation of the company as a going concern and the realization of assets and
the satisfaction of liabilities in the normal course of business. The carrying
amounts of assets and liabilities presented in the financial statements do not
necessarily purport to represent realizable or settlement values. These
unaudited condensed consolidated unaudited financial statements do not include
any adjustment that might result from the outcome of this uncertainty.

Note 2. Summary of Significant Accounting Policies

*Basis of
Presentation*          The
unaudited condensed consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial statements and with Form 10-Q and Article 10 of
Regulation S-X of the Securities and Exchange Commission. Accordingly, they do
not contain all information and footnotes required by accounting principles
generally accepted in the United States of America for annual financial
statements. The condensed consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiaries and majority owned subsidiary
as described in note 1. All significant intercompany balances and transactions
have been eliminated in consolidation. In the opinion of management, the
accompanying unaudited condensed consolidated financial statements contain all
the adjustments (consisting only of normal recurring accruals) necessary for
fair presentation of the Companys financial position, as of March 31, 2010, and
the results of operations and cash flows for the periods presented. The results
of operations for the three months ended March 31, 2010, are not necessarily
indicative of the operating results for the full fiscal year or any future
period.

- 6 -

---

BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

These
unaudited condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and related notes thereto
included in the Companys Annual Report on Form 10-K for the year ended December
31, 2009. The Companys accounting policies are described in the Notes to
consolidated Financial Statements in its Annual Report on Form 10-K for the year
ended December 31, 2009, and updated, as necessary, in this Quarterly Report on
Form 10-Q.

Use of
Estimates          The
preparation of consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts reported in
the consolidated financial statements and accompanying notes. Actual results
could differ from those estimates.

The
most significant areas that require management judgment are the Companys
revenue recognition, income taxes, impairment of goodwill, stock valuation, debt
discounts on notes payable, other intangible assets, bad debts and depreciation.

Foreign
Currency          The
Company has determined Danish Kronor is the functional currency of its foreign
operations. Accordingly, these foreign subsidiaries income and expenses are
translated into U.S. dollars, the reporting currency of the Company, at the
average rates of exchange prevailing during the year. The assets and liabilities
are translated into U.S. dollars at the rates of exchange on the balance sheet
date and the related translation adjustments are included in accumulated other
comprehensive income (loss). During the three months ended March 31, 2010 and
2009 transaction gains and losses were not material.

During
the three months ended March 31, 2010 and 2009 the related translation
adjustment which was included in other comprehensive income (loss) was as
follows:

2010
    2009Net loss available to common stockholders
    USD 302,000
    USD 530,000Translation adjustment
    USD (23,000)
    USD 33,000Comprehensive loss
    USD 279,000
    USD 563,000


Loss per
Share          Basic
and diluted net loss per share has been calculated by dividing net loss by the
weighted average number of common shares outstanding during the period. All
potentially dilutive common shares have been excluded since their inclusion
would be antidilutive. As per March 31, 2010 and 2009 the Company had 7,778,720
non-vested shares subject to repurchase which were excluded in the weighted
average number of common shares outstanding.

Impairment of Long-Lived
Assets          The
Company annually, or whenever events or changes in circumstances indicate that
the carrying amounts of such assets may not be recoverable, assesses the
carrying value of long-lived assets in accordance with FASB ASC 360 10, formerly
SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived
Assets. The Company evaluates the recoverability of long-lived assets not
held for sale by measuring the carrying amount of the assets against the
estimated undiscounted future cash flows associated with them. If such
evaluations indicate that the future discounted cash flows of certain long-lived
assets are not sufficient to recover the carrying value of such assets, the
assets are adjusted to their estimated fair values.

The
Company accounts for its acquisitions utilizing the purchase method of
accounting. Under the purchase method of accounting, the total consideration
paid is allocated to the underlying assets and liabilities, based on their
respective estimated fair values. The excess of purchase price over the
estimated fair values of the net assets acquired is recorded as goodwill.
Determining the fair value of certain acquired assets and liabilities,
identifiable intangible assets in particular, is subjective in nature and often
involves the use of significant estimates assumptions. Finite-lived identifiable
intangible assets are amortized over its expected life on a straight-line basis,
as this basis approximates, the expected cash flows from the Companys existing
finite-lived identifiable intangible assets over the expected future.

- 7 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Goodwill
is accounted for under FASB ASC 350, Goodwill and other. Under FASB ASC
350, the Companys goodwill is tested for impairment on an annual basis or
whenever facts or circumstances indicate that the carrying amounts may not be
recoverable. The Company elected to conduct its impairment tests in May. Since
inception the Company has operated in one reporting unit. This reporting unit is
tested for impairment by comparing the fair value of the reporting unit with the
carrying value of that unit. Fair value is determined based on a valuation study
performed by the Company using the discounted cash flow method and the estimated
market values of the reporting units. There was no impairment of goodwill during
the three month ended March 31, 2010.

Equity
investments          Investments
in business entities in which the Company lacks a controlling financial interest
but does have the ability to exercise significant influence over operating and
financial policies are accounted for using the equity method. The Companys
proportionate share of net income or loss of such entity is recorded in Loss
from equity investment included in Other income (expense), net on the
Condensed Consolidated Statements of Operations.

Recent Accounting
Pronouncements           In
February 2010 the FASB issued Accounting Standards Update (ASU) No. 2010-06,
Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures
about Fair Value Measurements. This ASU requires some new disclosures and
clarifies some existing disclosure requirements about fair value measurement as
set forth in Codification Subtopic 820-10. ASU 2010-06 amends Codification
Subtopic 820-10 and now requires a reporting entity to use judgment in
determining the appropriate classes of assets and liabilities and to provide
disclosures about the valuation techniques and inputs used to measure fair value
for both recurring and nonrecurring fair value measurements.ASU 2010-06
is effective for interim and annual reporting periods beginning after December
15, 2009, as this standard relates specifically to disclosures, the adoption
will not have an impact on the Companys consolidatedfinancial position
and results of operations.

In
February 2010, the FASB issued ASU 2010-09, "Subsequent Events (Topic 855) -
Amendments to Certain Recognition and Disclosure Requirements." ASU 2010-09
requires an entity that is an SEC filer to evaluate subsequent events through
the date that the financial statements are issued and removes the requirement
that an SEC filer disclose the date through which subsequent events have been
evaluated. ASC 2010-09 was effective upon issuance.

Note 3 - Fair Value Measurement

Valuation
Hierarchy          The
FASBs accounting standard for fair value measurements establishes a valuation
hierarchy for disclosure of the inputs to valuation used to measure fair value.
This hierarchy prioritizes the inputs into three broad levels as follows. Level
1 inputs are quoted prices (unadjusted) in active markets for identical assets
or liabilities. Level 2 inputs are quoted prices for similar assets and
liabilities in active markets or inputs that are observable for the asset or
liability, either directly or indirectly through market corroboration, for
substantially the full term of the financial instrument. Level 3 inputs are
unobservable inputs based on the Companys own assumptions used to measure
assets and liabilities at fair value. A financial asset or liabilitys
classification within the hierarchy is determined based on the lowest level
input that is significant to the fair value measurement.

Bark
Advertising acquired all the shares of Bark Copenhagen on May 14, 2007. The
acquisition was completed pursuant to a share transfer agreement entered into
between Bark Advertising and the shareholders of Bark Copenhagen. The Company
recorded goodwill in connection with the excess cost over fair value of the net
assets acquired.

- 8 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

The
following table provides the assets and liabilities carried at fair value
measured on a recurring basis as of March 31, 2010:

|         |   |                |  |   | Fair
      Value Measurements at March 31, 2010 | 
|-------- | - | -------------- |  | - | ----------------------------------------------- | 
|         |   |                |  |   | Quoted prices                                   | 
|         |   | Total Carrying |  |   | in active                                       | 
|         |   | Value at March |  |   | markets (Level                                  | 
|         |   | 31, 2010       |  |   | 1)                                              | 
|         |   |                |  |   |                                                 | 
|Goodwill | $ | 3,091,000      |  | $ | -                                               | 

Goodwill
is measured at fair value using discounted cash flows and is classified within
Level 3 of the valuation hierarchy.

The
following table sets forth a summary of the changes in the fair value of our
Level 3 financial assets that are measured at fair value on a recurring basis:

March 31
    
    
    December 312010
    
    
    2009Beginning balance
    $
    3,289,000
    
    $
    3,230,000Currency adjustment
    
    (198,000
    )
    
    59,000Ending balance
    $
    3,091,000
    
    $
    3,289,000


Note 4 - Concentration of credit risk

Credit
risk represents the loss that would be recognized if counterparties failed to
completely perform as contracted.

During
the three months ended March 31, 2010 customers T, K, D and V accounted for
approximately 18%, 14%, 11% and 10% respectively of revenue. During the three
months ended March 31, 2009 customers D, and K accounted for approximately 36%
and 35%, respectively of revenue. No other customers individually represented
more than 10% of revenue for any period presented.

As
of March 31, 2010 customers T and K accounted for approximately 37% and 21% of
the Companys accounts receivables, respectively. As of December 31, 2009
customers E and K accounted for approximately 37% and 14% of the Company ́s
accounts receivables, respectively. No other customers individually represented
more than 10% of accounts receivables at the end of any period presented.

The
Company's loss of these or other customers, or any decrease in sales to these or
other customers, could have a material adverse effect on the Company's business,
financial condition or results of operations.

The
Company monitors its exposure to customers to minimize potential credit losses.

The
Company maintains cash and cash equivalent balances at several financial
institutions throughout its operating area, at times, may exceed insurance
limits and expose the Company to credit risk. As part of its cash management
process, the Company periodically reviews the relative credit standing of these
financial institutions. The Companys cash and cash equivalent balances are
maintained at financial institutions located in Denmark.

- 9 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Note 5  Non-controlling interests

For
consolidated majority-owned subsidiaries in which the Company owns less than
100% of the total outstanding shares, the Company recognizes a non-controlling
interest for the ownership interest of the minority holders.

In
May 2007, 651 Class B shares in Bark Advertising were issued to the selling
shareholders of Bark Copenhagen at a price of DKK 12,912 ($2,373) per share and
50 Class B shares were sold to two senior employees of the Company at a price of
DKK 12,000 ($2,206) per share. In November 2007 Bark Advertising sold 25 Class B
shares to one senior employee at a price of DKK 12,000 ($2,206) per share.

In
January 2009, two Class B shareholders representing 131 shares were redeemed.
The redeemable amount as of March 31, 2010 was DKK 724,680 ($131,206) and as of
December 31, 2009 was DKK 994,356 ($191,587). The redemption of shares is paid
in 8 quarterly installments, including interest at variable rates (5% at
December 31, 2009). At March 31, 2010, 3 installments are remaining.

In
November 2009 three additional Class B shareholders representing 75 shares were
redeemed for DKK 900,000 ($180,000). The redeemable amount was converted to a
total of 2,000,000 shares of common stock in Bark Group.

At
each reporting date the Company records the Class B shares at the higher of (1)
the redemption value or (2) the amount that would result from applying
consolidation as included in ASC 810. All adjustments related to the application
of the above would be recorded within additional paid-in capital. Adjustment
related to the above has no impact on consolidated net loss of the Company, net
loss attributable to the Company or loss available to common stockholders of the
Company as the impact of the adjustment prior to January 1, 2009 was on loss
attributable to common stockholders and accordingly the Loss Per Share (LPS) at
December 31, 2008 was reported $(0.01) . There are no deferred income tax
consequences arising from the recognition of adjustments under ASC 505 as these
adjustments are not deductible under Danish tax law.

At
March 31, 2010, the redemption value exceeded the value from applying
consolidation accounting according to FASB ASC 810, and therefore the minority
interest was recorded at the redemption value of $1,223,000. At December 31,
2009, the redemption value exceeded the value from applying consolidation
accounting according to FASB ASC 810, and therefore the minority interest was
recorded at the redemption value of $1,301,000.

The
change in carrying amount of Non-Controlling interest is as follows:

|                                                                                                     |   | As of     |   |   | As of        |  
|---------------------------------------------------------------------------------------------------- | - | --------- | - | - | ------------ | -
|                                                                                                     |   | March 31, |   |   | December 31, |  
|                                                                                                     |   | 2010      |   |   | 2009         |  
|Balance at beginning of
      period                                                                 | $ | 1,301     |   | $ | 1,448        |  
|Shares issued in subsidiary Bark Advertising
      loss     attributable to Non-Controlling interest |   |           |   |   |              |  
|                                                                                                     |   | (6        | ) |   | (79          | )
|Adjustment according to FASB ASC 810                                                                 |   | (56       | ) |   | 101          |  
|Currency adjustment                                                                                  |   | (16       | ) |   | 4            |  
|Redeemed shares converted to shares in Bark
      Group Inc                                          |   | -         |   |   | (173         | )
|Balance at end of period                                                                             | $ | 1,223     |   | $ | 1,301        |  

- 10 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Note 6  Long and short-term debt

Long and short-term debt

Bark
Corporation has a floating interest rate line of credit facility in the amount
of DKK 7,000,000 (USD 1,250,700) which expires on November 15, 2010. As at March
31, 2010 and December 31, 2009, the amount outstanding under this line of credit
facility was $1,327,000 and $1,421,000, respectively.

On
January 15, 2010, the Company converted a short term loan with a principal
balance of DKK 250,000 ($48,287) and a total balance including interest of DKK
320,000 ($61,807). According to the loan agreement the loan was converted into
400,000 shares of common stock, which equals a price of $0.154 per share. The
price per share used in conversion is considered a fair value when compared to
the value of $0,149 per share established via a fair value report.

The
Company obtained a short term loan from a private investor in the amount of DKK
1,000,000 ($186,000) on February 4, 2010 in order to fund working capital until
additional capital could be raised. The loan matures on April 30, 2010 together
with accrued interest of DKK 200,000 ($37,970). According to the loan agreement
the holder has the right to convert the loan into shares of common stock at a
price of $0.16 per share. Based on the Black  Scholes model the Company
calculated a call option value of $0.06 resulting in a possible deferred debt
discount of $119,594. As the note holds a contingent conversion no deferred debt
discount was recognized. As at March 31, 2010 the amount outstanding including
accrued interest was $205,525. As of May 19, 2010 the holder has not exercised
his right to convert nor did he call the loan.

The
Company obtained a short term loan from a private investor in the amount of DKK
1,000,000 ($179,953) on March 4, 2010 in order to fund working capital until
additional capital could be raised. The loan matures on June 30, 2010 together
with accrued interest of DKK 200,000 ($37,970). If the Company chooses not to
repay the loan in cash the holder of the note is entitled to convert the note
into shares of common stock at a total value of DKK 2,500,000 ($452,636). Based
on the Black  Scholes model the Company calculated a call option value of $0.06
resulting in a possible deferred debt discount of $597,668. As the note holds a
contingent conversion no deferred debt discount was recognized. As at March 31,
2010 the amount outstanding including accrued interest was $191,661.

On
March 10, 2010 the Company obtained a Convertible Debenture totaling $80,000.
The note bears interest at a rate of 8% per annum and is due nine months from
date of issuance. The Note is convertible into shares of common stock of the
Company at a conversion price equal to 65% of the "market price" at the time of
conversion, which "market price" will be calculated as the average of the three
lowest "trading prices" for the Company's common stock during the ten day
trading period prior to the date the conversion note is sent to the Company.
Based on the Black  Scholes model the Company calculated a call option value of
$0.08 resulting in a deferred debt discount of $71,033 which will be recorded as
interest expenses ratably over the loans maturity. As at March 31, 2010 the
amount outstanding including interest and deferred discount was $84,045.

On
March 15, 2010 the Company obtained a loan from a private investor of $250,000.
The loan bears no interest and is due one year from date of issue. If the
Company choose not to repay the loan in cash the holder of the note is entitled
to convert the note into shares of common stock at a price equal to 85% of the
market price of the Companys common stock at the time of conversion. Based on
the Black  Scholes model the Company calculated a call option value of $0.08
resulting in a possible deferred debt discount of $149,603. As the note holds a
contingent conversion no deferred debt discount was recognized. As at March 31,
2010 the amount outstanding was $250,000

- 11 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Note 7  Non-vested shares

In
September 2007, the Company issued 7,778,720 non-vested share awards to two
executives of the Company having a stated value of DKK 330,000 ($65,100). A
weighted average grant date fair value of per share. The fair value of the
non-vested share awards on the date of issuance was DKK 3,939,000 ($777,000).
The non-vested awards become fully vested on May 31, 2010. The Company expects
these shares to become fully vested. The Company records compensation expense
ratably over the vesting period. During the three months ended March 31, 2010
and 2009, the Company recorded $59,180 and $57,064 of compensation expense,
respectively, related to these awards.

As
of March 31, 2010 there was $38,550 of total unrecognized compensation costs
related to the non-vested share-based compensation arrangements granted
following currency adjustment of $33,700. The cost is expected to be recognized
during the second quarter of 2010. No shares have vested during the three months
ended March 31, 2010.

Note 8  Stock based compensation

In August
  and September 2009 the company issued 3,000,000 shares to three consulting companies
  for services rendered during 2009 through 2012. The market value of the shares,
  on the date of signing the agreements was $487,500. During the three months
  ended March 31, 2010 and 2009 the Company recorded stock based compensation
  of $23,021 and $20,313 respectively. The Company will record compensation expense
  ratably over the remaining period.

As
of March 31, 2010 there was $184,167 of total unrecognized compensation costs
related to the issuance. The cost is expected to be recognized over a period of
8 quarters.

Note 9 - Related party transactions

*Fee
to Chairman of the Board Bent
Helvang*     BH Media ApS (a company 100%
owned by Bent Helvang) is according to contract entitled to invoice the Company
DKK 90,000 ($16,677during the three months ended March 31, 2010 and 2009,
respectively, for services provided to the Company relating to acquiring new
companies, strategy planning and management services. Such services have been
recorded as a component of selling, general, and administrative expenses. At
March 31, 2010, and December 2009 BH Media ApS has a receivable of DKK 959,966
($173,806) and DKK 867,744 ($167,192) respectively which has been classified in
advances from related parties.

*Fee
to CEO Anders
Hageskov*          Lugano
Communication and Entertainment (a company in which Anders Hageskov was employed
up until October 31, 2009) invoiced the Company $68,120 during the three months
ended March 31, 2009, for services rendered by Anders Hageskov to Bark
Copenhagen and Bark Advertising. This fee included reimbursement of costs
incurred by Lugano Communication and Entertainment for operating an office in
Lugano, Switzerland and has been recorded as a component of selling, general,
and administrative expenses. Since November 1, 2009 Anders Hageskov has been
employed by the Company.

*Loan
from Bark Holding, British Virgin
Islands*          During
year ended December 31, 2008, the Company received a loan from Bark Holding at
an interest rate of 7% per annum. Bark Holding Ltd., is a private company
controlled by Mr. Svane and Mr. Lauritsen, shareholders of the Company. The
balance of the loan as per March 19, 2010 DKK 1,127,475 ($209,565) was forgiven
and the forgiveness of loan was recorded as additional paid in capital in
stockholders equity.

*Loan
from Jesper Svane and Rene
Lauritsen*          During
2008, Jesper Svane and Rene Lauritsen, shareholders of the Company made payments
of DKK 91,600 ($17,300) to trade creditors on behalf of the Company. The loan
was forgiven on March 19, 2010 with a balance of DKK 73,600 ($13,680) which was
recorded as additional paid in capital in stockholders equity.

- 12 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

*Acquisition
  of Anaconda*          During
the first quarter of 2010, Bark Group completed the acquisition of a 51%
interest in Anaconda.tv GmbH (Anaconda), a television production company
incorporated in Germany. The acquisition was completed subject to various
agreements, culminating in a Purchase Agreement (the Purchase Agreement) dated
February 23, 2010 between Bark Group and Bark Holding Ltd. (Holding), formerly
known as TVI Productions Ltd. Holding is a private corporation owned by René
Lauritsen and Jesper Svane, each of whom is the owner of more than 10% of Bark
Groups outstanding common stock. Under the terms of the Purchase Agreement,
Bark Group purchased a 25.5% interest in the issued and outstanding share
capital of Anaconda on January 18, 2010. The Purchase Agreement also included an
option for Bark Group to purchase an additional 25.5% interest in Anaconda,
which was subsequently exercised effective March 31, 2010, giving Bark Group an
aggregate 51% interest in Anaconda.

Note10 - Commitments and contingencies

*Litigation*          In
March 2008, Bark Corporation received a notice of a claim from two former
employees for damages and compensation of approximately DKK 1,000,000
($212,000), based on an alleged breach by Bark Corporation of the terms of
employment (employment element of the claim) and non-payment for the transfer
of specified intellectual property (IP element of the claim). In March 2008,
the Company paid DKK 242,500 ($52,000) to such employees related to the
employment element of the claim. On April 8, 2008 Bark Corporation received a
petition from the former employees reducing their claim to DKK 757,500
($160,100), representing the IP element of the claim. On April 28, 2009,
Copenhagen City Court issued a judgment where the Company was ordered to pay DKK
865,700 ($170,283) including court costs and interests. In December 2009 the
Danish Eastern High Court issued a final judgment where the Company was ordered
to pay approximately DKK 900,000 ($173,407) including court costs and interests.
This amount and other legal costs of approximately DKK 150,000 ($28,901) were
included as a component of accrued liabilities at December 31, 2009. As of March
31, 2010 the accrued liability less payments during the three months ended March
31, 2010 equals DKK 56,255 ($10,185).

Note 11  Net loss per share

The
following is a reconciliation of the numerators and denominators used in
computing basic and diluted net loss per share (in 000's USD except share and
per share data):

|                                                                         |   | 3 Months
      Ended March 31, |  
|------------------------------------------------------------------------ | - | ------------------------------ | -
|                                                                         |   | 2010                           |  
|Numerator:                                                               |   |                                |  
|Loss available to common shareholders                                    | $ | (302                           | )
|                                                                         |   |                                |  
|                                                                         |   |                                |  
|Denominator:                                                             |   |                                |  
|Shares used in computation - basic:                                      |   |                                |  
|Weighted average shares outstanding                                      |   | 359,273,495                    |  
|                                                                         |   |                                |  
|Weighted average common shares outstanding
      subject to repurchase   |   | (7,778,720                     | )
|                                                                         |   |                                |  
|Shares used in computing basic net loss per
      share                  |   | 351,494,775                    |  
|Shares used in computation - diluted:                                    |   |                                |  
|Weighted average shares outstanding                                      |   | 351,494,775                    |  
|Dilutive effect of common shares outstanding subject
      to repurchase |   | -                              |  
|                                                                         |   |                                |  
|Shares used in computing diluted net loss per share                      |   | 351,494,775                    |  
|                                                                         |   |                                |  
|Net loss per share - basic and diluted                                   | $ | (-)                            |  

Bark
Group has securities outstanding which could potentially dilute basic earnings
per share in the future, but the incremental shares from the assumed exercise of
these securities were excluded in the computation of diluted net loss per share,
as their effect would have been anti-dilutive. Such outstanding securities
consist of 7,778,720 non-vested shares issued to two executives.

- 13 -

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BARK GROUP INCNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Note 12  Subsequent events

In
April 2010, the Company issued a Convertible Debenture totaling $40,000. The
note bears interest at a rate of 8% per annum and is due one year from date of
issue. The Note are convertible into shares of common stock of the Company at a
conversion price equal to 55% of the "market price" at the time of conversion,
which "market price" will be calculated as the average of the three lowest
"trading prices" for the Company's common stock during the ten day trading
period prior to the date the conversion note is sent to the Company.

On
May 4, 2010, the Company completed the acquisition of the issued and outstanding
shares of Tre Kronor Media AB, a Swedish [media] company (Tre
Kronor).

The
principal terms of the Tre Kronor are summarized as follows:

- the Company will issue an aggregate of 35,000,000 share of its common stock
  to the shareholders of Tre Kronor, pro rata with their respective ownership
  interests in Tre Kronor,
- all shares issued to the Tre Kronor shareholders will be subject to a three
  year lock-up period calculated from the date of closing, however such lock-up
  period will in no event extend beyond June 30, 2013, during which period each
  shareholder will be restricted from selling or transferring the Bark shares
  except as expressly agreed.

In
May 2010, the Company issued a Convertible Debenture totaling $50,000. The note
bears interest at a rate of 8% per annum and is due one year from date of issue.
The Note are convertible into shares of common stock of the Company at a
conversion price equal to 65% of the "market price" at the time of conversion,
which "market price" will be calculated as the average of the three lowest
"trading prices" for the Company's common stock during the ten day trading
period prior to the date the conversion note is sent to the Company.

- 14 -

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Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations.

The following discussion and analysis summarizes the
significant factors affecting our condensed consolidated results of operations,
financial condition and liquidity position for the three months ended March 31,
2010 and 2009. This discussion and analysis should be read in conjunction with
our audited financial statements and notes thereto included in our Annual Report
on Form 10-K for our year-ended December 31, 2009 and the condensed consolidated
unaudited financial statements and related notes included elsewhere in this
filing. The following discussion and analysis contains forward-looking
statements that reflect our plans, estimates and beliefs. Our actual results
could differ materially from those discussed in the forward-looking
statements.

Forward-Looking Statements

Forward-looking statements in this Quarterly Report on Form
10-Q, including without limitation, statements related to our plans, strategies,
objectives, expectations, intentions and adequacy of resources, are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking statements
involve risks and uncertainties including without limitation the following: (i)
our plans, strategies, objectives, expectations and intentions are subject to
change at any time at our discretion; (ii) our plans and results of operations
will be affected by our ability to manage growth; and (iii) other risks and
uncertainties indicated from time to time in our filings with the Securities and
Exchange Commission.

In some cases, you can identify forward-looking statements by
terminology such as may, will, should, could, expects,
plans, intends, anticipates, believes, estimates,
predicts, potential, or continue or the negative of such terms or
other comparable terminology. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance, or achievements. Moreover,
neither we nor any other person assumes responsibility for the accuracy and
completeness of such statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. We are under no duty to update any of the forward-looking statements
after the date of this Report.

Overview

We are a commercial communication services company that
provides integrated traditional and new media advertising and marketing
consulting services to our clients. We conduct our business through various
subsidiaries which enables us to merge various communication expertise including
traditional advertising (creativity and strategy), media consulting, digital
know-how and television production. We believe this mix of skills allows us to
customize advertising and marketing communication services to create the most
value for our clients and their businesses.

Our clients are comprised primarily of European businesses that
range in size from small local businesses to larger trans-national and
multi-national corporations. These clients include a range of businesses
including financial institutions and banks, consumer products companies and
luxury goods companies

Our strategic plan is to combine traditional advertising agency
skills with the media agency and relevant digital know-how in order to create a
communications company that is able to deliver effective integrated advertising
and marketing campaigns and activities. We believe that this transformation from
a traditional advertising agency to an integrated communications company has
only been done on a limited scale to date. We believe this presents us with a
market opportunity to expand our business and compete with much larger
competitors in the marketplace.

Our strategy moving forward is to pursue the acquisition of
additional businesses in our industry with the objective of increasing the size
of our business, with the overall objective of increasing our revenue and
profits. We intend to finance these acquisitions with the proceeds from the
issuance of additional equity or debt. We plan to pursue an equity financing in
the amount $8 million in 2010, but we can provide no assurance as to whether we
will be successful in such efforts.

- 15 -

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Acquisition of 51% Interest in Anaconda TV GmbH

We completed the acquisition of a 51% interest in Anaconda.tv
GmbH, a television production company incorporated in Munich, Germany
(Anaconda) effective March 31, 2010. The acquisition was completed
pursuant to a share purchase agreement dated January 18, 2010 between Bark
Corporation A/S, our wholly owned subsidiary, entered into a share purchase
agreement (the Share Purchase Agreement) and Bark Holding Ltd.
(Bark Holding). Under the terms of the Share Purchase Agreement, we
agreed to purchase a 25.5% interest in the issued and outstanding share capital
of Anaconda. The Share Purchase Agreement also included the grant by Bark
Holding to Bark Corporation A/S of the option to purchase an additional 25.5%
interest in Anaconda. We were entitled to exercise this option on or before
March 31, 2010. We determined to exercise this option and completed the
acquisition of the 51% interest in Anaconda effective March 31, 2010. As
consideration for this acquisition, we have issued an aggregate of 14,000,000
shares of our common stock (the Consideration Shares). Of the
Consideration Shares, 7,000,000 shares were issued to Mr. Jesper Svane, one of
our principal shareholders, and 7,000,000 shares were issued to Mr. René
Lauritsen, at the direction of Bark Holding. Bark Holding is a private
corporation owned by Mr. Lauritsen and Mr. Svane, each of whom is the owner of
more than 10% of our outstanding common stock.

Anaconda was founded by Mr. Matthias Lange, the minority
shareholder of Anaconda, and two of the present major shareholders of Bark
Group, Mr. Svane and Mr. Lauritsen. Mr. Svane and Mr. Lauritsen previously held
51% of Anaconda through Bark Holding. This interest has been transferred to us,
with Mr. Lange holding the remaining 49% interest in Anaconda.

Anaconda is an international format and production company
located in Germany that was pre-nominated as one of the runner ups for an OSCAR
for one of its productions some years ago. The company produces TV formats for a
number of TV stations in Germany and Europe, such as RTL, ZDF, as well as TV
channels in the US, and specializes also in clips show as well as fiction and
factual programs as well as the content for internet commercials. Anacondas
staff consists of seven people and a number of freelancers depending on the
scale of production. Anacondas headquarters are in Taufkirchen, a suburb to
Munich, Germany. Due to the fact that approximately 70 % of Europe has broadband
Internet coverage, Bark Group plans to use Anacondas capabilities for live
production for their digital platform on the Internet as well as the production
of commercials and product placement for television.

Acquisition of Tre Kronor Media AB

We completed the acquisition of all of the issued and
outstanding shares of Tre Kronor Media AB, a Swedish media company (Tre
Kronor) on May 4, 2010. The acquisition was completed further to a share
purchase agreement dated April 9, 2010 entered into between Bark Group and each
of the shareholders of Tre Kronor. We issued an aggregate of 35,000,000 shares
of common stock to the shareholders of Tre Kronor, pro rata with their
respective ownership interests in Tre Kronor, to complete the acquisition. In
the event that we do raise share capital injections or external financing via
convertible notes before 31 December 2010 in the minimum amount of $3,000,000,
the Tre Kronor shareholders will have the right to re-acquire all of the issued
and outstanding shares of Tre Kronor from us by (i) delivering written notice by
15 January 2011 and returning to us all consideration issued to such
shareholders within 30 days of such notice, including the cash value of any
shares that may have been sold by the Tre Kronor shareholders. Additional
principal terms of the Tre Kronor are summarized in our current report on Form
8-K filed with the SEC on May , 2010

Tre Kronor Media is a Swedish media and
advertising business founded September 2007 by Niclas Froberg (Former Nordic CEO
for MindShare and owner of MindShare Sweden), Carl Johan Grandinson and Jacob de
Geer (co-founders of Tradedoubler). Bark Group will operate Tre Kronor Media as
Bark Stockholm following completion of the acquisition. Tre Kronor Media is a
result based advertising agency that works hand in hand with clients to
determine their requirement needs. To get the most efficient value for their
media investment they coordinate and negotiate with different suppliers and
collaborative business partners online as well as offline. Tre Kronor Media has
staff of 10 people who are employed at its offices at Sveavägen 17 in Stockholm
where they handle media and advertising campaigns in Sweden for more than 30
Swedish national and international clients. Tre Kronor Media has received awards
for Agency of the Year and Media Agency of the Year in Sweden in 2010.

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Bark Group believes that Tre Kronor Media's business model of
performance-based marketing is consistent with Bark's strategy of acquiring
professional, profitable and innovative multi-platform media companies. Bark
Groups objective is to expand its presence globally following targeted
acquisitions of small media businesses with high profile and top creative
staff.

Results of Operations

Revenues

We earn revenues from the advertising and marketing services
that we provide based on various different fee arrangements, including:

- fees for advertising services,
- fees for strategic counseling,
- commissions on media placements,
- performance based revenue, and
- a combination of all of the above.

The majority of our revenues are attributable to revenues
earned on a fee for services basis for the advertising and marketing services
that we provide.

Our revenues increased to $1,364,000 during the three months
ended March 31, 2010 as compared to $1,243,000 during the three months ended
March 31, 2009, representing an increase of $121,000 or 10%. The increased
revenue arises from projects for new customers.

During late 2009 and in the first quarter of 2010 we have
gained five significant advertising customers

We anticipate further revenues from these new customers from
recurring projects based on discussions with these new clients and proposed
marketing budgets, however we do not have long term contracts with these new
customers and there is no assurance that client indications of future projects
will materialize into revenues.

Cost of Revenues

Our cost of revenues is attributable to direct costs that we
incur to produce a final communication product incorporating the marketing and
advertising concepts that we develop. The final communication product is then
delivered to media outlets who then broadcast to the public. These direct costs
include, for example, the following:

- a portion of salaries for professional staff attributable to providing
  professional services,
- consultancy fees,
- film production,
- photography,
- web site design,
- production of radio commercials,
- printed materials, and
- layout of advertisements for newspapers and magazines.

These expenses represent external costs that we pay to third
parties as part of the creation and implementation of advertising and marketing
campaigns for our clients. These expenses do not include the cost of placement
of media through media outlets as these costs are incurred directly by
our clients.

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Cost of revenues totaled $1,052,000 for the three months ended
March 31, 2010 as compared to $878,000 for the three months ended March 31,
2009, an increase of $174,000, or 20%. The increase costs relates to salary
expenses due to a change in managements salary allocation to cost of revenues
and the reinstitution of the salary cuts which were effective in 2009.

Gross Profit

Gross profit decreased from $365,000 to $312,000 during the
2010 period compared to the 2009 period. Reason being, that our cost of revenues
increased more than our revenues due to the above mentioned change in allocation
of salaries to management and rising cost of salaries.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses include the
following expenses:

- salaries for administrative staff and administrative functions,
- fees to our chairman which are not included in salaries,
- a portion of stock based compensation relating to stock issued to 2
  employees,
- office rental and associated office costs,
- professional expenses, including lawyers, auditors and other consultancy
  costs (excluding expenses classified as listing expenses),
- client marketing, travel and entertainment expenses,
- allowance for doubtful accounts, and
- information technology costs.

Our selling, general and administrative expenses totaled
$448,000 for the three months ended March 31, 2010 as compared to $743,000 for
the three months ended March 31, 2009, representing a decrease of $295,000. The
decrease is comprised by i) a reversal of costs related to sales commission from
share issuance ($170,000) and ii) decreased salary costs.

Depreciation and Amortization

Depreciation includes depreciation on building, plant,
equipment and amortization of customer relationships.

Depreciation and amortizations totaled $38,000 for the three
months ended March 31, 2010 as compared to $47,000 for the three months ended
March 31, 2009, representing a decrease of $9,000, or 19%. The decrease is
caused by amortization of customer relationships.

Listing Expenses

Listing expenses include expenses attributable to the filing of
a registration statement with the SEC.

Listing expenses totaled $2,000 for the three months ended
March 31, 2010 as compared to $13,000 for the three months ended March 31, 2009,
representing a decrease of $11,000. The higher expense in 2009 was due to
preparation costs prior to our share began trading on the OTCB.

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Loss from equity investment

On January 10, 2010 we acquired a 25.5% interest and on March
31, 2010 we acquired additional 25,5% interest in Anaconda GmbH. According to
Anacondas unaudited financial statements for the three month ended March 31,
2010 Anaconda reported a total loss of $77,458 of which $17,777 was allocated to
us.

Interest Expense

Interest expense includes interest that we pay on our loans
from Danske Bank and Realkredit Denmark. These loans are described in detail
below under Liquidity and Capital Resources  Bank Indebtedness.

Interest expenses totaled $114,000 for the three months ended
March 31, 2010 as compared to $138,000 for the three months ended March 31,
2009. The variance is attributable to decreased interest rate on mortgage to
Realkredit Denmark.

Net Loss

We recorded a net loss of $302,000 for the three months ended
March 31, 2010 as compared to a net loss of $530,000 for the three months ended
March 31, 2009, representing a decrease in our loss of $228,000. The main reason
for the decrease is lower selling, general and administrative expenses.

Liquidity and Capital Resources

Cash and Working Capital

As at March 31, 2010 and December 31, 2009, we had cash of
$5,000. Our working capital deficit decreased from $5,809,000 at December 31,
2009 to $5,366,000 at March 31, 2010, a decrease of $443,000. The decrease to
our working capital deficit is mainly due to the debt forgiveness $223,000 from
related parties and from increased receivables from customers.

Cash Requirements

We are presently experiencing negative cash flows from our
operating activities and we have a working capital deficit. Additionally, as of
March 31, 2010, we reported a shareholders deficit which resulted primarily
from operating losses incurred through the first quarter of 2010 partly set off
by our acquisition of Anaconda which were paid by issuance of shares of common
stock. Our working capital deficit was $5,366,000 as of March 31, 2010. Based on
our current forecast we anticipate that cash flow from operations will be
sufficient to cover our current ongoing operating expenses. Therefore we
estimate that we will require approximately $5,100,000 over the next twelve
months in order to sustain our current obligations and to satisfy our working
capital deficiency. This amount does not include any funds necessary for us to
expand our business. Accordingly, we will require additional financing in order
to pursue the expansion of its business, either through growth or acquisitions.
There is also a risk that cash used in operations will be greater than
anticipated in the event that projected revenues are not achieved or if we incur
higher than anticipated costs in connection with our acquisition and integration
of Tre Kronor and Anaconda.

Our sources of additional cash, in addition to cash from
operations and out operating line of credits, include our loan commitment of DKK
4,000,000 ($724,200) from Bark Holding. Bark Holding is a company registered in
British Virgin Islands. We plan to use our loan from Bark Holding to finance our
operations over the next twelve months. However, we will require additional
financing beyond this loan in order to conduct our business in accordance with
our plan of operations. Further, there is no assurance that Bark Holding will
advance the loan that it has committed to make. No advances have been made on
this loan commitment as of May 19, 2010. We plan to conduct an equity financing
of our securities, as outlined below, in order to raise additional financing. We
will also pursue bridge loans and private placements from investors located
outside of the United States, primarily in Europe, in order to raise the
required funds. If we are not successful in obtaining additional financing, we
will reconsider our acquisition strategy and will further reconsider whether our
status as a public company is beneficial from a cost benefit perspective. Any
decisions made in this regard, may impact our ability to expand our business.

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We also entered into an engagement agreement with an investment
bank with the objective of securing additional financing, but we do not have any commitment from the
investment bank to complete any financing. There is no assurance that we will
raise any additional financing from either this investment bank or any other
investors. We believe that the current volatility in the financial markets will
make it more difficult for us to complete an equity financing, either through
the investment bank or through any other party. We also plan to pursue alternate
financing beyond the arrangement with this investment bank, which may be either
debt or equity financing. We do not have any commitments for any such financing
in place. If we are not successful in raising additional financing, then we may
not be able to expand our business as anticipated. If we are successful in
raising additional financing, then we will adjust our expansion plans based on
the amount of funds available to us. We may also determine to use a portion of
the proceeds to repay outstanding debt.

Bank Indebtedness

Bark Corporation borrowed DKK 9,000,000 (equivalent to $1,773,400
  as at December 31, 2007) pursuant to a credit facility with Danske Bank in May
  2007 in order to enable Bark Corporation to complete the acquisition of Bark
  Copenhagen and Bark Media. Total credit line on this loan was DKK 7,000,000
  ($1,267,400) as of March 31, 2010. The maturity date of this loan has been extended
  to May 15, 2010.Current interest rate of this loan is 13.75% . At March
  31, 2010 and December 31, 2009, the outstanding balance of line of credit was
  $1,326,700 and $1,420,900, respectively, including accrued interest on the outstanding
  balance of line of credit.

Bark Property obtained a DKK 14,900,000 ($2,819,300) loan on
May 16, 2008 bearing variable interest of currently 1.766% expiring in 2037 (no
installments in the first 10 years and to be repaid over the last 20 years) from
Realkredit Denmark (a credit institution). Interest is payable on the last
working day of each quarter. This loan is secured by a mortgage against our
Copenhagen office property as a first priority mortgage. On November 21, 2008
Bark Corporation obtained a loan of DKK 1,611,000 ($304,800) from Realkredit
Denmark bearing a variable interest rate of currently 1.766% expiring in 2037
(no installments in the first 10 years and to be repaid over the last 19 years).
At March 31, 2010 and December 31, 2009, the outstanding balance of the loans
aggregating approximately $2,989,571 and $3,181,442, respectively.

On March 7, 2008, two new bank loans totaling DKK 7,000,000
(USD 1,324,500) were entered into. The two new loans are to be repaid in
quarterly installments over 15 years. The interest rate is fixed quarterly as
"Danske Bor" plus a margin of 3.00% . At March 31, 2010 and December 31, 2009,
the outstanding balance of these loans aggregating $ 1,045,482 and $1,097,469,
respectively.

Bark Copenhagen has a floating interest rate line of credit
facility in the amount of DKK 3,000,000 ($543,163). As at March 31, 2010 and
December 31, 2009, the amount outstanding under this line of credit facility was
approximately $550,000 and $555,000, respectively. $188,000 of the $550,000 is
to be repaid to the bank by November 15, 2010. The rate of interest payable
under the line of credit facility is presently 7.35% per annum.

The Company obtained a short term loan from a private investor
in the amount of DKK 1,000,000 ($186,000) on February 4, 2010 in order to fund
working capital until additional capital could be raised. The loan matures on
April 30, 2010 together with accrued interest of DKK 200,000 ($37,970).
According to the loan agreement the holder has the right to convert the loan
into shares of common stock at a price of $0.16 per share. Based on the Black 
Scholes model the Company calculated a call option value of $0.06 resulting in a
possible deferred debt discount of $119,594. As the note holds a contingent
conversion no deferred debt discount was recognized. As at March 31, 2010 the
amount outstanding including accrued interest was $205,525. As of May 19, 2010
the holder has not exercised his right to convert nor did he call the loan.

The Company obtained a short term loan from a private investor
in the amount of DKK 1,000,000 ($179,953) on March 4, 2010 in order to fund
working capital until additional capital could be raised. The loan matures on
June 30, 2010 together with accrued interest of DKK 200,000 ($37,970). If the
Company chooses not to repay the loan in cash the holder of the note is entitled
to convert the note into shares of common stock at a total value of DKK
2,500,000 ($452,636). Based on the Black  Scholes model the Company calculated
a call option value of $0.06 resulting in a possible deferred debt discount of
$597,668. As the note holds a contingent conversion no deferred debt discount
was recognized. As at March 31, 2010 the amount outstanding including accrued
interest was $191,661.

On March 10, 2010 the Company obtained a Convertible Debenture
totaling $80,000. The note bears interest at a rate of 8% per annum and is due
nine months from date of issuance. The Note is convertible into shares of common
stock of the Company at a conversion price equal to 65% of the
"market price" at the time of conversion, which "market price" will be
calculated as the average of the three lowest "trading prices" for the Company's
common stock during the ten day trading period prior to the date the conversion
note is sent to the Company. Based on the Black  Scholes model the Company
calculated a call option value of $0.08 resulting in a deferred debt discount of
$71,033 which will be recorded as interest expenses ratably over the loans
maturity. As at March 31, 2010 the amount outstanding including interest and
deferred discount was $84,045.

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On March 15, 2010 the Company obtained a loan from a private
investor of $250,000. The loan bears no interest and is due one year from date
of issue. If the Company choose not to repay the loan in cash the holder of the
note is entitled to convert the note into shares of common stock at a price
equal to 85% of the market price of the Companys common stock at the time of
conversion. Based on the Black  Scholes model the Company calculated a call
option value of $0.08 resulting in a possible deferred debt discount of
$149,603. As the note holds a contingent conversion no deferred debt discount
was recognized. As at March 31, 2010 the amount outstanding was $250,000

In April 2010, the Company issued a Convertible Debenture
totaling $40,000. The note bears interest at a rate of 8% per annum and is due
one year from date of issue. The Note are convertible into shares of common
stock of the Company at a conversion price equal to 55% of the "market price" at
the time of conversion, which "market price" will be calculated as the average
of the three lowest "trading prices" for the Company's common stock during the
ten day trading period prior to the date the conversion note is sent to the
Company.

In May 2010, the Company issued a Convertible Debenture
totaling $50,000. The note bears interest at a rate of 8% per annum and is due
one year from date of issue. The Note are convertible into shares of common
stock of the Company at a conversion price equal to 65% of the "market price" at
the time of conversion, which "market price" will be calculated as the average
of the three lowest "trading prices" for the Company's common stock during the
ten day trading period prior to the date the conversion note is sent to the
Company.

Bark Holding Loan

During year ended December 31, 2008, the Company received a
loan from Bark Holding at an interest rate of 7% per annum. Bark Holding Ltd.,
is a private company controlled by Mr. Svane and Mr. Lauritsen, shareholders of
the Company. The balance of the loan as at March 19, 2010 DKK 1,127,475
($217,236) was forgiven and recorded as additional paid in capital.

On June 11, 2008 Bark Holding committed to issue a bridge loan
to us in the amount of up to DKK 3,000,000 ($567,700). On September 16, 2008,
Bark Holding increased this loan commitment to DKK 4,000,000 ($756,900) on
identical terms. This loan will accrue interest at 7% and will be due when our
cash flow is positive for more than four consecutive weeks or when additional
sources of financing are in place. This loan had not been advancedas of
the date of this quarterly report on Form 10-Q.

Going Concern

Our unaudited condensed consolidated financial statements for
the three months ended March 31, 2010 have been prepared assuming that we will
continue as a going concern. We currently have and had as at both March 31, 2010
and December 31, 2009 negative working capital and limited financial resources
available to pay ongoing financial obligations as they became due. Our net
working capital deficit at March 31, 2010 was $5,366,000 which is an improvement
of $443,000 as compared to December 31, 2009.

Further, at March 31, 2010, we had a shareholders deficit of
$617,000 which resulted primarily from operating losses incurred in 2007, 2008,
2009 and 2010 partly set off by our acquisition of an 51% interest in Anaconda
for which consideration were 14,000,000 of our shares of common stock. As
compared to December 31, 2009 our shareholders deficit was improved with
$2,354,000.

Although both net working capital and stockholders deficiency
improved as of March 31, 2010 the conditions raise doubt about the Companys
ability to continue as a going concern.

Based on our current forecast we anticipate that cash flow from
operations will be sufficient to cover our current ongoing operating expenses.
Therefore we estimate that we will require approximately $5,100,000 over the
next twelve months in order to sustain our current obligations and to satisfy
our working capital deficiency. This amount does not include any funds necessary
for us to expand our business. Accordingly, we will require additional financing in order to pursue the expansion of our business,
either through growth or acquisitions. There is also a risk that cash used in
operations will be greater than anticipated in the event that projected revenues
are not achieved or if we incur higher than anticipated costs in connection with
our acquisition and integration of Tre Kronor and Anaconda.

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Our current source of funding, in addition to cash from
operations and our operating line of credits, is our loan commitment of DKK
4,000,000 ($724,200) from Bark Holding, a related party.

We plan to use both (i) our operating line of credit and (ii)
the loan from Bark Holding to finance our operations over the next twelve
months. However, we will require additional financing beyond this in order to
conduct our business in accordance with our plan of operations. Further, there
is no assurance that Bark Holding will advance the loan that it has committed to
make. We plan to conduct an equity financing of its securities in order to raise
additional financing. We will also pursue bridge loans and private placements
from investors located outside of the United States, primarily in Europe, in
order to raise the required funds. If we are not successful in raising this
additional financing, then we will attempt to reduce our operating expenses
significantly such that we would within a six month period be able to generate
cash from operating activities. In the event that we fail to achieve additional
financing, we will reconsider our acquisition strategy, and will further
reconsider whether our status as a public company is beneficial, from a cost
benefit perspective. The reduction in costs related to business development
activities may impact on our ability to expand our business. Our consolidated
financial statements do not include any adjustment that might result from the
outcome of this uncertainty.

As a result of the above, we believe that a substantial doubt
about our ability to continue as a going concern remained as at March 31, 2010,
as reflected in the notes to our condensed consolidated unaudited financial
statements for the three months ended March 31, 2010. Our condensed consolidated
unaudited financial statements for the three months ended March 31, 2010 do not
include any adjustment that might result from the outcome of this uncertainty.

Cash Used In Operating Activities

We used cash of $659,000 in the three months ended March 31,
2010, compared to use of cash of $109,000 in the three months ended March 31,
2009. The increase in cash used in operating activities primarily reflects
increased accounts receivables including billings in progress, decreased accrued
expenses and other liabilities, partly set off by a decreased net loss and
increased accounts payables.

Cash From/Used in Investing Activities

We used cash of $14,000 in the three months ended March 31, 2010
  by purchasing equipment. In the three months ended March 31, 2009 we generated
  cash of $3,000 by selling equipment.

Cash from Financing Activities

We generated cash of $740,000 from financing activities during
the three months ended March 31, 2010, which represented proceeds from issuance
of common stock of $48,000, proceeds from borrowings from related parties of
$22,000 and net proceeds from debt of $771,000, partly offset by repayments of
capital leases of $44,000, and repayments to redeemed stockholders of $58,000.
In the three months ended March 31, 2009 we generated cash of $150,000

Critical Accounting Policies and Estimates

Our financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America which
require us to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of our financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Critical accounting policies are those
that require the application of managements most difficult, subjective, or
complex judgments, often because of the need to make estimates about the effect
of matters that are inherently uncertain and that may change in subsequent
periods.

In preparing the financial statements, we utilized available
information, including our past history, industry standards and the current
economic environment, among other factors, in forming our estimates and
judgments, giving due consideration to materiality. Actual results may
differ from these estimates. In addition, other companies may utilize different
estimates which may impact the comparability of our results of operations to
other companies in our industry. We believe the following significant accounting
policies may involve a higher degree of judgment and estimation.

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Revenue recognition

Most of our client contracts are individually negotiated and
accordingly, the terms of client engagements and the bases on which it earns
commissions and fees vary significantly. Direct costs include fees paid to
external suppliers where they are retained to perform part or all of a specific
project for a client and the resulting expenditure is directly attributable to
the revenue earned. Revenue is stated exclusive of VAT (value added tax), sales
taxes and trade discounts.

Revenue is typically derived from commissions on media
placements and fees for advertising services. Revenue may consist of various
arrangements involving fixed fees, commissions, or incentive-based revenue, as
agreed upon with each client.

We earn commissions from referrals of services to other
vendors, marketing agencies, who ultimately provide the end service to the
customer. Commissions are generally earned on the date of broadcast or
publication.

Revenue for our fixed-fee contracts is recognized when all of
the following criteria are satisfied: (i) persuasive evidence of an arrangement
exists; (ii) the price is fixed or determinable; (iii) collectability is
reasonably assured; and (iv) services have been performed. Depending on the
terms of a client contract, fees for services performed can be recognized in two
principal ways: proportional performance or completed contract.

- Fixed-fee contracts are generally recognized as earned based on the
  proportional performance method of revenue recognition. In assessing contract
  performance, both input and output criteria reviewed. Costs incurred are used
  as an objective input measure of performance. The primary input of all work
  performed under these arrangements is labor. As a result of the relationship
  between labor and cost, there is normally a direct relationship between costs
  incurred and the proportion of the contract performed to date. Costs incurred
  as a proportion of expected total costs is used as an initial proportional
  performance measure. This indicative proportional performance measure is
  always subsequently validated against other more subjective criteria (i.e.
  relevant output measures) such as the percentage of interviews completed,
  percentage of reports delivered to a client and the achievement of any project
  milestones stipulated in the contract. In the event of divergence between the
  objective and more subjective measures, the more subjective measures take
  precedence since these are output measures.
- Certain fees (such as for marketing services related to rebates offered by
  clients to their external customers) are deferred until contract completion as
  the final act is so significant in relation to the service transaction taken
  as a whole. Fees are also recognized on a completed contract basis if any of
  the criteria of FASB ASC 605-10-S99, formerly Staff Accounting Bulletin
  (SAB) No. 104, Revenue Recognition,were not satisfied prior to job
  completion or if the terms of the contract do not otherwise qualify for
  proportional performance.

Incentive-based revenue typically comprises quantitative
criteria. Revenue is recognized when the quantitative targets have been
achieved. In 2009, such incentive-based revenue has been nil.

In compliance with FASB ASC 605-45 Principal Agent
Considerations, formerly Emerging Issues Task Force (EITF) Issue No.
99-19, Reporting Revenue Gross as a Principal versus Net as an Agent , we assess
whether our agency or the third-party supplier is the primary obligor. We
evaluate the terms of our client agreements as part of this assessment. In
addition, we give appropriate consideration to other key indicators such as
latitude in establishing price, discretion in supplier selection and credit risk
to the vendor. For a substantial portion of our client contracts we act as
principal as we are the primary obligor and bear credit risk related to the
services we provide. In these contracts we record revenues and costs of revenues
gross. In certain contracts we record a net amount principally on those
contracts where we earn a commission.

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Business Combinations

We account for our business combination transactions utilizing
the acquisition method of accounting. Under the acquisition method of
accounting, the total consideration paid is allocated to the underlying assets
and liabilities, based on their respective estimated fair values. The excess of
the purchase price over the estimated fair values of the net assets acquired is
recorded as goodwill. Determining the fair value of certain acquired assets and
liabilities, identifiable intangible assets in particular, is subjective in
nature and often involves the use of significant estimates and assumptions.
Finite-lived identifiable intangible assets are amortized over its expected life
on a straight-line basis, as this basis approximates the expected cash flows
from the Companys existing definite-lived identifiable intangible assets over
the expected future.

Non controlling interest

Certain consolidated subsidiaries of Bark Group issued equity
shares to parties unrelated to the Company.

The Company accounts for such transactions in accordance with
FASB ASC 810, Consolidation, formerly Staff Accounting Bulletin No. 51,
Accounting for Sales of Stock by a Subsidiary. FASB 810 requires that the
difference between the carrying amount of the Companys investment in the
subsidiary and the underlying net book value of the subsidiary after the
issuance of the shares be recognized either as a gain or loss in the
consolidated statement of operations or as a capital transaction. In these
instances it is the Companys policy to consider gains and losses arising from
such issuances of shares by a subsidiary as a capital transaction; as such no
gain or loss is recognized in the income statement.

In instances where subsidiary shares issued are redeemable, the
Non-controlling interest is recorded in accordance with FASB ASC 810, formerly
EITF No. D-98 Classification and Measurement of Redeemable Securitiesat
the higher of (1) the redemption value required to be paid by the Company or (2)
the amount that would result from applying consolidation accounting under FASB
ASC 810, formerly Accounting Research Bulletin No. 51 Consolidated Financial
Statements.Adjustments recorded by the Company in relation to the
recording of these costs are recorded within additional paid-in capital.

Property, plant and equipment

Property, plant and equipment are stated at historical cost
less accumulated depreciation. Maintenance and repairs are charged to expense as
incurred. Additions, improvements and replacements that extend the assets life
are capitalized. Property, plant and equipment, less applicable residual value,
is depreciated using the straight-line method over the estimated useful lives of
such assets.

The useful lives for computing depreciation are as follows:

| | Buildings                                  | 50    | years
| | ------------------------------------------ | ----- | -----
| |                                            |       |      
| | Furniture, fixtures and computer equipment | 3 - 5 | years

Analysis of Impairment

We acquired our operating business, which is our sole goodwill
reporting unit, in May 2007. We accounted for our acquisition of this business
using the purchase method of accounting, which resulted in the recognition of
approximately $3,091,000 of goodwill. In accordance with applicable standards
specified in the Accounting Standards Codification, we test goodwill at the
reporting units level for possible impairment at least once annually and in
between annual testing dates if events or changes in circumstances indicate that
the carrying value of our goodwill might not be recoverable. We have designated
December 31 as our as the formal date of our annual goodwill impairment test.

In conjunction with our 2009 audit, we performed our annual
impairment testing during March 2010. During the three month ended March 31,
2010 no events or changes in circumstances indicates that the carrying value of
our goodwill might not be recordable.

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Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements, financings, or other
relationships with unconsolidated entities known as Special Purposes
Entities.

Item 3. Quantitative and Qualitative Disclosures about Market
  Risk.

We are a smaller reporting company as defined by Rule 12b2 of
the Exchange Act and are not required to provide the information required under
this item.

Item 4 T. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
by our Company is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms of the SEC. Our Chief Executive
Officer, Anders Hageskov, and our Chief Financial Officer, Ulrik Gerdes, are
responsible for establishing and maintaining disclosure controls and procedures
for our Company.

Our management has evaluated the effectiveness of our
disclosure controls and procedures as of March 31, 2010 (under the supervision
and with the participation of the Chief Executive Officer and the Chief
Financial Officer), pursuant to Rule 13a15(b) promulgated under the
Securities Exchange Act of 1934, as amended. As part of such evaluation,
management considered the matters discussed below relating to internal control
over financial reporting. Based on this evaluation, our Companys Chief
Executive Officer and Chief Financial Officer have concluded that our Companys
disclosure controls and procedures werenot effective as of March 31,
2010 due to the material weakness in Internal Control over Financial Reporting
identified below.

Internal Control over Financial Reporting

The term internal control over financial reporting is defined
as a process designed by, or under the supervision of, the registrants
principal executive and principal financial officers, or persons performing
similar functions, and effected by the registrants board of directors,
management and other personnel, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles and includes those policies and procedures that:

- pertain to the maintenance of records that in reasonable detail accurately
  and fairly reflect the transactions and dispositions of the assets of the
  registrant;
- provide reasonable assurance that transactions are recorded as necessary to
  permit preparation of financial statements in accordance with generally
  accepted accounting principles, and that receipts and expenditures of the
  registrant are being made only in accordance with authorizations of management
  and directors of the registrant; and
- provide reasonable assurance regarding prevention or timely detection of
  unauthorized acquisition, use or disposition of the registrants assets that
  could have a material effect on the financial statements.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial
reporting during the three months ended March 31, 2010 that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

Our management completed an evaluation of our internal control
as of December 31, 2009 and concluded that our internal control over financial
reporting is not effective as of December 31, 2009. In connection with the audit
of our financial statements as of December 31, 2009 and for the year ended
December 31, 2009 our auditors and we have identified certain matters involving
our internal control over financial reporting that constitute a material
weakness under standards established by the Public Company Accounting Oversight
Board (" PCAOB ").

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The PCAOB defines a material weakness as a significant
deficiency, or combination of significant deficiencies, that results in more
than a remote likelihood that a material misstatement of our annual or interim
financial statement will not be presented or detected by our employees. A
significant deficiency is defined as a control deficiency, or a combination of
control deficiencies, that adversely affects the company's ability to initiate,
authorize, record, process, or report external financial data reliably in
accordance with generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the company's annual or interim
financial statements that is more than inconsequential will not be prevented or
detected. A control deficiency exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect misstatements on a timely basis. A
deficiency in design exists when:

- a control necessary to meet the control objective is missing; or
- an existing control is not properly designed so that, even if the control
  operates as designed, the control objective is not always met.

A deficiency in operation exists when a properly designed
control does not operate as designed, or when the person performing the control
does not possess the necessary authority or qualifications to perform the
control effectively.

The material weakness identified results from currently
inadequate external reporting, technical accounting and tax staff, inadequate
integrated financial systems and financial reporting and closing processes, and
inadequate written policies and procedures. Specifically, the following items
were identified:

- we do not currently have a sufficient complement of external reporting,
  technical accounting or tax staff commensurate to support standalone external
  financial reporting under public company or SEC requirements;
- we do not have a fully integrated financial consolidation and reporting
  system and as a result, extensive manual analysis, reconciliation and
  adjustments are required in order to produce financial statements for external
  reporting purposes; and

We are in the process of implementing changes to strengthen our
internal controls. Additional measures may be necessary and the measures we
expect to take to improve our internal controls may not be sufficient to address
the issues identified, to ensure that our internal controls are effective or to
ensure that such material weakness or other material weaknesses would not result
in a material misstatement of our annual or interim financial statements. In
addition, other material weaknesses or significant deficiencies may be
identified in the future. If we are unable to correct deficiencies in internal
controls in a timely manner, our ability to record, process, summarize and
report financial information accurately and within the time periods specified in
the rules and forms of the SEC will be adversely affected. This failure could
negatively affect the market price and trading liquidity of our common stock,
cause investors to lose confidence in our reported financial information,
subject us to civil and criminal investigations and penalties, and generally
materially and adversely impact our business and financial condition.

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PART IIOTHER INFORMATION

Item 1. Legal Proceedings

In March 2008, Bark Corporation received a notice of a claim
from two former employees for damages and compensation of approximately DKK
1,000,000 ($212,000), based on an alleged breach by Bark Corporation of the
terms of employment (employment element of the claim) and non-payment for the
transfer of specified intellectual property (IP element of the claim). In
March 2008, the Company paid DKK 242,500 ($52,000) to such employees related to
the employment element of the claim. On April 8, 2008 Bark Corporation received
a petition from the former employees reducing their claim to DKK 757,500
($160,100), representing the IP element of the claim. On April 28, 2009,
Copenhagen City Court issued a judgment where the Company was ordered to pay DKK
865,700 ($170,283) including court costs and interests. In December 2009 the
Danish Eastern High Court issued a final judgment where the Company was ordered
to pay approximately DKK 900,000 ($173,407) including court costs and interests.
This amount and other legal costs of approximately DKK 150,000 ($28,901) were
included as a component of accrued liabilities at December 31, 2009. As of March
31, 2010 the accrued liability less payments during the three months ended March
31, 2010 equals DKK56,255 ($10,185).

Item 1A. Risk Factors

Much of the information included in this quarterly report on
Form 10-Q includes or is based upon estimates, projections or other forward
looking statements. Such forward looking statements include any projections or
estimates made by us and our management in connection with our business
operations. While these forward looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections, assumptions,
or other future performance suggested herein. We undertake no obligation to
update forward looking statements to reflect events or circumstances occurring
after the date of such statements.

Such estimates, projections or other forward looking
statements involve various risks and uncertainties as outlined below. We
caution readers of this quarterly report that important factors in some cases
have affected and, in the future, could materially affect actual results and
cause actual results to differ materially from the results expressed in any such
estimates, projections or other forward looking statements. In evaluating us,
our business and any investment in our business, readers should carefully
consider the following factors.

Risks Relating To Our Business And Financial Condition

As there is a substantial doubt as to our ability to
continue as a going concern, there is a significant risk that our business could
fail.

Our audited financial statements for the year ended December
31, 2009 and our interim financial statements for the three months ended March
31, 2010 both include a note expressing doubt about our ability to continue as a
going concern. The inclusion of this note was due to the fact that we have
negative working capital of $5,809,000 and we reported a shareholders
deficiency of $2,971,000 as at December 31, 2009 and we had negative working
capital of $5,366,000 and reported a shareholder deficit of $617,000 as at March
31, 2010. This note also reflects the fact that we have incurred losses to date
without achieving profitable operations, including a net loss of $3,197,000 for
the year ended December 31, 2008, a net loss of $2,569,000 for the year ended
December 31, 2009 and a net loss of $302,000 for the three month ended March 31,
2010. We intend to fund our operations and expansion through future sales and
equity financing arrangements, which may be insufficient to fund our capital
expenditures, working capital and other cash requirements for the current fiscal
year. Thereafter, we will be required to seek additional funds, either through
sales and/ or equity financing, to finance our long-term operations. The
successful outcome of future activities cannot be determined at this time and
there is no assurance that, if achieved, we will have sufficient funds to
execute our intended business plan or generate positive operating results. These
factors raise substantial doubt about our ability to continue as a going
concern. As a result, we caution investors that there is a risk that our
business could fail. Our current working capital deficit as at March 31, 2010
and our negative cash flow from operations for the three month ended March 31,
2010 raise substantial doubt about our ability to continue as a going concern.
Accordingly, there remained a substantial doubt about our ability to continue as
a going concern as at March 31, 2010, as reflected in the notes to our interim
consolidated financial statements for the three months ended March 31, 2010.

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Our business strategy of development through acquisitions
and investments can be risky.

Our business growth strategy includes, among other things,
acquiring established advertising and communication boutique firms. We acquired
Bark Copenhagen and Bark Media during fiscal 2007. We also acquired a 51%
interest in Anaconda in the first quarter of 2010 and Tre Kronor in the second
quarter of 2010. The identification of acquisition candidates is difficult and
we may not correctly assess the risks related to such acquisitions and
investments. In particular, our determinations and assessments of acquisition
candidates involve assessments of the financial performance of the acquisition
candidates and past financial performance that we observe may not be indicative
of future financial performance. In addition, acquisitions could be effected on
terms less satisfactory to us than expected and the newly acquired companies may
not be successfully integrated into our cohesive operations or in a way that
produces the synergies or other benefits we hope to achieve. We may not be able
to successfully integrate new acquired businesses into our group of companies.
In particular, loss of key personnel will adversely impact our ability to
continue operations of these acquisition companies after we have completed their
acquisition. Further, in our inability to raise capital may adversely impact on
our ability to invest in these acquired businesses in order to achieve projected
growth and returns on investment. If these risks materialize, the benefit that
we derive from businesses that we acquire may be less than the costs to us of
acquiring these businesses, with the result that our operating losses could
increase.

Current global economic conditions may adversely impact our
financial condition, our ability to obtain financing, our ability to collect
accounts receivable and the ability of our customers to continue to use our
services

Recent market events and conditions, including disruptions in
the international credit markets and other financial systems and the
deterioration of global economic conditions, could impede our access to capital
or increase its cost of capital. Since 2007, the U.S. credit markets experienced
serious disruption due to a deterioration in residential property values,
defaults and delinquencies in the residential mortgage market and a decline in
the value and credit quality of mortgage-backed securities. Other adverse events
include delinquencies in non-mortgage consumer credit and a general decline in
consumer confidence. These conditions worsened in 2008 and in 2009, contributing
to reduced confidence in credit and financial markets around the world and the
collapse of, and governmental intervention in, major financial institutions.
Asset price volatility and solvency concerns have increased, and there has been
less liquidity, a widening of credit spreads, a lack of price transparency,
increased credit losses and tighter credit conditions. Notwithstanding various
government actions, concerns about the general condition of the capital markets,
financial instruments and financial institutions persist, and stock markets have
declined substantially.

These market disruptions have had a significant material
adverse impact on companies in many sectors of the economy and have limited
their access to capital and credit. These disruptions could, among other things,
make it more difficult for us to obtain, or increase our cost of obtaining,
financing for our operations. Failure to raise capital when needed or on
reasonable terms may have a material adverse effect on our business, financial
condition and results of operations.

Additionally, these factors, as well as other related factors,
may cause decreases in asset values that are deemed to be other than temporary,
which may result in impairment losses. If these factors continue, our operations
could be adversely impacted and the trading price of the common stock may be
adversely affected.

We are also exposed to liquidity risks in meeting its operating
and capital expenditure requirements in instances where cash positions are
unable to be maintained or appropriate financing is unavailable. These factors
may impact our ability to obtain loans and other credit facilities in the future
and on favorable terms. If these increased levels of volatility and market
turmoil continue, our operations could be adversely impacted and the trading
price of our common stock could be adversely affected.

All of the above factors may adversely impact on our ability to
secure new financing for our business, to enable us to negotiate new credit
facilities, to achieve equity financing, to secure new business from our
existing clients and new clients, to achieve payment of outstanding accounts
receivable to and to enable our customers to engage us for our services.

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There is no assurance that we will be able to raise
sufficient financing such that the Tre Kronor shareholders will not be entitled
to re-acquire Tre Kronor.

While we have acquired Tre Kronor, the Tre Kronor shareholders
have been granted the right to repurchase the outstanding shares of Tre Kronor
from us in the event that we do not raise the agreed upon amounts of capital.
There is no assurance that we will be able to raise the necessary capital
required in order to ensure that the right of re-purchase is not triggered. We
presently do not have any arrangements in place for such financing.

Our competitors may be successful in attracting the clients
that we are targeting for our advertising and media services, with the result
that our revenues and ability to generate profit from our operations may be
reduced.

We compete in the advertising and communications industry which
is highly competitive and which we believe will become more competitive as the
business of commercial communication and advertising advances. Our competitors
range from large multinational companies to smaller agencies that operate in our
target markets. These potential competitors also range from traditional
advertising agencies to new media companies that are integrating traditional
advertising services with new media advertising services, such as digital media
counseling. In addition, new competitors are emerging who will compete with our
business strategy of providing integrated media and advertising professional
services. Both existing and new competitors will likely seek to target the same
customers that we are targeting, both using traditional advertising models and
the integrated media services business model that we are pursuing. In addition,
many of these new competitors will have greater financial and operational
resources than we do. The ability of our existing and potential competitors to
attract the customers and advertising and media service work that we are
targeting will reduce the revenues that we are able to achieve from our business
activities, will reduce our market share and decrease our ability to generate
profit from our operations.

The present size of our business may impede or limit our
ability to secure new advertising and marketing engagements from the customers
that we target for our professional service.

We presently have approximately twenty-two (22) employees, all
but three of whom are professional services personnel. Our relatively small size
will limit the scope of the projects that we are able to undertake for our
existing and potential customers. As a result of our limited capacity, there is
a limit both to the number of new customers that we can take on. Existing and
potential customers may view our size as a limiting factor when assessing
whether to engage us to undertake marketing and advertising campaigns. These
customers may view their requirements as being beyond the scope or ability of
our firm due to the limited number of professional personnel that employ. The
determinations of our existing and potential customers not to engage us or to
limit our engagement on a project may result in us losing business and
corresponding revenues to our competitors with the result that our ability to
achieve revenues and to expand our business may be limited.

Our location in Denmark may impede our ability to secure
internationally based customers who believe that they require a more globally
based advertising and media professional service provider in order to address
their business and marketing requirements.

We are headquartered in Copenhagen, Denmark where our principal
business operations are conducted from. Our location in Denmark, while providing
access to the European Union, may be an impediment for competing in
international markets, including the United States. Existing and potential
customers may view our location in Denmark and our lack of international and
North American offices as a limiting factor in our ability to implement their
advertising and marketing campaigns. Such determinations by existing and
potential customers may result in their decisions not to engage us to undertake
advertising and marketing campaigns or to only engage us for a local portion of
an advertising or marketing campaign, which would limit our ability to earn
revenues and to expand our business.

The loss of our key customers could cause significant
reduction in our business.

As at March 31, 2010, two customers accounted for approximately
58% of our accounts receivables. Four customers accounted for approximately 53%
of our revenue in the three month ended March 31, 2010. Other than these six
customers, no other customers represented more than 10% of our accounts
receivable or our revenue in the three month ended March 31, 2010. There can be
no assurance that we will be able to continue to retain our relationships with
these key customers or that these key customers will engage us for future
advertising and marketing programs.

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Any negative changes involving our key customers, including any
adverse changes in the customers financial condition or desire or ability to
continue to engage us for future advertising and marketing programs, could
result in a significant reduction in our business which would impair our ability
to sustain or increase our revenues. As far as we are aware, none of these
customers are presently experiencing financial distress, other than one former
customer that has filed for bankruptcy. However, there is no assurance that
these customers are not presently experiencing financial distress or will not
experience financial distress in the future.

Our inability to retain our existing customers will restrict
our ability to sustain or increase our revenues.

We rely significantly on new advertising and media engagements
from our existing customers in order to generate future revenues. The
preservation of these relationships are subject to many intangible factors,
including the perceived success of our business in the market-place, the
relationships between our professional personnel and individual employees of our
customers and our clients perception of the benefit and success of past
services that we have provided for our customers. Further, we will have to be
careful to work to preserve these relationships at the same time as we attempt
to expand our business and secure new customers. There is no assurance that our
existing customers will continue their relationships with us or engage us for
new advertising and marketing programs or services. Our inability to preserve
these customers relationships and secure new engagements from existing customers
will restrict our ability to sustain or increase our revenues.

We rely heavily on our key executive officers and their
experience and knowledge of our business would be difficult to replace in the
event any of them left our company.

We are highly dependent on Mr. Bent Helvang, our chairman, and
Mr. Anders Hageskov, our chief executive officer, for the management of our
business and the implementation of our business strategy. While each of Mr.
Helvang and Mr. Hageskov provides their services to us pursuant to written
agreements and we are not aware of either Mr. Helvang or Mr. Hageskov intention
to leave us, there is no assurance that we will not lose the services of Mr.
Helvang or Mr. Hageskov. We do not have key person life insurance policies for
any of our officers and key employees, including either Mr. Helvang or Mr.
Hageskov. The loss of the technical knowledge and management and industry
expertise that would result in the event that either Mr. Helvang or Mr. Hageskov
left us could result in the disruption to our business operations and our
inability to successfully implement our business strategy.

If our customers businesses experience reduced revenues,
our customers may decide to reduce their budgets for advertising and
communications which could decrease our revenues.

We depend upon the business activities of our existing and
potential customers in order to generate revenues from operations. The
advertising and communications industry and our ability to generate revenues is
subject to changes in our customers underlying businesses. If our customers
experience declines in their business and reduced revenues, they may decide to
decrease their marketing budgets. In our experience, downturns in general
economic conditions that result in our customers experiencing declines in their
business can have a more severe impact on advertising and communications
expenditures than on other areas, in part because many of our customers view
advertising and communications expenditures as more discretionary than other
operating expenditures. Accordingly, our customers may respond to economic
downturns where their businesses are adversely impacted by reducing their
advertising and communications budgets in order to meet their earnings goals. If
our existing and potential customers decide not to proceed with advertising and
marketing campaigns as a result of downturns in their businesses or decreases in
their revenues, then our ability to generate revenues from providing our
professional services will be reduced. As a result, our development, prospects,
business, financial condition and consolidated results of operations may be
materially adversely affected by downturns in the businesses of our customers.

If we are unable to collect amounts that are owed to us by
our customers, then we may not be able to realize on our accounts receivable and
our corresponding cash flows will be reduced.

We invoice our clients for the marketing and advertising
services that we provide and, as a result, generate account receivables that are
payable by our customers for the professional advertising and media services
that we provide to them. We do not in all circumstances obtain payment of these
amounts from our customers in advance of our providing services. Accordingly, we
are at risk to the extent that we provide services that our customers either
refuse or are unable to repay. Our ability to generate cash flows from
operations is contingent upon the ability of our customers to pay these
accounts. If our customers experience financial distress as a result of
downturns in their businesses or downturns in general economic conditions, then
they may not be able to pay our accounts with the result that we may not be able to realize on our accounts
receivable and our corresponding cash flows will be reduced. Further, our
customers may dispute the amount of the invoices that we render and in such an
event we may be paid less than the amount that we have invoiced or payment may
be delayed.

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Our business is highly dependent on the services of our
management and our employees who are specialized advertising and marketing
professionals. If we cannot retain our key personnel, our business may fail.

Our business is highly dependent on the talent, creative
abilities and technical skills of our specialized advertising and marketing
professionals, as well as on the relationships between our professional
personnel and our customers. The industry is also known for high mobility among
its professionals. If we lose the services of certain management members or our
other professional personnel, our ability to continue to provide professional
advertising and marketing services and to maintain our client relationships
could be harmed. If we are unable to continue to attract and retain additional
key professional personnel, or if we were unable to retain and motivate our
existing key professional personnel, we may not be able to sustain our business
or execute our business expansion strategy with the result that our business may
fail.

We may be unsuccessful in evaluating material risks involved
in completed and future acquisitions.

As part of our business strategy we will be regularly reviewing
potential acquisitions of businesses to add to our Bark network of advertising
and media agencies. As part of these reviews, we will conduct business, legal
and financial due diligence with the goal of identifying and evaluating material
risks involved in any particular transaction. Despite our efforts, we may be
unsuccessful in ascertaining or evaluating all such risks. As a result, we might
not realize the intended advantages of any given acquisition. If we fail to
realize the expected benefits from one or more acquisitions, our results of
operations and financial condition could be adversely affected.

If we do not raise the necessary capital to fully develop
our business, our business may not be able to continue its growth.

Our business concept involves the creation and expansion of a
network of affiliated advertising and marketing agencies under the Bark brand
name which will require us to obtain additional capital that we presently do not
have. Our ability to create this network will be contingent upon our ability to
raise the necessary capital to fund contemplated and future acquisitions. In
addition, even if we are successful in acquiring new advertising and marketing
agencies, there is no assurance that we will be able to generate sufficient cash
flows to continue to fund the operations of these acquired businesses or to
generate a positive return on our investment. If we are not able to raise the
necessary capital, we may not be able to acquire new businesses in accordance
with our strategic plan or to adequately fund the new businesses that we
acquire.

If we do not successfully integrated advertising and
marketing agencies that we acquire into our business model, our business may not
be able to continue its growth and we may not be able to achieved planned
revenues or cash flows.

Our business concept involves the creation and expansion of a
network of affiliated advertising and marketing agencies under the Bark brand
name, and the integration and creation of consistency of our brand values
throughout all of our agencies. Our ability to create this network will be
contingent upon our ability to successfully integrate acquired advertising and
marketing agencies into our business model in order that we can expand our
client base and increase our revenues. In particular, if we are unable to ensure
the continuity of the professional employees at the advertising and marketing
agencies that we acquire, our ability to expand our business through
acquisitions and continue our growth will be impaired. In addition, there is no
assurance that customers of the advertising and marketing agencies that we
acquire will continue their association with the agency as a Bark affiliated
agency. Our inability to retain the customers of the advertising and marketing
agencies that are acquired or implement our business plan to use these acquired
agencies to expand our business and revenues, will impair our ability to grow in
accordance with our business strategy and we may not be able to achieve
anticipated revenues or cash flows.

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Government regulations and consumer advocates may limit the
services that we are able to provide, which could affect our ability to meet our
customers needs, which could reduce the revenues that we are able to achieve in
the future.

Government agencies and consumer groups have directly or
indirectly from time to time affected or attempted to affect the scope, content
and manner of presentation of advertising, marketing and corporate
communications services, whether through regulations or other governmental
actions. Any such limitations on the scope of the content of our services could
affect our ability to meet our customers needs, which could reduce the revenues
that we are able to earn from client revenues and have a material adverse effect
on our results of operations and financial condition. In addition, there has
been an increasing tendency on the part of businesses to resort to the judicial
system to challenge advertising practices. We cannot assure investors that such
claims by businesses or governmental agencies will not reduce the revenues that
we are able to achieve in the future.

We may be exposed to liabilities from allegations that
certain of our customers advertising claims may be false or misleading or that
our customers products may be defective.

We may be, or may be joined as, a defendant in litigation
brought against our customers by third parties, our customers competitors,
governmental or regulatory authorities or consumers. These actions could involve
claims alleging, among other things, that:

- advertising claims made with respect to our customers products or services
  are false, deceptive or misleading;
- our customers products are defective or injurious and may be harmful to
  the others; or
- marketing, communications or advertising materials created for our
  customers infringe on the proprietary rights of third parties since
  client-agency contracts generally provide that the agency agrees to indemnify
  the client against claims for infringement of intellectual or industrial
  property rights.

The damages, costs, expenses or attorneys fees arising from
any of these claims could have an adverse effect on our prospects, business,
results of operations and financial condition to the extent that we are not
adequately insured against such risks or indemnified by our customers. In any
case, the reputation of our agencies may be negatively affected by such
allegations.

U.S. investors who obtain judgments against our officers or
directors for breaches of U.S. securities laws may have difficulty in enforcing
such judgments against our officers and directors.

All of our assets are located outside the United States and we
do not currently maintain a permanent place of business within the United
States. All of our directors and officers are residents of Denmark or
Switzerland and all or a substantial portion of their assets are located outside
the United States. Consequently, it may be difficult for United States investors
to affect service of process within the United States upon our directors and
officers or to enforce, inside or outside of the United States, any judgments of
United States courts predicated upon civil liabilities under the United States
Securities Exchange Act of 1934, as amended. A judgment of a U.S. court
predicated solely upon such civil liabilities may not be enforceable in Denmark
by a Danish court if the U.S. court in which the judgment was obtained is
determined by the Danish court not to have had jurisdiction in the matter. Even
if the Danish court was to find jurisdiction, the judgment as a rule would not
be enforceable against any director or officer in Denmark. Furthermore, an
original action might not be able to be brought successfully in Denmark against
any of such persons predicated solely upon such civil liabilities. Consequently,
you may be effectively prevented from pursuing remedies under U.S. federal
securities laws against our directors and officers.

We have identified a material weakness in our internal
controls over financial reporting that, if not corrected, could result in
material misstatements in our financial statements.

In connection with our assessment of the effectiveness of our
  internal controls over financial reporting as at December 31, 2009 and in connection
  with the audit of our financial statements as of December 31, 2009, 2008 and
  2007 and for the years ended December 31, 2009, 2008 and December 31, 2007,
  our auditors and we have identified certain matters involving our internal control
  over financial reporting that constitute a material weakness under standards
  established by the Public Company Accounting Oversight Board ("PCAOB").

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The PCAOB defines a material weakness as a significant
deficiency, or combination of significant deficiencies, that results in more
than a remote likelihood that a material misstatement of our annual or interim
financial statement will not be presented or detected by our employees. A
significant deficiency is defined as a control deficiency, or a combination of
control deficiencies, that adversely affects the company's ability to initiate,
authorize, record, process, or report external financial data reliably in
accordance with generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the company's annual or interim
financial statements that is more than inconsequential will not be prevented or
detected. A control deficiency exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect misstatements on a timely basis. A
deficiency in design exists when:

- a control necessary to meet the control objective is missing; or
- an existing control is not properly designed so that, even if the control
  operates as designed, the control objective is not always met.

A deficiency in operation exists when a properly designed
control does not operate as designed, or when the person performing the control
does not possess the necessary authority or qualifications to perform the
control effectively.

The material weakness identified results from currently
inadequate external reporting, technical accounting and tax staff, inadequate
integrated financial systems and financial reporting and closing processes, and
inadequate written policies and procedures. Specifically, the following items
were identified:

- we do not currently have a sufficient complement of external reporting,
  technical accounting or tax staff commensurate to support standalone external
  financial reporting under public company or SEC requirements;
- we do not have a fully integrated financial consolidation and reporting
  system and as a result, extensive manual analysis, reconciliation and
  adjustments are required in order to produce financial statements for external
  reporting purposes; and

We are in the process of implementing changes to strengthen our
internal controls. Additional measures may be necessary and the measures we
expect to take to improve our internal controls may not be sufficient to address
the issues identified, to ensure that our internal controls are effective or to
ensure that such material weakness or other material weaknesses would not result
in a material misstatement of our annual or interim financial statements. In
addition, other material weaknesses or significant deficiencies may be
identified in the future. If we are unable to correct deficiencies in internal
controls in a timely manner, our ability to record, process, summarize and
report financial information accurately and within the time periods specified in
the rules and forms of the SEC will be adversely affected. This failure could
negatively affect the market price and trading liquidity of our common stock,
cause investors to lose confidence in our reported financial information,
subject us to civil and criminal investigations and penalties, and generally
materially and adversely impact our business and financial condition.

If we fail to maintain proper and effective internal
controls, our ability to produce accurate and timely financial statements could
be impaired and investors views of us could be harmed.

As a public company, we are required to document and test our
internal controls and procedures for compliance with Section 404 of the
Sarbanes-Oxley Act of 2002, or the Sarbanes Oxley Act, which requires annual
management assessment of the effectiveness of our internal controls over
financial reporting. Our independent auditors first report on compliance with
Section 404 is expected to be in connection with the audit of our financial
statements for the year ending December 31, 2010.

Ensuring that we have adequate internal financial and
accounting controls and procedures in place so that we can produce accurate
financial statements on a timely basis is a costly and time-consuming effort
that needs to be reevaluated frequently. Our internal control over financial
reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
in accordance with accounting principles generally accepted in the United
States.

During the course of our testing we may identify deficiencies
which we may not be able to remediate in time to meet the deadline imposed by
the Sarbanes-Oxley Act for compliance with the requirements of Section 404. In
addition, if we fail to achieve and maintain the adequacy of our internal
controls, as such standards are modified, supplemented or amended from time to
time, we may not be able to ensure that we can conclude on an ongoing basis that
we have effective internal controls over financial reporting in
accordance with Section 404 of the Sarbanes-Oxley Act. Moreover, effective
internal controls are necessary for us to produce reliable financial reports and
are important to helping prevent financial fraud. If we cannot provide reliable
financial reports or prevent fraud, our business and operating results could be
harmed, investors could lose confidence in our reported financial information,
and any trading price of our stock could drop significantly.

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We are incurring a significant portion of our operating
expenses in Europe and we are therefore subject to currency risks.

Our consolidated financial statements are reported in United
States Dollars. Our main operations are currently based in Europe and the
majority of the operating expenses are incurred in Danish Crowns (DKK) or the
Euro and we have a loan in Swiss Francs (CHF), while investments into the
Company will be in United States Dollars. Therefore, our expenses and any future
investments or income may be vulnerable to fluctuations in exchange rates. We
currently do not enter into foreign exchange contracts to cover our exposure to
exchange rate fluctuations. Any failure to adequately manage foreign exchange
risk may adversely affect our business.

Risks Relating To Our Common Stock

Our principal shareholders will be able to exert significant
control over the election of our directors and the management of our business
and their interests may differ from those of our other shareholders

Our principal shareholders include our directors, Mr. Bent Helvang
  ,Mr. Klaus Aamann, Mr. Anders Hageskov, our chief executive officer, Svaneco
  Ltd, a private company controlled by Mr. Jesper Svane and Sapiens Alliance Ltd.,
  a private company controlled by Mr. Rene Lauritsen. These shares are held both
  directly and indirectly through privately controlled corporations. As of April
  15, 2010, these principal shareholders owned or controlled 241,671,940 shares
  of common stock, representing 66% of our outstanding shares of common stock.
  By virtue of their shareholdings, our principal shareholders will be able to
  elect members of our board of directors, control our management and affairs
  and cause or prevent corporate transactions such as mergers, consolidation or
  the sale of all or substantially all of our assets. The interests of our principal
  shareholders may differ from that of other shareholders, with the result that
  our principal shareholder may cause us to enter into transactions that may be
  not be viewed as favorable by our other shareholders.

We have not paid any dividends and there is no assurance
that we will pay dividends in the future.

Payment of dividends on our common stock is within the
discretion of the board of directors and will depend upon our future earnings,
our capital requirements, financial condition and other relevant factors. There
is no assurance that we will pay dividends in the future.

We may issue additional shares in the future and these sales
will result in dilution to our existing shareholders and may reduce the market
price of our shares

We will require additional financing in order to achieve our
acquisition strategy and to expand our business operations. We may determine to
offer additional shares in the future in order to achieve this financing. This
may include additional shares that we issue pursuant to any equity financing
completed by us. Any additional offering of shares will result in dilution of
the proportionate interests of our existing shareholders in the Company.
Further, any sales of additional shares by us or a public perception that such
an offering or such sales may occur, could have an adverse effect on the market
price of our shares.

For reasons outside our control, our stock price can be
volatile.

The market price of our common stock can be highly volatile and
fluctuate widely in price in response to various factors, many of which are
beyond our control, including:

- the success of our competitors in attracting the customers and business
  that we are targeting;
- additions or departures of key personnel;
- sales of our common stock;
- our ability to integrate operations, technology, products and services;

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- our ability to execute our business plan;
- operating results below expectations;
- loss of any strategic partner or relationship;
- industry developments;
- economic and other external factors; and
- period-to-period fluctuations in our financial results.

Because we have a limited operating history and have earned
minimal revenues to date, any one of these factors may have a material adverse
effect on our business, results of operations and financial condition. Our stock
price may fluctuate widely as a result of any of the above listed factors.

In addition, the securities markets have from time to time
experienced significant price and volume fluctuations that are unrelated to the
operating performance of particular companies. These market fluctuations may
also materially and adversely affect the market price of our common stock.

Sales of a substantial number of shares of our common stock
into the public market by our current shareholders who are eligible to sell in
reliance of Rule 144 may result in significant downward pressure on the price of
our common stock.

Many of our existing shareholders are presently entitled to
publicly resell their shares of our common stock that they have acquired from us
in resale transactions under Rule 144 of the Act. These shareholders include
those shareholders who acquired their shares prior to our acquisition of Bark
Corporation and the former shareholders of Bark Corporation who were issued
shares of our common stock upon completion of our acquisition of Bark
Corporation. These shareholders are no longer subject to any lock-up agreements.
Sales of a substantial number of shares of our common stock into the public
market by the selling shareholders pursuant to Rule 144 may result in
significant downward pressure on the price of our common stock. Further, if we
complete any additional sales of our equity securities, then resale of these
securities pursuant to Rule 144 could also result in significant downward
pressure on the price of our common stock. This downward pressure could result
in the market price of our common stock being depressed. Further, we are
planning to complete additional equity financings involving the issuance of
shares of our common stock. Sales by new investors in reliance of Rule 144 may
result in further downward pressure on the price of our common stock.

Since our shares became quoted on the OTC Bulletin Boards,
our common stock is subject to the Penny Stock rules of the SEC, which make
transactions in our common stock cumbersome and may reduce the value of an
investment in our common stock.

Our common stock is presently eligible for trading on the
Financial Industry Regulatory Authority Inc.s OTC Bulletin Board, which is
generally considered to be a less efficient market than markets such as NASDAQ
or other national exchanges, and which may cause difficulty in conducting trades
and obtaining future financing. Further, our securities are subject to the
penny stock rules adopted pursuant to Section 15(g) of the Exchange Act. The
penny stock rules apply generally to companies whose common stock trades at less
than $5.00 per share, subject to certain limited exemptions. Such rules require,
among other things, that brokers who trade penny stock to persons other than
established customers complete certain documentation, make suitability
inquiries of investors and provide investors with certain information concerning
trading in the security, including a risk disclosure document and quote
information under certain circumstances. Many brokers have decided not to trade
penny stock because of the requirements of the penny stock rules and, as a
result, the number of broker-dealers willing to act as market makers in such
securities is limited. In the event that we remain subject to the penny stock
rules for any significant period, there may develop an adverse impact on the
market, if any, for our securities. Because our securities are subject to the
penny stock rules, investors will find it more difficult to dispose of our
securities. Further, it is more difficult: (i) to obtain accurate quotations,
(ii) to obtain coverage for significant news events because major wire services,
such as the Dow Jones News Service, generally do not publish press releases
about such companies, and (iii) to obtain needed capital.

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Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds

Three Months Ended March 31, 2010

During the three months ended March 31, 2010, we have completed
the following issuances of securities without registration under the Act:

Anaconda:We completed the issuance of 14,000,000 shares
of our common stock which is based on a share price established via a fair value
report at $0.1488 per share in connection with our acquisition of a 51% interest
in Anaconda that was completed with economic effect on March 31, 2010. We relied
on Section 4(2) of the Act in completing the issuance of these shares based on
the fact that Bark Holding is controlled by two of our shareholders who each own
more than 10% of our outstanding shares. All certificates representing the
shares were endorsed with restrictive legends under the Act.

- Regulation S Share Subscriptions:We have completed the following
  sales of common stock in private placement transactions:

Date of Completion of Sale
    Number of Shares Sold
    Number of Investors
    Aggregate Consideration Paid
      by Investors
    Aggregate Commission Paid
      by CompanyJanuary 6, 2010
    386,847
    1
    $48,356
    -January 15, 2010
    400,000
    1
    $60,000
    -February 15, 2010
    1,616,660
    20
    $242,499
    $170,074February 15, 2010
    40,000
    1
    $5,000
    -


All private placement offerings of
shares (the Shares) were completed pursuant to and in accordance with Rule 903
of Regulation S of the Act. No commissions were paid in connection with the
completion of these offerings. We completed the offerings of the Shares pursuant
to Rule 903 of Regulation S of the Act on the basis that the sale of the Shares
was completed in an offshore transaction, as defined in Rule 902(h) of
Regulation S. We did not engage in any directed selling efforts, as defined in
Regulation S, in the United States in connection with the sale of the Shares.
Each investor represented to us that the investor was not a U.S. person, as
defined in Regulation S, and was not acquiring the Shares for the account or
benefit of a U.S. person. The subscription agreement executed between us and
each investor included statements that the securities had not been registered
pursuant to the Act and that the securities may not be offered or sold in the
United States unless the securities are registered under the Act or pursuant to
an exemption from the Act. Each investor agreed by execution of the subscription
agreement for the Shares: (i) to resell the securities purchased only in
accordance with the provisions of Regulation S, pursuant to registration under
the Act or pursuant to an exemption from registration under the Act; (ii) that
we are required to refuse to register any sale of the securities purchased
unless the transfer is in accordance with the provisions of Regulation S,
pursuant to registration under the Act or pursuant to an exemption from
registration under the Act; and (iii) not to engage in hedging transactions with
regards to the securities purchased unless in compliance with the Act. All
certificates representing the Shares were or upon issuance will be endorsed with
a restrictive legend confirming that the securities had been issued pursuant to
Regulation S of the Act and could not be resold without registration under the
Act or an applicable exemption from the registration requirements of the Act.

| |  | Convertible Loan:We obtained a short term loan
      from a private investor in the amount of DKK 1,000,000 ($186,000) on
      February 4, 2010 in order to fund working capital until additional capital
      could be raised. (See note 6) The loan matures on April 30, 2010 together
      with accrued interest of DKK 200,000 ($37,970). According to the loan
      agreement the holder has the right to convert the loan into shares of
      common stock at a price of $0.16 per share. Conversion will be contingent
      upon delivery of subscription agreements for the shares issuable which
      will include agreements regarding issuance of the stock in reliance of
      Rule 903 of Regulation S of the Act.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | Convertible Loan:We obtained a short term loan
      from a private investor in the amount of DKK 1,000,000 ($179,953) on March
      4, 2010 in order to fund working capital until additional capital could be
      raised. The loan matures on June 30, 2010 together with accrued interest
      of DKK 200,000 ($37,970). If the Company chooses not to repay the loan in
      cash the holder of the note is entitled to convert the note into shares of
      common stock at a total value of DKK 2,500,000 ($452,636). Conversion will
      be contingent upon delivery of subscription agreements for the shares
      issuable which will include agreements regarding issuance of the stock in
      reliance of Rule 903 of Regulation S of the Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | Secured Convertible Notes:Bark Group has issued
      an 8% secured convertible note of $80,000 on March 10, 2010. The Note
      bears interest at the rate of 8% per annum. And mature on December 9, 2010
      The Note are convertible into shares of common stock of the Company at a
      conversion price equal to the "market price" at the time of conversion,
      which "market price" will be calculated as the average of the three lowest
      "trading prices" for the Company's common stock during the ten day trading
      period prior to the date the conversion note is sent to the Company. The
      Note also provide for adjustment to the Conversion price in the event of
      certain dilutive issuances and in the event of specified corporate
      transactions. The Company paid a fee of $3,500 in connection with the sale
      of the Note. The Note were issued in reliance of Rule 506 of Regulation D
      based on the representation of the investor that it is an "accredited
      investor" under Rule 501(a) of the Securities Act of 1933, as amended (the
      1933 Act). The Note were endorsed with a legend confirming that they
      have been issued pursuant to an exemption from the registration
      requirements of the 1933 Act and may not be transferred in the absence of
      a registration statement under the 1933 Act or an exemption from the
      registration requirements of the 1933 Act. We issued a further 8% secured
      convertible note on similar terms in the principal amount of $40,000 for
      which proceeds were received after March 31, 2010.
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | Convertible Note Issued March 15, 2010:On March
      15, 2010, we issued a convertible promissory note to a European investor
      in the principal amount of $250,000. The principal amount under the
      promissory note will not bear interest and will be payable on the date
      which is twelve months from the date of the promissory note, being March
      11, 2011. The promissory note is immediately convertible shares of the
      Companys common stock at a conversion price equal to 85% of the market
      price of the Companys common stock at the time of conversion. Market
      price is calculated as the average of the three lowest trading prices
      during the ten trading day period ending one trading day prior to delivery
      of notice of conversion. Trading price means the closing bid price on the
      OTC BB. The promissory note has been issued with a legend confirming that
      the promissory note and the common shares issuable upon conversion have
      not been registered under the Act and cannot be transferred or sold in the
      absence of a registration statement under the Act or a further exemption
      from registration. The holder will be limited to convert no more than
      2.99% of the issued and outstanding common stock of the Company at time of
      conversion at any one time. The promissory note may not be prepared by the
      Company. The promissory note was issued pursuant to Rule 903 of Regulation
      S of the Act.                                                                                                             

Tre Kronor Media

Subsequent to March 31, 2010, we completed the issuance of an
aggregate of 35,000,000 shares of our common stock in connection with our
acquisition of Tre Kronor Media on May 4, 2010. We relied on Rule 903 of
Regulation S of the Act in completing the issuance of these shares based on the
fact that none of the shareholders of Tre Kronor Media are U.S. Persons and
all offers in connection with the acquisition of Tre Kronor Media were made
outside of the United States. All certificates representing the shares were
endorsed with restrictive legends under the Act.

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Item 5. Other information

We completed the acquisition of the issued and outstanding
shares of Tre Kronor Media AB, a Swedish company (Tre Kronor) on May 4, 2010,
as further disclosed in Item 2 of Part 1 of this quarterly report on Form 10-Q .
The Company filed a form 8-K describing the terms of the acquisition on May 10,
2010.

Based on Tre Kronors preliminary unaudited results, and prior
to recording any purchase accounting, Tre Kronors balance sheet as of April 30,
2010 combined with the Company's forecasts for 2010 is expected to increase the
Companys consolidated balance sheet by approximately $2.2 million of which
approximately $1.6 will consist of cash. Further, it is anticipated that the
acquisition, once Tre Kronor is fully integrated, will add approximately $20
million of revenue to the consolidated company on an annual basis. The Company
intends to file an amendment to the Form 8-K originally filed on May 10, 2010 on
or about June 30, 2010 which will include the requisite financial statements of
Tre Kronor and proforma financial information showing the effect of the
acquisition. The preceding statements constitute forward looking information and
should be read together with the Risk Factors identified in Item 1A of Part II
of this quarterly report on Form 10-Q and the disclosure regarding Forward
Looking Statements in Item 2 of Part I of this quarterly report on Form 10-Q.
There is no assurance that these projections, including projections as to
revenues, will be realized.

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Item 6. Exhibits.

|Exhibit No. | Description                                                    
|----------- | ---------------------------------------------------------------
|31.1        | Section 302 Certification
      of Principal Executive Officer*
|31.2        | Section 302 Certification
      of Principal Financial Officer*
|32.1        | Section 906 Certification
      of Principal Executive Officer*
|32.2        | Section 906 Certification
      of Principal Financial Officer*

* Filed as an exhibit hereto

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SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

|      |              |     | **BARK GROUP
      INC.**                                           
|----- | ------------ | --- | --------------------------------------------------------------------
|      |              |     |                                                                     
|Date: | May 20, 2010 | By: | /s/ Anders Peter Hageskov                                           
|      |              |     |                                                                     
|      |              |     | Anders Peter
      Hageskov                                         
|      |              |     | President and Chief Executive
      Officer                         
|      |              |     | (Principal Executive Officer)                                       
|      |              |     |                                                                     
|Date: | May 20, 2010 | By: | /s/ Ulrik Gerdes                                                    
|      |              |     |                                                                     
|      |              |     | Ulrik Gerdes                                                        
|      |              |     | Chief Financial
      Officer                                       
|      |              |     | (Principal Financial Officer and
      Principal Accounting Officer)

- 40 -

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EXHIBIT INDEX



|Exhibit No. | Description                                                    
|----------- | ---------------------------------------------------------------
|31.1        | Section 302 Certification
      of Principal Executive Officer*
|31.2        | Section 302 Certification
      of Principal Financial Officer*
|32.1        | Section 906 Certification
      of Principal Executive Officer*
|32.2        | Section 906 Certification
      of Principal Financial Officer*



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