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| Nevada                   |   | 61-1504884               |
|--------------------------|--------|--------------------------|
| (State of Incorporation) |   | (IRS Employer ID Number) |

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

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|                                                                                                                                                                                  | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I - FINANCIAL INFORMATION                                                                                                                                                        |   |
|                                                                                                                                                                                  |   |
| Item 1. Financial Statements                                                                                                                                                          |   |
|                                                                                                                                                                                  |   |
| Consolidated Balance Sheets –June 30, 2011 (Unaudited) and December 31, 2010                                                                                                    | F-1    |
|                                                                                                                                                                                  |   |
| Consolidated Statements of Operations (Unaudited) – Three months and Six months ended June 30, 2011 and 2010 and the period from July 5, 2006 (Inception) through June 30, 2011 | F-2    |
|                                                                                                                                                                                  |   |
| Consolidated Statements of Changes in Deficit (Unaudited) - From July 5, 2006 (Inception) through June 30, 2011                                                                       | F-3    |
|                                                                                                                                                                                  |   |
| Consolidated Statements of Cash Flows (Unaudited) - Six months ended June 30, 2011 and 2010 and the period from July 5, 2006 (Inception) through June 30, 2011                        | F-4    |
|                                                                                                                                                                                  |   |
| Notes to the Unaudited Financial Statements                                                                                                                                           | F-5    |
|                                                                                                                                                                                  |   |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                                         | 12     |
|                                                                                                                                                                                  |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk - Not Applicable                                                                                                   | 15     |
|                                                                                                                                                                                  |   |
| Item 4. Controls and Procedures                                                                                                                                                       | 16     |
|                                                                                                                                                                                  |   |
| PART II - OTHER INFORMATION                                                                                                                                                           |   |
|                                                                                                                                                                                  |   |
| Item 1. Legal Proceedings -Not Applicable                                                                                                                                             | 16     |
|                                                                                                                                                                                  |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                   | 16     |
|                                                                                                                                                                                  |   |
| Item 3. Defaults Upon Senior Securities - Not Applicable                                                                                                                              | 17     |
|                                                                                                                                                                                  |   |
| Item 4. Submission of Matters to a Vote of Security Holders - Not Applicable                                                                                                          | 17     |
|                                                                                                                                                                                  |   |
| Item 5. Other Information - Not Applicable                                                                                                                                            | 17     |
|                                                                                                                                                                                  |   |
| Item 6. Exhibits                                                                                                                                                                      | 17     |
|                                                                                                                                                                                  |   |
| SIGNATURES                                                                                                                                                                            | 18     |

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|                                                                                                                                                                          |   | June 30, |        |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                          |   | 2011          |        |   | 2010              |   |
|                                                                                                                                                                          |   | (Unaudited)   |        |   |              |   |
|                                                                                                                                                                          |   |          |        |   |              |   |
| ASSETS                                                                                                                                                                        |   |          |        |   |              |   |
|                                                                                                                                                                          |   |          |        |   |              |   |
| Current assets:                                                                                                                                                               |   |          |        |   |              |   |
| Cash                                                                                                                                                                          |   | $             | 1,858       |   |              | $      | 1,822 |   |
| Prepaid expenses                                                                                                                                                              |   |          | 2,499       |   |              |   | 2,193 |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total current assets                                                                                                                                                          |   |          | 4,357       |   |              |   | 4,015 |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Property and equipment, net                                                                                                                                                   |   |          | 499,328     |   |              |   | 504,026 |   |
| Intangible assets, net                                                                                                                                                        |   |          | 120,218     |   |              |   | 174,428 |   |
|                                                                                                                                                                          |   |          | 619,546     |   |              |   | 678,454 |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total assets                                                                                                                                                                  |   | $             | 623,903     |   |              | $      | 682,469 |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| LIABILITIES AND DEFICIT                                                                                                                                                       |   |          |        |   |              |   |   |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Current liabilities:                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Accounts payable                                                                                                                                                              |   | $             | 1,290,449   |   |              | $      | 1,164,827 |   |
| Accrued interest                                                                                                                                                              |   |          | 257,787     |   |              |   | 365,920 |   |
| Notes payable, net of discount of $59,565 (2011), $42,474 (2010)                                                                                                              |   |          | 1,068,936   |   |              |   | 1,329,526 |   |
| Derivative liabilities                                                                                                                                                        |   |          | 133,544     |   |              |   | 428,414 |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total liabilities (all current)                                                                                                                                               |   |          | 2,750,716   |   |              |   | 3,288,687 |   |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Deficit:                                                                                                                                                                      |   |          |        |   |              |   |   |   |
| China Wi-Max shareholders' deficit:                                                                                                                                           |   |          |        |   |              |   |   |   |
| Common stock; $.001 par value; 100,000,000 shares authorized; 52,248,927 and 37,813,042 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively |   |          | 52,249      |   |              |   | 37,813 |   |
| Additional paid-in capital                                                                                                                                                    |   |          | 8,796,955   |   |              |   | 7,820,089 |   |
| Accumulated other comprehensive income                                                                                                                                        |   |          | 63,572      |   |              |   | 53,525 |   |
| Deficit accumulated during the development stage                                                                                                                              |   |          | (10,995,994 | )      |              |   | (10,480,539 | ) |
| Total China Wi-Max  shareholders' deficit                                                                                                                           |   |          | (2,083,218  | )      |              |   | (2,569,112 | ) |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Noncontrolling interest                                                                                                                                                       |   |          | (43,595     | )      |              |   | (37,106 | ) |
| Total deficit                                                                                                                                                                 |   |          | (2,126,813  | )      |              |   | (2,606,218 | ) |
|                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total liabilities and deficit                                                                                                                                                 |   | $             | 623,903     |   |              | $      | 682,469 |   |

----

|                                                                                 |   |                         |       |   |          |   |       | Period from       |   |
|--------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|---------------|--------|------------|------------------------|--------|
|                                                                                 |   |                         |       |   |          |   |       | July 5, 2006 |   |
|                                                                                 |   |                         |       |   |          |   |       | (inception)            |   |
|                                                                                 |   | Three Months Ended |       |   | through       |   |
|                                                                                 |   | June 30,                |       |   | June 30, |   |       | June 30,          |   |
|                                                                                 |   | 2011                         |       |   | 2010          |   |       | 2011                   |   |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |
| Operating expenses:                                                                  |   |                         |       |   |          |   |       |                   |   |
| General and administrative expense                                                   |   | $                            | (200,136   | )      |          | $      | (432,991   | )                      |   | $ | (8,550,468 | ) |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Operating loss                                                                       |   |                         | (200,136   | )      |          |   | (432,991   | )                      |   |   | (8,550,468 | ) |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Other expense:                                                                       |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Interest expense                                                                     |   |                         | (80,817    | )      |          |   | (165,085   | )                      |   |   | (2,320,715 | ) |
| Loss on derivatives                                                                  |   |                         | (2,464     | )      |          |   | -          |                   |   |   | (168,407 | ) |
|                                                                                 |   |                         | (83,281    | )      |          |   | (165,085   | )                      |   |   | (2,489,122 | ) |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Net loss                                                                             |   |                         | (283,417   | )      |          |   | (598,076   | )                      |   |   | (11,039,590 | ) |
| Net loss attributable to the noncontrolling interest                                 |   |                         | (1,819     | )      |          |   | (4,265     | )                      |   |   | (43,595 | ) |
| Net loss attributable to China Wi-Max                                                |   |                         | (281,598   | )      |          |   | (593,811   | )                      |   |   | (10,995,995 | ) |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Foreign currency translation gain (loss)                                             |   |                         | 6,337      |   |          |   | (1,123     | )                      |   |   | 63,572 |   |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Comprehensive loss                                                                   |   | $                            | (277,080   | )      |          | $      | (599,199   | )                      |   | $ | (10,976,018 | ) |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Basic and diluted net loss per share attributable to China W-Max common shareholders |   | $                            | (0.01      | )      |          | $      | (0.04      | )                      |   |   |   |   |
|                                                                                 |   |                         |       |   |          |   |       |                   |   |   |   |   |
| Weighted average number of common shares outstanding                                 |   |                         | 46,632,106 |   |          |   | 16,373,938 |                   |   |   |   |   |

----

|                                                                                 |   |                       |       |   |          |   |       | Period from       |   |
|--------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|---------------|--------|------------|------------------------|--------|
|                                                                                 |   |                       |       |   |          |   |       | July 5, 2006 |   |
|                                                                                 |   |                       |       |   |          |   |       | (inception)            |   |
|                                                                                 |   | Six Months Ended |       |   | through       |   |
|                                                                                 |   | June 30,              |       |   | June 30, |   |       | June 30,          |   |
|                                                                                 |   | 2011                       |       |   | 2010          |   |       | 2011                   |   |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |
| Operating expenses:                                                                  |   |                       |       |   |          |   |       |                   |   |
| General and administrative expense                                                   |   | $                          | (397,134   | )      |          | $      | (2,127,441 | )                      |   | $ | (8,550,468 | ) |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Operating loss                                                                       |   |                       | (397,134   | )      |          |   | (2,127,441 | )                      |   |   | (8,550,468 | ) |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Other expense:                                                                       |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Interest expense                                                                     |   |                       | (169,194   | )      |          |   | (258,266   | )                      |   |   | (2,320,715 | ) |
| Gain (loss) on derivatives                                                           |   |                       | 44,384     |   |          |   | -          |                   |   |   | (168,407 | ) |
|                                                                                 |   |                       | (124,810   | )      |          |   | (258,266   | )                      |   |   | (2,489,122 | ) |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Net loss                                                                             |   |                       | (521,944   | )      |          |   | (2,385,707 | )                      |   |   | (11,039,590 | ) |
| Net loss attributable to the noncontrolling interest                                 |   |                       | (6,489     | )      |          |   | (19,856    | )                      |   |   | (43,595 | ) |
| Net loss attributable to China Wi-Max                                                |   |                       | (515,455   | )      |          |   | (2,365,851 | )                      |   |   | (10,995,995 | ) |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Foreign currency translation gain                                                    |   |                       | 10,047     |   |          |   | 911        |                   |   |   | 63,572 |   |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Comprehensive loss                                                                   |   | $                          | (511,897   | )      |          | $      | (2,384,796 | )                      |   | $ | (10,976,018 | ) |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Basic and diluted net loss per share attributable to China W-Max common shareholders |   | $                          | (0.01      | )      |          | $      | (0.15      | )                      |   |   |   |   |
|                                                                                 |   |                       |       |   |          |   |       |                   |   |   |   |   |
| Weighted average number of common shares outstanding                                 |   |                       | 44,544,035 |   |          |   | 15,601,408 |                   |   |   |   |   |

----

|                                                                                                           |   | China Wi-Max Shareholders |       |   |    |   |   |          |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|---------|--------|--------|---------------|--------|
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   | Accumulated |   |   | Deficit |   |   |   |   |   |   |   |
|                                                                                                                |   |                                |       |   |    |   |   | Additional    |   |   | other |   |   | accumulated |   |   |   |   |   | Total |   |
|                                                                                                                |   | Common stock                   |       |   | paid-in |   |   | comprehensive |   |   | during the |   |   | Noncontrolling |   |   | shareholders' |   |
|                                                                                                                |   | Shares                              |       |   | Amount  |   |   | capital       |   |   | income |   |   | development stage |   |   | Interest |   |   | deficit |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash between July 5, 2006 (inception) and December 31, 2006 at par value ($0.001 per share) |   |                                | 3,825,000  |   |    | $      | 3,825  |          |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 3,825 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                                |       |   |    |   |   |          |   |   | - |   |   |   | - |   |   |   | (8,538 | ) |   |   |   |   |   |   | (8,538 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2006                                                                                         |   |                                | 3,825,000  |   |    |   | 3,825  |          |   |   | - |   |   |   | - |   |   |   | (8,538 | ) |   |   | - |   |   |   | (4,713 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash between January and June 2007 at par value ($0.001 per share)                          |   |                                | 5,230,000  |   |    |   | 5,230  |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,230 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash between June and December 2007 at par value ($0.001 per share)                         |   |                                | 260,000    |   |    |   | 260    |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 260 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services, valued at $0.25 per share                                                         |   |                                | 455,000    |   |    |   | 455    |          |   |   | 113,295 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 113,750 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (444,590 | ) |   |   | - |   |   |   | (444,590 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2007                                                                                         |   |                                | 9,770,000  |   |    |   | 9,770  |          |   |   | 113,295 |   |   |   | - |   |   |   | (453,128 | ) |   |   | - |   |   |   | (330,063 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock cancelled at par value                                                                       |   |                                | (260,000   | )      |    |   | (260   | )             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (260 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services, valued at $0.25 per share                                                         |   |                                | 884,000    |   |    |   | 884    |          |   |   | 220,116 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 221,000 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest in December 2008, valued at $0.25 per share       |   |                                | 391,002    |   |    |   | 391    |          |   |   | 97,362 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 97,753 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vested during the period                                                                      |   |                                | -          |   |    |   | -      |          |   |   | 103,275 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 103,275 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (1,716,195 | ) |   |   | - |   |   |   | (1,716,195 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | 25,853 |   |   |   | - |   |   |   | - |   |   |   | 25,853 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2008                                                                                         |   |                                | 10,785,002 |   |    |   | 10,785 |          |   |   | 534,048 |   |   |   | 25,853 |   |   |   | (2,169,323 | ) |   |   | - |   |   |   | (1,598,637 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                                                    |   |                                | 1,900,000  |   |    |   | 1,900  |          |   |   | 473,100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 475,000 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest                                                   |   |                                | 1,969,002  |   |    |   | 1,969  |          |   |   | 549,422 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 551,391 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vesting during the period                                                                     |   |                                | -          |   |    |   | -      |          |   |   | 336,361 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 336,361 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (3,108,512 | ) |   |   | - |   |   |   | (3,108,512 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 125 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2009                                                                                         |   |                                | 14,654,004 |   |    |   | 14,654 |          |   |   | 1,892,931 |   |   |   | 25,978 |   |   |   | (5,277,835 | ) |   |   | - |   |   |   | (3,344,272 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                                                    |   |                                | 6,066,551  |   |    |   | 6,067  |          |   |   | 955,705 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 961,772 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest                                                   |   |                                | 16,832,487 |   |    |   | 16,832 |          |   |   | 3,914,964 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,931,796 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock and warrants issued to convertible note holders                                                        |   |                                | 260,000    |   |    |   | 260    |          |   |   | 104,978 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 105,238 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vesting during the period                                                                     |   |                                | -          |   |    |   | -      |          |   |   | 951,511 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 951,511 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (5,202,704 | ) |   |   | (37,106 | ) |   |   | (5,239,810 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | 27,547 |   |   |   | - |   |   |   | - |   |   |   | 27,547 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2010                                                                                         |   |                                | 37,813,042 |   |    |   | 37,813 |          |   |   | 7,820,089 |   |   |   | 53,525 |   |   |   | (10,480,539 | ) |   |   | (37,106 | ) |   |   | (2,606,218 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                                                    |   |                                | 1,000,000  |   |    |   | 1,000  |          |   |   | 19,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest                                                   |   |                                | 13,435,885 |   |    |   | 13,436 |          |   |   | 882,467 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 895,903 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed services                                                                                                |   |                                | -          |   |    |   | -      |          |   |   | 60,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vesting during the period                                                                     |   |                                | -          |   |    |   | -      |          |   |   | 15,399 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,399 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (515,455 | ) |   |   | (6,489 | ) |   |   | (521,944 | ) |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                                | -          |   |    |   | -      |          |   |   | - |   |   |   | 10,047 |   |   |   | - |   |   |   | - |   |   |   | 10,047 |   |
|                                                                                                                |   |                                |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, June 30, 2011                                                                                             |   |                                | 52,248,927 |   |    | $      | 52,249 |          |   | $ | 8,796,955 |   |   | $ | 63,572 |   |   | $ | (10,995,994 | ) |   | $ | (43,595 | ) |   | $ | (2,126,813 | ) |

----

|                                                                        |   |                       |     |   |                    |   |       | Period from        |   |
|-----------------------------------------------------------------------------|--------|----------------------------|----------|--------|-------------------------|--------|------------|-------------------------|--------|
|                                                                        |   |                       |     |   |                    |   |       | July 5, 2006  |   |
|                                                                        |   |                       |     |   |                    |   |       | (Inception)             |   |
|                                                                        |   | Six Months Ended |     |   | through                 |   |
|                                                                        |   | June 30, 2011    |     |   | June 30, 2010 |   |       | June 30, 2011 |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |
| Cash flows from operating activities:                                       |   |                       |     |   |                    |   |       |                    |   |
| Net loss                                                                    |   | $                          | (521,944 | )      |                    | $      | (2,385,707 | )                       |   | $ | (11,039,590 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Stock based compensation                                                    |   |                       | 35,399   |   |                    |   | 1,533,089  |                    |   |   | 3,233,831 |   |
| Amortization of debt issue costs                                            |   |                       | 89,993   |   |                    |   | 34,498     |                    |   |   | 159,469 |   |
| Contributed services                                                        |   |                       | 60,000   |   |                    |   |       |                    |   |   | 60,000 |   |
| (Gain)/loss on derivative                                                   |   |                       | (44,384  | )      |                    |   | -          |                    |   |   | 168,407 |   |
| Impairment loss                                                             |   |                       | 42,188   |   |                    |   | -          |                    |   |   | 173,438 |   |
| Depreciation                                                                |   |                       | 14,531   |   |                    |   | 13,851     |                    |   |   | 78,085 |   |
| Amortization                                                                |   |                       | 12,022   |   |                    |   | -          |                    |   |   | 37,671 |   |
| Changes in operating assets and liabilities:                                |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| (Increase)/decrease in prepaid expenses                                     |   |                       | (306     | )      |                    |   | 22,076     |                    |   |   | (2,501 | ) |
| Decrease in other assets                                                    |   |                       | -        |   |                    |   | -          |                    |   |   | 38,139 |   |
| Increase in accounts payable                                                |   |                       | 125,622  |   |                    |   | 298,915    |                    |   |   | 1,290,449 |   |
| Increase in accrued interest                                                |   |                       | 71,702   |   |                    |   | 181,768    |                    |   |   | 2,107,468 |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Net cash used in operating activities                                       |   |                       | (115,177 | )      |                    |   | (301,510   | )                       |   |   | (3,695,134 | ) |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Cash flows from investing activities:                                       |   |                       |     |   |                    |   |       |                    |   |   |   |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Purchase of property and equipment                                          |   |                       | -        |   |                    |   | -          |                    |   |   | (521,329 | ) |
| Purchase of intangible assets                                               |   |                       | -        |   |                    |   | -          |                    |   |   | (364,195 | ) |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Net cash used in investing activities                                       |   |                       | -        |   |                    |   | -          |                    |   |   | (885,524 | ) |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Cash flows from financing activities:                                       |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Proceeds from issuance of notes payable and warrants                        |   |                       | 133,500  |   |                    |   | 268,500    |                    |   |   | 4,634,744 |   |
| Debt repayment                                                              |   |                       | (18,500  | )      |                    |   | -          |                    |   |   | (63,500 | ) |
| Proceeds from issuance of common stock                                      |   |                       | -        |   |                    |   | -          |                    |   |   | 9,055 |   |
| Debt issue costs                                                            |   |                       | -        |   |                    |   | -          |                    |   |   | (5,270 | ) |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Net cash provided by financing activities                                   |   |                       | 115,000  |   |                    |   | 268,500    |                    |   |   | 4,575,029 |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Effect of exchange rate changes on cash                                     |   |                       | 213      |   |                    |   | (1,206     | )                       |   |   | 7,487 |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Net increase(decrease) in cash                                              |   |                       | 36       |   |                    |   | (34,216    | )                       |   |   | 1,858 |   |
| Cash, beginning of period                                                   |   |                       | 1,822    |   |                    |   | 34,524     |                    |   |   | - |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Cash, end of period                                                         |   | $                          | 1,858    |   |                    | $      | 308        |                    |   | $ | 1,858 |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Supplemental disclosure of non-cash investing and financing activities:     |   |                       |     |   |                    |   |       |                    |   |   |   |   |
|                                                                        |   |                       |     |   |                    |   |       |                    |   |   |   |   |
| Convertible notes and interest converted to common stock                    |   | $                          | 895,903  |   |                    | $      | 69,914     |                    |   | $ | 5,476,843 |   |

----

----

----

----

|                          |   | June 30, 2011 |    |   | December 31, 2010 |   |
|-------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                          |   |          |    |   |              |   |
| Fiber optic cable             |   | $             | 537,281 |   |              | $      | 526,847 |   |
| Network equipment             |   |          | 38,765  |   |              |   | 38,012 |   |
| Computer equipment            |   |          | 4,000   |   |              |   | 4,000 |   |
|                          |   |          | 580,046 |   |              |   | 568,859 |   |
| Less accumulated depreciation |   |          | (80,718 | )      |              |   | (64,833 | ) |
|                          |   | $             | 499,328 |   |              | $      | 504,026 |   |

----

|                                                                                                                                                                                                    |   |   |   |   | June 30, 2011 |      |   | December 31,2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------------|-----------|--------|------------------|--------|
| 12%, unsecured, convertible notes, originally due June 30, 2010 and prior; convertible at $0.19 to $0.25 per share, due on demand                                                                       |   |   |   |   | $             | 205,000   |   |             | $      | 205,000 |   |
|                                                                                                                                                                                                    |   |   |   |   |          |      |   |             |   |   |   |
| 10%, unsecured, convertible notes, note holder notice of conversion at $0.07 per share on December 31, 2010; shares issued during quarter ended June 30, 2011                                           |   |   |   |   |          | -         |   |             |   | 295,000 |   |
|                                                                                                                                                                                                    |   |   |   |   |          |      |   |             |   |   |   |
| 10%, unsecured, convertible notes, due prior to and as of December 31, 2010; convertible at $0.50 per share, due on demand                                                                              |   |   |   |   |          | 735,000   |   |             |   | 735,000 |   |
|                                                                                                                                                                                                    |   |   |   |   |          |      |   |             |   |   |   |
| 10%, unsecured, convertible note, due December 31, 2011; convertible at 80% of the 10-day average trading price during the previous 10 days immediately prior to conversion, net of discount of $11,280 |   |   |   |   |          | 13,720    |   |             |   | 2,930 |   |
|                                                                                                                                                                                                    |   |   |   |   |          |      |   |             |   |   |   |
| 8%, unsecured, convertible notes,  net of discount of $48,285                                                                                                                                 |   | [A]    |   |   |          | 63,216    |   |             |   | 39,596 |   |
|                                                                                                                                                                                                    |   |   |   |   |          |      |   |             |   |   |   |
| Other unsecured notes from a related party shareholder, non-interest bearing, due on demand                                                                                                             |   | [B]    |   |   |          | 52,000    |   |             |   | 52,000 |   |
|                                                                                                                                                                                                    |   |   |   |   |          |      |   |             |   |   |   |
| Total notes payable (all current)                                                                                                                                                                       |   |   |   |   | $             | 1,068,936 |   |             | $      | 1,329,526 |   |

----

----

|                 |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |
|----------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|
|                 |   |    |    |   |    |   |    |    |   |   |   |   |
| Derivative liability |   |    | — |   |    | $      | 133,544 |    |   |   | — |   |

----

| Expected term           | 1 to 9 months |
|-------------------------|---------------|
| Volatility              | 226% -384%    |
| Risk-free interest rate | 0.03%-0.1%    |
| Dividend yield          | 0%            |

|                         |   |      |      |   | Weighted |   | Weighted    |
|------------------------------|--------|-----------|-----------|--------|----------|--------|-------------|
|                         |   |      |      |   | Average  |   | Average     |
|                         |   | Number of |      |   | Exercise |   | Contractual |
|                         |   | Options   |      |   | Price    |   | Life        |
|                         |   |      |      |   |     |   |        |
| Outstanding, January 1, 2011 |   |      | 9,700,000 |   |     | $      | 0.32        |   |   |
| Granted during period        |   |      | -         |   |     |   | -           |   |   |
| Outstanding, June 30, 2011   |   |      | 9,700,000 |   |     | $      | 0.32        |   | 2.8 Years |
|                         |   |      |      |   |     |   |        |   |   |
| Exercisable at June 30, 2011 |   |      | 6,200,000 |   |     | $      | 0.46        |   | 3.0 Years |

|                        |   |      |      |   | Weighted Average |   |
|-----------------------------|--------|-----------|-----------|--------|------------------|--------|
|                        |   | Number of |      |   | Grant Date       |   |
|                        |   | Options   |      |   | Fair Value       |   |
|                        |   |      |      |   |             |   |
| Non-vested                  |   |      |      |   |             |   |
| January 1, 2011             |   |      | 3,600,000 |   |             | $      | 0.18 |   |
| Granted                     |   |      | -         |   |             |   | - |   |
| Vested                      |   |      | (100,000  | )      |             | $      | (0.22 | ) |
| Non-vested at June 30, 2011 |   |      | 3,500,000 |   |             | $      | 0.18 |   |

----

----

----

----

----

----

| DATE OFSALE |   | TITLE OFSECURITIES |   |   | CONSIDERATION                      |   | CLASS OFPURCHASER |
|------------------|--------|-------------------------|--------|--------|------------------------------------|--------|------------------------|
| 1/3/2011         |   | Common stock            |   | $      | 32,500 Convertible Promissory Note |   | Business Associate     |
| 1/24/2011        |   | Common stock            |   | $      | 25,000 Convertible Promissory Note |   | Business Associate     |
| 3/7/2011         |   | Common stock            |   | $      | 25,000 Convertible Promissory Note |   | Business Associate     |
| 5/4/2011         |   | Common stock            |   | $      | 32,500 Convertible Promissory Note |   | Business Associate     |

----

----

|                   | CHINA WI-MAX COMMUNICATIONS, INC. |
|------------------------|-----------------------------------|
|                   | (Registrant)                      |
|                   |                              |   |
| Dated: August 22, 2011 | By:                               | /s/ Steve T. Berman |
|                   | Steven Berman                     |
|                   | President                         |
|                   |                              |   |
| Dated: August 22, 2011 | By:                               | /s/ Frank Ventura |
|                   | Frank Ventura,                    |
|                   | Chief Financial Officer           |

----